G20 representatives have hailed their recent summit as a major step in the battle against the global recession. Gordon Brown, UK prime minister and architect of the global give-away, praised the actions that he said would usher in a “new progressive era of international cooperation,” and the beginning of a “new world order.”
Brown, host of the summit, managed to convince representatives from the 20 industrialized nations to pump $1 trillion into the International Monetary Fund. All of this money, in the form of no-strings-attached low interest rate loans, will then go to “emerging” countries from Eastern Europe, and Africa and Asia. Brown assured the attendees that the plan will set all countries on the road to full recovery. United States president Barack Obama, commenting without the aid of a teleprompter, added “We have a sick patient – I think we applied the right medicine. I think the patient is stabilized.” The implication of course is that the “patient” will need further care in the near future.
Lost in the reverie was the realization that low-interest, no-strings-attached loans are precisely what plunged the US into the present credit crisis that fueled the supercharged recession. Not content with simply throwing money at the IMF, the G20 reps also took action to crackdown on nations which provide tax havens. Offending countries will face a trade blacklist.
Energized by their success, the European-style socialists and their newest recruit, President Obama, also agreed to develop new rules and regulations that would prevent the odious “fat cats,” (formerly known as businessmen), from pocketing ill-gotten bonuses. Commenting on the new regulatory measures, anti-capitalist French prime minister, Nicolas Sarkozy, said that the clampdown on tax havens indicated that “a page has been turned” on the story of “Anglo-Saxon” capitalism. Presumably, he was referring to the last page.
G20 representatives further agreed to restructure the IMF balance of power by 2011. New reforms call for heads of international organizations to be selected based on merit, rather than nationality. A pledge was also made to resist protectionism. Americans can rest assured that cheap, toxic Chinese products will continue to enjoy the beneficial regulatory measures that have made China our trade master.
Especially noteworthy is the expansion of the Financial Stability Forum into the Financial Stability Board. The new FSB will provide governance and monitor the world economy, along with the IMF's much larger redefined role. Under the expanded FSB, financial regulators and central bankers from G20 nations will determine standards and regulations internationally, including American financial institutions. This is an actual loss of sovereignty in that American elected oficials will no longer govern or set laws for American financial institutions; cross-border policy and financial sector management are the order of the day. While this is not a wholesale surrender to a supranational financial system, it's a gigantic step in that direction.
In the end, the G20 summit used the pretext of a global recession to consolidate more power in the hands of a few while continuing the inexorable march to what Gordon Brown openly referred to as a “new world order.”