The money talk on the inside leading up to the G20 summit
- The G20: Fiscal Austerity or Coordinated Recovery? Excellent backgrounder by Andrew Jackson on the ‘state of play’ leading up to the summit, on whether countries should be working to expand demand (stimulus) or contract (ie spending cuts, deficit reduction). The overall push is for deficit reduction as I have written about here, but some countries are going to have to expand domestic consumer demand in order for there to be a market out there. The US has traditionally played this role, expanding deficits and credit to ensure growth in consumer demand, but there are signs that the U.S. may end this role at the G20. Which countries might take it on? Will it be the ones with large surpluses (esp. China) who can handle it, but may not want to?
- China doesn’t want the G20 to chastise them about their currency valuation (background here), and warns that focusing on them could derail the G20. China also reiterated their warning about over-focus on deficits at the G20 and that stimulus should not be fazed out all at once. Background on the G20 renewed focus on cuts and deficit reduction and the serious repercussions that will likely have for the world – here, and here.
- Canada wants the reform focus at the G20 to be on adjusting bank capital and leverage standards to reduce risk and increase solvency. Canadian Finance Minister Jim Flaherty said this is “the main issue, we shouldn’t be distracted by side issues”. By ‘side’ issues, he is clearly making another push to keep any form of bank tax or levy off the agenda and quite possibly might also be hinting at not letting climate change get in the way either.
Other G20 news:
- Toronto Community Mobilization Network convergence space grand opening – Thursday June 17th
- Speak the f**k up. Great event Wednesday night in Toronto breaking down Canada’s G8 maternal health plan. Watch panelist Antonia Zerbisias
- Toronto hotel workers plan strike: The workers’ union is calling for the parent company, Accor to respect a previously signed trade union rights agreement. Be there anytime all day to support or at 4:30 on June 24th for a planned rally! Also, here is an audio interview on chronic understaffing at luxury hotels.
- G20 & capitalism – see, the G20 is bringing economic benefit to some people in the city:
- But I’m just a sapling. You’ve no doubt heard about the trees being uprooted in the security zone for the G20. But here it is again, humourously…