G20 Meeting: Currency, Trade & Unemployment (The Comparison)

So all of the big leaders and influencial people are meeting together again is Seoul, South Korea... Whoopee Doo! They meet all the time to try bash out one economic deal or another... Usually, the Americans find someway to scuttle any chance of there being any consensus result to these conferences and I am actually for these 20 leaders getting together to resolve World problems!

However, what are the fundamental topics or issues on the Agenda of the G20 Meeting?

1. The Americans want China to let its national currency float free on the World stockmarkets with out fixing its price or limiting trading in it, as they say that it is heavuly over valued. The Americans are also clamboring for the Germans, Brazilians and Japanese to devalue their currencies, as the USA can't accept monetary protectionalism by these countries to mantain the trade deficit any more. The rest of the World is complaining about the Americans plans to dump $600 Billion into the US economy to facilitate the devaluation of the Dollar, but the other countries say that this could lead to a massive Trade War and Protectionist policies that actually worsened the effects of the Great Depression.

2. The Americans, lead by Barak Hussein Obama, want to force China, Brazil and the rest of the World to stop using the USA as a dumping ground for their national exports, as the USA is no longer capable of continuing to run up large trade deficits (Now that Enron, WolrdBank and all the other Financial Companies that burst the stockmarket value balloons are gone - "The Era of Big Business Bankrolling the American economy and World Trade is over" and the "The World and the American Public have to accept that the Wizard of Oz can not save their export trade surplus anymore, so they need to look for a new Wonderland").

3. The Citizens of several nations are complaining bitterly about the high unemployment that exists all over the World and Demand that the World leaders come up with a plan to Slash Unemployment around the World and therefor increase the National Gross Domestic Product of each country.

So what is the truth behind all of the noise?

Devaluing Currencies Doesn't necessaril;y mean that One Specific Nation's economy or the Global Economy will improve, as it doesn't in itself cause more money to circulate through the economy. It Just blows wind up the leader's backsides!

Strictly controlling Trade will not mean that One Specific Nation's Economy or the Global Economy will improve either, as it doesn't pump more money into the hands of its citizens to circulate through the economy. It just blows wind up the backsides of the Industrialists or the Venture Capitalists!

Dumping $600 Billion into the US economy will devalue the Dollar, but will not increase the amount of currency circulating through the American Economy or the Global Economy, as it is a very protectionist measure and an over-reactionary action by the American Government. It will only blow windback in the faces of the World leaders, who are trying to save their economies.

So what do we need to do?

Create More jobs and get more money into the hands of the average person on the street, so that they can spend it or save it. Which will increase the circulation of currency in the economy and through a knock-on effect, increase the national GDP, which ultimatly will mean a lot more for the country and its citizens than any currency devaluation or trade deal/ trade deficit reduction...


We can only hope that one or more of the South African government ministers actually do pay attention, in between their parties at luxury hotels and getting back to work...