Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum -- Ignore unavailable to you. Want to Upgrade?

To: carranza2 who wrote (32968)	4/12/2008 9:06:58 AM
From: Rolla Coasta	Respond to of 218356

Except for Japan, no heavy holders of dollar denominated reserves. No Chinese, Russians or Arabs invited. I suspect G7 is able to do anything this new G7 should be able to solve issues bitterly together in meetings: USA, Canada, Saudi, China, Russia, Japan, Iran

To: carranza2 who wrote (32968)	4/12/2008 10:47:01 AM
From: elmatador	Read Replies (1) \| Respond to of 218356

G7 ready to give us a global fix Monday? Brush aside the minnows. The new G7 becomes G8: US, Europe (on a rotating basis), China, Japan, Russia, Brazil, India and GCC (on a rotating basis).

To: carranza2 who wrote (32968)	4/13/2008 4:28:41 AM
From: elmatador	Respond to of 218356

Why minnows brushed aside: What is happening is a shift in power. This was starkly illustrated by the IMF's World Economic Outlook, its twice-yearly economic report, published last week. It attracted a lot of headlines here because the forecast for UK growth this year was cut to 1.6 per cent, which is below the bottom of the Chancellor's range of 1.75-2.25 per cent. That seemed to me to be less important than the big story, which is that this will be the first global downturn that sees the developed world slowing dramatically while the so-called "emerging" economies canter along pretty much unaffected. The graph on the left shows the IMF's numbers for 2007/08/09 for the Group of Seven and for the Brics, the acronym coined by Goldman Sachs to describe the largest of the emerging economies – Brazil, Russia, India and China. As you can see, it looks a pretty pitiful performance from the seven of us and a stunning one from the four of them. China will overtake Germany this year to become the world's third-largest economy after the US and Japan. India will probably overtake the UK within 10 years. Set in the context of this huge shift in economic power, discussions about the fragility of the West's banking system seem almost a sideshow. The US is now probably in recession due to its financial fragility and that will have a dampening effect on the rest of the world. The UK will experience two or three years of slow growth as a result of the debt burden carried by many homebuyers. But looking at the world as a whole, growth prospects are none too bad. A lot of lessons are being learnt by the bankers and their regulators. There will be a spate of re-regulation and changes in the way banks manage their business. I hope also that central banks acknowledge their complicity in the current troubles – in particular their error in focusing too narrowly on controlling inflation, while neglecting their wider duty to maintain general financial stability. As for the world economy, well, remember it is self-repairing. Even with pretty sub-optimal government policies, it will reorganise itself – though if the IMF is right, that recovery, for the G7 at least, is some way off. independent.co.uk that is not important: The important thing is: Once you have the power: You use it.