Law enforcement personnel patrol near the site of the G20 Pittsburgh summit. (Eric Thayer/Reuters)(picture-cbc.ca)
G-20 POLICE,MILITARY ENFORCERS WHO USED DEAFENING AND THREATS AND TEARGAS TACTICS AGAINST PROTESTERS.
Binyamin Netanyahu holds up copies of Nazi plans for the Holocaust at the UN general assembly. Photograph: Michael Nagle/Getty(guardian.uk)
FED EXIT STRATEGY
http://www.cnbc.com/id/15840232?video=1275306609&play=1
http://www.cnbc.com/id/15840232?video=1275304005&play=1
BRAZILS PRESIDENT LULA
http://www.cnbc.com/id/15840232?video=1275290932&play=1
http://www.cnbc.com/id/15840232?video=1274996769&play=1
TRADING THE GLOBE
http://www.cnbc.com/id/15840232?video=1275155649&play=1
http://www.cnbc.com/id/15840232?video=1275127653&play=1
BANKING ON FINANCIALS
http://www.cnbc.com/id/15840232?video=1275113166&play=1
http://www.cnbc.com/id/15840232?video=1275084597&play=1
http://www.cnbc.com/id/15840232?video=1275059708&play=1
GREENPEACE AT G-20
http://www.youtube.com/watch?v=KNVkmpkPSDg&feature=player_embedded
STRAUSS-KAHN ON G-20
http://www.ft.com/cms/1644d08e-f450-11dc-aaad-0000779fd2ac.html?_i_referralObject=9950318&fromSearch=n
BREAKING NEWS AS OF 8:30AM THE G-20 WILL BE THE MAIN ECOMONY POLICE AS IT WILL PHASE OUT THE G-8 AS THE MAIN GLOBAL POLICEMAN.AND IRAN HAS A 2ND HIDDEN PLANT THAT ITS MAKING NUCLEAR WEAPONS.ISRAEL AND JOHN BOLTON WERE RIGHT ALL ALONG.FOR PEOPLE DECIEVED TO BELIEVE THAT IRAN WAS NEVER MAKING NUKES.......WELL YOU HAVE BEEN TOLD TRUTH NOW.....LIVE WITH IT AND BOMB IRANS NUCLEAR SITES NOW OR THE WORLD AND ISRAEL ARE IN DEEP TROUBLE.AHMADINEJAD HAS FINALLY ADMITTED THEY HAVE A 2ND NUKE PLANT.CBC IS OPENINGLY SAYING THIS G-20 WILL BE LEADING TO A NEW WORLD ORDER,ONE WORLD GOVERNMENT,ITS HERE FOLKS JUST LIKE JESUS TOLD US IT WOULD BE.PROPHECY COMING TO PASS QUICKLY AND TIMELY.
RED ALERT-THE MEDIA IS USING THE IRAN NUCLEAR SITE STORY TO DISTRACT FROM THE MAIN STORY OF THE G-20 BRINGING ABOUT A NEW WORLD ORDER,ONE WORLD GOVERNMENT.
HERES HOW THEY WANT TO GIVE VACCINE SHOTS
PARENTS-1 H1N1-1 FLU.
CHILDREN 11 AND UP-1 H1N1-1 FLU.
CHILD UNDER 10-2 H1N1-1 FLU.
THERE TRYING TO DESTROY THE CHILDREN FIRST UNDER 10 GIVING THEM 3 SHOTS.
New World Order (ONE WORLD GOVERNMENT) Emerging At G-20 Summit SEPT 25,09The family photo from the second day of the G-20 summit in Pittsburgh
September 25, 2009.
PITTSBURGH -- A new world order is emerging at the G-20 Summit in Pittsburgh with a decision by the group to become the premier coordinating body on economic issues.A joint communique was expected to show that emerging countries like China and India will be given more of a voice in how the global economy is run.G-20 leaders were also pledging to leave in place for now emergency measures taken last spring that have brought signs of global economic recovery, and to act as one to prevent a repeat of the financial meltdown.A copy of the draft document, which was obtained by Reuters, said in part: We pledge to avoid destabilizing booms and busts in asset and credit prices and adopt macro-economic policies, consistent with price stability that will promote adequate and balanced global demand.The draft also contains a promise to make decisive progress on structural reforms that foster private demand and strengthen long-run growth potential.Briefing reporters, U.S. Treasury Secretary Timothy Geithner said the group would not leave the status quo unchanged.We are not going to walk away from the greatest economic crisis since the Great Depression and leave unchanged and leave in place the tragic vulnerabilities that caused this crisis,Geithner said.And we have worked very hard at a very early stage in this process, in this administration, to build consensus on a very strong set of international standards for reform.He added that the United States aims to preserve confidence in the U.S. financial system and keep the dollar strong.
We have a special responsibility here in the United States to make sure that we are doing the things in this country to preserve confidence in the U.S. financial system,Geithner said,confidence that is important to sustain the dollar's role as the principle reserve currency in the international financial system and we expect, as I think countries around the world expect, the dollar to retain that position for a very long time.U.S. President Barack Obama was attending plenary sessions in the morning and afternoon and hosting a working lunch. He was expected to hold a press conference near the close of the summit to lay out the group's final agreements.
Curbing Excesses?
Leaders were still discussing how to ensure that the nascent global recovery sustains its momentum and trying to agree on tougher rules for international financial institutions aimed at preventing another financial crisis.Among those rules are limits on banker pay -- an issue that's popular among the public in countries that have given government bail out funds to faltering banks. German Chancellor Angela Merkel and French President Nicholas Sarkozy have pushed hard on the issue of limiting the highest salaries and bonuses.The draft communique appeared to show that the G-20 will do this through a range of options -- including giving companies the power to retract bonus pay if performance doesn't merit it, and capping rewards if the level of reserve funds falls too low.The part of the communique that deals with compensation said that reforming compensation policies and practices is an essential part of our effort to increase financial stability.It added: If we all act together, financial institutions will have stricter rules for risk taking, governance that aligns compensation with long-term performance, and greater transparency in their operations.
Range Of Issues-Environment advocates were likely to come away from the summit empty handed, as a U.S.-led effort to get leaders to stop giving subsidies to fossil-fuel industries failed to translate into a deadline for action.Leaders only agreed to do something in the medium term.The G-20 has also agreed to make the International Monetary Fund (IMF) a more representative body by increasing the voting power of countries that have long been underrepresented.The decisions reflect the recognition by the United States and Europe of a new global economic reality in which emerging market economies play a bigger role, especially in the aftermath of the global financial crisis that hurt developed economies more than developing ones.On international trade, the agreement includes a plan to ask the World Bank to create a multilateral trust fund aimed at increasing the agricultural investment in poor countries.The joint statement read: Over 4 billion people remain under-educated, ill-equipped with capital and technology and insufficiently integrated into the global economy. We need to work together to make the policy and institutional changes needed to accelerate the convergence of living standards and productivity in developing and emerging economies to the levels of the advanced economies.
Attracting Protests
The question of how much wealthy states do to help poorer ones is what attracts thousands of protesters to G-20 and G8 summits, and this one was no exception.After a day of peaceful protests well outside the massive security perimeter that police and National Guard troops have erected around the downtown meeting venues, marches turned violent Thursday evening and overnight.A group of protesters trying to breach the roadblocks were stopped by police in riot gear and on horseback who used rubber bullets and tear gas to push the marchers back.The Pittsburgh G-20 Resistance Project targeted around 80 local businesses that it said symbolize greed and global economic policies, including a dozen or so close to the David L. Lawrence Convention Center, where world economic leaders were meeting.In another part of the city near the University of Pittsburgh, an overnight protest saw a handful of businesses -- including a McDonald's and a Subway sandwich shop -- vandalized.
Police reported arresting around 60 people.Today a local peace organization called The Thomas Merton Center will hold a People's March and rally near a city government building.The march had a city permit and organizers pledged to keep it nonviolent.
Obama to Usher In New World Order at G-20-President will announce Friday morning a significant expansion of the consortium of countries that tackles global economic and climate change issues.By Kelly Chernenkoff FOXNews.com Friday, September 25, 2009
In a surprising late-night twist on the eve of the G-20 Summit in Pittsburgh, FOX News has learned President Obama will announce Friday morning a significant expansion of the consortium of countries that tackles global economic and climate change issues.Obama will tell reporters that the G-20, comprised of 19 industrial and emerging-market countries plus the European Union, will supplant the smaller Group of Eight nations, G-8, as the go-to group for solving the world's economic ills.This decision brings to the table the countries needed to build a stronger, more balanced global economy, reform the financial system, and lift the lives of the poorest,the White House said in a statement.The G8 will retain its national security focus, but be replaced by the broader G-20 on the issues of climate change, financial regulatory reform and global imbalances.President Obama pressed for the change at the last G-8 Summit in Italy, expressing his displeasure at the unwieldy array of G-8 meeting variations.Obama said,There is no doubt that we have to update and refresh and renew the international institutions that were set up in a different time and place. What I've noticed is everybody wants the smallest possible group, the smallest possible organization, that includes them. So, if they're the 21st largest nation in the world, they want the G-21, and think it's highly unfair if they have been cut out.
Though the news itself was an unexpected turn, the reasoning behind it was written in the tea leaves Thursday when Treasury Secretary Tim Geithner sang the praises of broadened global cooperation; making special note of the strides China, a non-G-8 country, has made in financial reforms. The more inclusive approach will allow countries such as Brazil, China, and India, who have griped about not being part of the G-8, to now have a bigger stake in strengthening global cooperation and economic stability. President Obama also supported their inclusion, noting fewer meetings would be more effective.The G-20 started ten years ago as a group of Finance Ministers and Central Bank Governors from industrialized and developing economies, but has involved Heads of State Summits, such as the one taking place Friday.The G-8's members are Canada, France, Germany, Italy, Japan, Russia, the United Kingdom and the United States. The European Commission attends as well.
Greater role for emerging powers SEPT 25,09
The G20 will now take the lead in reforming the global economy -The G20 group of leading and emerging economies is to take on a new role as a permanent body co-ordinating the world economy, a White House statement said.It will take on the role previously carried out by the developed powerhouses of the G8 group.The G20 is meeting in the US city of Pittsburgh for a two-day summit. EU officials also announced a deal to shift the balance of voting in the International Monetary Fund (IMF) towards growing nations such as China.But there will be no formal announcement that the G20 will replace the G8 until 2011, said the BBC's economics editor Stephanie Flanders. The leaders would have liked formally to announce the handover today in Pittsburgh, but the Canadians - who are chairing the G8 next year - kicked up such a fuss that they had to fudge it,she said.There will now be a G20 meeting on the sidelines of Canada's G8 Summit next June, where most of the economic business of the day will be discussed. But, formally at least, the economic side of the G8 will live on another year.
WHAT IS THE G20?
Set up after the Asian financial crisis in 1999 as a forum for finance ministers and central bankers.First G20 leaders summit in 2008 to discuss response to economic crisis.Members are: Argentina, Australia, Brazil, Canada, China, EU, France, Germany, India, Indonesia, Italy, Japan, Mexico, Russia, Saudi Arabia, South Africa, South Korea, Turkey, UK, USA Joined by Spain, Netherlands, International Monetary Fund and World Trade Organisation
Distrust
The IMF has 186 member-states. It lends money to countries that are facing problems, but in return economic changes have to be made by those countries. Currently, China wields 3.7% of IMF votes compared with France's 4.9%, although the Chinese economy is now 50% larger than that of France.But the G20 will not reveal specific details of how the balance of power at the IMF will change, only a high level aspiration to transfer 5% of the votes from the old world to the new world, said Ms Flanders. The IMF has been criticised in the past as being a group of developed countries trying to lay down the law to struggling, developing countries, which is why the decision to give growing nations more votes is important.If you talk to the Chinese or talk to anyone from emerging markets they say the IMF doesn't have legitimacy and... we don't trust the IMF to come and rescue us in a crisis,Simon Johnson, former chief economist at the IMF told the BBC. They don't trust it because it's US and West Europe-dominated. That's not fair... and the IMF doesn't function properly as a result.Nobel prize-winning Economist Amartya Sen welcomed the change in voting rights, but said that,on their own, they won't be able to achieve much... It's not just a question of voting rights, but also a question of broadening the dialogue.
Reports also suggest that the US is seeking a reduction in the number of seats on the IMF board from 24 to 20, which could mean the UK and France lose their seats.
New systems
UK Prime Minister Gordon Brown hailed the agreements that will be announced at the end of the summit.The old systems of international economic cooperation are over, new systems... have begun,he told a news conference.I believe that is a very important development that will reassure people that the world economy will be better prepared for all future events and will work in harmony to create the jobs and growth and prosperity that is needed for the future.He said that the eventual communique would include the following agreements:
-The action taken at the London summit worked in avoiding a depression
-The G20 will be the premier organisation for dealing with issues of economic management
-It will agree that a growth strategy is needed and it is too early to remove stimulus measures
-The G20 will also act as an early-warning system to prevent a future crisis
-The rules on bankers' remuneration will be tougher than had been expected.
A White House statement announced the new role for the G20.
REVELATION 6:1-2
1 And I saw when the Lamb opened one of the seals, and I heard, as it were the noise of thunder, one of the four beasts saying, Come and see.
2 And I saw, and behold a white horse:(PEACE) and he that sat on him had a bow;(EU DICTATOR) and a crown was given unto him:(PRESIDENT OF THE EU) and he went forth conquering, and to conquer.(MILITARY GENIUS)
The G20 leaders reached a historic agreement to put the G20 at the centre of their efforts to work together to build a durable recovery while avoiding the financial fragilities that led to the crisis, it said. Today, leaders endorsed the G20 as the premier forum for their international economic cooperation.US Treasury Secretary Timothy Geithner said G20 countries had reached a consensus on the basic outline of a proposal to limit pay and bonuses by the end of 2009.Each country would set their own standards, he said, but that these would be overseen by the G20's Financial Stability Board - made up of central bankers and regulators.But there are G20 members that would like to see the agreement going further.
SNAP ANALYSIS: New world economic order takes shape at G20
Fri Sep 25, 2009 5:20am EDTBy Lesley Wroughton
PITTSBURGH (Reuters) - The Group of 20 is set to become the premier coordinating body on global economic issues, reflecting a new world economic order in which emerging market countries like China are much more relevant, according to a draft communique.Leaders of the G20 developed and developing nations also agreed to make the International Monetary Fund more representative by increasing the voting power of countries that have long been under-represented in the world financial body, said the draft G20 communique obtained by Reuters.It called for a shift in IMF voting by at least 5 percent, although several G20 representatives said it was a 5 percentage point shift from developed to under-represented countries. Currently, the split in voting power is 57 percent for industrialized countries and 43 percent for developing countries. The shift would make the split nearly 50-50.The G20 was formed in 1999 for finance ministers and central bank chiefs following the Asian financial crisis. The idea was to help the G7 -- the United States, Germany, Britain, France, Italy, Canada and Japan -- talk with the wider world.
Following are some of the implications of the decisions:The shifts reflect a recognition by the United States and Europe of a new global economic reality in which emerging market economies play a bigger role, especially in the aftermath of the global financial crisis that hurt developed economies more than developing ones.
-By making the G20 the new global economic coordinator, countries are committing to maintaining cooperation even after the global financial upheaval and recession recede. The G20 was upgraded from a ministerial to a leaders-level forum only last year as the crisis deepened.
-Adopting the G20 as the new economic steering committee raises questions over the whether or not the Group of Eight, which makes up the world's industrial countries, will eventually be faded out. Diplomats said the G8 would continue to function but would focus on non-economic issues.
-The agreements are big wins for U.S. President Barack Obama, hosting his first international summit. Since his election last year, he has pushed for changes in the global financial architecture to recognize the increasing economic clout of China and other emerging markets.
The agreement to overhaul the IMF's voting structure is especially big for the new Obama administration, given that the United States proposed the 5 percentage point shift. The speed with which the G20 agreed to the change -- if the draft communique is eventually adopted -- is surprising because of the politically sensitive nature of the issue for Europe, which will see the biggest dilution in its voting power.
-Giving developing nations more say at the IMF and a bigger say in global economic affairs could help Obama succeed in his push to get big exporters like China to increase domestic demand, helping slower-growing economies like the United States to find new markets.
-The shift of at least 5 percentage points in voting power is the largest increase ever seen in the IMF's voting structure and is likely to see China overtake old European powers Britain and France which have long resisted the move.
-The G20 decision on IMF voting reform will give momentum to a 2011 deadline for overhauling IMF governance which will then be voted on by the IMF's 186 member countries.
-The G20 also agreed the head of the IMF should be selected based on qualifications and not nationality, according to the draft communique obtained by Reuters. The decision is significant because the head of the IMF has always been a European, while the president of the World Bank has always been an American.(Reporting by Lesley Wroughton, Editing by Frances Kerry).
G-20 Makes Six Pledges Toward New World Order.
In a press conference after the plenary session the British PM Gordon Brown read the communique of the G-20 leaders where the heads of the states have agreed to make six pledges to improve the world economy and emerge a new world order.Brown says that the world leaders have pledged to take global actions together and that a consensus is reached. One trillion dollars will be made available through the International Monetary Fund to boost the world economy.G-20 will take essential actions to rebuild confidence and trust in the financial system. There are no quick fixes, but the leaders pledge to act together to work things out.The leaders will regulate credit rating agencies so they provide better pictures of economies and companies around the world helping investors to make wiser decisions. The leaders will end tax heavens and will bring end to banking secrecy.Banking secrecy must come to end, says Gordon Brown. Tough standards and sanctions will be taken against those who don't come to light in the future.IMF and the world bank will have a major role to play in the new world order and in the rebuilding of the world economies. IMF will provide the early warning mechanisms in the future.G-20 leaders have agreed to implement new rules on executive pay and bonuses. The countries will encourage corporate responsibility.
Cleaning the Banks
G-20 takes action toward cleaning the banks and make them to act more responsibly.
G-20 pledges to restore global growth and hasten recovery to combat unemployment. These actions will create confidence. IMF is called to monitor their progress and warn when needed.Leaders pledge to stengthen the independence of international financial and economic institutions. The pledge also includes giving emerging markets and developing markets greater responsibilies. The heads of the international institutions should be named based on merit.The G-20 leaders pledge to kick start the international trade. Successful and growing international trade will boost global economy substantially. 250 billion will be provided in the next 2 years to aid this this goal. However, it was not clear if it will be in dollars or British Pounds.The G-20 leaders pledge to make this global recovery fair and sustainable. There will be no walking away from the world's poorest. 50 billion will go to the poorest countries. Again from PM's speech it was not clear in what currency.G-20 decided to meet later this year to measure the progress. The venue is not clear yet, but will be announced within few days. Today's decisions will not immediately solve the crisis, but the process has begun and this is a start.The most important thing is that the largest countries in the world have agreed on a plan to aid the global economy. This G-20 will provide the biggest increase in resources in the history of the international institutions.Gordon Brown made a very important announcement noting that I think a New World order is emerging.The leaders expect it to be more sustainable and more open and more fairer global society.In regard to the question about the international currency Brown said "we are reviewing the future of IM and WB and their role in the future. Issues about international currencies have not lead to detailed reports and proposals. Yes we will look at any proposal that comes forward. Right now the goal is to build confidence and recover.
G-20 Leaders' Statement About Achievements.Downing Street 10 just published the Statement of the G-20 London Summit – Leaders’ Statement issued by the G20 leaders, 2April 2009.
1. We, the Leaders of the Group of Twenty, met in London on 2 April 2009.
2. We face the greatest challenge to the world economy in modern times; a crisis which has deepened since we last met, which affects the lives of women, men, and children in every country, and which all countries must join together to resolve. A global crisis requires a global solution.
3. We start from the belief that prosperity is indivisible; that growth, to be sustained, has to be shared; and that our global plan for recovery must have at its heart the needs and jobs of hard-working families, not just in developed countries but in emerging markets and the poorest countries of the world too; and must reflect the interests, not just of today’s population, but of future generations too. We believe that the only sure foundation for sustainable globalisation and rising prosperity for all is an open world economy based on market principles, effective regulation, and strong global institutions.
