photo credit: bayerberg

Last Thursday’s G20 meet saw little new initiative. The $1.1 trillion stimulus package was largely from already announced packages. This totals up to US$5 trillion in bailout economics worldwide, appx 7% of the planet’s GDP of US70 trillion (purchasing power parity exchange rates).

The ‘name and shame’ tax haven policy development will dwindle once Gordon Brown’s poll bounce is over. Hopefully the policy focus doesn’t dwindle, but the writing is on the wall with the ignorance of ‘automatic information exchanges’ between tax jurisdictions.

The hype over the Financial Stability Board, set up to monitor CEO largesse and hedge fund trickery will be another talkfest with false teeth. They have no policy parameters. George Monbiot will be more likely to keep them honest.

As usual, the press uses the diversionary headlines of the above to channel attention away from the tragedy of these talks – the expansion of the IMF’s powers. It’s budget tripled. The bermuda triangle of economic policy was enhanced, with the bailout economics playbook now extending to one of the world’s most controversial institutions. The expansion of the IMF’s Special Drawing Rights means it can expand it’s quantitative easing – AKA printing money AKA Mugabe economics AKA hyperinflation.

But what about the policy reform no one dared mention? The one that would address both asset price bubbles and environmental devastation?

Watch Michael Hudson blister Obama and his economic advisors on Democracy Now.

Digest the hard hitting statements then read Hudson’s Counterpunch piece:

Trying to Revive the Bubble Economy:
Obama’s Awful Financial Recovery Plan

By Michael Hudson

Martin Wolf started off his Financial Times …

As sharemarkets crash around the world, the wrong people are being bailed out. Lower interest rates, infrastructure projects and money for the AIG’s of the world will only prop up land prices. Infact, policy makers couldn’t do any worse …