Interesting bit of news from the G-20:
Finance ministers from the world’s leading economies ripped up their support for fiscal stimulus on Saturday, recognising that financial market concerns over sovereign debt had forced a much greater focus on deficit reduction.
The meeting of the Group of 20 finance ministers and central bank governors in Busan, South Korea, also dropped proposals for a global banking levy, instead giving countries leeway to do what they thought best for their domestic circumstances…
The harsh reality is that Europe is bankrupt – any attempt to “stimulus” their way out of what is rapidly shaping up as a “double dip” recession will be severely punished in global financial markets. They don’t want to do it and they’ll fudge the numbers as much as they can, but the governments of Europe know that financial sanity is a requirement.
This will spread to the United States, China and Japan as our fiscal chickens come home to roost – though when, exactly, this will happen is unknown. For us, we might not be able to get a handle on it as long as Obama is President – he seems utterly clueless about what is happening and is entirely enthralled to the banksters who want to keep the money flowing…at least until they’ve got all their personal assets out of the way and safe from the crash.
As Mish points out, the end of “stimulus” will be used by the left as the reason for the end of the so-called “recovery”. If only we’d kept spending, all would have been well. Such stupidity is just par for the course from the left and should be calmly ignored – if we don’t balance our budget by 2015, at the latest, there will be a very high price to pay.
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