4. We have today therefore pledged to do whatever is necessary to:
-restore confidence, growth, and jobs;
-repair the financial system to restore lending;
-strengthen financial regulation to rebuild trust;
-fund and reform our international financial institutions to overcome this crisis and prevent future ones;
-promote global trade and investment and reject protectionism, to underpin prosperity; and
-build an inclusive, green, and sustainable recovery.
By acting together to fulfil these pledges we will bring the world economy out of recession and prevent a crisis like this from recurring in the future.
5. The agreements we have reached today, to treble resources available to the IMF to $750 billion, to support a new SDR allocation of $250 billion, to support at least $100 billion of additional lending by the MDBs, to ensure $250 billion of support for trade finance, and to use the additional resources from agreed IMF gold sales for concessional finance for the poorest countries, constitute an additional $1.1 trillion programme of support to restore credit, growth and jobs in the world economy. Together with the measures we have each taken nationally, this constitutes a global plan for recovery on an unprecedented scale.
Restoring growth and jobs
6. We are undertaking an unprecedented and concerted fiscal expansion, which will save or create millions of jobs which would otherwise have been destroyed, and that will, by the end of next year, amount to $5 trillion, raise output by 4 per cent, and accelerate the transition to a green economy. We are committed to deliver the scale of sustained fiscal effort necessary to restore growth.
7. Our central banks have also taken exceptional action. Interest rates have been cut aggressively in most countries, and our central banks have pledged to maintain expansionary policies for as long as needed and to use the full range of monetary policy instruments, including unconventional instruments, consistent with price stability.
8. Our actions to restore growth cannot be effective until we restore domestic lending and international capital flows. We have provided significant and comprehensive support to our banking systems to provide liquidity, recapitalise financial institutions, and address decisively the problem of impaired assets. We are committed to take all necessary actions to restore the normal flow of credit through the financial system and ensure the soundness of systemically important institutions, implementing our policies in line with the agreed G20 framework for restoring lending and repairing the financial sector.
9. Taken together, these actions will constitute the largest fiscal and monetary stimulus and the most comprehensive support programme for the financial sector in modern times. Acting together strengthens the impact and the exceptional policy actions announced so far must be implemented without delay. Today, we have further agreed over $1 trillion of additional resources for the world economy through our international financial institutions and trade finance.
10. Last month the IMF estimated that world growth in real terms would resume and rise to over 2 percent by the end of 2010. We are confident that the actions we have agreed today, and our unshakeable commitment to work together to restore growth and jobs, while preserving long-term fiscal sustainability, will accelerate the return to trend growth. We commit today to taking whatever action is necessary to secure that outcome, and we call on the IMF to assess regularly the actions taken and the global actions required.
11. We are resolved to ensure long-term fiscal sustainability and price stability and will put in place credible exit strategies from the measures that need to be taken now to support the financial sector and restore global demand. We are convinced that by implementing our agreed policies we will limit the longer-term costs to our economies, thereby reducing the scale of the fiscal consolidation necessary over the longer term.
12. We will conduct all our economic policies cooperatively and responsibly with regard to the impact on other countries and will refrain from competitive devaluation of our currencies and promote a stable and well-functioning international monetary system. We will support, now and in the future, to candid, even-handed, and independent IMF surveillance of our economies and financial sectors, of the impact of our policies on others, and of risks facing the global economy.
Strengthening financial supervision and regulation
13. Major failures in the financial sector and in financial regulation and supervision were fundamental causes of the crisis. Confidence will not be restored until we rebuild trust in our financial system. We will take action to build a stronger, more globally consistent, supervisory and regulatory framework for the future financial sector, which will support sustainable global growth and serve the needs of business and citizens.
14. We each agree to ensure our domestic regulatory systems are strong. But we also agree to establish the much greater consistency and systematic cooperation between countries, and the framework of internationally agreed high standards, that a global financial system requires. Strengthened regulation and supervision must promote propriety, integrity and transparency; guard against risk across the financial system; dampen rather than amplify the financial and economic cycle; reduce reliance on inappropriately risky sources of financing; and discourage excessive risk-taking. Regulators and supervisors must protect consumers and investors, support market discipline, avoid adverse impacts on other countries, reduce the scope for regulatory arbitrage, support competition and dynamism, and keep pace with innovation in the marketplace.
15. To this end we are implementing the Action Plan agreed at our last meeting, as set out in the attached progress report. We have today also issued a Declaration, Strengthening the Financial System. In particular we agree:
-to establish a new Financial Stability Board (FSB) with a strengthened mandate, as a successor to the Financial Stability Forum (FSF), including all G20 countries, FSF members, Spain, and the European Commission;
-that the FSB should collaborate with the IMF to provide early warning of macroeconomic and financial risks and the actions needed to address them;
-to reshape our regulatory systems so that our authorities are able to identify and take account of macro-prudential risks;
-to extend regulation and oversight to all systemically important financial institutions, instruments and markets. This will include, for the first time, systemically important hedge funds;
-to endorse and implement the FSF’s tough new principles on pay and compensation and to support sustainable compensation schemes and the corporate social responsibility of all firms;
-to take action, once recovery is assured, to improve the quality, quantity, and international consistency of capital in the banking system. In future, regulation must prevent excessive leverage and require buffers of resources to be built up in good times;
-to take action against non-cooperative jurisdictions, including tax havens. We stand ready to deploy sanctions to protect our public finances and financial systems. The era of banking secrecy is over. We note that the OECD has today published a list of countries assessed by the Global Forum against the international standard for exchange of tax information;
-to call on the accounting standard setters to work urgently with supervisors and regulators to improve standards on valuation and provisioning and achieve a single set of high-quality global accounting standards; and
-to extend regulatory oversight and registration to Credit Rating Agencies to ensure they meet the international code of good practice, particularly to prevent unacceptable conflicts of interest.
16. We instruct our Finance Ministers to complete the implementation of these decisions in line with the timetable set out in the Action Plan. We have asked the FSB and the IMF to monitor progress, working with the Financial Action Taskforce and other relevant bodies, and to provide a report to the next meeting of our Finance Ministers in Scotland in November.
Strengthening our global financial institutions
17. Emerging markets and developing countries, which have been the engine of recent world growth, are also now facing challenges which are adding to the current downturn in the global economy. It is imperative for global confidence and economic recovery that capital continues to flow to them. This will require a substantial strengthening of the international financial institutions, particularly the IMF. We have therefore agreed today to make available an additional $850 billion of resources through the global financial institutions to support growth in emerging market and developing countries by helping to finance counter-cyclical spending, bank recapitalisation, infrastructure, trade finance, balance of payments support, debt rollover, and social support. To this end:
-we have agreed to increase the resources available to the IMF through immediate financing from members of $250 billion, subsequently incorporated into an expanded and more flexible New Arrangements to Borrow, increased by up to $500 billion, and to consider market borrowing if necessary; and
-we support a substantial increase in lending of at least $100 billion by the Multilateral Development Banks (MDBs), including to low income countries, and ensure that all MDBs, including have the appropriate capital.
18. It is essential that these resources can be used effectively and flexibly to support growth. We welcome in this respect the progress made by the IMF with its new Flexible Credit Line (FCL) and its reformed lending and conditionality framework which will enable the IMF to ensure that its facilities address effectively the underlying causes of countries’ balance of payments financing needs, particularly the withdrawal of external capital flows to the banking and corporate sectors. We support Mexico’s decision to seek an FCL arrangement.
19. We have agreed to support a general SDR allocation which will inject $250 billion into the world economy and increase global liquidity, and urgent ratification of the Fourth Amendment.
20. In order for our financial institutions to help manage the crisis and prevent future crises we must strengthen their longer term relevance, effectiveness and legitimacy. So alongside the significant increase in resources agreed today we are determined to reform and modernise the international financial institutions to ensure they can assist members and shareholders effectively in the new challenges they face. We will reform their mandates, scope and governance to reflect changes in the world economy and the new challenges of globalisation, and that emerging and developing economies, including the poorest, must have greater voice and representation. This must be accompanied by action to increase the credibility and accountability of the institutions through better strategic oversight and decision making. To this end:
-we commit to implementing the package of IMF quota and voice reforms agreed in April 2008 and call on the IMF to complete the next review of quotas by January 2011;
-we agree that, alongside this, consideration should be given to greater involvement of the Fund’s Governors in providing strategic direction to the IMF and increasing its accountability;
-we commit to implementing the World Bank reforms agreed in October 2008. We look forward to further recommendations, at the next meetings, on voice and representation reforms on an accelerated timescale, to be agreed by the 2010 Spring Meetings;
-we agree that the heads and senior leadership of the international financial institutions should be appointed through an open, transparent, and merit-based selection process; and
-building on the current reviews of the IMF and World Bank we asked the Chairman, working with the G20 Finance Ministers, to consult widely in an inclusive process and report back to the next meeting with proposals for further reforms to improve the responsiveness and adaptability of the IFIs.
21. In addition to reforming our international financial institutions for the new challenges of globalisation we agreed on the desirability of a new global consensus on the key values and principles that will promote sustainable economic activity. We support discussion on such a charter for sustainable economic activity with a view to further discussion at our next meeting. We take note of the work started in other fora in this regard and look forward to further discussion of this charter for sustainable economic activity.
Resisting protectionism and promoting global trade and investment
22. World trade growth has underpinned rising prosperity for half a century. But it is now falling for the first time in 25 years. Falling demand is exacerbated by growing protectionist pressures and a withdrawal of trade credit. Reinvigorating world trade and investment is essential for restoring global growth. We will not repeat the historic mistakes of protectionism of previous eras. To this end:
-we reaffirm the commitment made in Washington: to refrain from raising new barriers to investment or to trade in goods and services, imposing new export restrictions, or implementing World Trade Organisation (WTO) inconsistent measures to stimulate exports. In addition we will rectify promptly any such measures. We extend this pledge to the end of 2010;
-we will minimise any negative impact on trade and investment of our domestic policy actions including fiscal policy and action in support of the financial sector. We will not retreat into financial protectionism, particularly measures that constrain worldwide capital flows, especially to developing countries;
-we will notify promptly the WTO of any such measures and we call on the WTO, together with other international bodies, within their respective mandates, to monitor and report publicly on our adherence to these undertakings on a quarterly basis;
-we will take, at the same time, whatever steps we can to promote and facilitate trade and investment; and
-we will ensure availability of at least $250 billion over the next two years to support trade finance through our export credit and investment agencies and through the MDBs. We also ask our regulators to make use of available flexibility in capital requirements for trade finance.
23. We remain committed to reaching an ambitious and balanced conclusion to the Doha Development Round, which is urgently needed. This could boost the global economy by at least $150 billion per annum. To achieve this we are committed to building on the progress already made, including with regard to modalities.
24. We will give renewed focus and political attention to this critical issue in the coming period and will use our continuing work and all international meetings that are relevant to drive progress.
Ensuring a fair and sustainable recovery for all
25. We are determined not only to restore growth but to lay the foundation for a fair and sustainable world economy. We recognise that the current crisis has a disproportionate impact on the vulnerable in the poorest countries and recognise our collective responsibility to mitigate the social impact of the crisis to minimise long-lasting damage to global potential. To this end:
-we reaffirm our historic commitment to meeting the Millennium Development Goals and to achieving our respective ODA pledges, including commitments on Aid for Trade, debt relief, and the Gleneagles commitments, especially to sub-Saharan Africa;
-the actions and decisions we have taken today will provide $50 billion to support social protection, boost trade and safeguard development in low income countries, as part of the significant increase in crisis support for these and other developing countries and emerging markets;
-we are making available resources for social protection for the poorest countries, including through investing in long-term food security and through voluntary bilateral contributions to the World Bank’s Vulnerability Framework, including the Infrastructure Crisis Facility, and the Rapid Social Response Fund;
-we have committed, consistent with the new income model, that additional resources from agreed sales of IMF gold will be used, together with surplus income, to provide $6 billion additional concessional and flexible finance for the poorest countries over the next 2 to 3 years. We call on the IMF to come forward with concrete proposals at the Spring Meetings;
-we have agreed to review the flexibility of the Debt Sustainability Framework and call on the IMF and World Bank to report to the IMFC and Development Committee at the Annual Meetings; and
-we call on the UN, working with other global institutions, to establish an effective mechanism to monitor the impact of the crisis on the poorest and most vulnerable.
26. We recognise the human dimension to the crisis. We commit to support those affected by the crisis by creating employment opportunities and through income support measures. We will build a fair and family-friendly labour market for both women and men. We therefore welcome the reports of the London Jobs Conference and the Rome Social Summit and the key principles they proposed. We will support employment by stimulating growth, investing in education and training, and through active labour market policies, focusing on the most vulnerable. We call upon the ILO, working with other relevant organisations, to assess the actions taken and those required for the future.
27. We agreed to make the best possible use of investment funded by fiscal stimulus programmes towards the goal of building a resilient, sustainable, and green recovery. We will make the transition towards clean, innovative, resource efficient, low carbon technologies and infrastructure. We encourage the MDBs to contribute fully to the achievement of this objective. We will identify and work together on further measures to build sustainable economies.
28. We reaffirm our commitment to address the threat of irreversible climate change, based on the principle of common but differentiated responsibilities, and to reach agreement at the UN Climate Change conference in Copenhagen in December 2009.
Delivering our commitments
29. We have committed ourselves to work together with urgency and determination to translate these words into action. We agreed to meet again before the end of this year to review progress on our commitments.
Obama: Iran must open secret nuclear facility By BEN FELLER and GEORGE JAHN, Associated Press Writers – SEPT 25,09
PITTSBURGH – President Barack Obama and the leaders of France and Britain will demand Friday that Iran open to international inspectors a secret nuclear facility it has tried to hide from the world for years, a senior White House official told The Associated Press.The three leaders — Obama, British Prime Minister Gordon Brown and French President Nicolas Sarkozy — will open the G-20 economic summit with their demand that Tehran allow the International Atomic Energy Agency to inspect the facility for producing nuclear fuel, officials said.Iran has kept the facility, 100 miles southwest of Tehran, hidden from weapons inspectors, but the U.S. has long known of its existence, the official said. Obama decided to go public with the revelation after Iran learned that Western intelligence agencies were aware of the project.The officials spoke on grounds of anonymity because Obama's announcement was still pending.Meanwhile, a diplomat in Vienna and another European government official told The Associated Press on Friday that Tehran has informed the IAEA of a previously undeclared uranium enriching facility.The officials, who spoke on the condition of anonymity because the information was confidential, said Iran revealed its existence in a letter sent Monday to Mohamed ElBaradei, the head of the atomic energy agency.Iran's president, Mahmoud Ahmadinejad, made no mention of the facility this week while attending the U.N. General Assembly in New York, but said that his country had fully cooperated with international nuclear inspectors.Administration officials said the disclosure would make it easier to make the case for imposing sanctions if Iran blocks inspections or refuses to quit its nuclear program.
Iran is under three sets of U.N. Security Council sanctions for refusing to freeze enrichment at what had been its single known enrichment plant, which is being monitored by the IAEA.The officials in Europe said Iran's letter contained no details about the location of the second facility, when — or if — it had started operations or the type and number of centrifuges it was running.But one of the officials, who had access to a review of Western intelligence on the issue, said it was about 100 miles southwest of Tehran and was the site of 3,000 centrifuges that could be operational by next year.Iranian semiofficial new agency ISNA on Friday confirmed reports on the country's second enrichment plant.Iranian officials had previously acknowledged having only one plant — which is under IAEA monitoring — and had denied allegations of undeclared nuclear activities.An August IAEA report said Iran had set up more than 8,000 centrifuges to produce enriched uranium at its underground facility outside the southern city of Natanz. The report said that only about 4,600 centrifuges were fully active.Iran says it has the right to enrich uranium for a nationwide chain of nuclear reactors. But because enrichment can also produce weapons-grade uranium, the international community fears Tehran will make fissile material for nuclear warheads.The revelation of a secret plant further hinders the chances of progress in scheduled Oct. 1 talks between Iran and six world powers.Jahn contributed to this report from Vienna.
G-20 leaders push global economic reforms Friday By MARTIN CRUTSINGER, AP Economics Writer - SEPT 25,09
PITTSBURGH – Leaders of the world's major economies are coming together on reforms to rein in huge bank bonuses, toughen financial regulations and guard against the dangerous imbalances that contributed to the worst global downturn since the 1930s.In the process, the Group of 20 countries decided they will serve as the board of directors on decisions for the global economy, taking over a role performed for more than three decades by a smaller group of wealthy nations.President Barack Obama initiated the move to transfer the responsibilities of economic coordination from the Group of Eight major developed countries — the United States, Japan, Germany, France, Britain, Canada, Italy and Russia — to the bigger G-20.The G-20 also includes major emerging economies such as China, Brazil and India and underscores how much the world has changed since a small club of wealthy, industrial countries began meeting in the mid-1970s in an effort to respond to oil shocks, stagflation and other economic crises of that period.The decision was to be announced Friday as Obama and the other leaders prepared a joint action plan to address regulatory overhaul and efforts to achieve more balanced growth.The Pittsburgh G-20 meeting did have one thing in common with recent G-8 meetings: protesters seeking to demonstrate unhappiness with global capitalism. Police fired canisters of pepper spray and rubber bullets at several hundred demonstrators who had tried to march toward the convention center.Police reported that about 20 protesters were arrested after demonstrators threw rocks and broke windows.In another development, a senior White House official said that Obama and the leaders of France and Britain will accuse Iran at the opening of the summit of building a secret facility to produce nuclear fuel.The official told The Associated Press that the three leaders — Obama, British Prime Minister Gordon Brown and French President Nicolas Sarkozy — will demand that Tehran open the covert facility up to inspections by the International Atomic Energy Agency.
Iran has kept the facility, 100 miles southwest of Tehran, hidden from international weapons inspectors for years, but the U.S. has long known of its existence, said the official, who spoke only on grounds of anonymity because the announcement was still pending.The Pittsburgh meeting marked the third G-20 leaders summit in less than a year as the countries continued to grapple with a debilitating downturn that has resulted in millions of unemployed around the world, the loss of trillions of dollars in wealth and massive amounts of government stimulus spending designed to jump-start economic growth.With spreading signs that the worst of the downturn is over and many countries beginning to return to modest growth, the leaders were able to hold their discussions with less of a crisis atmosphere than their two previous meetings — in November in Washington and in April in London.But the lessening of the crisis raised concerns that the momentum to implement reforms could lessen as well, posing a threat G-20 officials vowed to resist.We are not going to walk away from the greatest economic crisis since the Great Depression and leave unchanged and leave in place the tragic vulnerabilities that caused this crisis, Treasury Secretary Timothy Geithner told reporters.Geithner at a Thursday news conference predicted that summit partners would endorse the broad outlines of a proposal to deal with huge imbalances in the global economy, such as large trade surpluses in China and record budget deficits in the United States.The Obama administration wants the group to agree to a framework for sustainable and balanced growth that could include monitoring by the International Monetary Fund.The framework would not include firm targets for trade and budget balances, as had been urged by some European nations. That position was strongly opposed by China, which worried that its huge trade surpluses would become a target.Geithner said the U.S. supports China's efforts to gain greater voting rights in the IMF and its sister lending institution, the World Bank, over the reservations of European nations, who would lose influence.The leaders gathered with their spouses for a welcoming reception at a botanical reserve where they were greeted by Obama and Michelle Obama, wearing a sleeveless taupe-colored cocktail dress.
The biggest clashes between police and demonstrators occurred at just about the time the reception was beginning. The protesters banged on drums and chanted Ain't no power like the power of the people, cause the power of the people don't stop.
Geithner said the G-20 countries had reached a consensus on the basic outline of a proposal to limit bankers' compensation by the end of this year. He said it would involve setting separate standards in each of the countries and would be overseen by the Financial Stability Board, an international group of central bankers, finance ministers and regulators that has representation from all the G-20 nations. The U.S. won a battle with Germany, France and some other European nations who wanted specific limits on bankers' bonuses. Europeans are horrified by banks, some reliant on taxpayers' money, once again paying exorbitant bonuses,European Commission President Jose Manuel Barroso said. Geithner predicted the proposed crackdown on bankers' bonuses would be in place by the end of the year as countries join together to maintain momentum for change.Also expressing optimism was German Chancellor Angela Merkel, who said, I think we have a chance to reach progress in all important fields.Merkel faces her country's voters on Sunday.Associated Press writers Ben Feller and Daniel Lovering contributed to this report.
