Wednesday, October 6, 2010

In the news: New World Order

This one comes from French President Nicolas Sarkozy and his quest for a "monetary world order":

"President seeks salvation in his new world order"

NICOLAS Sarkozy will use his G20 leadership role to push forward a new diplomatic and monetary world order that embraces Russia.

He proposes a powerful European alliance which could threaten to destabilise US dominance.

At the same time, the ambitious French President wants to craft a new global economic framework that would give China greater influence. He plans to use the French presidency of the G20 group of world nations, which starts on November 14, to promote his redrawing of the world diplomatic and monetary stage.


The G20 meetings are always worth watching closely, as the world leaders seem to consistently seek for ways to implement various "world orders", whether via finances, taxes or governmental consolidation. This upcoming meeting, scheduled for November 14 is no different:

From the French point of view, the time is ripe to forge new global architecture because the end of the postwar monetary system has left a void and the world needs shock absorbers on the financial and commodities markets. China and Russia are critical to his new post-Cold War vision.

Preparing for Mr Sarkozy's chairmanship of the G20, the Elysee Palace is in overdrive, getting ready to turn the group of big industrial and emerging powers into a forum for solving the monetary and economic ills of the age.

He will put forward his radical new proposals for Moscow when he chairs a summit with Russian President Dmitry Medvedev and German Chancellor Angela Merkel in Deauville, France, on October 18. His plans will raise concerns in Washington, which has long resisted French attempts to counter US power and impose global regulations.


We'll also see more calls for an international currency:


Paris has already had private talks with Beijing about Mr Sarkozy's plans to draw up co-ordinated international regulations to govern currency markets. France is confident the sovereignty-conscious Chinese leadership will agree to put the monetary matter on the table.

Paris also aims to convince Washington of the merits of creating a new monetary system. It is stressing that China holds currency reserves that the US needs to fund its own economy. To overcome possible German wariness, France also envisages a special G20 role for Germany in its plans for world monetary reform.


This will be worth watching closely - circle November 14th as this could get even more interesting.

Speaking of "global news" - we also see this:

"Egypt president warns of 'global terror' of Mideast peace talks fail"

Egyptian President Hosni Mubarak has warned that a failure in Israel-Palestinian peace negotiations would lead to "violence and terrorism" across the world.

In an interview with the journal of the Egyptian armed forces, given to mark the anniversary of the 1973 Yom Kippur War, he said he has told several leaders, including Prime Minister Benjamin Netanyahu, that "if the peace process collapses, violence and terrorism will erupt in the Middle East and all over the world."


Well, the peace talks are destined for failure - it is just a matter of time that this will become apparent (it is already apparent to most reporters who are covering the story). Will world-wide violence ensue?

2 comments:

Parag said...

A common feature among G-20 economies is that their financial systems, characterized by poor performance of equities and weak credit growth, are not providing much support to the real economy. Weak financial markets and lackluster employment growth have dented consumer and business confidence, which could hold back the recovery in aggregate demand.
Global economic update

Scott said...

Parag
Thanks for the comments and link (scary link too, I might add) --- so can one infer that the G20 would have their interests at heart rather than the countries who are succeeding? In other words, will they manipulate the world financial system to their advantage?