Protestors who are in Seoul to take aim the G-20 summit, and the globalist conspiracy that it represents to some of them, may take heart in the fact that little seems to have been accomplished at the summit. What good are smoke filled back rooms and private meetings among the world’s most powerful people if nothing is done?
The United States had called for China to ends its practice of devaluing its own currency to boost exports, however, given that China holds a large chunk of American debt-and increasing economic clout-no deals were made. Similar American criticism for Germany was also brushed aside.
While the global economic recession has brought policymakers around the world together to make coordinated decisions to benefit everybody, over the past six months discord and dissent has trumped any efforts for nations to solidify behind a single economic plan. Much of this disharmony began in May of this year when David Cameron was became Britain’s prime minister. His fiscally conservative government has gone on a cost-cutting spree that hasn’t even spare the royal family.
Similar plans to cut the federal government’s budget deficit were recently leaked to the media by a presidential commission, and they were immediately condemed by House Speaker Nancy Pelosi as being, “simply unacceptable.”
President Obama himself has publicly denounced Britain’s austerity measures, despite a mounting deficit in the United States. And recently the US Treasury bought up about $600 billion in Treasury bonds, a move which was viewed with hostility by countries such as China and Germany, as a means to devalue the dollar.
However, given the divisions between the United States and allies in Europe, this G-20 has more or less become an exercise in opposition to the United States.
But what does this mean for the economic recovery? In the end the damage done by the appearance of lack of global leadership on economic issues may outweigh anything gained by confronting China on a long standing trade deficit. Likely the economic recovery will be quite sluggish in the United States over the next couple years.