Backgrounder: Major topics of G20 Pittsburgh Summit
www.chinaview.cn 2009-09-25 01:18:51
PITTSBRUGH, United States, Sept. 24 (Xinhua) -- Leaders from the Group of 20 (G20) would meet in Pittsburgh on Thursday and Friday to coordinate their positions on global economic recovery, financial regulatory reform and world trade issues.On the global economic recovery, leaders from the G20 will coordinate on their macro economic policies to insure the world economy will grow on a sustainable and more balanced pattern. The exit strategy of government and central interventions will be discussed during the summit.Early this month, G20 finance ministers and central bank governors, reached a consensus that, although the darkest time of global economic recession in the past 70 years has passed, the stimulus policy should continue until recovery is confirmed.On the international financial regulatory reform, the leaders will talk a wide range of issues, including strengthening the global capital framework, making global liquidity more robust, reducing moral hazard and strengthening capacity for cross-border resolution, strengthening accounting standards, improving compensation practices, expanding oversight of the financial system, and adherence to international standards.German Chancellor Angela Merkel said on Thursday before departing for the summit, the Group of 20 summit will be key for financial reforms, warning that efforts to make the world less prone to financial disasters may lose momentum.
Early this month, French President Nicolas Sarkozy along with Merkel and British Prime Minister Gordon Brown wrote a joint letter to the chairman of the European Council, demanding a united voice of EU over restriction of bankers' incomes and strikes upon tax havens.Sarkozy also promised to push forward restriction on bankers' bonus at the upcoming Group of 20 summit in Pittsburgh, calling for sanctions against those uncooperative countries, in a French television interview aired on Wednesday night.It's still unclear if U.S. President Barack Obama would reach agreement with his European counterparts.On the world trade issues, the meeting will focus on how to avoid protectionism under the circumstance that the future of the world economic recovery is uncertain. The leaders will also discuss how to push the WTO Doha round talk make progress.India, China and several countries have urged the G-20 summit to come out strongly against protectionism in trade while continuing reform of international financial institutions to give greater voice to developing countries.On the development of the poorer countries, the summit will talk about how to support the less developed countries who are the victims of the global financial crisis and economic recession.
According to a recent World Bank report that more than 40 poor countries are still mired in an economic downturn and struggling to finance key needs such as health and education despite signs of recovery in some industrialized and emerging economies. World Bank calls on G20 leaders not to leave the poorest countries behind as they focus on ways to keep the global recovery going.The G20 Pittsburgh summit is the third round meeting of leaders of the rich developed and developing countries, which representing85 percent of the world economy to tackle the global financial crisis since last September. The first two rounds of G20 summit was held in Washington and London in November 2008 and April 2009 respectively.Editor: Yan
Pittsburgh deploys teargas and sirens to keep G20 demonstrators at bay-Hundreds of demonstrators overturned dustbins to form makeshift barricades Andrew Clark in Pittsburgh guardian.co.uk, Thursday 24 September 2009 23.45 BST Article history G20 protesters in Pittsburgh. Photograph: Brian Blanco/EPA
Riot police used teargas to disperse crowds tonight in a series of tense standoffs with anti-globalisation protesters a few miles from the convention centre staging this week's G20 summit.As the heads of the world's most powerful countries gathered to discuss the global economy, hundreds of mainly youthful demonstrators overturned dustbins to form makeshift barricades in the working class Pittsburgh neighbourhood of Lawrenceville.Some in the crowd covered their faces with scarves or balaclavas, many were dressed in black and waved black flags. A police presence, including Swat teams and riot squads, from as far afield as Kentucky and Virginia blocked them from marching towards the city centre.Using powerful megaphones mounted on a truck, the police announced in English and Spanish: By order of the City of Pittsburgh chief of police, I hereby declare this to be an unlawful gathering. I order all of those present to immediately disperse.At one stage, the authorities deployed teargas and they repeatedly used an ear-splitting siren to get bystanders to leave. A pattern developed as the crowd dispersed before reconvening a few streets away and marching to taunt lines of stony-faced police.On the corner of Penn Street and 33rd Street, a line of police slowly advanced, thumping their riot shields with batons. The crowd, backing away, yelled: USA, USA and Whose street? Our street.Stephen Boatwright, 21, a student from New York, said he objected to the G20 leaders convening behind closed doors.I don't think Barack Obama should be making macro economic or foreign policy decisions without my input,he said.Pointing to the multi-billion dollar bailout of Wall Street banks, he added: Even though Barack Obama won an election, largely corporate and special interests are controlling his policies.
Demonstrators carried placards with slogans such as F--- world trade and Greedy 20 slave lords. A handful threw stones at police and several were arrested. A second man, in his 60s, was arrested after sitting in front of an advancing riot truck, to a chorus of catcalls from bystanders.The protesters organised by a group called the Pittsburgh G20 Resistance Project which describes itself as a forum for a variety of causes including environmental concerns, anti-poverty and anti-capitalist demonstrators. A spokesman, Noah Williams, said the overarching theme was anti-hierarchical and anti-authoritarian.Some of those protesting had travelled across the US to make their views known. Sue Bastian, a retired woman from Oregon, carried a black umbrella with slogans asserting that G20 leaders were in favour of wars, fascism, corporate rule, and police states. She said: The G20 is a collection of politicians from the 20 wealthiest, most powerful nations on the face of the planet. They are control freaks.Inside a tight security cordon in the centre of Pittsburgh, the scene was calmer. As a welcoming committee prepared to greet the Chinese leader Hu Jintao outside the Westin hotel, four trailers were positioned across the road to block a view of a few dozen protesters, some of whom wore T-shirts of the Falun Gong group which is outlawed in China.Pittsburgh's mayor, Luke Ravenstahl, said that the cost of the summit in public safety terms was $18m (£11.2m) but that he anticipated an economic benefit to the city of $20-30m.He accepted that some citizens were unhappy about the disruption but said: We've asked them to understand that the short-term sacrifice they're going to have to make is worth the long-term benefits to the city.
G-20 leaders near banker-pay limits amid protests By TOM RAUM, Associated Press Writer – SEPT 24,09
PITTSBURGH – As police clashed with protesters in the streets, world leaders on Thursday closed ranks on pay limits for bankers whose risky behavior contributed to the global financial meltdown. With economies on the mend, a summit mood of cautious optimism replaced last year's fear and uncertainty.In a historic shift recognizing the rising influence of China, Brazil and India, the leaders of the world's top 20 wealthy and developing nations decided that the G-20 will take over the role of preeminent council on global economic cooperation, a function that for more than three decades had been performed by a smaller club of leading industrial countries known as the G-8.The G-8 will continue to meet on matters of common importance such as national security. President Barack Obama initiated the move, which was to be announced Friday.A mile from the convention center where talks will be held on Friday, police fired canisters of pepper spray and smoke at marchers protesting the summit after the protesters responded to calls to disperse by rolling trash bins and throwing rocks. The clashes began after hundreds of protesters, many advocating against capitalism, tried to march from an outlying neighborhood toward the convention center.Officials said 17 to 19 protesters were arrested, and there were no reports of injuries.
The biggest clashes between police and demonstrators occurred at just about the time President Barack Obama and first lady Michelle Obama arrived. The protesters banged on drums and chanted Ain't no power like the power of the people,cause the power of the people don't stop.Protests notwithstanding, the atmosphere is a lot more relaxed than at the fear-driven sessions in Washington last November and in London in April. Still, the global recovery remains fragile, with many big financial institutions under strain.U.S. Treasury Secretary Timothy Geithner predicted that summit partners would endorse the broad outlines of a proposal to deal with huge imbalances in the global economy — such as large trade surpluses in China and record budget deficits in the United States. He said other countries also seemed willing to scale back subsidies supporting fossil fuels that aggravate global warming.At a news conference, Geithner also said the U.S. supports China's efforts to gain greater voting rights in the International Monetary Fund over the reservations of European nations, who would lose influence.Given the rise of China's economic powers,it's the right thing,and Europe recognizes that, Geithner said at the start of talks among the world's top 20 wealthy and developing nations.The G-20 leaders gathered with their spouses for a welcoming reception at a botanical reserve, and then they parted for separate banquets Thursday night.
Throughout the day, world leaders descended on the comeback city of Pittsburgh to debate how to keep a fragile global recovery going.Geithner said the G-20 countries had reached a consensus on the basic outline of a proposal to limit bankers' compensation by the end of this year. He said it would involve setting separate standards in each of the countries and would be overseen by the Financial Stability Board, an international group of central bankers and regulators.Until now, European countries had pressed harder than the U.S. for limits.Europeans are horrified by banks, some reliant on taxpayers' money, once again paying exorbitant bonuses,said European Commission President Jose Manuel Barroso.But Geithner predicted the proposed crackdown on bankers' bonuses would be in place by the end of the year.
German Chancellor Angela Merkel also said she was optimistic that far-reaching agreements are possible in Pittsburgh. She warned against focusing too much on imbalances in the world economy, but added, I think we have a chance to reach progress in all important fields.Obama, who arrived from U.N. meetings in New York at mid-afternoon Thursday, chose Pittsburgh as the summit site because the formerly struggling Rust Belt city has transformed itself economically into a rebounding, environmentally conscious community with a diversified economy.It is the third time within a year that the G-20 leaders have met to deal with the global financial meltdown.British Prime Minister Gordon Brown, speaking with reporters in New York before heading to Pittsburgh, said he hoped the group would agree to a new compact on jobs and growth. He warned, as Obama has, that nations should not move to quickly to end low-interest rates and stimulus spending packages.The recession is not automatically over,Brown said. He endorsed the G-20 replacing the G-8 which includes only the U.S., Japan, Britain, Germany, France, Italy, Canada and Russia.Obama is perhaps under more pressure now than he was at the April session, his first venture on the world stage. At that meeting he got points, analysts suggested, just for not being George W. Bush, who was widely disliked overseas, especially in European countries.
Summit partners are in basic agreement on a joint strategy to encourage big exporting countries like China, Japan and Germany to shift their economies more toward domestic spending, and to encourage more savings and fiscal discipline in the United States. Ahead of the Pittsburgh gathering, Obama challenged world leaders at the United Nations to overcome an almost reflexive anti-Americanism while at the same time viewing U.S. consumers as a market of last resort.But differences still remained on tactics, including how quickly to move away from full-bore stimulation policies.Washington wants the group to agree to a framework for sustainable and balanced growth that could include monitoring by an international group such as the International Monetary Fund that could detect policies that could lead to global imbalances.Associated Press writers Ben Feller, Pan Pylas, Daniel Lovering and Michael Fischer contributed to this report.
G-20 Leaders Focus on Global Recovery, Banker Pay-World leaders focus on limiting bankers' pay, looking for ways to avoid new economic meltdown By TOM RAUM Associated Press Writer PITTSBURGH September 24, 2009
(AP)Turning from outright fear to cautious optimism, world leaders descended on the comeback city of Pittsburgh Thursday to debate how to nurture a recovering but still-wobbly global economy. The leaders appeared to be nearing agreement on one of the more contentious issues, restricting bankers' compensation.Nerves are still on edge, but this summit of the world's 20 leading economies seems free of the crisis atmosphere that hung over the past two.It was less calm on the streets, where police threw canisters of pepper spray and smoke at demonstrators after marchers responded to calls to disperse by rolling trash bins and throwing rocks.A year after the financial meltdown began, the leaders had a panic-free agenda for an opening dinner, to be followed by a full day of talks. They'll be taking stock of the overall world economy, deciding whether to curb bankers' pay, setting universal rules for bank reserves and plotting an exit strategy from trillions in stimulus spending. The leaders will also grapple with next steps in combating global warming.On the pay issue, Europeans in particular pressed for strict limits on salaries and bonuses for executives of financial institutions to keep them from being rewarded for the risky practices that contributed to the financial crisis.Europeans are horrified by banks, some reliant on taxpayers' money, once again paying exorbitant bonuses, said European Commission President Jose Manuel Barroso. Insisting this is not a witch-hunt against bankers, Barroso said the EU was urging G-20 partners to stop the pay practice,building on measures already taken in Europe and elsewhere.The U.S. favors some restrictions but wants them linked to the health of the companies involved and does not want numerical limits as do leaders of Germany and France. The leaders seemed to be moving toward a middle-ground solution.
British Prime Minister Gordon Brown, speaking with reporters in New York before heading to Pittsburgh, said he hoped the group would agree to a new compact on jobs and growth. He warned, as President Barack Obama has, that nations should not move to quickly to end low-interest rates and stimulus spending packages.The recession is not automatically over,Brown said.Brown said he hoped the G-20 would eventually replace the older Group of Eight major industrial democracies as the world's forum of international cooperation.It includes many fast-growing economies, including China, India and Brazil, that are not among the original eight: the U.S., Japan, Britain, Germany, France, Italy, Canada and Russia.Obama, who arrived from U.N. meetings in New York at mid-afternoon Thursday, chose Pittsburgh as the summit site because the formerly struggling Rust Belt city has transformed itself economically into a rebounding, environmentally conscious community with a diversified economy.It is the third time within a year that the G-20 leaders have met to deal with the global financial meltdown.The atmosphere is a lot more relaxed than at the fear-driven sessions in Washington last November and in London in April. Still, the global recovery remains fragile, with many big financial institutions under strain.
Obama is perhaps under more pressure now than he was at the April session, his first venture on the world stage. At that meeting he got points, analysts suggested, just for not being George W. Bush, who was widely disliked overseas, especially in European countries.Summit partners are in basic agreement on a joint strategy to encourage big exporting countries like China, Japan and Germany to shift their economies more toward domestic spending, and to encourage more savings and fiscal discipline the United States. Ahead of the Pittsburgh gathering, Obama challenged world leaders at the United Nations to overcome an almost reflexive anti-Americanism while at the same time viewing U.S. consumers as a market of last resort.But differences remained on tactics, including how quickly to move away from full-bore stimulation policies.Washington wants the group to agree to a framework for sustainable and balanced growth that could include monitoring by an international group such as the International Monetary Fund that could detect policies that could lead to global imbalances.Obama argues that the global economy cannot continually rely on huge borrowing and spending by Americans and massive exports by countries such as China.
But there remained disputes over details.
German Chancellor Angela Merkel said Friday that G-20 partners should not focus on stimulating economic growth at the expense of earlier pledges to reform global financial markets.We must not search for substitute topics and, beyond that, forget financial market regulation,Merkel told reporters in Berlin before leaving for Pittsburgh. Merkel said the countries should follow through on initiatives outlined at the earlier meetings in Washington and London to establish regulations and policies that would promote sustainable growth.China, meanwhile, was pushing for greater voting rights in the IMF, which could dilute the influence now held by European countries.The two-day summit was to end Friday with a joint communique likely to paper over many remaining disagreements.Associated Press writers Pan Pylas and Daniel Lovering in Pittsburgh and contributed to this report.
Tensions over IMF threaten to mar G20 By Edward Luce, Chris Giles and Krishna Guha in Pittsburgh September 25 2009 01:41
European differences with the Obama administration threaten to overshadow Friday’s G20 summit in Pittsburgh, with Britain and France resisting US plans to overhaul the International Monetary Fund. UK and French officials were exasperated on Thursday by US proposals that could threaten both countries’ seats on the IMF board of directors, the Financial Times has learnt. Under the US plans, the IMF board would be cut from 24 seats to 20 with fewer European representatives.The UK and France publicly support the reweighting of the IMF’s shareholding structure to give a greater voice to the larger developing countries – including China and India – but not at the expense of their permanent board seats.The US believes it has already made a concession by keeping its IMF shareholding at 17 per cent, well below its share of global GDP. Since IMF board decisions require a super-majority of 85 per cent the US retains effective veto powers.White House officials declined to comment. One European official said the US had decided not to press the matter further in Pittsburgh. But the dispute added to the growing sense of irritation between the major European countries and the Obama administration.Angela Merkel, Germany’s chancellor, who faces a general election on Sunday, said the fight against global economic imbalances should not become the central issue at the summit – in contradiction of Barack Obama’s stated objectives.
Speaking in Berlin before boarding her flight, Ms Merkel came close to accusing the US and Britain of backtracking on financial market regulation and global limits on bankers’ bonuses by shining the spotlight on the export-oriented economic policies of Germany and China: We should not start looking for ersatz issues and forget the topic of financial market regulation. We cannot afford to neglect this issue now. Ms Merkel turned on Washington, saying: Imbalances are an issue, but we must look at all the factors...We must talk about imbalances and name the reasons why they came into being.Tim Geithner, US Treasury secretary, told reporters in Pittsburgh that the delegations were actually very close on issues such as compensation and bank regulation.Mr Geithner said governments wanted to see reforms in compensation by the end of this calendar year to ensure that pay schemes did not encourage excessive risk-taking.He said there was also broad support for the balanced growth framework but admitted it is a harder thing to do because we are a world of sovereign nations.
The disagreement over the IMF reforms could slow efforts to reform the large other big international global financial institutions to reflect the growing economic power of large developing countries reflected in the G20.Additional reporting by Ben Hall in Paris and Bertrand Benoit in Berlin.The Financial Times Limited 2009.
NETANYAHU AT THE UN
http://www.youtube.com/watch?v=3wyWDvjftlk&feature=player_embedded
Netanyahu scolds UNGA for turning blind eye to terror Thursday, 24 September 2009 17:53 News from Jerusalem .Netanyahu addresses UNGA: Is the Holocaust a lie? (Photo Channel 1)
Prime Minister Binyamin Netanyahu spoke before the United Nations General Assembly, calling to task the nations of the world on the international body's responsibility and criticizing them for not standing up to it.The UN was founded after the carnage of World War 2, Netanyahu said, adding the organization was charged with preventing the reoccurrence of such horrendous events.Nothing has impeded the work of the UN, he said, more than the systematic assault on the truth.Yesterday the president of Iran stood at this podium spewing anti-Semitic rants… Just a few days earlier he claimed the Holocaust is a lie.Last month I went to a villa in a suburb of Berlin called Wannsee,Netanyahu recalled a visit to the pastoral villa, where over just a few hours on January 20 1942 the Nazis devised the Final Solution - the decision to exterminate the Jews from Europe.Netanyahu then dramatically showed a facsimile copy of Final Solution documents drafted in Wannsee.Is this protocol a lie? he asked.Is the German government lying?
The day before I was in Wannsee,Netanyahu continued,I was given in Berlin the original construction plans for the Auschwitz-Birkenau concentration camp.These plans I now hold in my hand,he said, as he was showing the worn-out blueprints to the assembly.They contain a signature by Heinrich Himmler, Hitler's deputy.Are these plans of the camp where one million Jews were murdered a lie too? he asked.Netanyahu then turned to attacking Iranian President Mahmoud Ahmadinejad, saying Yesterday, the man who called the Holocaust a lie spoke from this podium. For those who refused to come, and those who left in protest - I commend you, you stood up for moral clarity.But for those who stayed - I say on behalf of the Jewish people, my people and decent people everywhere - have you no shame? No decency? What a disgrace, what a mockery of the charter of the UN.jpost.
Netanyahu condemns Ahmadinejad at UN general assemblyIsraeli prime minister holds up copies of Nazi plans for the Holocaust while criticising Mahmoud Ahmadinejad Ewen MacAskill in New York guardian.co.uk, Thursday 24 September 2009 19.49 BST
The Israeli prime minister Binyamin Netanyahu held up original copies of Nazi plans for the Holocaust at the UN general assembly today as he condemned the Iranian leader, Mahmoud Ahmadinejad.The documents were intended as a dramatic and emotional counter to Ahmadinejad's expression of doubts last week over whether the Holocaust had happened.Is this protocol a lie? Netanyahu asked as he displayed a copy of the Wannsee agreement in which the Nazis set out their plans for the extermination of Jews in Europe.He also held up a copy of a plan for the building of the Auschwitz-Birkenau concentration camp, with the signature of the head of the SS, Heinrich Himmler.Are these plans a lie too? he asked.Netanyahu was speaking from the same podium where the night before Ahmadinejad accused Israel of racism and barbarism in its treatment of the Palestinians.The Israeli prime minister saluted countries such as the US, Britain, France and Canada that had either boycotted Ahmadinejad's speech or walked out during it, and denounced those who had stayed.Have you no shame? Have you no decency? he shouted.What a disgrace. What a mockery of the UN charter.
