Merkel Kills Global New Deal

[Rael]

GORDON BROWN’S carefully laid plans for a G20 deal on worldwide tax cuts have been scuppered by an eve-of-summit ambush by European leaders.

Angela Merkel, the German chancellor, last night led the assault on the prime minister’s “global new deal” for a $2 trillion-plus fiscal stimulus to end the recession.

“I will not let anyone tell me that we must spend more money,” she said.

The Spanish finance minister, Pedro Solbes, also dismissed new cash being pledged at Thursday’s London summit.
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“In these conditions I and the rest of my colleagues from the eurozone believe there is no room for new fiscal stimulus plans,” he said.

Nicolas Sarkozy, the French president, has insisted that “radical reform” of capitalism is more important than tax cutting.

The attacks on Brown’s ambitions for the G20 to inject more money into the world economy come at the end of a week where the prime minister has travelled to three continents to build support for his proposals.

The likely deadlock at this week’s meeting will kill any remaining hope that Alistair Darling’s April 22 budget will offer significant tax cuts.

The assault by European Union leaders also represents a defeat for President Barack Obama, who is desperate for other big economies to copy his $800 billion stimulus plan.

“There will be a very long communiqué, but there won’t be much in it,” said a Washington economist.

Adding to the disarray, a draft of the agreement Brown hopes to secure was leaked to a German news magazine, prompting suggestions of “dirty tricks” by Berlin.

The draft stated that Britain wanted a “$2 trillion” global fiscal stimulus. However, the figure appeared only in brackets, indicating agreement on the package had yet to be reached.

The stimulus would boost world growth by 2% and employment by 19m, the draft said. The rest of the document was mainly general pledges.

“We believe that an open world economy, based on the principles of the market, effective regulation and strong global institutions, can ensure sustainable globalisation with rising well-being for all,” it said.

A No 10 source expressed “disappointment” at the leak and insisted the $2 trillion figure was not new money but an expression of the total tax and spending packages already pledged by G20 members.

Privately, government officials admit that no further fiscal stimulus will be announced this week, although there will be a $250 billion package for the International Monetary Fund to help rescue struggling poor nations.

Lord Mandelson, the business secretary, said he sympathised with the concerns of demonstrators planning to disrupt the London summit. “There is understandable frustration and some anger. The global economic systems has stalled and what we have got to do is get it started.”

George Osborne, the shadow chancellor, yesterday warned Brown against further tax cuts in the budget. “When it comes to your plans for a second fiscal stimulus, I say this Gordon Brown: enough is enough,” he said in a speech. “We will not let you play roulette with the public finances yet again.”

UK officials have not given up on the idea there could be agreement on a fresh boost for the world economy later in the year. “It is likely that there will be another heads of government meeting probably in Asia in the autumn,” said an official.

“This will be the forum where the next round of stimulus will be discussed.”

Brown still hopes to establish the IMF as an informal referee for international tax cuts. The plan is that the Washington-based body could advise on the timing of any future cuts.

Merkel’s criticism drew an angry response from Labour MPs. Denis MacShane, the former Europe minister, said: “Who does Mrs Merkel think is going to buy Mercedes and BMWs if she . . . says putting demand into the economy is a bad thing?” Another Labour MP said: “One has to ask who had something to gain from the leak of the communiqué. This feels like a dirty trick.”

There are growing fears that protests at the summit venue, the ExCeL centre in London’s Docklands could be marred by violence. Scotland Yard will be deploying specialist officers trained to use 50,000-volt Taser stun guns.

[FrankRep]

Brown snubbed over tax
Germans wreck ‘global new deal’

Times Online UK
March 29, 2009


GORDON BROWN’S carefully laid plans for a G20 deal on worldwide tax cuts have been scuppered by an eve-of-summit ambush by European leaders.

Angela Merkel, the German chancellor, last night led the assault on the prime minister’s “global new deal” for a $2 trillion-plus fiscal stimulus to end the recession.

“I will not let anyone tell me that we must spend more money,” she said.

The Spanish finance minister, Pedro Solbes, also dismissed new cash being pledged at Thursday’s London summit.

“In these conditions I and the rest of my colleagues from the eurozone believe there is no room for new fiscal stimulus plans,” he said.

Nicolas Sarkozy, the French president, has insisted that “radical reform” of capitalism is more important than tax cutting.

The attacks on Brown’s ambitions for the G20 to inject more money into the world economy come at the end of a week where the prime minister has travelled to three continents to build support for his proposals.

