Monday news out of Berlin Germany, said that European leaders mounted a united front against the global financial crisis Sunday. They are proposing sweeping new market regulations. However, it remains unclear whether economic giants such as the United States and China will go along with this. Heads of government and finance ministers from Europe's largest economies joined German Chancellor Angela Merkel to lay the groundwork for a common European position on economic reforms before an April 2 summit of the Group of 20 nations in London. Leaders agreed to press for sanctions on tax havens caps for managers' bonus payments and a stronger role and increased funding for the International Monetary Fund. This will all bear watching.
Even the global crisis and a change of administration may not be enough to convince the United States to hand over its autonomy. Robert Brusca of New York-based Fact and Opinion Economics said, "I see the U.S. as wary of giving away powers of oversight and regulation." However, financial industry leaders may have lost too much credibility in the current crisis to fight off heavy restrictions on their practices. British Prime Minister, Gordon Brown called for a "global New Deal" to be adopted to help right the world economy, saying international financial institutions need some $500 billion to do the job. Just where is all this money coming from? We cannot keep printing money like we are doing now. We can still see visions of people in Germany during an inflationary period years ago, taking wheelbarrows of their paper money to the store just to buy a loaf of bread.
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