Netanyahu is pressing the UN to adopt tougher sanctions against Iran and has hinted that Israel might yet launch an air strike against Iranian nuclear facilities.He described the Iranian leadership as primitive. The Iranian regime is motivated by fanaticism. They want to see us go back to medieval times.He added: The struggle against Iran pits civilisation against barbarism.
Western diplomats walk out as Ahmadinejad addresses UNGA Thursday, 24 September 2009 05:30 News from Jerusalem .Ahmadinejad addresses the 64th session of the General Assembly (Photo AP)
Under increasing attack over his country's suspected nuclear weapons program, Iranian President Mahmoud Ahmadinejad told the UN General Assembly on Wednesday that Teheran was ready to meet conciliation with conciliation.Ahmadinejad spoke to a half-empty chamber as he sought to cast himself as a beleaguered champion of the developing world, that he portrayed as under attack from rapacious capitalism.At the same time, the Iranian leader issued stinging attacks on Israel, the United States and the West, without calling them by name, prompting a walkout by the US delegation.
Ahmadinejad made only passing reference to the nuclear issue, a call for global nuclear disarmament.Moments before he spoke, foreign ministers of six global powers told reporters on the sidelines of the General Assembly that they expected Iran to come clean about its nuclear program. Tougher sanctions against Iran are being considered if talks between the powers and Iran on the issue, set for October 1, fail to yield results.At times, Ahmadinejad struck a softer tone, declaring that Teheran was prepared to warmly shake all those hands which are honestly extended to us.He peppered his speech with religious references, invoking the prophets of Judaism and Christianity, as well as Islam.Yet most of the speech focused on his usual themes - scathing verbal attacks on archenemy Israel and the West.He assailed Israel for what he said was a barbaric attack on the Gaza Strip last winter, and claimed that the brutalities in Gaza have not all been published.The international community is impatiently waiting for the murderers of the defenseless people of Gaza,he said, in reference to alleged war crimes by the IDF during Operation Cast Lead.He also called for a free referendum in Palestine,which he said would allow all Palestinians - including Christians, Muslims and Jews to live together in peace.He accused the West of hypocrisy, saying it preached democracy, but violated its fundamental principles.Turning to domestic affairs, Ahmadinejad insisted he won by a large majority in June elections. Pro-reform opposition politicians have alleged electoral fraud, and Ahmadinejad has been at the center of political turmoil since then.On Thursday, a high-level meeting of the UN Security Council is expected to adopt a resolution calling for a more intense global campaign to reduce the threat of nuclear proliferation. It does not name countries, but refers to previous resolutions that imposed sanctions on Iran and North Korea.jpost.
Mideast negotiators lauds Obama's initiative Thu Sep 24, 5:40 pm ET
UNITED NATIONS – The Quartet of Mideast peacemakers says President Barack Obama's meetings with Israeli Prime Minister Benjamin Netanyahu and Palestinian President Mahmoud Abbas represents an important step toward the resumption of peace talks.The Quartet — comprising the U.S., U.N., European Union and Russia — said it shared the sense of urgency expressed by Obama regarding the comprehensive resolution of the Arab-Israeli conflict.EU foreign policy chief Javier Solana said some progress had even been made on the thorny issue of Israel's during a series of talks on the sidelines of the U.N. General Assembly.On Tuesday, Obama summoned Netanyahu and Abbas to a joint meeting at the U.N. Obama told the two leaders that too much time had already been wasted and that it's time to resume negotiations.
Obama-led UN council backs broad nuclear agenda By CHARLES J. HANLEY, AP Special Correspondent – SEPT 24,09
UNITED NATIONS – With President Barack Obama presiding, the U.N. Security Council on Thursday unanimously endorsed a sweeping strategy aimed at halting the spread of nuclear weapons and ultimately eliminating them, to usher in a world with undiminished security for all.That can be our destiny, Obama declared after the 15-nation body adopted the historic, U.S.-initiated resolution at an unprecedented summit session.We will leave this meeting with a renewed determination to achieve this shared goal.The lengthy document was aimed, in part, at the widely denounced nuclear programs of Iran and North Korea, although they were not named. It also reflected Obama's ambitious agenda to embrace treaties and other agreements leading toward a nuclear weapon-free world, some of which is expected to encounter political opposition in Washington.On both counts, Thursday's 15-0 vote delivered a global consensus — countries ranging from Britain to China to Burkina Faso — that may add political impetus to dealing with nuclear violators, advancing arms control in international forums and winning support in the U.S. Congress.This is a historic moment, a moment offering a fresh start toward a new future,U.N. Secretary-General Ban Ki-moon said, saluting the first such Security Council gathering of presidents and premiers to deal with nuclear nonproliferation.The 2,300-word document did not authorize any concrete actions, but it urged action on a long list of proposals before the international community.It called for negotiation of a treaty banning production of fissile material for nuclear bombs and establishment of internationally supervised nuclear fuel banks, to keep potential bomb material out of more hands — both items on Obama's agenda.
It also urged states to ratify the Comprehensive Test Ban Treaty (CTBT), the 1996 pact banning all nuclear bomb tests, another Obama goal.The United States is among nine nations with nuclear weapons or technology whose approval is required for that treaty to take effect, but which have not ratified the CTBT.Republican opposition defeated the test-ban pact in the U.S. Senate in 1999, and Obama is expected to face similar GOP opposition in pushing for ratification next year. The Senate objected to the measure because the U.S. might need to test its weapons to assure reliability, and there were concerns international monitoring might fail to detect cheaters.The resolution in various ways reaffirmed support for the Nuclear Nonproliferation Treaty, the 1968 accord aimed at preventing the spread of atomic arms beyond five original weapons powers — the U.S., Russia, Britain, France and China.It bolstered a slew of earlier council resolutions that slapped sanctions on North Korea, for its testing of nuclear weapons, and on Iran, whose uranium-enrichment program is suspected to be intended for nuclear weapons. It demanded that these parties concerned comply fully with such requirements.Obama, leading the meeting because the U.S. is council president for the month of September, said the resolution was not about singling out an individual nation. But French President Nicolas Sarkozy, in his council speech, directed sharp words at both countries.We may all be threatened one day by a neighbor, by a neighbor endowing itself with nuclear weapons, Sarkozy said.British Prime Minister Gordon Brown called on the council to consider far tougher sanctions against Iran.
In reaction, the Iranian U.N. mission later issued a statement denouncing fear-mongering and falsehoods,and repeating its claim that its nuclear program is designed for civilian energy purposes only.The flare-up came just a week before a scheduled Oct. 1 meeting in Geneva between the Iranians and European, U.S. and Chinese representatives to try to move toward resolving the long-running standoff.In his speech, Libya's U.N. ambassador, Abdurrahman Mohamed Shalgam, filling in for absent leader Moammar Gadhafi, targeted another suspected nuclear weapons program, that of Israel, which rejects the Nonproliferation Treaty.Israel's nuclear sites should be subject to international oversight, Shalgam said. Otherwise, all the states of the Middle East will say,We have a right to develop nuclear weapons. Why Israel alone? Thursday's omnibus resolution also expressed grave concern about the threat of nuclear terrorism, and urged states to take firmer steps to keep potential bomb material out of terrorist hands. It encouraged governments to lay down stricter guidelines for exporting nuclear technology, for example, and to do more to detect and disrupt nuclear trafficking.The White House said Thursday's action demonstrated growing international political will behind the (Obama) nuclear agenda. It also endorsed ideas that have not always found favor in Washington.
China's president focused on one of those ideas, a late addition to the final resolution referring to negative security assurances,guarantees to non-nuclear-weapon states that they will never be attacked with nuclear weapons. The U.S. has resisted making such assurances all-encompassing and legally binding.Addressing this, China's Hu Jintao said all weapons states should make an unequivocal commitment of unconditionally not using or threatening to use nuclear weapons against non-nuclear-weapon states.The resolution also identified global nuclear disarmament as a pillar of the Nonproliferation Treaty, a point much ignored in past years by the Republican White House of George W. Bush. The resolution called on states to negotiate a treaty on general and complete disarmament.In his agenda-setting speech in Prague last April, Obama embraced such a goal, as he did earlier in a joint statement with Russian President Dmitry Medvedev.
He repeated that commitment on Thursday.
The historic resolution we just adopted enshrines our shared commitment to the goal of a world without nuclear weapons,he told the summit.And it brings Security Council agreement on a broad framework for action to reduce nuclear dangers as we work toward that goal.Arms-control advocates applauded the unprecedented Security Council action.It brings much-needed global focus to the risks posed by the spread of nuclear weapons, nuclear know-how and nuclear material,said a statement from four leading U.S. ex-statesmen — former Secretaries of State Henry A. Kissinger and George P. Shultz, former Defense Secretary William Perry and ex-U.S. Sen. Sam Nunn. The four have led a 2-year-old campaign to move toward abolition of nuclear arms.
G-8: Iran has 3 months to stop uranium enrichment By JOHN HEILPRIN, Associated Press Writer – Thu Sep 24, 4:47 pm ET
UNITED NATIONS – Italian Foreign Minister Franco Frattini said Thursday that the Group of Eight nations is giving Iran until the end of the year to commit to ending uranium enrichment and avoid new sanctions.Frattini, whose nation holds the rotating chair of the club of wealthy nations known as the G-8, said the member's foreign ministers agreed Wednesday night to give Iran more time.It seems to me a reasonable perspective. And after the end of December, I strongly hope we will have at that time practical moves from Iran,Frattini said.That's why together we decided while not excluding further measures, as even Russia apparently said, we have to give Iran a serious chance,he said.If we give a chance, let's give a chance. Don't, I would say, immediately put another option on the table. This would be counterproductive to the eyes of our counterpart. This is our strategy for the moment.The U.S. has only just won Russian agreement to consider new sanctions against Iran to add pressure on Iranian President Mahmoud Ahmadinejad, who insists Tehran's nuclear program is designed only to generate electricity.Frattini said that the informal agreement will be re-examined each month until the end of the year.He said the G-8 could not let the Iranians believe the world's economic powers are relaxed and willing to let Iran string them along.But we are to make it absolutely clear that our window of opportunity will not remain open indefinitely,Frattini told a group of reporters on the sidelines of the United Nations General Assembly.
Frattini said G-8 ministers — the U.S., Britain, Italy, France, Germany, Canada, Japan and Russia — also agreed that concerning links were emerging between Iran and North Korea.Russian President Dmitry Medvedev opened the door Wednesday to backing potential sanctions. He moved in that direction after President Barack Obama scrapped plans for a U.S. missile shield in Eastern Europe.While U.S. and Russian officials denied a quid pro quo, Medvedev told the U.N. General Assembly that Obama's roll-back on the missile defense plan deserves a positive response.Obama himself has said his missile decision may have spurred Russian good will as a bonus.
Ahmadinejad has taken a softer tone on many matters since arriving in New York for the U.N. meetings, emphasizing his interest in improving relations with the United States and expressing an openness to include nuclear matters on the negotiations agenda.He has given no sign, however, that his country is willing to bargain away its nuclear program.A member of the Russian delegation, speaking on condition of anonymity under ground rules set by the Russians, said Moscow's final position on the question of imposing further sanctions would be determined, to a large extent, by Medvedev's consultations here.The U.S. and Russia are among six countries that will hold talks in Europe next week with Iran over its nuclear ambitions. Obama wants to reserve the possibility of pursuing tougher sanctions if those meetings lead to no restraint by Iran in the weeks ahead. Russia, which has strong economic ties with Tehran, has stood in the way of stronger action against Iran in the past.
Medvedev says Russia may support sanctions on Iran By LYNN BERRY, Associated Press Writer – SEPT 24,09
PITTSBURGH – Russian President Dmitry Medvedev said Thursday that Russia would support new sanctions against Iran if diplomatic efforts should fail.Speaking to university students in Pittsburgh, where leaders of the world's largest economies have gathered for a two-day summit, Medvedev offered clarification of remarks this week that had opened the door to Russia potentially backing sanctions.I don't consider sanctions the best way to achieve results on Iran ... but all the same, if all possibilities to influence the situation are exhausted, then we can use international sanctions,he told 200 University of Pittsburgh students.Medvedev told the student who asked the question that he felt as if he were still talking to President Barack Obama.Yesterday he talked to me about this for a long time, about 30minutes, and now you are asking,the Russian president said.Medvedev praised Obama's courageous decision to scrap Bush administration plans for a missile shield in Eastern Europe, which he said showed that Obama had listened to him when he expressed Russia's opposition.This means we are learning to listen to each other, which is very important.Medvedev said.The Russian president stressed how comfortable he felt dealing with Obama, noting that they are of the same generation and received the same education in law.Medvedev's appearance at the University of Pittsburgh comes 50 years to the day after Soviet leader Nikita Khrushchev spoke to Pitt students during his historic 1959 trip to the United States.Medvedev spoke in the Cathedral of Learning, which at 535 feet tall is the second-tallest educational building in the world. The tallest is in Russia, at Moscow State University.At the end of his hourlong question-and-answer session, Medvedev told the students what he considers most important in life: love.
DOCTOR DOCTORIAN FROM ANGEL OF GOD
then the angel said, Financial crisis will come to Asia. I will shake the world.
JAMES 5:1-3
1 Go to now, ye rich men, weep and howl for your miseries that shall come upon you.
2 Your riches are corrupted, and your garments are motheaten.
3 Your gold and silver is cankered; and the rust of them shall be a witness against you, and shall eat your flesh as it were fire. Ye have heaped treasure together for the last days.
REVELATION 18:10,17,19
10 Standing afar off for the fear of her torment, saying, Alas, alas that great city Babylon, that mighty city! for in one hour is thy judgment come.
17 For in one hour so great riches is come to nought. And every shipmaster, and all the company in ships, and sailors, and as many as trade by sea, stood afar off,
19 And they cast dust on their heads, and cried, weeping and wailing, saying, Alas, alas that great city, wherein were made rich all that had ships in the sea by reason of her costliness! for in one hour is she made desolate.
EZEKIEL 7:19
19 They shall cast their silver in the streets, and their gold shall be removed: their silver and their gold shall not be able to deliver them in the day of the wrath of the LORD: they shall not satisfy their souls, neither fill their bowels: because it is the stumblingblock of their iniquity.
REVELATION 13:16-18
16 And he(FALSE POPE) causeth all, both small and great, rich and poor, free and bond, to receive a mark in their right hand, or in their foreheads:(CHIP IMPLANT)
17 And that no man might buy or sell, save he that had the mark, or the name of the beast, or the number of his name.
18 Here is wisdom. Let him that hath understanding count the number of the beast: for it is the number of a man; and his number is Six hundred threescore and six.(6-6-6) A NUMBER SYSTEM
WORLD MARKET RESULTS
http://money.cnn.com/data/world_markets/
CNBC VIDEOS
http://www.cnbc.com/id/15839263/site/14081545/?tabid=15839796&tabheader=false
HALF HOUR DOW RESULTS FRI SEPT 25,2009
09:30 AM -8.16
10:00 AM +10.13
10:30 AM -0.91
11:00 AM -11.87
11:30 AM -17.23
12:00 PM -30.31
12:30 PM -62.35
01:00 PM -58.80
01:30 PM -48.90
02:00 PM -32.76
02:30 PM -20.40
03:00 PM -4.91
03:30 PM -14.06
04:00 PM -42.25 9665.19
S&P 500 1044.38 -6.40
NASDAQ 2090.92 -16.69
GOLD 990.90 -8.00
OIL 65.96 -0.05
TSE 300 11,212.39 -73.37
CDNX 1259.64 +3.28
S&P/TSX/60 670.97 -5.97
MORNING,NEWS,STATS
YEAR TO DATE PERFORMANCE
Dow +10.61%
S&P +16.33%
Nasdaq +33.64%
TSX Advances 414,declines 1,117,unchanged 234,Volume 529,573,169.
TSX Venture Exchange Advances 342,Declines 539,Unchanged 335,Volume 232,590,994.
Dow -10 points at 4 minutes of trading today.
Dow -62 points at low today.
Dow +29 points at high today so far.
GOLD opens at $991.60.OIL opens at $66.21 today.
AFTERNOON,NEWS,STATS
Dow -62 points at low today so far.
Dow +29 points at high today so far.
DAY TODAY PERFORMANCE - 12:30PM STATS
NYSE Advances 1,476,declines 2,067,unchanged 115,New Highs 83,New Lows 24.
Volume 2,351,435,221.
NASDAQ Advances 973,declines 1,558,unchanged 113,New highs 31,New Lows 09.
Volume 1,090,560,220.
TSX Advances 603,declines 719,unchanged 211,Volume 220,113,040.
TSX Venture Exchange Advances 286,Declines 338,Unchanged 299,Volume 110,591,414.
WRAPUP,NEWS,STATS
Dow -65 points at low today.
Dow +29 points at high today.
Dow -0.44% today Volume 189,352,139.
Nasdaq -0.79% today Volume 2,208,041,991.
S&P 500 -0.61% today Volume N/A
FRIDAYS
YEAR TO DATE PERFORMANCE
Dow +10.13%
S&P +15.62%
Nasdaq +32.59%
TSX Advances 707,declines 795,unchanged 233,Volume 419,816,275.
TSX Venture Exchange Advances 431,Declines 438,Unchanged 354,Volume 251,996,667.
G-20 lATEST NEWS
http://www.cnbc.com/id/15840232?video=1275877057&play=1
http://www.cnbc.com/id/15840232?video=1275689500&play=1
http://www.cnbc.com/id/15840232?video=1275654569&play=1
GOLDMAN DELEMMA
http://www.cnbc.com/id/15840232?video=1275790589&play=1
BAILOUT NATION
http://www.cnbc.com/id/15840232?video=1275278386&play=1
IRAN STEALS HEADLINES
http://www.cnbc.com/id/15840232?video=1275775483&play=1
http://www.cnbc.com/id/15840232?video=1275727425&play=1
http://www.cnbc.com/id/15840232?video=1275698235&play=1
http://www.cnbc.com/id/15840232?video=1275638661&play=1
FED NEWS
http://www.cnbc.com/id/15840232?video=1275684076&play=1
http://www.cnbc.com/id/15840232?video=1275663376&play=1
IS THE DOLLAR THE NEW YEN
http://www.cnbc.com/id/15840232?video=1275600803&play=1
CASH IS KING
http://www.cnbc.com/id/15840232?video=1275787242&play=1
http://www.cnbc.com/id/15840232?video=1275727255&play=1
http://www.cnbc.com/id/15840232?video=1275650216&play=1
OPEC CUT PRODUCTION
http://www.cnbc.com/id/15840232?video=1275376014&play=1
COMMUNIQUES G-20
http://www.g20.org/pub_communiques.aspx
CAFOD reaction to G20 final communique climate section 25 Sep 2009 19:40:00 GMT Source: Catholic Agency for Overseas Development (CAFOD) - UK Reuters and AlertNet are not responsible for the content of this article or for any external internet sites. The views expressed are the author's alone.September 25, 2009 For immediate release
What's in the final communique
Fossil fuel subsidies: the final draft takes into account the needs of the poorest & targets international financial institutions and not just country subsidies. The G20 leaves countries themselves to decide how to phase out their subsidies. Climate finance: overarching agreement that green growth is good and that finance needs to be coordinated with development aid. Mention made of urgency to take substantial action & delivery of finance should use existing multi-lateral and bi-lateral institutions. Broad agreement that carbon markets need reform & the importance of leveraging private sector investment. November G20 meetings tasked with reporting back on range of options regarding climate financing, which will feed into UNFCCC at Copenhagen.