The likely deadlock at this week’s meeting will kill any remaining hope that Alistair Darling’s April 22 budget will offer significant tax cuts.

The assault by European Union leaders also represents a defeat for President Barack Obama, who is desperate for other big economies to copy his $800 billion stimulus plan.

“There will be a very long communiqué, but there won’t be much in it,” said a Washington economist.

Adding to the disarray, a draft of the agreement Brown hopes to secure was leaked to a German news magazine, prompting suggestions of “dirty tricks” by Berlin.

The draft stated that Britain wanted a “$2 trillion” global fiscal stimulus. However, the figure appeared only in brackets, indicating agreement on the package had yet to be reached.

The stimulus would boost world growth by 2% and employment by 19m, the draft said. The rest of the document was mainly general pledges.

“We believe that an open world economy, based on the principles of the market, effective regulation and strong global institutions, can ensure sustainable globalisation with rising well-being for all,” it said.

A No 10 source expressed “disappointment” at the leak and insisted the $2 trillion figure was not new money but an expression of the total tax and spending packages already pledged by G20 members.

Privately, government officials admit that no further fiscal stimulus will be announced this week, although there will be a $250 billion package for the International Monetary Fund to help rescue struggling poor nations.

Lord Mandelson, the business secretary, said he sympathised with the concerns of demonstrators planning to disrupt the London summit. “There is understandable frustration and some anger. The global economic systems has stalled and what we have got to do is get it started.”

George Osborne, the shadow chancellor, yesterday warned Brown against further tax cuts in the budget. “When it comes to your plans for a second fiscal stimulus, I say this Gordon Brown: enough is enough,” he said in a speech. “We will not let you play roulette with the public finances yet again.”

UK officials have not given up on the idea there could be agreement on a fresh boost for the world economy later in the year. “It is likely that there will be another heads of government meeting probably in Asia in the autumn,” said an official.

“This will be the forum where the next round of stimulus will be discussed.”

Brown still hopes to establish the IMF as an informal referee for international tax cuts. The plan is that the Washington-based body could advise on the timing of any future cuts.

Merkel’s criticism drew an angry response from Labour MPs. Denis MacShane, the former Europe minister, said: “Who does Mrs Merkel think is going to buy Mercedes and BMWs if she . . . says putting demand into the economy is a bad thing?” Another Labour MP said: “One has to ask who had something to gain from the leak of the communiqué. This feels like a dirty trick.”

There are growing fears that protests at the summit venue, the ExCeL centre in London’s Docklands could be marred by violence. Scotland Yard will be deploying specialist officers trained to use 50,000-volt Taser stun guns.


SOURCE:
http://www.timesonline.co.uk/tol/news/politics/G20/article5993184.ece

[FrankRep]

G20 summit: blow for Gordon Brown as £1.4 trillion spending blueprint is leaked

Gordon Brown's preparations for this week's G20 summit in London got off to a bad start last night when a British blueprint for a £1.4 trillion worldwide spending boost was leaked.

Telegraph UK

http://www.telegraph.co.uk/finance/financetopics/g20-summit/5067296/G20-summit-blow-for-Gordon-Brown-as-1.4-trillion-spending-blueprint-is-leaked.html

[Bruno]

this means hope

[wgadget]

http://www.timesonline.co.uk/tol/news/politics/G20/article5993184.ece

[rpfan2008]

Angela Merkel is one of the most honest politicians around.

[ChooseLiberty]

She never liked Bush junior, so she must be honest.


Angela Merkel is one of the most honest politicians around.

[hugolp]

Angela Merkel is one of the most honest politicians around.

She is not honest. Germany is not interested in price inflation for three reasons:

- Germany had hyperinflation 80 years ago, and his population is very aware of it, it went into the social subsconcious. People wont be happy if high inflation kicks in (americans wont like it neither but I think most people is clueless about it right now). Instead germans will understand working hard to get out of the recession (wich is actually the only way to get out).

- Germany is a lender country. It is not interested in price inflation because that way the debt other countries own Germany will become worthless.

- Germany is a competitive economy despite his high wages prices, so it does not need to devaluate his currency.

[Cowlesy]

She is not honest. Germany is not interested in price inflation for three reasons:

- Germany had hyperinflation 80 years ago, and his population is very aware of it, it went into the social subsconcious. People wont be happy if high inflation kicks in (americans wont like it neither but I think most people is clueless about it right now). Instead germans will understand working hard to get out of the recession (wich is actually the only way to get out).

