Leaders’ statement from the G20 summit in London – Human Dimension Point 26.

From the BBC G20 leaders seal $1tn global deal

26. We recognise the human dimension to the crisis. We commit to support those affected by the crisis by creating employment opportunities and through income support measures. We will build a fair and family-friendly labour market for both women and men. We therefore welcome the reports of the London Jobs Conference and the Rome Social Summit and the key principles they proposed. We will support employment by stimulating growth, investing in education and training, and through active labour market policies, focusing on the most vulnerable. We call upon the ILO, working with other relevant organisations, to assess the actions taken and those required for the future.

This should be point 2 . It is remarkably difficult to have any trade policy if un-employed people are rioting and throwing petrol bombs through windows. Interestingly the dole now becomes a good thing.

There is promised action on Tax Havens

to take action against non-cooperative jurisdictions, including tax havens. We stand ready to deploy sanctions to protect our public finances and financial systems. The era of banking secrecy is over. We note that the OECD has today published a list of countries assessed by the Global Forum against the international standard for exchange of tax information;

Does this mean our ruling elites like the Downers, Packers, Murdochs, Loewys, Pratts, Palmers etc will pay their fair share of tax? I am not holding my breath.

As for the proposed Financial Stability Board, could I propose that any banker found in contravention of the laws and regulations be sent to China to be tried under Chinese Law. (The maximum penalty under Chinese law seems to be disassembly, why should good kidneys be wasted.)

There is also an implied promise to break the stranglehold of Europe and the USA on the IMF and the World Bank and actually allow dark and yellow people into these institutions.

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On the G20 meeting

The G20 meeting is a step up. At least there is a fairer representation of the worlds population. Not perfect since the EU gets five bites. Countries that should be there that aren’t are Nigeria, Iran, Egypt and Pakistan. The USA will expect that Mexico, Canada, UK and Australia will be in their corner. The EU block will be Germany, France and Italy with the EU itself and some moral support from Turkey. The rest will be factions unto them selves. Russia and Saudi Arabia have common interests. 

The joke is that Australia’s natural allies are Russia and Saudi Arabia. We cannot afford to alienate any of our Asian partners. An interesting time will be had by all.

It does look like China will announce what it thinks the US dollar should be worth. This is going to constrain US policy. This is going to be more important than the presidential reality show that has just finished.