What's NOT in the final communique
Climate finance: no numbers on the table & no preference on how the funds will be generated. Nothing on financing being in addition to existing aid pledges. No stress on importance of UN governing the funds. Liz Gallagher, CAFOD's head of climate finance policy, said: Leaders came here to decide, but all we've seen is delay. Whilst phasing out fossil fuel subsidies is a goodwill gesture it will not compensate the poorest who are suffering now as a result of climate change. The green new shoots that sprouted in New York are now facing a drought of political will. Millions will be affected if the rich nations of the G20 don't unite on climate finance. What we need is a global Marshall Plan for the 21st century, and all we've got is a meeting with the accountant.Notes to editors For interviews & briefing with CAFOD: At the G20: Head of Climate Finance Policy Liz Gallagher +44 7920 235 974 For further media info contact Pascale Palmer at the G20: +44 7785 950 585 [ Any views expressed in this article are those of the writer and not of Reuters.]
Central banks rethink dollar loan policy By Krishna Guha in Pittsburgh and Ralph Atkins in Frankfurt September 24 2009 21:04
Four of the world’s leading central banks on Thursday announced plans to end the emergency supply of long-term dollar loans in Europe and scale back the provision of such finance in the US.However, at the same time the Federal Reserve signalled it is considering making the Term Auction Facility through which it provides the dollar loans a regular feature of its liquidity management, even after the crisis is over. This facility was invented in the early stages of the crisis, in December 2007.In a joint statement, the Fed, the European Central Bank, the Bank of England and the Swiss National Bank announced they would no longer provide 84-day dollar loans outside the US.Meanwhile, the Fed said it was reducing the amount of longer term dollar loans it provided to US-based financial institutions from $75bn a month to $50bn (€33.5bn, £30.5bn) each month from October to January. The US central bank will also reduce the term of its domestic dollar loans from 84 days to 70 days in October and 42 days in November and December.But the Fed said it would soon request public comment as to whether it should make the Term Auction Facility – which in effect auctions out dollar loans – permanent.Fed officials have not reached a firm conclusion on this, but many think there could be advantages in retaining small-scale regular cash auctions.Banks like using this facility because it does not have any stigma attached. They are reluctant to use the Fed’s longstanding discount window to borrow money as it is perceived to be a sign of weakness.An ECB offer of 84-day dollar liquidity earlier this month attracted no bids – the first time that has happened in an ECB liquidity-providing operation since its launch a decade ago. However, the three central banks said they would continue to provide dollars on a seven-day basis.The Fed will also continue to provide $75bn in 28-day dollar loans each month.In the eurozone, the ECB has swamped the banking system with euro liquidity at very low interest rates, which analysts said had reduced demand for dollars. In June it provided €442bn in one-year loans.
G-20 STEMENTS
http://www.pittsburghsummit.gov/mediacenter/press/index.htm
Leaders Statement: The Pittsburgh SummitSeptember 24 – 25, 2009
PREAMBLE
1. We meet in the midst of a critical transition from crisis to recovery to turn the page on an era of irresponsibility and to adopt a set of policies, regulations and reforms to meet the needs of the 21st century global economy.
2. When we last gathered in April, we confronted the greatest challenge to the world economy in our generation.
3. Global output was contracting at pace not seen since the 1930s. Trade was plummeting. Jobs were disappearing rapidly. Our people worried that the world was on the edge of a depression.
4. At that time, our countries agreed to do everything necessary to ensure recovery, to repair our financial systems and to maintain the global flow of capital.
5. It worked.
6. Our forceful response helped stop the dangerous, sharp decline in global activity and stabilize financial markets. Industrial output is now rising in nearly all our economies. International trade is starting to recover. Our financial institutions are raising needed capital, financial markets are showing a willingness to invest and lend, and confidence has improved.
7. Today, we reviewed the progress we have made since the London Summit in April. Our national commitments to restore growth resulted in the largest and most coordinated fiscal and monetary stimulus ever undertaken. We acted together to increase dramatically the resources necessary to stop the crisis from spreading around the world. We took steps to fix the broken regulatory system and started to implement sweeping reforms to reduce the risk that financial excesses will again destabilize the global economy.
8. A sense of normalcy should not lead to complacency.
9. The process of recovery and repair remains incomplete. In many countries, unemployment remains unacceptably high. The conditions for a recovery of private demand are not yet fully in place. We cannot rest until the global economy is restored to full health, and hard-working families the world over can find decent jobs.
10. We pledge today to sustain our strong policy response until a durable recovery is secured. We will act to ensure that when growth returns, jobs do too. We will avoid any premature withdrawal of stimulus. At the same time, we will prepare our exit strategies and, when the time is right, withdraw our extraordinary policy support in a cooperative and coordinated way, maintaining our commitment to fiscal responsibility.
11. Even as the work of recovery continues, we pledge to adopt the policies needed to lay the foundation for strong, sustained and balanced growth in the 21st century. We recognize that we have to act forcefully to overcome the legacy of the recent, severe global economic crisis and to help people cope with the consequences of this crisis. We want growth without cycles of boom and bust and markets that foster responsibility not recklessness.
12. Today we agreed:
13. To launch a framework that lays out the policies and the way we act together to generate strong, sustainable and balanced global growth. We need a durable recovery that creates the good jobs our people need.
14. We need to shift from public to private sources of demand, establish a pattern of growth across countries that is more sustainable and balanced, and reduce development imbalances. We pledge to avoid destabilizing booms and busts in asset and credit prices and adopt macroeconomic policies, consistent with price stability, that promote adequate and balanced global demand. We will also make decisive progress on structural reforms that foster private demand and strengthen long-run growth potential.
15. Our Framework for Strong, Sustainable and Balanced Growth is a compact that commits us to work together to assess how our policies fit together, to evaluate whether they are collectively consistent with more sustainable and balanced growth, and to act as necessary to meet our common objectives.
16. To make sure our regulatory system for banks and other financial firms reins in the excesses that led to the crisis. Where reckless behavior and a lack of responsibility led to crisis, we will not allow a return to banking as usual.
17. We committed to act together to raise capital standards, to implement strong international compensation standards aimed at ending practices that lead to excessive risk-taking, to improve the over-the-counter derivatives market and to create more powerful tools to hold large global firms to account for the risks they take. Standards for large global financial firms should be commensurate with the cost of their failure. For all these reforms, we have set for ourselves strict and precise timetables.
18. To reform the global architecture to meet the needs of the 21st century. After this crisis, critical players need to be at the table and fully vested in our institutions to allow us to cooperate to lay the foundation for strong, sustainable and balanced growth.
19. We designated the G-20 to be the premier forum for our international economic cooperation. We established the Financial Stability Board (FSB) to include major emerging economies and welcome its efforts to coordinate and monitor progress in strengthening financial regulation.
20. We are committed to a shift in International Monetary Fund (IMF) quota share to dynamic emerging markets and developing countries of at least 5% from over-represented countries to under-represented countries using the current quota formula as the basis to work from. Today we have delivered on our promise to contribute over $500 billion to a renewed and expanded IMF New Arrangements to Borrow (NAB).
21. We stressed the importance of adopting a dynamic formula at the World Bank which primarily reflects countries’ evolving economic weight and the World Bank’s development mission, and that generates an increase of at least 3% of voting power for developing and transition countries, to the benefit of under-represented countries. While recognizing that over-represented countries will make a contribution, it will be important to protect the voting power of the smallest poor countries. We called on the World Bank to play a leading role in responding to problems whose nature requires globally coordinated action, such as climate change and food security, and agreed that the World Bank and the regional development banks should have sufficient resources to address these challenges and fulfill their mandates.
22. To take new steps to increase access to food, fuel and finance among the world’s poorest while clamping down on illicit outflows. Steps to reduce the development gap can be a potent driver of global growth.
23. Over four billion people remain undereducated, ill-equipped with capital and technology, and insufficiently integrated into the global economy. We need to work together to make the policy and institutional changes needed to accelerate the convergence of living standards and productivity in developing and emerging economies to the levels of the advanced economies. To start, we call on the World Bank to develop a new trust fund to support the new Food Security Initiative for low-income countries announced last summer. We will increase, on a voluntary basis, funding for programs to bring clean affordable energy to the poorest, such as the Scaling Up Renewable Energy Program.
24. To phase out and rationalize over the medium term inefficient fossil fuel subsidies while providing targeted support for the poorest. Inefficient fossil fuel subsidies encourage wasteful consumption, reduce our energy security, impede investment in clean energy sources and undermine efforts to deal with the threat of climate change.
25. We call on our Energy and Finance Ministers to report to us their implementation strategies and timeline for acting to meet this critical commitment at our next meeting.
26. We will promote energy market transparency and market stability as part of our broader effort to avoid excessive volatility.
27. To maintain our openness and move toward greener, more sustainable growth.
28. We will fight protectionism. We are committed to bringing the Doha Round to a successful conclusion in 2010.
29. We will spare no effort to reach agreement in Copenhagen through the United Nations Framework Convention on Climate Change (UNFCCC) negotiations.
30. We warmly welcome the report by the Chair of the London Summit commissioned at our last meeting and published today.
31. Finally, we agreed to meet in Canada in June 2010 and in Korea in November 2010. We expect to meet annually thereafter and will meet in France in 2011.
1. We assessed the progress we have made together in addressing the global crisis and agreed to maintain our steps to support economic activity until recovery is assured. We further committed to additional steps to ensure strong, sustainable, and balanced growth, to build a stronger international financial system, to reduce development imbalances, and to modernize our architecture for international economic cooperation.
A Framework for Strong, Sustainable, and Balanced Growth
2. The growth of the global economy and the success of our coordinated effort to respond to the recent crisis have increased the case for more sustained and systematic international cooperation. In the short-run, we must continue to implement our stimulus programs to support economic activity until recovery clearly has taken hold. We also need to develop a transparent and credible process for withdrawing our extraordinary fiscal, monetary and financial sector support, to be implemented when recovery becomes fully secured. We task our Finance Ministers, working with input from the IMF and FSB, at their November meeting to continue developing cooperative and coordinated exit strategies recognizing that the scale, timing, and sequencing of this process will vary across countries or regions and across the type of policy measures. Credible exit strategies should be designed and communicated clearly to anchor expectations and reinforce confidence.
3. The IMF estimates that world growth will resume this year and rise by nearly 3% by the end of 2010. Subsequently, our objective is to return the world to high, sustainable, and balanced growth, while maintaining our commitment to fiscal responsibility and sustainability, with reforms to increase our growth potential and capacity to generate jobs and policies designed to avoid both the re-creation of asset bubbles and the re-emergence of unsustainable global financial flows. We commit to put in place the necessary policy measures to achieve these outcomes.
4. We will need to work together as we manage the transition to a more balanced pattern of global growth. The crisis and our initial policy responses have already produced significant shifts in the pattern and level of growth across countries. Many countries have already taken important steps to expand domestic demand, bolstering global activity and reducing imbalances. In some countries, the rise in private saving now underway will, in time, need to be augmented by a rise in public saving. Ensuring a strong recovery will necessitate adjustments across different parts of the global economy, while requiring macroeconomic policies that promote adequate and balanced global demand as well as decisive progress on structural reforms that foster private domestic demand, narrow the global development gap, and strengthen long-run growth potential. The IMF estimates that only with such adjustments and realignments, will global growth reach a strong, sustainable, and balanced pattern. While governments have started moving in the right direction, a shared understanding and deepened dialogue will help build a more stable, lasting, and sustainable pattern of growth. Raising living standards in the emerging markets and developing countries is also a critical element in achieving sustainable growth in the global economy.
5. Today we are launching a Framework for Strong, Sustainable, and Balanced Growth. To put in place this framework, we commit to develop a process whereby we set out our objectives, put forward policies to achieve these objectives, and together assess our progress. We will ask the IMF to help us with its analysis of how our respective national or regional policy frameworks fit together. We will ask the World Bank to advise us on progress in promoting development and poverty reduction as part of the rebalancing of global growth. We will work together to ensure that our fiscal, monetary, trade, and structural policies are collectively consistent with more sustainable and balanced trajectories of growth. We will undertake macro prudential and regulatory policies to help prevent credit and asset price cycles from becoming forces of destabilization. As we commit to implement a new, sustainable growth model, we should encourage work on measurement methods so as to better take into account the social and environmental dimensions of economic development.
6. We call on our Finance Ministers and Central Bank Governors to launch the new Framework by November by initiating a cooperative process of mutual assessment of our policy frameworks and the implications of those frameworks for the pattern and sustainability of global growth. We believe that regular consultations, strengthened cooperation on macroeconomic policies, the exchange of experiences on structural policies, and ongoing assessment will promote the adoption of sound policies and secure a healthy global economy. Our compact is that:
-G-20 members will agree on shared policy objectives. These objectives should be updated as conditions evolve.
-G-20 members will set out our medium-term policy frameworks and will work together to assess the collective implications of our national policy frameworks for the level and pattern of global growth and to identify potential risks to financial stability.
-G-20 Leaders will consider, based on the results of the mutual assessment, and agree any actions to meet our common objectives.
7. This process will only be successful if it is supported by candid, even-handed, and balanced analysis of our policies. We ask the IMF to assist our Finance Ministers and Central Bank Governors in this process of mutual assessment by developing a forward-looking analysis of whether policies pursued by individual G-20 countries are collectively consistent with more sustainable and balanced trajectories for the global economy, and to report regularly to both the G-20 and the International Monetary and Financial Committee (IMFC), building on the IMF’s existing bilateral and multilateral surveillance analysis, on global economic developments, patterns of growth and suggested policy adjustments. Our Finance Ministers and Central Bank Governors will elaborate this process at their November meeting and we will review the results of the first mutual assessment at our next summit.
8. These policies will help us to meet our responsibility to the community of nations to build a more resilient international financial system and to reduce development imbalances.
9. Building on Chancellor Merkel’s proposed Charter, on which we will continue to work, we adopted today Core Values for Sustainable Economic Activity, which will include those of propriety, integrity, and transparency, and which will underpin the Framework.
Strengthening the International Financial Regulatory System
10. Major failures of regulation and supervision, plus reckless and irresponsible risk taking by banks and other financial institutions, created dangerous financial fragilities that contributed significantly to the current crisis. A return to the excessive risk taking prevalent in some countries before the crisis is not an option.
11. Since the onset of the global crisis, we have developed and begun implementing sweeping reforms to tackle the root causes of the crisis and transform the system for global financial regulation. Substantial progress has been made in strengthening prudential oversight, improving risk management, strengthening transparency, promoting market integrity, establishing supervisory colleges, and reinforcing international cooperation. We have enhanced and expanded the scope of regulation and oversight, with tougher regulation of over-the-counter (OTC) derivatives, securitization markets, credit rating agencies, and hedge funds. We endorse the institutional strengthening of the FSB through its Charter, following its establishment in London, and welcome its reports to Leaders and Ministers. The FSB’s ongoing efforts to monitor progress will be essential to the full and consistent implementation of needed reforms. We call on the FSB to report on progress to the G-20 Finance Ministers and Central Bank Governors in advance of the next Leaders summit.
12. Yet our work is not done. Far more needs to be done to protect consumers, depositors, and investors against abusive market practices, promote high quality standards, and help ensure the world does not face a crisis of the scope we have seen. We are committed to take action at the national and international level to raise standards together so that our national authorities implement global standards consistently in a way that ensures a level playing field and avoids fragmentation of markets, protectionism, and regulatory arbitrage. Our efforts to deal with impaired assets and to encourage the raising of additional capital must continue, where needed. We commit to conduct robust, transparent stress tests as needed. We call on banks to retain a greater proportion of current profits to build capital, where needed, to support lending. Securitization sponsors or originators should retain a part of the risk of the underlying assets, thus encouraging them to act prudently. It is important to ensure an adequate balance between macroprudential and microprudential regulation to control risks, and to develop the tools necessary to monitor and assess the buildup of macroprudential risks in the financial system. In addition, we have agreed to improve the regulation, functioning, and transparency of financial and commodity markets to address excessive commodity price volatility.
13. As we encourage the resumption of lending to households and businesses, we must take care not to spur a return of the practices that led to the crisis. The steps we are taking here, when fully implemented, will result in a fundamentally stronger financial system than existed prior to the crisis. If we all act together, financial institutions will have stricter rules for risk-taking, governance that aligns compensation with long-term performance, and greater transparency in their operations. All firms whose failure could pose a risk to financial stability must be subject to consistent, consolidated supervision and regulation with high standards. Our reform is multi-faceted but at its core must be stronger capital standards, complemented by clear incentives to mitigate excessive risk-taking practices. Capital allows banks to withstand those losses that inevitably will come. It, together with more powerful tools for governments to wind down firms that fail, helps us hold firms accountable for the risks that they take. Building on their Declaration on Further Steps to Strengthen the International Financial System, we call on our Finance Ministers and Central Bank Governors to reach agreement on an international framework of reform in the following critical areas:
-Building high quality capital and mitigating pro-cyclicality: We commit to developing by end-2010 internationally agreed rules to improve both the quantity and quality of bank capital and to discourage excessive leverage. These rules will be phased in as financial conditions improve and economic recovery is assured, with the aim of implementation by end-2012. The national implementation of higher level and better quality capital requirements, counter-cyclical capital buffers, higher capital requirements for risky products and off-balance sheet activities, as elements of the Basel II Capital Framework, together with strengthened liquidity risk requirements and forward-looking provisioning, will reduce incentives for banks to take excessive risks and create a financial system better prepared to withstand adverse shocks. We welcome the key measures recently agreed by the oversight body of the Basel Committee to strengthen the supervision and regulation of the banking sector. We support the introduction of a leverage ratio as a supplementary measure to the Basel II risk-based framework with a view to migrating to a Pillar 1 treatment based on appropriate review and calibration. To ensure comparability, the details of the leverage ratio will be harmonized internationally, fully adjusting for differences in accounting. All major G-20 financial centers commit to have adopted the Basel II Capital Framework by 2011.
-Reforming compensation practices to support financial stability: Excessive compensation in the financial sector has both reflected and encouraged excessive risk taking. Reforming compensation policies and practices is an essential part of our effort to increase financial stability. We fully endorse the implementation standards of the FSB aimed at aligning compensation with long-term value creation, not excessive risk-taking, including by (i) avoiding multi-year guaranteed bonuses; (ii) requiring a significant portion of variable compensation to be deferred, tied to performance and subject to appropriate clawback and to be vested in the form of stock or stock-like instruments, as long as these create incentives aligned with long-term value creation and the time horizon of risk; (iii) ensuring that compensation for senior executives and other employees having a material impact on the firm’s risk exposure align with performance and risk; (iv) making firms’ compensation policies and structures transparent through disclosure requirements; (v) limiting variable compensation as a percentage of total net revenues when it is inconsistent with the maintenance of a sound capital base; and (vi) ensuring that compensation committees overseeing compensation policies are able to act independently. Supervisors should have the responsibility to review firms’ compensation policies and structures with institutional and systemic risk in mind and, if necessary to offset additional risks, apply corrective measures, such as higher capital requirements, to those firms that fail to implement sound compensation policies and practices. Supervisors should have the ability to modify compensation structures in the case of firms that fail or require extraordinary public intervention. We call on firms to implement these sound compensation practices immediately. We task the FSB to monitor the implementation of FSB standards and propose additional measures as required by March 2010.
•Improving over-the-counter derivatives markets: All standardized OTC derivative contracts should be traded on exchanges or electronic trading platforms, where appropriate, and cleared through central counterparties by end-2012 at the latest. OTC derivative contracts should be reported to trade repositories. Non-centrally cleared contracts should be subject to higher capital requirements. We ask the FSB and its relevant members to assess regularly implementation and whether it is sufficient to improve transparency in the derivatives markets, mitigate systemic risk, and protect against market abuse.
-Addressing cross-border resolutions and systemically important financial institutions by end-2010: Systemically important financial firms should develop internationally-consistent firm-specific contingency and resolution plans. Our authorities should establish crisis management groups for the major cross-border firms and a legal framework for crisis intervention as well as improve information sharing in times of stress. We should develop resolution tools and frameworks for the effective resolution of financial groups to help mitigate the disruption of financial institution failures and reduce moral hazard in the future. Our prudential standards for systemically important institutions should be commensurate with the costs of their failure. The FSB should propose by the end of October 2010 possible measures including more intensive supervision and specific additional capital, liquidity, and other prudential requirements.
