Summers calls for boost to demand ( For the Global Economy )

Barack Obama’s top economic adviser has urged world leaders to pump more public money into the economy in a co-ordinated effort to boost demand and lift the world out of recession.

In an interview with the Financial Times, Lawrence Summers said the urgent need for a short-term increase in spending by governments temporarily overrode the longer-term goal of tackling the global imbalances many economists believe caused the financial crisis.

The US administration had no choice but to take strong public action to “save the market system from its own excesses”, he said.

His comments, ahead of next month’s crunch G20 summit in London, make it clear that the US administration wants industrialised nations to share responsibility for engineering a global demand-led recovery and does not believe this burden should fall on China alone.

“The old global imbalances agenda was more demand in China, less demand in America. Nobody thinks that is the right agenda now,” said Mr Summers.

However from Australia:

Rudd urges G20 meeting to address bank's toxic debts

**************************EXCERPT*********************

March 03, 2009 12:52pm

NEXT month's G20 meeting in London must tackle the issue of toxic bank assets if the global economy is to recover, Prime Minister Kevin Rudd says.

Speaking at a business lunch in Sydney on Tuesday, Mr Rudd said the G20 must deal with the issue of bad bank assets, like defaulted loans, and if it failed to do so, there would be no long-term global economic recovery.

"Dealing effectively with toxic assets and the balance sheets of globally significant banks is fundamental to the recovery of private credit markets and therefore the medium to long-term economic recovery across the global economy and the Australian economy,'' Mr Rudd said.

"The challenge of toxic assets must be addressed at the forthcoming G20 summit in London on the second of April.

This is interesting - I read today that a million protesters are expected at the G-20 in London when the banksters gather.
http://www.g-20meltdown.org/
Here is the link to their internet site posting.

Here is an extract:
ON APRIL 1ST, WE’LL SHOW THE G20 WHAT MELTDOWN MEANS.
Lost your home? Lost your job? Lost your savings? Lost your pension? This party is for you!
Capitalism has been heating up our world for years, melting the icecaps, burning up the rainforests, pushing the planet to tipping point. Now we’re going to put the heat on them. At the London Summit , the G20 ministers are trying to get away with the biggest April Fools trick of all time. Their tax-dodging, bonus-guzzling, pension-pinching, unregulated free market world’s in meltdown, and those fools think we’re going to bail them out. They’ve gotta be joking!

WE CAN’T PAY, WE WON’T PAY AND WE ARE TAKING TO THE STREETS
Many, many imaginative actions will be taking place across London on April 1st. One major focus will be four separate carnival parades culminating in direct action against (a) carbon trading and (b) other financial crimes in the City of London.

Full circle back to 1649? ‘A very English revolution!’
The Four Horsemen of the Apocalypse will lead themed processions starting at 11 a.m. from the following rail stations:

Moorgate
Red horse against War;
Liverpool St
Green horse against Climate chaos
London Bridge
Silver horse against Financial crimes
Cannon Street
Black horse against land enclosures and borders in honour of the 360th full circle anniversary of the Diggers
At 12 noon, April 1st, we’re going to reclaim the City, thrusting into the very belly of the beast: the Bank of England.

Early a.m. April 2nd, we’re going to bang on their hotel doors, @ the Excel Centre, Canning town to deliver our message of a world beyond capitalism.

Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.