G20

Primary Goal for the G20

In his initial meeting with the G20, Pres. Obama should use his immense world wide popularity and his natural ability to forge compromise to initiate a reasonable, comprehensive system of international financial regulation. There is reason to believe that many of the G20 see such reform as needed to calm fears, bring stability and build confidence in the world’s interconnected financial institutions. Without efficient global financial markets we cannot reach equilibrium and restart growth. Initial areas to be addressed include the level of government involvement that is necessary and that is tolerable, the treatment of derivatives, and setting capital and liquidity requirements.
It is futile to pressure the G20 nations to adopt our idea of an economic recovery jump started by an enormous stimulus package. Rightly or wrongly, they do not see that in their best interest. In addition, many countries are reluctant to take guidance from the US whom they hold as responsible for the world wide financial crisis.