14. We call on our international accounting bodies to redouble their efforts to achieve a single set of high quality, global accounting standards within the context of their independent standard setting process, and complete their convergence project by June 2011. The International Accounting Standards Board’s (IASB) institutional framework should further enhance the involvement of various stakeholders.
15. Our commitment to fight non-cooperative jurisdictions (NCJs) has produced impressive results. We are committed to maintain the momentum in dealing with tax havens, money laundering, proceeds of corruption, terrorist financing, and prudential standards. We welcome the expansion of the Global Forum on Transparency and Exchange of Information, including the participation of developing countries, and welcome the agreement to deliver an effective program of peer review. The main focus of the Forum’s work will be to improve tax transparency and exchange of information so that countries can fully enforce their tax laws to protect their tax base. We stand ready to use countermeasures against tax havens from March 2010. We welcome the progress made by the Financial Action Task Force (FATF) in the fight against money laundering and terrorist financing and call upon the FATF to issue a public list of high risk jurisdictions by February 2010. We call on the FSB to report progress to address NCJs with regards to international cooperation and information exchange in November 2009 and to initiate a peer review process by February 2010.
16. We task the IMF to prepare a report for our next meeting with regard to the range of options countries have adopted or are considering as to how the financial sector could make a fair and substantial contribution toward paying for any burdens associated with government interventions to repair the banking system.
Modernizing our Global Institutions to Reflect Today’s Global Economy
17. Modernizing the international financial institutions and global development architecture is essential to our efforts to promote global financial stability, foster sustainable development, and lift the lives of the poorest. We warmly welcome Prime Minister Brown’s report on his review of the responsiveness and adaptability of the international financial institutions (IFIs) and ask our Finance Ministers to consider its conclusions.
Reforming the Mandate, Mission and Governance of the IMF
18. Our commitment to increase the funds available to the IMF allowed it to stem the spread of the crisis to emerging markets and developing countries. This commitment and the innovative steps the IMF has taken to create the facilities needed for its resources to be used efficiently and flexibly have reduced global risks. Capital again is flowing to emerging economies.
19. We have delivered on our promise to treble the resources available to the IMF. We are contributing over $500 billion to a renewed and expanded IMF New Arrangements to Borrow (NAB). The IMF has made Special Drawing Rights (SDR) allocations of $283 billion in total, more than $100 billion of which will supplement emerging market and developing countries’ existing reserve assets. Resources from the agreed sale of IMF gold, consistent with the IMF’s new income model, and funds from internal and other sources will more than double the Fund’s medium-term concessional lending capacity.
20. Our collective response to the crisis has highlighted both the benefits of international cooperation and the need for a more legitimate and effective IMF. The Fund must play a critical role in promoting global financial stability and rebalancing growth. We welcome the reform of IMF’s lending facilities, including the creation of the innovative Flexible Credit Line. The IMF should continue to strengthen its capacity to help its members cope with financial volatility, reducing the economic disruption from sudden swings in capital flows and the perceived need for excessive reserve accumulation. As recovery takes hold, we will work together to strengthen the Fund’s ability to provide even-handed, candid and independent surveillance of the risks facing the global economy and the international financial system. We ask the IMF to support our effort under the Framework for Strong, Sustainable and Balanced Growth through its surveillance of our countries’ policy frameworks and their collective implications for financial stability and the level and pattern of global growth.
21. Modernizing the IMF’s governance is a core element of our effort to improve the IMF’s credibility, legitimacy, and effectiveness. We recognize that the IMF should remain a quota-based organization and that the distribution of quotas should reflect the relative weights of its members in the world economy, which have changed substantially in view of the strong growth in dynamic emerging market and developing countries. To this end, we are committed to a shift in quota share to dynamic emerging market and developing countries of at least five percent from over-represented to under-represented countries using the current IMF quota formula as the basis to work from. We are also committed to protecting the voting share of the poorest in the IMF. On this basis and as part of the IMF’s quota review, to be completed by January 2011, we urge an acceleration of work toward bringing the review to a successful conclusion. As part of that review, we agree that a number of other critical issues will need to be addressed, including: the size of any increase in IMF quotas, which will have a bearing on the ability to facilitate change in quota shares; the size and composition of the Executive Board; ways of enhancing the Board’s effectiveness; and the Fund Governors’ involvement in the strategic oversight of the IMF. Staff diversity should be enhanced. As part of a comprehensive reform package, we agree that the heads and senior leadership of all international institutions should be appointed through an open, transparent and merit-based process. We must urgently implement the package of IMF quota and voice reforms agreed in April 2008.
Reforming the Mission, Mandate and Governance of Our Development banks
22. The Multilateral Development Banks (MDBs) responded to our April call to accelerate and expand lending to mitigate the impact of the crisis on the world’s poorest with streamlined facilities, new tools and facilities, and a rapid increase in their lending. They are on track to deliver the promised $100 billion in additional lending. We welcome and encourage the MDBs to continue making full use of their balance sheets. We also welcome additional measures such as the temporary use of callable capital contributions from a select group of donors as was done at the InterAmerican Development Bank (IaDB). Our Finance Ministers should consider how mechanisms such as temporary callable and contingent capital could be used in the future to increase MDB lending at times of crisis. We reaffirm our commitment to ensure that the Multilateral Development Banks and their concessional lending facilities, especially the International Development Agency (IDA) and the African Development Fund, are appropriately funded.
23. Even as we work to mitigate the impact of the crisis, we must strengthen and reform the global development architecture for responding to the world’s long-term challenges.
24. We agree that development and reducing global poverty are central to the development banks’ core mission. The World Bank and other multilateral development banks are also critical to our ability to act together to address challenges, such as climate change and food security, which are global in nature and require globally coordinated action. The World Bank, working with the regional development banks and other international organizations, should strengthen:
-its focus on food security through enhancements in agricultural productivity and access to technology, and improving access to food, in close cooperation with relevant specialized agencies;
-its focus on human development and security in the poorest and most challenging environments;
-support for private-sector led growth and infrastructure to enhance opportunities for the poorest, social and economic inclusion, and economic growth; and
-contributions to financing the transition to a green economy through investment in sustainable clean energy generation and use, energy efficiency and climate resilience; this includes responding to countries needs to integrate climate change concerns into their core development strategies, improved domestic policies, and to access new sources of climate finance.
25. To enhance their effectiveness, the World Bank and the regional development banks should strengthen their coordination, when appropriate, with other bilateral and multilateral institutions. They should also strengthen recipient country ownership of strategies and programs and allow adequate policy space.
26. We will help ensure the World Bank and the regional development banks have sufficient resources to fulfill these four challenges and their development mandate, including through a review of their general capital increase needs to be completed by the first half of 2010. Additional resources must be joined to key institutional reforms to ensure effectiveness: greater coordination and a clearer division of labor; an increased commitment to transparency, accountability, and good corporate governance; an increased capacity to innovate and achieve demonstrable results; and greater attention to the needs of the poorest populations.
27. We commit to pursue governance and operational effectiveness reform in conjunction with voting reform to ensure that the World Bank is relevant, effective, and legitimate. We stress the importance of moving towards equitable voting power in the World Bank over time through the adoption of a dynamic formula which primarily reflects countries’ evolving economic weight and the World Bank’s development mission, and that generates in the next shareholding review a significant increase of at least 3% of voting power for developing and transition countries, in addition to the 1.46% increase under the first phase of this important adjustment, to the benefit of under-represented countries. While recognizing that over-represented countries will make a contribution, it will be important to protect the voting power of the smallest poor countries. We recommit to reaching agreement by the 2010 Spring Meetings.
Energy Security and Climate Change
28. Access to diverse, reliable, affordable and clean energy is critical for sustainable growth. Inefficient markets and excessive volatility negatively affect both producers and consumers. Noting the St. Petersburg Principles on Global Energy Security, which recognize the shared interest of energy producing, consuming and transiting countries in promoting global energy security, we individually and collectively commit to:
-Increase energy market transparency and market stability by publishing complete, accurate, and timely data on oil production, consumption, refining and stock levels, as appropriate, on a regular basis, ideally monthly, beginning by January 2010. We note the Joint Oil Data Initiative as managed by the International Energy Forum (IEF) and welcome their efforts to examine the expansion of their data collection to natural gas. We will improve our domestic capabilities to collect energy data and improve energy demand and supply forecasting and ask the International Energy Agency (IEA) and the Organization of Petroleum Exporting Countries (OPEC) to ramp up their efforts to assist interested countries in developing those capabilities. We will strengthen the producer-consumer dialogue to improve our understanding of market fundamentals, including supply and demand trends, and price volatility, and note the work of the IEF experts group.
-Improve regulatory oversight of energy markets by implementing the International Organization of Securities Commissions (IOSCO) recommendations on commodity futures markets and calling on relevant regulators to collect data on large concentrations of trader positions on oil in our national commodities futures markets. We ask our relevant regulators to report back at our next meeting on progress towards implementation. We will direct relevant regulators to also collect related data on over-the-counter oil markets and to take steps to combat market manipulation leading to excessive price volatility. We call for further refinement and improvement of commodity market information, including through the publication of more detailed and disaggregated data, coordinated as far as possible internationally. We ask IOSCO to help national governments design and implement these policies, conduct further analysis including with regard with to excessive volatility, make specific recommendations, and to report regularly on our progress.
29. Enhancing our energy efficiency can play an important, positive role in promoting energy security and fighting climate change. Inefficient fossil fuel subsidies encourage wasteful consumption, distort markets, impede investment in clean energy sources and undermine efforts to deal with climate change. The Organization for Economic Cooperation and Development (OECD) and the IEA have found that eliminating fossil fuel subsidies by 2020 would reduce global greenhouse gas emissions in 2050 by ten percent. Many countries are reducing fossil fuel subsidies while preventing adverse impact on the poorest. Building on these efforts and recognizing the challenges of populations suffering from energy poverty, we commit to:
-Rationalize and phase out over the medium term inefficient fossil fuel subsidies that encourage wasteful consumption. As we do that, we recognize the importance of providing those in need with essential energy services, including through the use of targeted cash transfers and other appropriate mechanisms. This reform will not apply to our support for clean energy, renewables, and technologies that dramatically reduce greenhouse gas emissions. We will have our Energy and Finance Ministers, based on their national circumstances, develop implementation strategies and timeframes, and report back to Leaders at the next Summit. We ask the international financial institutions to offer support to countries in this process. We call on all nations to adopt policies that will phase out such subsidies worldwide.
30. We request relevant institutions, such as the IEA, OPEC, OECD, and World Bank, provide an analysis of the scope of energy subsidies and suggestions for the implementation of this initiative and report back at the next summit.
31. Increasing clean and renewable energy supplies, improving energy efficiency, and promoting conservation are critical steps to protect our environment, promote sustainable growth and address the threat of climate change. Accelerated adoption of economically sound clean and renewable energy technology and energy efficiency measures diversifies our energy supplies and strengthens our energy security. We commit to:
-Stimulate investment in clean energy, renewables, and energy efficiency and provide financial and technical support for such projects in developing countries.
-Take steps to facilitate the diffusion or transfer of clean energy technology including by conducting joint research and building capacity. The reduction or elimination of barriers to trade and investment in this area are being discussed and should be pursued on a voluntary basis and in appropriate fora.
32. As leaders of the world’s major economies, we are working for a resilient, sustainable, and green recovery. We underscore anew our resolve to take strong action to address the threat of dangerous climate change. We reaffirm the objective, provisions, and principles of the United Nations Framework Convention on Climate Change (UNFCCC), including common but differentiated responsibilities. We note the principles endorsed by Leaders at the Major Economies Forum in L’Aquila, Italy. We will intensify our efforts, in cooperation with other parties, to reach agreement in Copenhagen through the UNFCCC negotiation. An agreement must include mitigation, adaptation, technology, and financing.
33. We welcome the work of the Finance Ministers and direct them to report back at their next meeting with a range of possible options for climate change financing to be provided as a resource to be considered in the UNFCCC negotiations at Copenhagen.
Strengthening Support for the Most Vulnerable
34. Many emerging and developing economies have made great strides in raising living standards as their economies converge toward the productivity levels and living standards of advanced economies. This process was interrupted by the crisis and is still far from complete. The poorest countries have little economic cushion to protect vulnerable populations from calamity, particularly as the financial crisis followed close on the heels of a global spike in food prices. We note with concern the adverse impact of the global crisis on low income countries’ (LICs) capacity to protect critical core spending in areas such as health, education, safety nets, and infrastructure. The UN's new Global Impact Vulnerability Alert System will help our efforts to monitor the impact of the crisis on the most vulnerable. We share a collective responsibility to mitigate the social impact of the crisis and to assure that all parts of the globe participate in the recovery.
35. The MDBs play a key role in the fight against poverty. We recognize the need for accelerated and additional concessional financial support to LICs to cushion the impact of the crisis on the poorest, welcome the increase in MDB lending during the crisis and support the MDBs having the resources needed to avoid a disruption of concessional financing to the most vulnerable countries. The IMF also has increased its concessional lending to LICs during the crisis. Resources from the sale of IMF gold, consistent with the new income model, and funds from internal and other sources will double the Fund’s medium-term concessional lending capacity.
36. Several countries are considering creating, on a voluntary basis, mechanisms that could allow, consistent with their national circumstances, the mobilization of existing SDR resources to support the IMF’s lending to the poorest countries. Even as we work to mitigate the impact of the crisis, we must strengthen and reform the global development architecture for responding to the world’s long-term challenges. We ask our relevant ministers to explore the benefits of a new crisis support facility in IDA to protect LICs from future crises and the enhanced use of financial instruments in protecting the investment plans of middle income countries from interruption in times of crisis, including greater use of guarantees.
37. We reaffirm our historic commitment to meet the Millennium Development Goals and our respective Official Development Assistance (ODA) pledges, including commitments on Aid for Trade, debt relief, and those made at Gleneagles, especially to sub-Saharan Africa, to 2010 and beyond.
38. Even before the crisis, too many still suffered from hunger and poverty and even more people lack access to energy and finance. Recognizing that the crisis has exacerbated this situation, we pledge cooperation to improve access to food, fuel, and finance for the poor.
39. Sustained funding and targeted investments are urgently needed to improve long-term food security. We welcome and support the food security initiative announced in L’Aquila and efforts to further implement the Global Partnership for Agriculture and Food Security and to address excessive price volatility. We call on the World Bank to work with interested donors and organizations to develop a multilateral trust fund to scale-up agricultural assistance to low-income countries. This will help support innovative bilateral and multilateral efforts to improve global nutrition and build sustainable agricultural systems, including programs like those developed through the Comprehensive African Agricultural Development Program (CAADP). It should be designed to ensure country ownership and rapid disbursement of funds, fully respecting the aid effectiveness principles agreed in Accra, and facilitate the participation of private foundations, businesses, and non-governmental organizations (NGOs) in this historic effort. These efforts should complement the UN Comprehensive Framework for Agriculture. We ask the World Bank, the African Development Bank, UN, Food and Agriculture Organization (FAO), International Fund for Agricultural Development (IFAD), World Food Programme (WFP) and other stakeholders to coordinate their efforts, including through country-led mechanisms, in order to complement and reinforce other existing multilateral and bilateral efforts to tackle food insecurity.
40. To increase access to energy, we will promote the deployment of clean, affordable energy resources to the developing world. We commit, on a voluntary basis, to funding programs that achieve this objective, such as the Scaling Up Renewable Energy Program and the Energy for the Poor Initiative, and to increasing and more closely harmonizing our bilateral efforts.
41. We commit to improving access to financial services for the poor. We have agreed to support the safe and sound spread of new modes of financial service delivery capable of reaching the poor and, building on the example of micro finance, will scale up the successful models of small and medium-sized enterprise (SME) financing. Working with the Consultative Group to Assist the Poor (CGAP), the International Finance Corporation (IFC) and other international organizations, we will launch a G-20 Financial Inclusion Experts Group. This group will identify lessons learned on innovative approaches to providing financial services to these groups, promote successful regulatory and policy approaches and elaborate standards on financial access, financial literacy, and consumer protection. We commit to launch a G-20 SME Finance Challenge, a call to the private sector to put forward its best proposals for how public finance can maximize the deployment of private finance on a sustainable and scalable basis.
42. As we increase the flow of capital to developing countries, we also need to prevent its illicit outflow. We will work with the World Bank’s Stolen Assets Recovery (StAR) program to secure the return of stolen assets to developing countries, and support other efforts to stem illicit outflows. We ask the FATF to help detect and deter the proceeds of corruption by prioritizing work to strengthen standards on customer due diligence, beneficial ownership and transparency. We note the principles of the Paris Declaration on Aid Effectiveness and the Accra Agenda for Action and will work to increase the transparency of international aid flows by 2010. We call for the adoption and enforcement of laws against transnational bribery, such as the OECD Anti-Bribery Convention, and the ratification by the G-20 of the UN Convention against Corruption (UNCAC) and the adoption during the third Conference of the Parties in Doha of an effective, transparent, and inclusive mechanism for the review of its implementation. We support voluntary participation in the Extractive Industries Transparency Initiative, which calls for regular public disclosure of payments by extractive industries to governments and reconciliation against recorded receipt of those funds by governments.
Putting Quality Jobs at the Heart of the Recovery
43. The prompt, vigorous and sustained response of our countries has saved or created millions of jobs. Based on International Labour Organization (ILO) estimates, our efforts will have created or saved at least 7 – 11 million jobs by the end of this year. Without sustained action, unemployment is likely to continue rising in many of our countries even after economies stabilize, with a disproportionate impact on the most vulnerable segments of our population. As growth returns, every country must act to ensure that employment recovers quickly. We commit to implementing recovery plans that support decent work, help preserve employment, and prioritize job growth. In addition, we will continue to provide income, social protection, and training support for the unemployed and those most at risk of unemployment. We agree that the current challenges do not provide an excuse to disregard or weaken internationally recognized labor standards. To assure that global growth is broadly beneficial, we should implement policies consistent with ILO fundamental principles and rights at work.
44. Our new Framework for Strong, Sustainable, and Balanced Growth requires structural reforms to create more inclusive labor markets, active labor market policies, and quality education and training programs. Each of our countries will need, through its own national policies, to strengthen the ability of our workers to adapt to changing market demands and to benefit from innovation and investments in new technologies, clean energy, environment, health, and infrastructure. It is no longer sufficient to train workers to meet their specific current needs; we should ensure access to training programs that support lifelong skills development and focus on future market needs. Developed countries should support developing countries to build and strengthen their capacities in this area. These steps will help to assure that the gains from new inventions and lifting existing impediments to growth are broadly shared.
45. We pledge to support robust training efforts in our growth strategies and investments. We recognize successful employment and training programs are often designed together with employers and workers, and we call on the ILO, in partnership with other organizations, to convene its constituents and NGOs to develop a training strategy for our consideration.
46. We agree on the importance of building an employment-oriented framework for future economic growth. In this context, we reaffirm the importance of the London Jobs Conference and Rome Social Summit. We also welcome the recently-adopted ILO Resolution on Recovering from the Crisis: A Global Jobs Pact, and we commit our nations to adopt key elements of its general framework to advance the social dimension of globalization. The international institutions should consider ILO standards and the goals of the Jobs Pact in their crisis and post-crisis analysis and policy-making activities.
47. To ensure our continued focus on employment policies, the Chair of the Pittsburgh Summit has asked his Secretary of Labor to invite our Employment and Labor Ministers to meet as a group in early 2010 consulting with labor and business and building on the upcoming OECD Labour and Employment Ministerial meeting on the jobs crisis. We direct our Ministers to assess the evolving employment situation, review reports from the ILO and other organizations on the impact of policies we have adopted, report on whether further measures are desirable, and consider medium-term employment and skills development policies, social protection programs, and best practices to ensure workers are prepared to take advantage of advances in science and technology.
