Happy Days Are Here Again!
After the Chinese, the Fed, the Treasury and the Obama Administration have tried and failed to save the world, the G20 will save it.
They will do it by the ECB cutting interest rates and by lending more paper to the IMF.
Why didn’t I think of that?
It’s definitely done the trick this time! Check out the crushing defeat levied against the evil US dollar:
The dollar extended losses against most of its major rivals Thursday, as optimism that decisive action from the Group of 20 leaders meeting will lift the global economy out of its downturn fueled a rally in global equity markets.
Earlier, the euro soared against the dollar after the European Central Bank cut its benchmark interest rate by only 25 basis points, surprising market participants who had expected a bigger reduction.The dollar extended losses against most major counterparts in the wake of remarks from British Prime Minister Gordon Brown after the conclusion of the G20 leaders meeting in London.
G20 agrees on IMF boost, tax-haven crackdown: Brown
LONDON — Leaders of the Group of 20 nations agreed to provide a total of $1 trillion in resources to the International Monetary Fund and other international institutions in an effort to confront a deep global economic downturn, British Prime Minister Gordon Brown said Thursday.The figure includes an agreement to boost the IMF’s lending resources from its current level of $250 billion to $750 billion, he said. The G20 also pledged to provide $250 billion in trade-related finance to counter a massive slump in global trade flows.The G20 also agreed to put an end to tax havens that don’t provide information to foreign tax authorities on request, Brown said.“This is the day that the world came together, to fight back against the global recession. Not with words but a plan for global recovery and for reform and with a clear timetable,” Brown said.The G20 also agreed on the formation of a financial stability board and to move to limit pay and bonuses in the banking sector, and pledged to move to quickly conclude the long-stalled Doha Round of international trade talks.Hedge funds will also be brought within the net of financial regulations, he said.
I can guess where this added trillion of DOLLARS will be found; from the US government. If the US allows eastern Europe to go down the drain that will likely ignite the meltdown scenario posed by Simon Johnson. What is interesting is the European Union has shown little interest in bailing out their next door neighbors and why should they? The US can do it for them via the IMF.
Since happy days are here again the return of auto siege against the world’s great and not- so- great cities cannot be far off.
Oil futures soar on G20 steps, ECB rate cut
Petroleum futures stage strong gains as global stocks extend move higher
NEW YORK — Oil futures rallied nearly 8% Thursday after the Group of 20 agreed to provide a total of $1 trillion to the International Monetary Fund and other institutions in a move to drag the global economy out of the severe recession, sparking hopes of a swift recovery in energy demand.Earlier in the day, oil prices soared after the European Central Bank surprised markets by cutting interest rates less than expected, triggering a slump in the U.S. dollar and a rally in the euro.Crude oil for May delivery rose $3.61, or 7.5%, to $52 a barrel on the New York Mercantile Exchange.The contract hit an intraday high of $52.46 a barrel in electronic trading on Globex.“Hopes for an economic turnaround and the return of demand have been behind the rise on Thursday, along with a broadly weaker dollar and surging global equity markets,” said analysts at Action Economics.
There certainly are some natural resources left on planet Earth to exploit so … for the name of God let’s get out there and exploit them. After they are gone, who cares?! That’s someone else’s problem, not ours. Ours is to make money now and forget about anything else.
Meanwhile:
China Has Declared An End To Economic Misery!
China Manufacturing Expands First Time in 6 Months (Update2)
By Li Yanping
April 2 (Bloomberg) — China’s manufacturing expanded for the first time in six months, spurred by the government’s 4 trillion yuan ($585 billion) stimulus package.
The Purchasing Manager’s Index rose to a seasonally adjusted 52.4 in March from 49 in February, the Federation of Logistics and Purchasing said today in Beijing in an e-mailed statement. A reading above 50 indicates an expansion.
The expansion may help President Hu Jintao achieve his target of 8 percent economic growth for the world’s third- biggest economy. The report comes as he attends a Group of 20 summit in London where world leaders are discussing remedies for the worst global recession since World War II. Hu’s stimulus package already triggered jumps in urban investment and loan growth in the first two months of this year.
“China will see a solid economic recovery from March as the impact of the stimulus package becomes larger over time,” said Sun Mingchun, an economist at Nomura Securities in Hong Kong. The economy may expand as much as 10 percent in the fourth quarter of this year, he said.
Good thing, too! People were getting concerned. Question; where do the Chinese figures come from?
The Chinese Government, of course! They wouldn’t lie would they? Like the Geithners in the US Government?
I suspect the next scheduled update of this feature will be:
Vatican Saves The World!