G-20: Who plays the Banker?

From Buckingham Palace t0 10, Downing Street to ExCeL Centre, the metropolis of London is abuzz with the frenzied arrangements for the top 20 world leaders. The world is watching: Can London pull the world out of this fast developing depression? Can the 'G-2' (USA and China) emerge as the joint leaders of new age? What is developing at the ExCeL Centre today is a game of Monopoly and the big question is 'WHO PLAYS THE BANKER?'

All of us in the sane world have reached a common conclusion, this recession is the worst 'Made in USA' product. But there's the catch, its exported by demand, the choice always lies with the importer. The huge US budget deficit has done everyone in. Sarkozy put it bluntly, its made in America and its burning our homes and cities, atleast correct on his part. Asking for stricter regulation of Banks is no sin, specially to avoid any such crisis in future. So why is US & UK opposing it? Quite simple, these two always believed in splurging more to get out of the less - deficit. The French and German stand is crystal clear, the mess is created by US, it cannot run away from the responsibility to clean it up. Calls for collective deterrence will be heeded only if it involves major contribution from the US and its allies (Japan and Saudi Arabia), rather than asking from EU or China. Although China will most probably take this opportunity to stamp its financial clout on the world. Still keeping with its pride, the CNN called the meeting between Hu Jintao and Barrack Obama as the G-2. The answer is clear, the US wants China to bail out the world, which China will most probably do, strings attached. Although, the Chinese ambitions to replace US Dollars as de facto reserve currency of IMF won't do any good for the Trillions in its own vaults.

Another thorn in American collective ambitions is the issue of Tax Havens. The financial crisis made the governments realise that they can no longer turn blind eyes on the 'letter-box' companies in Liechtenstein and to the super-secretive banking system in Switzerland. But this issue might not be resolved as easily as it seems like. The problem- Many of the politicians are the major beneficiaries of the banking system of the Alpine nation. For a country like India, the return of money sitting in the ultra modern vaults of Swiss Banks will easily take it past all the major European economies, if not China. That will create a huge political turmoil in countries with high-red tapism or if unclaimed, will dramatically increase the per capita income. Thats not a bad idea to eradicate poverty in India. The same applies for the English and American hot shots who have all there black unamounted money sun-bathing in the Cayman Islands and Bahamas. These money, if not belonging to the Politicians, belongs to the major donors of the political parties in both US and UK.

The demand of developing nation, represented by Brazil, India and South Africa will be more funds for the emerging economies. Although the trio will perhaps see the period through, but remains fearful of the fact that many won't, without help from the West. The poor of the world shouldn't be made to pay for the mis-deeds of the filthy rich, this will be the motto of all three.

Africa, represented by Commission of the African Union, is clearly disappointed by the lack of resolve by the developed nations to help the continent. Instead of asking for a help, getting an assurance and given nothing, the African Union is asking for IMF's vast gold reserves to be diluted in part to help the fledgling ecomony of most African nations. Although seems highly unlikely, the resourceful continent is surely set to get a deal, exclusively for itself.

The summit, unlike other highest level meetings, is sure to deliver. And for a change, this time not for themselves, its for the world. The winner?? Only one as it stands, China is coming and world better watch out; RESPECT: it commands.


yogesh gaur said...

nice article man ...keep it up !!!

Jessica said...

Well, the Africans got what they wanted, rest all what you expected. You coming to London anytime soon?