An Open Global Economy
48. Continuing the revival in world trade and investment is essential to restoring global growth. It is imperative we stand together to fight against protectionism. We welcome the swift implementation of the $250 billion trade finance initiative. We will keep markets open and free and reaffirm the commitments made in Washington and London: to refrain from raising barriers or imposing new barriers to investment or to trade in goods and services, imposing new export restrictions or implementing World Trade Organization (WTO) inconsistent measures to stimulate exports and commit to rectify such measures as they arise. We will minimize any negative impact on trade and investment of our domestic policy actions, including fiscal policy and action to support the financial sector. We will not retreat into financial protectionism, particularly measures that constrain worldwide capital flows, especially to developing countries. We will notify promptly the WTO of any relevant trade measures. We welcome the latest joint report from the WTO, OECD, IMF, and United Nations Conference on Trade and Development (UNCTAD) and ask them to continue to monitor the situation within their respective mandates, reporting publicly on these commitments on a quarterly basis.
49. We remain committed to further trade liberalization. We are determined to seek an ambitious and balanced conclusion to the Doha Development Round in 2010, consistent with its mandate, based on the progress already made, including with regard to modalities. We understand the need for countries to directly engage with each other, within the WTO bearing in mind the centrality of the multilateral process, in order to evaluate and close the remaining gaps. We note that in order to conclude the negotiations in 2010, closing those gaps should proceed as quickly as possible. We ask our ministers to take stock of the situation no later than early 2010, taking into account the results of the work program agreed to in Geneva following the Delhi Ministerial, and seek progress on Agriculture, Non-Agricultural Market Access, as well as Services, Rules, Trade Facilitation and all other remaining issues. We will remain engaged and review the progress of the negotiations at our next meeting.
The Path from Pittsburgh
50. Today, we designated the G-20 as the premier forum for our international economic cooperation. We have asked our representatives to report back at the next meeting with recommendations on how to maximize the effectiveness of our cooperation. We agreed to have a G-20 Summit in Canada in June 2010, and in Korea in November 2010. We expect to meet annually thereafter, and will meet in France in 2011.
ANNEX: Core Values for Sustainable Economic Activity
1. The economic crisis demonstrates the importance of ushering in a new era of sustainable global economic activity grounded in responsibility. The current crisis has once again confirmed the fundamental recognition that our growth and prosperity are interconnected, and that no region of the globe can wall itself off in a globalized world economy.
2. We, the Leaders of the countries gathered for the Pittsburgh Summit, recognize that concerted action is needed to help our economies get back to stable ground and prosper tomorrow. We commit to taking responsible actions to ensure that every stakeholder – consumers, workers, investors, entrepreneurs – can participate in a balanced, equitable, and inclusive global economy.
3. We share the overarching goal to promote a broader prosperity for our people through balanced growth within and across nations; through coherent economic, social, and environmental strategies; and through robust financial systems and effective international collaboration.
4. We recognize that there are different approaches to economic development and prosperity, and that strategies to achieve these goals may vary according to countries’ circumstances.
5. We also agree that certain key principles are fundamental, and in this spirit we commit to respect the following core values:
-We have a responsibility to ensure sound macroeconomic policies that serve long-term economic objectives and help avoid unsustainable global imbalances.
-We have a responsibility to reject protectionism in all its forms, support open markets, foster fair and transparent competition, and promote entrepreneurship and innovation across countries.
-We have a responsibility to ensure, through appropriate rules and incentives, that financial and other markets function based on propriety, integrity and transparency and to encourage businesses to support the efficient allocation of resources for sustainable economic performance.
-We have a responsibility to provide for financial markets that serve the needs of households, businesses and productive investment by strengthening oversight, transparency, and accountability.
-We have a responsibility to secure our future through sustainable consumption, production and use of resources that conserve our environment and address the challenge of climate change.
-We have a responsibility to invest in people by providing education, job training, decent work conditions, health care and social safety net support, and to fight poverty, discrimination, and all forms of social exclusion.
-We have a responsibility to recognize that all economies, rich and poor, are partners in building a sustainable and balanced global economy in which the benefits of economic growth are broadly and equitably shared. We also have a responsibility to achieve the internationally agreed development goals.
-We have a responsibility to ensure an international economic and financial architecture that reflects changes in the world economy and the new challenges of globalization.
G-20 Framework for Strong, Sustainable, and Balanced Growth
1. Our countries have a shared responsibility to adopt policies to achieve strong, sustainable and balanced growth, to promote a resilient international financial system, and to reap the benefits of an open global economy. To this end, we recognize that our strategies will vary across countries. In our Framework for Strong, Sustainable and Balanced Growth, we will:
-implement responsible fiscal policies, attentive to short-term flexibility considerations and longer-run sustainability requirements.
-strengthen financial supervision to prevent the re-emergence in the financial system of excess credit growth and excess leverage and undertake macro prudential and regulatory policies to help prevent credit and asset price cycles from becoming forces of destabilization.
-promote more balanced current accounts and support open trade and investment to advance global prosperity and growth sustainability, while actively rejecting protectionist measures.
-undertake monetary policies consistent with price stability in the context of market oriented exchange rates that reflect underlying economic fundamentals.
-undertake structural reforms to increase our potential growth rates and, where needed, improve social safety nets.
-promote balanced and sustainable economic development in order to narrow development imbalances and reduce poverty.
2. We recognize that the process to ensure more balanced global growth must be undertaken in an orderly manner. All G-20 members agree to address the respective weaknesses of their economies.
-G-20 members with sustained, significant external deficits pledge to undertake policies to support private savings and undertake fiscal consolidation while maintaining open markets and strengthening export sectors.
-G-20 members with sustained, significant external surpluses pledge to strengthen domestic sources of growth. According to national circumstances this could include increasing investment, reducing financial markets distortions, boosting productivity in service sectors, improving social safety nets, and lifting constraints on demand growth.
3. Each G-20 member bears primary responsibility for the sound management of its economy. The G-20 members also have a responsibility to the community of nations to assure the overall health of the global economy. Regular consultations, strengthened cooperation on macroeconomic policies, the exchange of experiences on structural policies, and ongoing assessment can strengthen our cooperation and promote the adoption of sound policies. As part of our process of mutual assessment:
-G-20 members will agree on shared policy objectives. These objectives should be updated as conditions evolve.
-G-20 members will set out their medium-term policy frameworks and will work together to assess the collective implications of our national policy frameworks for the level and pattern of global growth, and to identify potential risks to financial stability.
-G-20 leaders will consider, based on the results of the mutual assessment, and agree any actions to meet our common objectives.
4. We call on our Finance Ministers to develop our process of mutual assessment to evaluate the collective implications of national policies for the world economy. To accomplish this, our Finance Ministers should, with the assistance of the IMF:
-Develop a forward looking assessment of G-20 economic developments to help analyze whether patterns of demand and supply, credit, debt and reserves growth are supportive of strong, sustainable and balanced growth.
-Assess the implications and consistency of fiscal and monetary policies, credit growth and asset markets, foreign exchange developments, commodity and energy prices, and current account imbalances.
-Report regularly to both the G-20 and the IMFC on global economic developments, key risks, and concerns with respect to patterns of growth and suggested G-20 policy adjustments, individually and collectively.
THE WHITE HOUSE Office of the Press Secretary For Immediate Release September 24, 2009 PRESS BRIEFING BY TREASURY SECRETARY TIM GEITHNER ON THE G20 MEETINGS Pittsburgh Convention Center Pittsburgh, Pennsylvania 5:00 P.M. EDT
SECRETARY GEITHNER: A few remarks about what's at stake over the next couple days, what our objectives are, what we hope to accomplish. I'm just going to begin with a few remarks about our objectives, and then I'd be happy to take some questions.Let me just start by thanking the Governor, the Mayor, the people of Pittsburgh for hosting this important meeting. We're here, of course, because Pittsburgh is such a powerful example of how a city and a region can transform itself into a center of high-tech innovation and manufacturing.We're meeting at a time where, for the first time since London, certainly for the first time in a year, we're seeing the first signs of optimism about prospects for global recovery. I think the broad consensus of private economists and businesses are that we're beginning to see growth in the United States, and around the world we see exports rising and forecasts for growth are being revised upwards.This is encouraging, but we have a ways to go. And we are going to keep working to sustain the progress we've seen. And I can say with confidence based on my discussions with finance ministers and central bank governors from around the world, there is a common, shared commitment to make sure we're working together to sustain these early signs of recovery and growth.
Now, it's very important that as we lay a foundation for recovery we don't sow the seeds for future crises. In the run-up to this crisis many of the world's largest economies depended on the American consumer to buy their exports to drive growth, and we made it easy; for too long, Americans were buying too much and saving too little. And that's no longer an option for us or for the rest of the world. And already in the United States you can see the first signs of an important transformation here as Americans save more and as we borrow substantially less from the rest of the world. And you heard the President outline earlier this week an ambitious program to strengthen growth in the United States by investing in innovation, by making sure we stay at the frontier of innovation in manufacturing and all the industries that would be critical to growth here in the future. He's proposed and starting to implement the largest increase in basic research development in U.S. history. He's proposed very substantial and important initiatives to improve the quality of education, to expand access to higher education, and to promote careers in science technology, engineering, and math. And he's made historic investments in clean energy and in improving energy efficiency. And his judgment is, of course, that those investments are going to be critical to laying a foundation for stronger growth in incomes here in this country. And as we save more so we can invest more in the United States, the world is going to have to shift sources of growth more towards domestic demand. For the world to grow at the rate it can, we're going to need to see reforms in many countries, to help lay a foundation for, as I said, stronger domestic-led growth. So we've been working to build consensus on what we call a new framework for balanced growth -- for more sustainable and balanced growth. And we've seen very broad support for that proposal. And the objective of this framework is to make sure that countries come together at an early stage and make sure that the collective policies they are pursuing are not going to lead to unsustainable imbalances; are going to make sure we're less vulnerable to future cycles of booms and busts; that our financial systems are more stable and that we're all growing at a more sustainable, more rapid growth in the future.
Now, in this context, the second key priority, our key objective for the summit is to establish consensus on much stronger standards across our financial systems. We are not going to walk away from the greatest economic crisis since the Great Depression and leave unchanged, and leave in place, the tragic vulnerabilities that caused this crisis. Now, we have worked very hard at a very early stage in this process in this administration to build consensus on a very strong set of international standards for reform. As you know, the United States -- Congress has a very aggressive schedule to legislate sweeping changes to our financial system that are going to make -- provide greater protection for consumers and investors, to create a more stable financial system, and to try to make sure that taxpayers are no longer on the hook in the future to bear the burdens of financial crises.But we can't do this alone. If we continue to allow risk and leverage to migrate where standards are weakest, the entire U.S.-global financial system will be less stable in the future. We need to see competition for stronger standards, not weaker standards; competition in the design of reforms that are going to make the system more stable in the future.Now, my own sense is we have a strong consensus on the basic framework of objectives, but we worked very hard over the last few weeks and months to get countries to agree to a set of objectives, a timetable, to put these reforms in place. So you're going to see tomorrow not just us reach agreement on the key priorities for reform in strengthening capital standards, in reforming compensation practices, in bringing derivatives markets and hedge funds into an adequate framework of oversight, trying to make sure we have better tools to respond to future financial crises, where you're going to see us lay out more concrete time frames to put those reforms in place.
I think we all recognize that we need to act before the memory of the crisis fades and before the impetus for reform recedes. And we're trying to bring greater urgency and commitment to the need to act together.Now, to successfully address these two challenges of growth and reform, we need to have the right table around -- the right people around the table. So our third focus, our third objective, important objective here, is to make sure that we reform the framework for cooperation on economic uses around the world in a way that gives greater representation to some of the most important economies in the world today. That's why the G20 has been so effective and is so important, and that's why we need to see complementary shifts at the IMF and the World Bank.And we're doing this, of course, not because we think it's good to have them around the table, but because we think for those institutions to be effective, for it to have broad support, they need to adequately represent the new balance of economic activity in the global economy. And we need those countries working with us together.Now, we have a tremendous opportunity in the coming weeks and months to work together to make historic progress in addressing the challenges of climate change. The President is working very closely with countries around the world to try to get agreement on ambitious targets for reducing carbon emissions. Over the last few weeks, we have worked to build consensus on important new commitments to phase out fossil energy subsidies over time. And I can say today, based on the important work of countries around the table, we're seeing a lot of support for that proposal, and we think this will have a dramatic impact on our collective effort to reduce carbon emissions.Just to give you an example, estimates by the OECD suggest that if all countries followed the lead of the G20 in agreeing to phase out fossil fuel energy subsidies over the medium term, this would reduce global greenhouse gas emissions by 10 percent by 2050, which is a very substantial down payment on our objective, on the President's objective, to reduce global emissions to 50 percent below 2005 levels by 2050.
Now, this has, of course, profound implications for our national security interests, for the health care -- for the health of our citizens, and for our economies. Reducing energy subsidies will not just reduce our vulnerability to future energy price shocks, it will not just provide substantial reduction in air pollution, which can be so damaging to health, but eliminating hundreds of billions of dollars spent on these subsidies would help promote faster growth and improve our capacity to use the taxpayers' resources more effectively for other priorities.This set of commitments is going to be an important complement to our continuing efforts in the United States to pass legislation to reduce carbon emissions, and we're looking forward to working with nations of the G20 and other countries to make the Copenhagen summit a success.Now, finally, let me just say in conclusion that the challenges we face today of course are not confined to our borders. They don't respect national borders. And nor can the solution come from individual countries acting on their own. Financial risk and leverage is going to flow to where the rules are most lax, but the consequences of failure will be felt globally.To achieve a more stable financial system, we need strong reforms here in this country, but in other countries around the world. If we want more rapid growth here and lower unemployment, we need more rapid growth outside the United States. For American companies to be able to be export -- other countries to buy our exports, when our country exports more goods, employment will rise here. We're in this together. And that's why cooperation in the G20 is so important to the interest of Americans.
Thank you. I'll be happy to take your questions. Yes.
Q Sorry to get off topic on the first question here, but on Iran -- Iran was a big topic at the U.N. this week. How important is this forum for the U.S. effort to put pressure on them? How much will that be a part of discussions? And what specifically are you looking to do here on that?
SECRETARY GEITHNER: You're going to have to talk to my colleagues -- on Iran. But I think you saw -- well, I'll just say anytime people get together -- people get together, they're going to talk about the things that are at the top of the national security agenda. But as I think my colleagues have said already, I don't think you'd expect Iran itself to be a principal focus of our discussions over the next couple of days.
Yes.
Q Mr. Secretary, do you worry that some of the other nations, though, might look at the recession as having bottomed out and suddenly say, well, everything is okay, we don't need financial reforms?
SECRETARY GEITHNER: I don't -- we can't let that happen. And I think if you listen carefully to what countries are saying, there is very substantial commitment really to try to move quickly and put in place stronger reforms. So I think they recognize the basic imperative of the President to move very early to propose reform, which was that, again, if you wait the risk is that it will be harder to act; you won't accomplish enough.And so we're trying to move as quickly as possible, because our sense is we'll be able to achieve more if we move early. And again, I think that basic recognition is felt everywhere. And I think if you listen carefully to what people are doing and saying, there's a common appreciation of that imperative.
Yes.
Q-- balancing growth and regulatory reform, what specific mechanisms will the G20 put into place to make sure that these things happen?
SECRETARY GEITHNER: Let me start with financial reform because that's sort of the easier in this case. The important thing is we reach agreement on a clear set of standards that are measurable and enforceable; that countries commit to put in place regulations that will give force to those standards and rules. And then we follow up and we monitor and we assess and we look. And everybody cares about having a level playing field, so everybody has an interest. Once you agree to a strong set of rules, everybody has an interest in making sure that those rules are -- people play by those rules.And that's the basic strategy that will underpin our approach. So as we reach agreement on new capital standards, capital is central to any credible effort to make a more stable financial system -- capital is the resource that institutions have to hold against the risk of future losses, and there we'll establish a very clear standard and people will be able to see whether countries have put that in place for regulation, and they'll be able to see whether their banks are being held to that standard.
On the broader growth agenda, to be honest it's a harder thing to do, because we're a nation of -- we're a world of sovereign nations, and no country is going to cede sovereignty over fundamental choices about economic policy to consensus of other countries or to a international agency. But what we can do, and what we're trying to do now at a very early stage in this process of recovery, is to get people to agree to the basic imperative that we're not going to get growth strong enough, rapid enough, and sustainable in the future unless we're all reforming together; and that as we save more here so we can invest more here, we need to see countries around the world making changes to shift the pattern of growth to domestic demand. That's going to require a complex set of reforms that are going to have to take place over time.And the basic premise is the same thing, though, you want to have the IMF come in and assess how we're doing and where you see early signs of unsustainable imbalances emerging, you want to try to make it compelling to countries to act earlier to address those, not let them build up, not wait. So you want to try to get policy to be ahead of the curve in the future, not constantly behind trying to catch up. That's the basic objective we're trying to bring about.
Yes.
Q Mr. Secretary, on the framework you just discussed, how confident are you that you will leave here in Pittsburgh with a commitment from all the G20 nations to support this framework, including China?
SECRETARY GEITHNER: Again, as I said, my sense is from my conversation with my colleagues is there's very strong support for this. The question was how confident am I that we're going to leave Pittsburgh with agreement among all the G20 countries to this framework, including China. I just had the privilege of meeting with my counterpart, the Vice Premier of China. And if you saw what we did with China together at the meeting of the Strategic and Economic Dialogue in Washington in July, you saw us put in place the foundation of this agreement. And that's what's made it possible really, frankly, for us to bring the rest of the G20 on to that same basic framework. So I think -- again, my sense is that we have a lot of support for this, and I think we're encouraged by that.
Yes.
Q You went through the same process, Mr. Secretary, with Japan in the '80s, when the effort was to get them to pick up domestic demand to ratify imbalances, correct imbalances. What are the lessons from that which -- a transition that happened very slowly, and what in your discussions with the Chinese makes you think that they are moving away from a model of export-led growth? Because all the early numbers from them seem to indicate it's pretty export-strong the past few months.
SECRETARY GEITHNER: Well, let me just start where you ended. Actually, if you look at what's happened in China, there's been a very, very substantial effort -- similar to what we've done here -- to provide very substantial support, financial fiscal measures to promote recovery. And if you look at the composition of growth so far, their current account surplus, their trade surplus is coming down and domestic demand is getting stronger. And that's a good sign of the shift.But much more important than that, if you look at what China has committed to, to its own citizens in terms of the broad direction of reform, you're seeing them commit to financial reforms that are critical to this shift away from exports and heavy investment to domestic-led growth. You're seeing them proposing reforms to help strengthen the safety net to reduce the incentive for precautionary savings by strengthening health care reform, putting in place basic social security protections. And you're seeing them trying to shift again the balance of investment away from heavy industry. And those are encouraging signs of commitment.And China, frankly, if you look at what's happened in China over the last 30 years, they have an exceptionally good record of committing to very substantial changes and reform, acting on those commitments, and delivering them. And these are -- only happen and only work when it's in the interests of the country to pursue them. So I think if you look what they've said and you see what they've laid out, you can see that these commitments are credible, and that's what makes us more optimistic, frankly, that the support we hear for this framework is going to matter.
I should move over here, yes.
Q Mr. Secretary, on your third piece, on the framework for the representation on the IMF and the World Bank, the Europeans said today that they are opposed to what the United States is proposing. And I'm wondering how you respond to them now that they're on record saying they don't like it. And another one on the --
SECRETARY GEITHNER: Let me just start there and I'll let you finish your thing. Look, this is a necessary shift. I don't think there's anybody who would not believe this is the necessary appropriate shift in the basic balance of representation in these institutions. I think Europe recognizes that. And what we're trying to do is to bridge this difference between a number of nations in Europe that are going to, of course, have to adjust over time given the change of balance of activity in the world and have that shift occur to those countries who have been for a substantial period of time among the most rapidly growing countries in the world. And I think the Europeans actually recognize that shift is going to happen. It's the right thing to do, and it's going to happen. What we're trying to do is have it happen in way that's going to be sensible for the institutions.I think you're able to see, again -- I'm laying out our objectives and our expectations, but my expectation is you're going to see all those countries come together and agree that the shift needs to be very substantial and -- but we set up in London a target for the end of 2010, effectively, January 2011 -- to reach the final details on the elements of the reform of the governing structure of those institutions. So we're trying to do this in stages and, again, my sense is we're going to make substantial progress here today.