- Germany is a lender country. It is not interested in price inflation because that way the debt other countries own Germany will become worthless.

- Germany is a competitive economy despite his high wages prices, so it does not need to devaluate his currency.

Germany has the euro. They're going to sink with the rest of them.

[hugolp]

Germany has the euro. They're going to sink with the rest of them.

Germany IS the euro. Germany de facto controls the ECB.

And dont trust all the info you are being fed about the euro being so bad. Europe is not in its greates shape ever, but US and UK are making a campaing against the euro to keep the dollar up, and most of the propaganda they use its not true, its just propaganda.

[hugolp]

this means hope

As I posted in the economic section, this is not hope and Merkel is not specially honest. Germany is not interested in price inflation that would come from bailouts being monetize for three reasons:

- Germany had hyperinflation 80 years ago, and his population is very aware of it, it went into the social subsconcious. People wont be happy if high inflation kicks in (americans wont like it neither but I think most people is clueless about it right now). Instead germans will understand working hard to get out of the recession (wich is actually the only way to get out).

- Germany is a lender country. It is not interested in price inflation because that way the debt other countries own Germany will become worthless.

- Germany is a competitive economy despite his high wages prices, so it does not need to devaluate his currency.

[Bern]

Damn good news!

[Zuras]

As I posted in the economic section, this is not hope and Merkel is not specially honest.

What the hell do you mean by it's not hope? Germany is the most powerful and respected member of the EU. This bleakly portends any such "new deal" if they are not all in.

[fj45lvr]

well let's just say it's not going to UNanimous and happen immeadiately.


I wouldn't count out the men behind the curtain that have a lot of different resources and various MEANS to work their will on folks.

[tremendoustie]

Go Merkel! Go Merkel! Gooooo Merkel!!

Gimme an M!


Has anyone else noticed that Ex totalitarian states tend to be the strongest bulwarks against the next effort towards totalitarianism?

[hugolp]

What the hell do you mean by it's not hope? Germany is the most powerful and respected member of the EU. This bleakly portends any such "new deal" if they are not all in.

Germany is not only the most powerful member of the EU. Germany controls the EU. Germany is the ECB.

And probably I did not expresed myself properly. What I meant is that Germany is just doing this out of interest (wich is completely fine), not on base of some ideological or long term strategy position.

[Zuras]

Why is she not honest? Why do we care what her/Germany's reason is? Why should we care about your speculation on either?

[paulim]

Germany is not only the most powerful member of the EU. Germany controls the EU. Germany is the ECB.

There you carry it too far. Germany gives the money for the EU. But she gets nothing in return. A sovereign state wouldn't do that. Please don't exaggerate.

[hugolp]

There you carry it too far. Germany gives the money for the EU. But she gets nothing in return. A sovereign state wouldn't do that. Please don't exaggerate.

I live in Europe and I can tell you that the Germany goverment is the one ruling the EU and specially ruling the ECB (wich at the end is the most important part). I am not saying they necesarely do in the benefit of their people, but they do. And you have to think that Germany's economy is based on exporting high quality goods. They dont have the cheapest prices arround, and they have a high wages work force. So having the whole EU to export their goods to its interesting for them.

[jrich4rpaul]

Source: http://www.timesonline.co.uk/tol/news/politics/G20/article5993184.ece

[paulim]

I live in Europe and I can tell you that the Germany goverment is the one ruling the EU and specially ruling the ECB (wich at the end is the most important part). I am not saying they necesarely do in the benefit of their people, but they do. And you have to think that Germany's economy is based on exporting high quality goods. They dont have the cheapest prices arround, and they have a high wages work force. So having the whole EU to export their goods to its interesting for them.

You said several times that you are from spain, that alone doesn't necessarily provide you with a better insight.
If many people buy german high-priced goods, these consumers must have a reason for that. Maybe its cheaper if they last longer, etc...
So what has the EU to do with consumer behavior. The people who are buying now, would buy anyway. Surely you want to justify NAFTA (etc...) next!?

[hugolp]

You said several times that you are from spain, that alone doesn't necessarily provide you with a better insight.
If many people buy german high-priced goods, these consumers must have a reason for that. Maybe its cheaper if they last longer, etc...
So what has the EU to do with consumer behavior. The people who are buying now, would buy anyway. Surely you want to justify NAFTA (etc...) next!?

Stop speaking nonsense and speculating about what I would support. I am explaining you why Germany its interested in the EU going forward, and why Germany has been giving economical help to the poorer countries of the EU (Spain included). Its because they want a market for their goods. And I also told you that the German model is based in quality and not in price so they need to secure a "rich" market.

