Someone want to control big economies (hint to USA)

[Eye]

G20 needs mechanisms to check big economies, says Medvedev
Posted: 14 March 2009 2157 hrs
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MOSCOW: The G20 summit should find ways to give other states a say in decisions by the world's richest to mitigate disasters like the US mortgage loan crisis, Russian President Dmitry Medvedev said on Saturday.

Reiterating Russia's view that global finance needs sweeping reform, Medvedev said new tools and rules were needed "so that the problems which start in one state will not trigger the hardest chain reaction" in others.

In comments broadcast on state television, he specifically referred to the current economic crisis which snowballed "when someone out there issued mortgage loans in huge amounts and it whacked the entire global economy."

The Russian president said a key topic for discussion at the April 2 meeting in London should be "control over macroeconomic indicators of the countries which influence the general world financial situation".

He added: "It means we should have mechanisms which would let us somehow at least influence decisions being made by our partners while at the same time protect ourselves from these sorts of repercussions."

Medvedev, who is scheduled to meet US President Barack Obama on the eve of the G20 London summit, reiterated his criticism of global institutions like the International Monetary Fund and the World Bank.

"I hope will be able to come to an agreement" at the G20, he said. "Otherwise we will confront these kinds of problems perhaps not every year, but every 10 to 15 years for sure."

Russian authorities said they are working to limit damage at home from an economic disaster that originated abroad. Critics, however, said Russia, which is very hard hit by the crisis, is coping with problems largely of its own making. I wonder what kind of mechanism does he mean.

[damagejackal]

Well .....He looks innocent enough

I trust him.

[eskachig]

US doesn't have mechanisms to control what its own private business are doing, even when the rest of us pay the price of their **** ups, what other countries could do I don't understand. Stupidity at the highest levels of financial institutions should be criminalized or something.

[commanding]

I agree with Mr. Medvedev that some kind of safeguard needs to be done. i am not smart enough to know what that is. Another example, of the idea that Russia and the USA, and other world powers, should work together, rather than being so antagonistic.
By the way... Mr. Medvedev strikes me as having very short arms, and his suits make him look like he is very short, with short arms. i think most of his ideas are pretty good though. Putin should take charm school lessons from him.:)

[Engine Mech]

Politicians need to rethink the concept of Globalisation of economies. They should ask the question. If the rest of the world dissappeared could their country be self sustainable. A lot of countries are no longer self sustainable. NZ was one of the first countries to remove tarrifs and now most manufactured products are imported. When Wall street sneezes we catch a cold.

[eskachig]

By the way... Mr. Medvedev strikes me as having very short arms, and his suits make him look like he is very short, with short arms. i think most of his ideas are pretty good though. Medvedev is indeed a little fellow, and his suits are cut properly. Don't see what that has to do with his mind.

[c62]

I wonder"It means we should have mechanisms which would let us somehow at least influence decisions being made by our partners while at the same time protect ourselves from these sorts of repercussions." Interesting, as I interpret this, he wants some sort of decision making, but doesn't want to be stuck with the consequences of those decisions....


Any way, for all those people that would like to have some sort of mechanism to counterbalance the US, I say great. Europe, Japan, China, Russia? Anytime you guys decide to grow your economy so it can at least be in the same sentence as the US economy would be great. Personally, we the Americans would appreciate the help, and don't always like getting everything dumped on us because we're the only ones capable of making a decision. In short, don't assume that our leadership position is one based on us taking everything, but rather it falls to us by default.

[Kilgor]

Its a global economy and this is the consequences of such stupidity.

Everyone loves to make money on the upside, but cries murder when it goes down the toilet

[deagle]

it was a bubble....they can either get bigger or pop. and sooner or later they'll pop.

[Will Clark]

US doesn't have mechanisms to control what its own private business are doing, even when the rest of us pay the price of their **** ups, what other countries could do I don't understand. Stupidity at the highest levels of financial institutions should be criminalized or something.

You also thrive on our success, it's a two way street.

[Gat0r]

So much government regulation and the moral hazards these regulations create were a major contributor to this situation. Calling for more bureaucratic political control of the market place will lead to further disasters. Funny that nobody ever mentions the central banks, a secretive group of private bankers that create money out of thin air are the ultimate source of our problems, no bubble would ever get this big in a true free market so thats were the regulation and transparency needs to be applied so everybody can see how they operate.

[sinophile]

Please. Its one side of the coin (over capacity) lecturing the other side (over consumption) on the dangers of leverage. The two couldn't exist without each other.

The only chance of preventing another bust would be to prevent another boom. I am 100% sure domestic political pandering will prevail and market and currency manipulation are forever here to stay.

[Gleipnir]

So much government regulation and the moral hazards these regulations create were a major contributor to this situation. Calling for more bureaucratic political control of the market place will lead to further disasters. Funny that nobody ever mentions the central banks, a secretive group of private bankers that create money out of thin air are the ultimate source of our problems, no bubble would ever get this big in a true free market so thats were the regulation and transparency needs to be applied so everybody can see how they operate.
I'll bet you liked Ralph Nader.

[1curious]

Actually, Medvedev is saying the same things most of the G20 nations are saying - a replacement/fix for Bretton Woods system.

It's a very complicated subject and I wish the finance ministers, meeting at this very moment in England, all the luck.

In summary, they need to resolve:

- the USD remains the only reserve currency, should it?
- IMF governance and wider representation.
- truly independent international rating agency because the existing ones utterly failed.
- higher transparency of certain unregulated assets and and hedge funds
- proper regulating mechanism, if any to be added

In a nutshell - it's mostly about the US agreeing to certain new practices that are not consistent with how we do business today.

[FlintHillBilly]

Well .....He looks innocent enough

I trust him.

x2.. he can fly russian bombers in my back yard anyday.. he can also run my economy..

[Eye]

We have a problem because of huge bureaucracy and lack of free market, so the solution is widening bureaucracy and further limitation of free market.
Isn't it logical?

[Mr Gently Benevolent]

I'll bet you liked Ralph Nader.I live in the UK and I think Ralph Nader is on the money a lot of the time.:)

[Gat0r]

I'll bet you liked Ralph Nader.
Ron Paul :)