U.S. plan hits opposition at G20, FX accord remote

Reuters ^ | 10/21/10 | Abhijit Neogy and Toni Vorobyova

[FromLori]

(Reuters) - G20 officials are unlikely to reach an accord rejecting currency devaluations and capping current account balances, an informed source said on Thursday, after U.S. proposals ran into stiff opposition.

The swift rebuff of a U.S. call for numerical targets for "sustainable" trade surpluses and deficits underscored difficulties facing Group of 20 finance ministers gathering in South Korea to try to defuse tensions over currencies and economic imbalances.

The G20 source, who has direct knowledge of deliberations at the meeting, said the proposals had not found favor with India, China and other emerging economies, or even the likes of Germany, which has a large current account surplus.

[stocksthatgoup]

And the waters will part and the sea levels will recede! /s

[Blennos]

How can they expect that nations which print money in vast quantities will avoid currency devaluations? This is impossible. If the US continues trillion dollar plus deficits, it will need to borrow the money or print it. Borrowing is getting harder and harder all the time. The only recourse is to print it. The dollar will be worth less.