Yes.
Q One on financial regulation and one on the economy. One of the unresolved questions in London was how do you measure who enforces for whatever this regulatory framework is. Have you resolved that? What do you know about that? What can we expect to see? Secondly, on the U.S. economy, when you say Americans are now saving more, do you consider that something that's a response to the recession, or a fundamental shift that's going to change the way the American economy functions and how it integrates in the global economy?
SECRETARY GEITHNER: I think -- I'll start with savings -- I think it's a fundamental shift and I think it's a healthy and necessary shift. And I think it's an encouraging sign that after a long period of time when we were living within our means, you're seeing changes in behavior to recognize that we need to go back to -- did I say living within our means? -- a long period of time living beyond our means, you see people already changing behavior out of the recognition that we have to go back to living within our means. And the government of course is going to say you have to save more over time, too. And I think, again, this is a necessary, healthy transition. It's going to allow us to have a more healthy pattern of growth in the future; allow us to finance the investments we need to support future innovation. And one of the great strengths of this country is that we adjust quickly, we move quickly. When these changes have to happen, they happen with great speed. And I think that's one reason why we can stand here today and express some measured optimism about our capacity to put in place a more sustainable recovery.Now, on financial reform, your question was how are we going to give it force? Again, the basic architectures say that you commit to standards that are measurable, like a capital requirement, just as an example, and governments commit to put in place the laws and regulations, supervisory measures to give those standards force. We sit together -- countries sit together around this important institution called the Financial Stability Board, and a bunch of committees underneath that, to assess progress.
And, again, the basic strategy is a simple strategy. You get countries to agree to raise the standards, to commit to a level playing field, and then you have a huge interest in all countries in holding each other accountable to hold their institutions to that same standard, because they all know that if anybody tries to compete by lowering those standards, it would be adverse to their interests. That's the basic dynamic. So the important thing we did in London, and you're going to see substantial additional progress here today, is to add, in effect, a fourth pillar to the architecture of cooperation we established after the second world war. After the second world war, we came together and established the IMF, the World Bank, the GATT which became the WTO. But the Financial Stability Board is, in effect, a fourth pillar of that architecture. And that forum, just for those of you who are not familiar with it, again brings together central banks, finance ministers, supervisors of banks, market regulators like the SEC and the CFTC, the accounting standard setters -- brings them together and tries to forge consensus on standards, so we can have, again, common standards applied globally.
Yes.
Q Mr. Secretary, on the fossil fuel subsidies, how would you react to Republicans who might criticize you for saying you're hurting America's energy independence, or potentially hurting America's energy independence with such a move?
SECRETARY GEITHNER: I'm not a politician. But our judgment is, and I think the judgment of the people who are responsible for designing energy policy in the United States are that these commitments are helpful in helping reduce our ultimate dependence on foreign sources of energy. No conflict between them, and that's their judgment. I think that judgment is right.
Q Can you tell us how often your colleagues from other countries have brought up the sort of disparate ideas that have been put forth on new financial regulation in the United States? In other words, comments that, say, Senator Dodd has made, other members of Congress -- have any of your colleagues brought that up? And what do you tell them about the debate taking place in Washington about how this regulatory reform should actually be carried out in our country?
SECRETARY GEITHNER: Well, actually, we're at an enviable position, because I think that -- well, I think it's just -- it's true that we moved earlier to begin this process. We're I think much further along than any country in laying out a comprehensive framework of reform. And we are I think much further along to making sure that we have the legislative consensus in place to give that force.I think you heard from the chairmen, both Chairman Dodd and Chairman Frank this week, their commitment to move this forward. And they tell me, and I think they've said publicly, that they're actually quite optimistic they're going to find a way to do that. So I think we're in a very good position to lead by example, and to reinforce the impetus for progress in other countries around the world. And we're welcome to see them move with us.Of course, Congress has to legislate, and this is a complicated process and we want to get it right. But that's what I'd say to them. And I think they recognize that, again. And, again, we're trying to do what is in the interest of the United States. We're trying to set the agenda early because we think our interests are very much in trying to make sure that we get the world to come with us and agree on what the future shape of the financial system should be. And as I said, we're very encouraged by the progress we've seen.If you read carefully the consensus not just reached in London but what you'll see in the reports issued tomorrow, there is very, very broad support from a very diverse range of countries for the core things that we first set out in February and March of this year.
Yes.
Q Mr. Secretary, the dollar is getting weaker and weaker. First of all, how worried are you about that development, and how worried are you that other countries are creating -- like Russia other baskets of currencies? And how will you get rid at the government level of the debt, the huge debt that's been --
SECRETARY GEITHNER: Let me start here, and I'll just say what I will always say on any question anyone asks me about exchange rate developments and the dollar. A strong dollar is very important in the United States. We have a special responsibility here in the United States to make sure we are doing the things in this country to preserve confidence in the U.S. financial system, confidence that's very important to sustain the dollar's role as the principal reserve currency in the international financial system. And we expect, as I think countries around the world expect, the dollar to retain that position for a very long time. Now, we are committed, and you have heard the President say how important it is to our economic future to make sure that as we get recovery in place, we are taking steps to bring down our fiscal deficit to a sustainable level, and that we are unwinding and reversing the extraordinary actions we were forced to take to help fix this financial system and resolve this crisis. And if you watched what we said in the United States over the last few weeks, you've seen that we have already moved to unwind and reduce many of the emergency financial measures we were forced to take again to fix the crisis. And we are already having to borrow substantially less than we anticipated to help solve this financial crisis. And we are going to of course leave those programs in place until we are very confident we have a financial system that can provide the credit recovery needs. But we're also going to make sure that people understand that we're going to reverse these actions as soon as it's prudent to do so.
Yes.
Q In the past week, there seemed to be disagreements between the French and the Americans about the bonuses. Can you --
SECRETARY GEITHNER: I've heard that and I've read that perception, but we actually are very close and I believe we're in the same place. And let me just describe the objectives that form that common approach. Again, we want to have very strong standards to limit the risk that compensation practices in the world's largest institutions encourage excessive risk-taking lead to the huge increase in leverage and risk we saw in this crisis. So we've laid out -- and you'll see tomorrow -- a really far-reaching set of pretty detailed standards to underscore that commitment. But we've also made it clear that we are going to move in each country to put in place the mix of regulations, laws, supervisory measures, that are necessary to give those standards force. We're going to measure progress against those standards, report on progress, and we're going to let an independent agency -- in this case, the Financial Stability Board -- assess progress against those standards.And let me just say one thing that's very important. We don't want to see these reforms take effect two years from now, we don't want to see them take effect next year -- we want them to take effect now so they affect compensation practice today, not tomorrow, and that they bring about reforms in compensation by the end of this calendar year. So that's the basic outline of the consensus we reached. Thank you all very much.END 5:29 P.M. EDT
Oil rises above $66; Goldman ups demand forecast By Ikuko Kurahone Ikuko Kurahone – SEPT 25,09
LONDON (Reuters) – Oil rose above $66 a barrel on Friday, recovering from the previous day's drop to an eight-week low, but gains were limited by doubts about the strength of economic recovery and high fuel inventories.U.S. crude futures rose 39 cents to $66.28 a barrel by 1144 GMT after falling $3.08 to close at $65.89 on Thursday, the lowest settlement price since late July.
London Brent crude rose 56 cents to $65.38.
Oil has been trapped in a range of between $65 and $75 for about two months as a lack of significant developments in fundamentals of supply and demand, which have remained slack all year, have forced investors to seek direction from technical chart analysis, equities and foreign exchange markets.There is a strong technical resistance at around the $65 level and prices are bouncing back now because the market still believes that prices will start rising toward the $75 level, when U.S. crude stocks come down in the fourth quarter,said Tony Nunan, an analyst at Mitsubishi Corp. in Tokyo.Oil had fallen by about $6 in the past two trading sessions.Selling was triggered after government figures on Wednesday showed crude and fuel inventories in the United States, the world's top consumer, had risen again, suggesting oil demand was still weak.In a research note published on Friday, Goldman Sachs said range-bound trading reflected the end of a recession and maintained its oil price forecasts, but raised its forecast for global oil demand.
The slow pace of demand recovery and signs that supplies are increasing has prompted most analysts to leave their oil price forecasts unchanged in September, a Reuters poll showed on Friday.All the financial markets will look to the next set of economic data on Friday for guidance on the extent of recovery, with implications for oil demand growth.Figures for release include U.S. durable goods orders for August, Reuters and University of Michigan consumer sentiment for September and U.S. new home sales data for August.At talks in Pittsburgh in the United States, the Group of 20 countries pledged to keep emergency economic stimulus measures in place until a durable recovery was secured.(Additional reporting by Fayen Wong in Perth; editing by Sue Thomas)
Stock futures point toward lower opening By STEPHEN BERNARD, AP Business Writer – SEPT 25,09
NEW YORK – Stocks futures are falling, pointing to a lower open Friday after a worse-than-expected report on durable goods orders.Traders will be watching a meeting of leaders from the world's 20 largest economies in Pittsburgh for indications of how those governments plan to bring about a strong, sustainable recovery.Overseas markets were mixed. Asian indexes closed down overnight, following the lead of U.S. markets, which declined Thursday. European markets were modestly higher.Investors were disappointed to hear durable goods orders fell unexpectedly in August. The second decline in three months shows any rebound in manufacturing is likely to be slow and choppy.The Commerce Department said orders for goods expected to last at least three years declined 2.4 percent, after increasing 4.8 percent in July. Economists polled by Thomson Reuters, on average, forecast a 0.5 percent increase.
The decline was due primarily to a sharp fall in demand for commercial aircraft, a highly volatile portion of the orders report. Even excluding aircraft and other transportation goods, orders were flat in August. Economists had been predicting a rise 0.5 percent in that number as well.Ahead of the opening bell, Dow Jones industrial average futures fell 28, or 0.3 percent, to 9,607. Standard & Poor's 500 index futures declined 3.80, or 0.3 percent, to 1,040.80, while Nasdaq 100 index futures sunk 6.25, or 0.4 percent, to 1,693.25.A key report on new homes is also due out Friday morning. The Commerce Department is expected to say new home sales rose 1.6 percent to a seasonally adjusted annual rate of 440,000, compared with the previous month. The increase would be the fifth consecutive monthly increase.
The report is due out at 10 a.m. EDT.
Stocks fell for a second straight day on Thursday after an unexpected drop in existing home sales and a decline in oil renewed worries about the size and pace of any economic recovery.The National Association of Realtors said sales of existing homes dropped 2.7 percent in August after jumping 7.2 percent in July. Economists were expecting sales to rise for the fifth consecutive month.The collapse in the housing market was central to the recession and analysts say a sustained recovery in sales and prices is needed for a strong economic rebound.Meanwhile, bond prices were mixed. The yield on the benchmark 10-year Treasury note, which moves opposite its price, fell to 3.36 percent from 3.38 percent late Thursday. The yield on the three-month T-bill, considered one of the safest investments, rose to 0.10 percent from 0.08 percent late Thursday.The dollar mostly fell against other major currencies, while gold prices fell.Overseas, Japan's Nikkei stock average fell 2.6 percent. In afternoon trading, Britain's FTSE 100 rose 0.7 percent, Germany's DAX index rose 0.1 percent, and France's CAC-40 gained 0.1 percent.
State aid rules must be respected, says presidency
ANDREW WILLIS 24.09.2009 @ 17:41 CET
EUOBSERVER / BRUSSELS – The battle surrounding job losses as part of a restructuring plan for the Opel car manufacturer continued on Thursday (24 September), with the EU's Swedish presidency saying state aid rules must be respected. Canadian automotive supplier Magna and Russian partner Sberbank drew up the restructuring plans following an agreement to buy a majority stake in Opel from US company General Motors.The plans include 10,500 job cuts from a workforce of 50,000, half of whom work in Germany.Sweden's minister for enterprise and energy, Maud Olofsson, said the current tough times and member state efforts to minimise job losses in their own constituencies would provide a real test for Europe's state aid rules.In difficult times we see what rules actually stand the test. What we see happening in various fields is something that the commission needs to look into.
Mandelson letter
Magna's restructuring proposals, for which it is seeking €4.5 billion in German-led state aid, have attracted criticism from various governments who fear job losses will not be shared out fairly. UK business secretary Peter Mandelson sent a letter to EU competition commissioner Neelie Kroes on Tuesday, questioning the viability of Magna's plan.We do not believe the case has been demonstrated that the current Magna proposal is commercially the most viable plan,Mr Mandelson said in the letter.
Capacity at highly efficient plants in Britain and Spain is planned to be under-utilised, in favour of higher utilisation of some of GM's other less efficient plants.Also at the meeting of ministers in Brussels, EU industry commissioner Guenter Verheugen said the commission intended to examine the proposals carefully.
The model to be adopted will be an economic model that demonstrably will allow GM Europe to be competitive once again on the market. So the commission is going to be monitoring and following all the processes closely,he said. Member states will examine the proposals until the 7 October before deciding on the next course of action together with the commission.On the 7 October we will decide on the basis for a decision. The decision will be whether there will be state aid paid and who's going to pay,said Mr Verheugen.
Commission says Poland, Estonia cannot issue more carbon allowances
LEIGH PHILLIPS Today SEPT 25,09 @ 09:27 CET
Despite a court victory over the European Commission, Poland and Estonia cannot issue additional carbon permits, the EU executive has said.The European Court of First Instance on Wednesday backed complaints from the two eastern EU member states, saying that the commission had exceeded the limits of its power when it rejected their national carbon emission reduction plans.On Thursday, EU environment commissioner Stavros Dimas said that as a result of the court's ruling, the commission would now have to reconsider its decisions on the two countries' emissions strategies, but that the two countries should wait until it did so.Ahead of these decisions, those countries are not allowed to issue any additional allowances beyond those created in the E.U. ETS registry system, he said in a statement.Mr Dimas added that in any case, following the commission's reassessment which would employ data on emissions from 2005 to 2008, there would probably be little change to the carbon allowances that could be distributed.In the light of these data, it would appear unlikely that there would be any material difference concerning the total number of allowances consistent with the terms of the directive.
The actual 2008 emissions in Estonia and Poland correspond closely to those anticipated in the Commission Decisions,he said.
Meanwhile, Italian Prime Minister Silvio Berlusconi has used the occasion to argue that his country should be able to issue additional carbon allowances in a letter to European Commission President Jose Manuel Barroso.I'm well aware of [the letter],the commission's environment spokesperson, Barbara Helfferich told reporters on Thursday.The CO2 limits are set and are normally non negotiable.Under the EU's emissions trading scheme, the bloc's main pillar of its climate policy, major carbon emitters must submit annually a number of emission allowances to their government that are equivalent to their CO2 emissions for that year. If they do not release as much carbon as their allocation, they can sell on their surplus allowances. If they exceed their carbon allowances, they are obliged to purchase extra.The main fault with the ETS however has been that member states, responsible for emissions allowance allocations, have over-allocated allowances.As a result, from 2012, the emissions allowances will be centralised in the hands of the commission, ending the system of national allocation plans (NAPs).Until then, the commission has the power to review these plans. But the court found that in limiting the NAPs of Estonia and Poland, it had surpassed the boundary of its authority.
THE WHITE HOUSE Office of the Press Secretary For Immediate Release September 25, 2009 STATEMENTS BY PRESIDENT OBAMA,FRENCH PRESIDENT SARKOZY,AND BRITISH PRIME MINISTER BROWN ON IRANIAN NUCLEAR FACILITY Pittsburgh Convention Center
Pittsburgh, Pennsylvania 8:43 A.M. EDT
PRESIDENT OBAMA: Good morning. We are here to announce that yesterday in Vienna, the United States, the United Kingdom, and France presented detailed evidence to the IAEA demonstrating that the Islamic Republic of Iran has been building a covert uranium enrichment facility near Qom for several years.Earlier this week, the Iranian government presented a letter to the IAEA that made reference to a new enrichment facility, years after they had started its construction. The existence of this facility underscores Iran's continuing unwillingness to meet its obligations under U.N. Security Council resolutions and IAEA requirements. We expect the IAEA to immediately investigate this disturbing information, and to report to the IAEA Board of Governors.Now, Iran's decision to build yet another nuclear facility without notifying the IAEA represents a direct challenge to the basic compact at the center of the non-proliferation regime. These rules are clear: All nations have the right to peaceful nuclear energy; those nations with nuclear weapons must move towards disarmament; those nations without nuclear weapons must forsake them. That compact has largely held for decades, keeping the world far safer and more secure. And that compact depends on all nations living up to their responsibilities.
This site deepens a growing concern that Iran is refusing to live up to those international responsibilities, including specifically revealing all nuclear-related activities. As the international community knows, this is not the first time that Iran has concealed information about its nuclear program. Iran has a right to peaceful nuclear power that meets the energy needs of its people. But the size and configuration of this facility is inconsistent with a peaceful program. Iran is breaking rules that all nations must follow -- endangering the global non-proliferation regime, denying its own people access to the opportunity they deserve, and threatening the stability and security of the region and the world.It is time for Iran to act immediately to restore the confidence of the international community by fulfilling its international obligations. We remain committed to serious, meaningful engagement with Iran to address the nuclear issue through the P5-plus-1 negotiations. Through this dialogue, we are committed to demonstrating that international law is not an empty promise; that obligations must be kept; and that treaties will be enforced.And that's why there's a sense of urgency about the upcoming meeting on October 1st between Iran, the permanent members of the U.N. Security Council, and Germany. At that meeting, Iran must be prepared to cooperate fully and comprehensively with the IAEA to take concrete steps to create confidence and transparency in its nuclear program and to demonstrate that it is committed to establishing its peaceful intentions through meaningful dialogue and concrete actions.To put it simply: Iran must comply with U.N. Security Council resolutions and make clear it is willing to meet its responsibilities as a member of the community of nations. We have offered Iran a clear path toward greater international integration if it lives up to its obligations, and that offer stands. But the Iranian government must now demonstrate through deeds its peaceful intentions or be held accountable to international standards and international law.
I should point out that although the United Kingdom, France, and the United States made the presentation to Vienna, that Germany, a member of the P5-plus-1, and Chancellor Merkel in particular, who could not be here this morning, wished to associate herself with these remarks.
I would now like to turn to President Sarkozy of France for a brief statement.
PRESIDENT SARKOZY: (As translated.) Ladies and gentlemen, we have met yesterday for a meeting -- a summit meeting of the Security Council on disarmament and nuclear disarmament. I repeated my conviction that Iran was taking the international community on a dangerous path. I have recalled all the attempts that we have made to offer a negotiated solution to the Iranian leaders without any success, which what has been revealed today is exceptional. Following the enriching plant of Natanz in 2002, it is now the Qom one which is revealed. It was designed and built over the past several years in direct violation of resolutions from the Security Council and from the IAEA. I am expecting from the IAEA an exhaustive, strict, and rigorous investigation, as President Obama just said.We were already in a very severe confidence crisis. We are now faced with a challenge, a challenge made to the entire international communities. The six will meet with the Iranian representatives in Geneva. Everything -- everything must be put on the table now.We cannot let the Iranian leaders gain time while the motors are running. If by December there is not an in-depth change by the Iranian leaders, sanctions will have to be taken. This is for the peace and stability. Thank you.
PRIME MINISTER BROWN: America, the United Kingdom, and France are at one. Iran's nuclear program is the most urgent proliferation challenge that the world faces today.
As President Obama and President Sarkozy have just said, the level of deception by the Iranian government, and the scale of what we believe is the breach of international commitments, will shock and anger the whole international community, and it will harden our resolve.Confronted by the serial deception of many years, the international community has no choice today but to draw a line in the sand. On October the 1st, Iran must now engage with the international community and join the international community as a partner. If it does not do so, it will be further isolated.And I say on behalf of the United Kingdom today, we will not let this matter rest. And we are prepared to implement further and more stringent sanctions.
Let the message that goes out to the world be absolutely clear: that Iran must abandon any military ambitions for its nuclear program. Thank you. END 8:51 A.M. EDT.
