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Sunday, February 26, 2012

G-20 to rescue Europe Again - for the 2nd trillionth time!

Blogman's Notes:

It seems that the first TRILLION that was meant to rescue  Europe and the Global Economy back in 2009 wasn't quite enough; so this time around the sum being bandied about is TWO TRILLION EURO. How much will it be in 2014, 4 TRILLION or 8 TRILLION or will we be hearing QUADRILLIONS (1000 TRILLIONS) by then? Does anyone even remember when the figures that everyone was losing sleep over was quoted in the BILLIONS? As when Hank Paulson, Treasury Secretary under Bush II went to Congress and demanded $700 BILLION that would supposedly solve all the problems of the troubled Global financial System? Now some 30 plus TRILLION dollars later (figures that we are aware of), the problem has grown exponentially rather than having been resolved. How many times have the G7, the G8, the G20, the EU and just about every Financial / Political body on the planet held meetings already to resolve the Crisis yet the Crisis grows bigger and bigger and bigger.... Would you agree with me that if the Powers that Be knew how to resolve the Crisis, they would have done so by now? Or is the plan NOT to resolve the Crisis but rather to continue to pretend to resolve the Crisis until the whole System blows up like the planet Alderaan in the movie Star Wars. Like the explosion of the planet in the movie sent shock waves throughout the Galaxy, when the Global Economy blows up the shock waves will be felt around the world!

(Reuters) - Leading economies told Europe it must put up extra money to fight its debt crisis if it wants more help from the rest of the world, piling pressure on Germany to drop its opposition to a bigger European bailout.
Euro zone countries pledged on Sunday at a Group of 20 meetings offinance leaders to reassess the strength of their bailout fund in March, which could clear the way for other G20 countries to contribute more funds to the International Monetary Fund.
"This will provide an essential input in our ongoing consideration to mobilize resources to the IMF," the G20 said in
the final communique of the two-day meeting of finance ministers and central bankers due to be released later on Sunday.
Germany, as Europe's largest economy, came under intense pressure to support enlarging the region's war chest. But facing political hurdles at home, it has sent conflicting signals over whether it was ready to move.
British finance minister George Osborne left no doubt the G20 requires a clear euro-zone commitment.
"We have to see the color of the eurozone's money first - and, quite frankly, that hasn't happened. Until it does, there's no question of extra IMF money from Britain or probably anyone else," he said.
The G20 is racing to line up massive international resources worth nearly $2 trillion - including existing and new funds - possibly by late April. That would help to draw a line under the financial crisis that erupted in 2008 when Lehman Brothers collapsed, spawned the deepest U.S. recession since the 1930s and now has engulfed Europe's deeply indebted countries.
It would mark their boldest move since they ploughed $1 trillion into their economies three years ago to combat recession. Many advanced economies are still flooding markets with cheap money to combat weak growth and prevent financial contagion.

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