Courtesy of Greg Hunter’s USAWatchdog.com
The G-20 kicked off in Seoul South Korea this week. It seems to me everyone should be talking about the U.S. defaulting on its obligations by massive money printing. Instead, the group of twenty finance ministers and central bankers from the most important industrialized and developing economies of the world has been sidetracked. There is the threat of a North Korean attack on South Korea. The Guardian UK reports, “The British delegation is taking seriously the potential threat of an attack on the G20 summit by North Korea, whose border is just 50 miles away from the gathering in Seoul. A diplomat said: “There has been speculation that the North Koreans will attempt some kind of disruptive incursion into South Korea.” (Click here for the complete Guardian UK story.)
Then, there is the latest PIIGS (Portugal, Italy, Ireland, Greece and Spain) problem that has popped up. It seems Ireland has the Group preoccupied with another bailout in the EU. Reuters reports, “Ireland’s issues have moved to the forefront of currency concerns recently after taking a backseat to U.S. Federal Reserve policy for several weeks. Yields on 10-year Irish bonds rose well above 8 percent to a record high over comparable German debt, the euro zone’s standard. Investors are worried Ireland would not be able to cut spending as planned and may require a bailout, with bond holders forced to absorb losses.” (Click here for the complete Reuters story.)
There is also talk of a looming trade war among the G-20. The Associated Press reports, “A dispute over whether China and the United States are manipulating their currencies is threatening to resurrect destructive protectionist policies like those that worsened the Great Depression. The biggest fear is that trade barriers will send the global economy back into recession. Hopes had been high that the Group of 20, which includes wealthy nations like Germany and the U.S. and rising giants like China, could be a forum to forge a lasting global economic recovery. Yet so far, G-20 countries haven’t agreed on an agenda, let alone solutions to the problems that divide them.” (Click here to read the complete AP story.)
Yes, a trade war could do great damage but, to me, that should take a back seat to what the Federal Reserve is doing by starting another round of quantitative easing (QE2). The Fed is printing up a fresh $600 billion (for starters) and is on its way to turning the dollar into candy wrappers and toilet paper. This is the currency that most of the world uses for international trade. I cannot believe this is not the first item on the agenda of the top financial officials in the world!