Posted on 06/05/2010 9:33:59 AM PDT by blam
G20: The Time For Stimulus Is Over, Long Live Fiscal Austerity
Gregory White
Jun. 5, 2010, 10:12 AM
The world's financial leaders have decided that the time for stimulus is over, and the time for global fiscal austerity is now, according to the FT.
This decision by the G20 is a result of a lack of market confidence in the fiscal position of many leading countries, due to their expansion in sovereign debt. That expansion has led to speculation about the default and demise of many countries' financial positions and the euro currency.
G20 leaders have also agreed not to move forward with a synchronized tax on banks.
Both these decisions have massive repercussions for the global financial system. With global stimulus withdrawn, the possibility for many countries to slip back into recession remains high.
And with the international banking tax dead, individual states will be able to pursue their own tax policies against their banking sectors. This may encourage financial institutions to offshore portions of their businesses away from more aggressive regimes.
Concerned About Sovereign Debt Too? See Niall Ferguson's Guide To Sovereign Debt Crises >
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(Excerpt) Read more at businessinsider.com ...
“The world’s financial leaders have decided that the time for stimulus is over, and the time for global fiscal austerity is now, according to the FT.”
I don’t believe them.
“...global fiscal austerity...”
It’s all about how you parse it.
Socialism is ALL about austerity - for ALL...
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