Tuesday, June 19, 2012

UPDATE-2: Expensive resorts and lavish dinners, austerity is in the air

The G20 leaders continue to excel at making a credible case for austerity. Hunkered down in a Mexican luxury resort the reality of the world most people live in is no where to be found near them. Between lavish meals economic talk erupts, lots of talk which these leaders insist will one day translate in to a plan to actually address the world problems. Of course this plan will be served up right after dinner.

U.S. President Barack Obama will discuss the euro zone crisis and the state of the global economy with European leaders after the G20 dinner in Los Cabos on Monday, a White House official said.

"It's a good opportunity to continue a dialogue between the United States and Europe on the situation in the euro zone and the global economy broadly," Deputy National Security Adviser Ben Rhodes told reporters on the sidelines of the summit.

Lael Brainard, the U.S. Treasury Department's undersecretary for international affairs, said she expected European leaders to provide clear direction on the debt crisis at the G20, adding it was good to see Greek resolve following that country's election.
It's a good opportunity these "leaders" say. I bet it is, and they have plenty of good opportunities. Since the debt crisis began there have been 2 G20 summits per year, every year. Each summit costs millions of dollars or in the case of Canada more than a billion. That's just the G20. There are also the European summits, the G8 summits, the Bilderberg meeting, etc. Summit after summit after summit, all great opportunities to continue dialogue, and fill their faces with top-notch food at the same time.

Looking for details on what's actually discussed? Well don't bother, that's really best left up to your imagination as the reporting from these closed door meetings is sketchy at best. You see, reporters can not report what's actually discussed, they can only report what's reported by the G20 as being discussed. These usually consist of vague terms such as "developing a plan", "talks of progress", "trade agreements" (of which the details are never made available - just try and figure out the details of the still secretive SPP) and the like. You, the peasant, doesn't need to know the details of these meetings, the material is obviously far too important for you and couldn't possibly have an impact on democracy and the citizenry making informed decisions.

What's truly amazing though is, after all of these "opportunities to continue dialogue" where exactly is the world today? Are we better off than 4 years ago? 2 years ago the debate in Greece was about economic growth, now it's about whether they can even keep a government together. Europe has continued to escalate, now with Spain in the danger zone spotlight. Where exactly is the return on investment in these meetings? World citizens have spent countless billions servicing the political royalty so that they feel they can have an opportunity to talk and what has the result been? What has been accomplished other than yet another photo op?

The media continues to vaguely report on these meetings of anti-democratic global governance as if the world couldn't get by without them. It's almost as if in the world of world leaders, the telephone hasn't been invented yet. For a group of people bent on austerity their brand of personal austerity is certainly interesting and an excellent example of excess to fuel the fires ravaging in their streets.

Update-1: Decoding the G20 koolaid

Analysts See Possible G-20 Summit Breakthrough on Debt Crisis

Yes, that's right they see a "possible breakthrough". Let's dig in to the lack of detail provided.

Non-governmental organizations have expressed concern that the leaders are too caught up in the debt problems of several European nations to have much discussion of issues that are vital to the poorer nations of the world. 
The primary foreign economic principle of the G20 nations is to exploit the poorer nations to externalize costs and aid the illusion of economic growth. You can bet the importance of poorer nations is top of mind for G20 leaders, just not the issues that the "IMF recipe" creates. It is the G20 leaders, oligarchs, and technocrats which primarily benefit from the high priced loans the IMF provides and the "recipe" that has to be implemented to receive them.
There have been few protests near the summit site, partly because most of the coastal area remains heavily guarded and off limits to anyone not authorized to be here.
Jyotsna Mohan is one of them. “They don't hear us, they don't listen to us," she said.
These leaders don't want the citizens anywhere near them, they don't want to hear your complaints, they don't care about your protests. This is the essence of the true state of western "democracy". The fact that the high security cost could actually be used to help pay down these ridiculous debts is irrelevant.
Krystel Monpetit, analyzes compliance by world leaders with their summit commitments for the Toronto-based G20 Research Group. She says the world economy will stall unless the European crisis is resolved.

“This is where you see the ripple of how this global economy is intertwined and the huge ripple that the European crisis is having on the rest of the world," she said.

She says the European Union's trade partners, like India, will have little growth until the debt problem is resolved and she thinks that, unlike other recent meetings, this one will produce something. “There could finally be a breakthrough, a significant measure that actually brings the European Union on the right pathway," she said.
This right here is a great example of the double-think non-sense you're expected to believe. The idea that global growth is being held back by the European debt crisis ignores the fact that the debt crisis wouldn't be a crisis if global growth was capable of paying off the debt in the first place. The debt crisis isn't holding back global growth, the failure of global growth has resulted in the debt crisis.
She says direct recapitalizing of private European banks is likely to be one of the measures approved at this G20 summit.
Now, there's a plan surely worthy of a summit. Unlike the bank recapitalisations we hear about every other week, this one will be really really good.
Such ideas have support from the international business leaders who met nearby at the B20 conference. Former governor of the Bank of Mexico Guillermo Ortiz, who has led a group focused on financial sector reform, stressed the need for more widespread access to credit. “In the world there are around two-and-a-half billion people who have no access to financial services," he said.
Now we're getting in to the meat of how these meetings really operate. The G20 gets all of the media photo-ops, but accompanying every G20 meeting is a B20 meeting. Completely isolated from public view. These group of business leaders propose and approve everything the G20 talks about. Want to know why your issues aren't being addressed? Because the B20's issues are being addressed. The fascist nature of this scam is evident and obvious, but never mentioned.
G20 leaders will reveal their plan for Europe's debt crisis and announce decisions on other issues when they wrap up their summit Tuesday and say farewell to the beachfront hotels of Los Cabos.
Soon the political royalty will reveal their multi-million dollar plan. Gee, I can't wait.


It just keeps getting more ridiculous.
Mr Osborne cautioned against the belief that a full solution to the eurozone crisis would be reached at this week's summit.

But he indicated that he expects steps to be announced either after a meeting of eurozone leaders in Rome at the end of this week or at the full European Council in Brussels next week.
So they're really close to a breakthrough. Don't expect one at this multi-million dollar summit, but at some future meeting or summit this breakthrough will be realized. $100 says in a year they will be claiming the same thing.

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Richard Fantin is a self-taught software developer who has mostly throughout his career focused on financial applications and high frequency trading. He currently works for CenturyLink

Nazayh Zanidean is a Project Coordinator for a mid-sized construction contractor in Calgary, Alberta. He enjoys writing as a hobby on topics that include foreign policy, international human rights, security and systemic media bias.

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