4 Nov 2011

Cameron: G20 ‘progress’ (but prepare for possible economic freeze)

When your PM comes away from a summit intended to sort out problems talking about “contingency planning” for some kind of Eurozone disaster, you get the impression things didn’t go too well. David Cameron made a point of saying the Treasury was busy gaming how a Greek exit from the Eurozone would impact on Britain’s and the world’s economy.

I understand that the Treasury is also looking at the impact of other possible exits from the Eurozone. The PM also made a point (twice, I think) of the “chilling effect” of the Eurozone crisis on the British economy … Getting worse with every week.

Britain didn’t get the boosted IMF firepower it wanted and which the Chancellor seemed to think was possible only yesterday. The government isĀ  putting a brave face on that talking about how there’s progress here but David Cameron was looking for much more.

Chancellor Merkel appears to have moved not one jot on the ECB acting like a central bank and buying Eurozone bonds more freely and in perpetuity – though there is a line in the communique about the Eurozone committing to use all its institutions to sort itself out.

Britain is saying that the G20 members wouldn’t commit to extra IMF firepower until the EFSF was a project and not just an outline plan. But some G20 members are pretty cool on this at the best of times – not least the US. All in all, some targets set that may or may not be met.

Ever wondered what declining world influence looks like? Well this is a little blurry but it is the attendance at David Cameron’s end of G20 press conference. It certainly tells you something about perception of influence. Slightly down on last year in Seoul to my memory. Very few non-British journalists came to listen.

 

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9 reader comments

  1. PM says:

    Even a few British journalists didn’t bother to turn up.

  2. Philip says:

    Understanding our place in the world’s pecking order & behaving accordingly would serve the UK a lot better than acting in the belief that we can “punch above our weight”, which in present circumstances is ridiculous & embarrassing.

  3. Philip Edwards says:

    Gary,

    Love the photograph. It really is time the Brits grew up and realised they’re little more than a small group of islands off the north coast of Europe.

    Hardly anybody except the Yanks could give a toss what this country thinks – even then the only interest is to see we do as we’re told by Washington.

    As for the IMF (read: International Monetary Fraud), watching Cameron lick its boots is no surprise. After all, he’s their poodle too, just as Britain has been ever since Denis Healey had to turn back at Heathrow at their behest in the 1970s.

    But it’s the same old same old where this tragi-farce is concerned.

    Incidentally, I’d be careful who you sit next to during these sessions. Sit next to neocon Robinson of the BBC again and you’ll catch Daily Mailitis :-)

  4. archibald gruntfuttock says:

    sooner or later they will have to start talking about the problem of fractional reserve banking. until then its all disingenuous nonsense.

  5. no name says:

    Some Thoughts:
    Is it possible for a union of diverse nations to conform to an economic agenda that enables the euro to be a stable currency?[obviously not under the current rules]

    How was this situation allowed to develop? Surely alarm bells should have been ringing several years ago?

    Is there not a central advisory board or panel to scrutinize economic agendas and point to situations that are threatening to the stability of the euro?

    If this was the case then nations in trouble currently would have had to put their house in order at an earlier stage.

    Irresponsible government where the ruling party implements popularity measures that enable them to stay in power can cause a great many problems in todays world.

    We in Britain are well aware of that. Warnings from the IMF were ignored for several years by the last government.

  6. Mudplugger says:

    It was quite telling to see all the news-clips of Sarkozy and Merkel chatting to Obama, while Cast-Iron Cameron was just getting further instructions from his EU bosses, Borroso and Von Rumpuy.

  7. Andrew Dundas says:

    It was alleged that ‘the mess we’re in’ was mostly created within the UK. Now it turns out that it’s the EU that’s to blame. Not the UK coalition.
    Many observers reckon the rot is founded upon the massive purchases of US Treasury Bonds by China throughout the noughties. Those buys transferred massive amounts of very cheap deposits into US Banks, and which they lent to dodgy mortgagees. Those dodgy mortgages were then classed as AAA by Banks’ tame credit rating agencies and sold on to other Banks worldwide as being ‘as safe as US houses’.
    Every government has events they’re elected to manage. Lord Snooty should stop blaming other people and get on with his government’s responsibility for managing our economy.

  8. sue_m says:

    The picture says it all – our government is a bad joke that has no real significance in Europe or influence on the world stage.

    Cameron and his clique have made so many mistakes, massive errors of judgement and u-turns not to mention his almost continual stream of broken promises and ridiculous claims that he will ‘repatriate’ powers from Europe – although of course the British people can’t have a say in whether we want to be in or not as he knows what’s best for us on that one. No doubt European politicians and media see him for the (not very good) spin doctor that he is and know there is no point listening to anything he says.

  9. C Sawyer says:

    when is it going to end, conservative eh!!!. i was working when labour were in power, alright they made mistakes but this is ridiculous the way this party is going on!
    look at Brussels they are god knows where and they have a say over us, hmmmm the mind boggles.
    Brussels has news roads buildings the works now on the backs of the Euro.

    In mind we need to get rid of the conservatives thats for sure nothing is working and they have been in power long enough.

    as for jobs well i remember reading something in despatches not long since and Cameron said their is nothing up the north hence creating all these jobs in the south.

    we need to go on our own again instead of looking after everyone else, what about our kids and the such like i am sick of seeing things for charities ofr other countries, what about our country. i am sure there are many who feel like me!.

    I cant stand the conservative!!!.

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