All the news that are talking about the ECB and the actions it may take all talk about what the German goverment is saying, and it is because Germany de facto controls the ECB. Before it was France and Germany, but France has gone some steps back, and now Germany is the one controlling the ECB. If you hear Germany something about the ECB you can be sure that is what is going to happen.

[sarahgop]

we must pray obama and his global crusade is stopped by merkel.

[PatriotOne]

Angela Merkel against the NWO? Ha! That's really funny. Don't delude yourselves. It's nothing more than infighting of the globalists as to who gets more control/power in the NWO.

[steph3n]

Germany is not only the most powerful member of the EU. Germany controls the EU. Germany is the ECB.

And probably I did not expresed myself properly. What I meant is that Germany is just doing this out of interest (wich is completely fine), not on base of some ideological or long term strategy position.

I wish our own leaders would do what is best for our country too....but they wont.

[PatriotOne]

Global currency justs needs a little more work.....they are NOT against it :rolleyes:.

New reserve currency idea needs work-German minister

http://www.reuters.com/article/usDollarRpt/idUSN2754209520090327

By Louis Charbonneau

NEW YORK, March 27 (Reuters) - Proposals for creating a new global reserve currency to replace the U.S. dollar are gathering momentum but need further examination, Germany's development minister said on Friday.

Heidemarie Wieczorek-Zeul, Germany's minister for economic cooperation and development, is a member of a panel of experts established by U.N. General Assembly President Miguel d'Escoto Brockmann to analyze the global financial crisis and recommend reforms.

One of the recommendations in an 18-page report the panel issued this week is to create a new reserve currency system based on the International Monetary Fund's Special Drawing Rights, or SDRs, to replace the U.S. dollar as the top reserve unit, an idea China supports.

Wieczorek-Zeul said the idea, which the panel's chairman, Nobel Prize-winning economist Joseph Stiglitz, staunchly supports, needed further development.

"This is one of the long-term issues," she told reporters. "But it's clear that even though it's a long-term issue, it has acquired a certain momentum now that countries have spoken positively of it, such as China."

"I'm absolutely certain that we will need further work on this from Stiglitz," Wieczorek-Zeul said. "We'll need to discuss not only the timeframe, but also in what steps it could be could be achievable."

Stiglitz told reporters on Thursday that a global reserve system based on SDRs could be phased in over the next 12 months, though he said it was unlikely to happen that fast. He also said the specifics of a new system still needed to be worked out. For details, see [ID:nN26504037].

Asked about Stiglitz's remarks, a top U.N. official on Friday also spoke in favor of scrapping the single-currency reserve system.

"We really need a system where a national issuer of currency does not have the added responsibility of providing global currency," Jomo Kwame Sundaram, U.N. assistant secretary-general for economic development, told reporters.

Russia earlier this month proposed creating a new reserve currency, to be issued by international financial institutions. This week, China outlined how SDRs could take over the dollar's role as the global reserve unit. [ID:nPEK257817].

On Wednesday, U.S. Treasury Secretary Timothy Geithner said the dollar would remain the top reserve currency but expressed openness to the expanded use of SDRs. [ID:nN26446657]

The reserve currency topic is expected to come up at next Thursday's London summit meeting of the Group of 20 major developed and developing nations on the financial crisis.

The report by the U.N. panel said an SDR-based system "could contribute to global stability, economic strength, and global equity." It also said that such a system would be "feasible, non-inflationary, and could be easily implemented." (Editing by Neil Stempleman)

[paulim]

Stop speaking nonsense and speculating about what I would support. I am explaining you why Germany its interested in the EU going forward, and why Germany has been giving economical help to the poorer countries of the EU (Spain included). Its because they want a market for their goods. And I also told you that the German model is based in quality and not in price so they need to secure a "rich" market.

Please my friend, I do not feel enlightened. I offer goods someone else wants. He has no money. I say graciously, 'Oh here take my money, its a gift'. Now you can pay my goods. Thats not exactly how the free market works.

German taxpayers don't realize uptodate that their goods are paid partially with their own money... and you tell me thats smart :eek:

[silverhawks]

Go Merkel! Go Merkel! Gooooo Merkel!!

Gimme an M!


Has anyone else noticed that Ex totalitarian states tend to be the strongest bulwarks against the next effort towards totalitarianism?

Actually that was my first thought.

Though it does look from a certain perspective that there's a lot of infighting going on in multiple governments at the moment.