Thursday, Apr 02, 2009

Gasp!

BBC: G20 leaders seal $1tn global deal

Leaders of the world's largest economies have reached an agreement to tackle the global financial crisis with measures worth $1 trillion (£681bn). To help countries with troubled economies, the International Monetary Fund (IMF) will get extra resources worth up to $750bn.

Posted by alan @ 04:20 PM (1455 views) Add Comment

15 Comments

1. 51ck-6-51x said...

New Money, but is it only available for the paying down of debt of over indebted countries (isn't it?! ;p) - so not as inflationary as a 'helicopter drop', right?

Thursday, April 2, 2009 04:26PM Report Comment
 

2. 51ck-6-51x said...

"committed about $250bn to boost global trade."
- Ah, now that sounds inflationary.

Thursday, April 2, 2009 04:26PM Report Comment
 

3. waitingfor hpc said...

i believe the money is mostly chinese in the guardian - so not new money at all.

Thursday, April 2, 2009 04:28PM Report Comment
 

4. sneaker said...

Don't they mean

G20 leaders STEAL $1tn global deal

Thursday, April 2, 2009 04:42PM Report Comment
 

5. debtfree said...

Britain wants an agreement from the Group of 20 nations to improve the way the International Monetary Fund uses its cash, including freeing up money for lending by selling gold reserves.

Is that the same Britain that sold half of its gold reserves at a record low ?

Why would anyone listen to Brown Britain ?

But nevermind, huge gold reserve holdings being sold off have always created a rise in the price afterwards. So thats good news.

Thursday, April 2, 2009 04:43PM Report Comment
 

6. 51ck-6-51x said...

debtfree - yeah I just saw that on another article.
Why would one announce large volume sales prior to actually selling? A little counter productive don't you think?

Thursday, April 2, 2009 04:45PM Report Comment
 

7. 51ck-6-51x said...

waitingfor hpc - OK so it won't all be new money, but it will go into circulation rather than sitting in an account somewhere.

Thursday, April 2, 2009 04:46PM Report Comment
 

8. rm96696 said...

Thank goodness that they've given more money to the IMF. We'll soon be needing it.

Thursday, April 2, 2009 04:53PM Report Comment
 

9. enuii said...

Sounds like they achieve virtually nothing then $1trillion is monetary drop in the ocean.

Thursday, April 2, 2009 04:57PM Report Comment
 

10. str 2007 said...

Well as far as the BBC are concerned all is sorted, even the French are happy.

Probably a good time for Brown to call his election before it all turns sour.

Thursday, April 2, 2009 05:02PM Report Comment
 

11. robh said...

On PM news they played a clip of GB claiming to have formed a 'new world order'

Thursday, April 2, 2009 05:26PM Report Comment
 

12. dude said...

"I feel the hand of history on our shoulders, ..." Opps, sorry wrong leader, wrong time.

Thursday, April 2, 2009 06:28PM Report Comment
 

13. new user 2007 said...

Remove the liquidity part (adding liquidity is not a solution) and the double-counting (much of this spending was going to happen anyway e.g. China), and what is left?

Add in the distortions being caused that will undermine the efficiency of the spending, and all they are saying is that the tax bill is about to go up, but without any real impact (Japan now has a debt stock of 170% of nominal GDP...they wish they had some inflation!).

Thursday, April 2, 2009 06:54PM Report Comment
 

14. rumble said...

6s - Why would one announce large volume sales prior to actually selling? A little counter productive don't you think?

"...
Hussein Allidina, an analyst at Morgan Stanley, said in a note Thursday that he expects the IMF to implement the sales over the next few years, "but do not believe that this presents a strong negative risk to gold prices - as it will be 'orderly' and maybe even off market."
...."
- http://www.marketwatch.com/news/story/g20-supports-imf-plan-raise/story.aspx?guid=%7B5ABAE8F2-060D-44BC-9905-EB79665AEACE%7D&dist=msr_6

Thursday, April 2, 2009 09:19PM Report Comment
 

15. 51ck-6-51x said...

LoL @ "off market" - I seriously doubt that - I believe the orderly bit, but even orderly and off market sales drive down the market price if they are common knowledge.

Friday, April 3, 2009 12:54PM Report Comment
 

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