Deconstructing the G20 Communique

1. We, the Leaders of the Group of Twenty, met in London on 2 April 2009.

This, we know.

2. We face the greatest challenge to the world economy in modern times; a crisis which has deepened since we last met, which affects the lives of women, men, and children in every country, and which all countries must join together to resolve. A global crisis requires a global solution.

FALSE. It is not true that all countries must join together to resolve this ‘crisis’, and it is also false that this ‘crisis’ reqires a global solution.

The adage ‘Think locally act globally’ applies here. Each country needs to have its own sovereign currency that is based on Gold coins. That is the long term solution to this problem.

3. We start from the belief that prosperity is indivisible;

FALSE. Prosperity is the byproduct of liberty. It is liberty that is indivisible.

that growth, to be sustained, has to be shared;

FALSE. Not only is the idea of sustained growth not an absolute, but the idea that it has to be shared is also absurd.

and that our global plan for recovery must have at its heart the needs and jobs of hard-working families, not just in developed countries but in emerging markets and the poorest countries of the world too; and must reflect the interests, not just of today’s population, but of future generations too.

If that is true, then priority number one must be the adoption of a monetary system where the hard earned work value of the people cannot be arbitrarily destroyed by the fallible leaders of the G20. If that is true, then no one anywhere should accept a fiat currency or legal tender laws that make it impossible for people to preserve their wealth and prosperity in the long run.

We believe that the only sure foundation for sustainable globalisation and rising prosperity for all is an open world economy based on market principles, effective regulation, and strong global institutions.

It is not at all agreed that ‘sustainable globalisation’ is a desirable outcome. Rising prosperity, for sure, many people on the earth are living lives that are not optimal; the question is what is the best way that they can serve their own interests. Market principles create the prosperity that the leaders of the G20 are now able to squander. ‘Effective regulation’ is code for total market regulation, which means the death of market principles. ‘Strong global institutions’ means global governance, anathema to the free market and a death blow to it.

4. We have today therefore pledged to do whatever is necessary to:

LIE. If this were the case, they would immediately cease and desist from interfering in the process of the market.

restore confidence, growth, and jobs;

They cannot do this. The market is more powerful than any of them or even 1000 of them.

repair the financial system to restore lending;

They cannot do this. They do not have the ability to do this. If they could do this, it would be the wrong thing to do because credit was the cause of this problem.

strengthen financial regulation to rebuild trust;

Trust is not the problem. More onerous regulation will not restore it; it will further damage the market.

fund and reform our international financial institutions to overcome this crisis and prevent future ones;

You do not have the money to fund and reform international financial institutions. You can only print money or tax citizens. You cannot tax any further without a global revolt, so you will steal the money by printing more fiat currency. This will worsen the ‘crisis’, hasten and increase the severity of the implosion.

promote global trade and investment and reject protectionism, to underpin prosperity; and

Global trade does not need promotion. Companies are very good at selling their wares world-wide. Investors do not need encouragement to find places to put their money. If you get out of the way and remove regulations and restrictions money will flow at the speed of light to where it is needed.

build an inclusive, green, and sustainable recovery.

These are weasel words, inserted to placate the adherents of the new secular religion ‘Environmentalism’.

By acting together to fulfil these pledges we will bring the world economy out of recession and prevent a crisis like this from recurring in the future.

And if you fail, will you all collectively resign and cease to interfere in matters beyond your understanding?

5. The agreements we have reached today, to treble resources available to the IMF to $750 billion, to support a new SDR allocation of $250 billion, to support at least $100 billion of additional lending by the MDBs, to ensure $250 billion of support for trade finance, and to use the additional resources from agreed IMF gold sales for concessional finance for the poorest countries, constitute an additional $1.1 trillion programme of support to restore credit, growth and jobs in the world economy.

Selling Gold? Anyone with common sense will see this as a great buying opportunity. The price of Gold (real money) is going to go down on this announcement, and then, once these insane measures fail to work, it will skyrocket.

This paragraph fails to say where the $1.1 trillion dollars promised is going to come from. It also does not say who is going to receive these fiat funds.

Together with the measures we have each taken nationally, this constitutes a global plan for recovery on an unprecedented scale.

LIE. This constitutes theft on a scale previously unknown to mankind. This $1.1 trillion has to come from somewhere. It can either come from the printing press, or the savings of a nation or from taxation. Either way, it is going to come from somewhere, and then it is going to be given to someone at the diktat of a small handful of people. This is more than insanity. It is criminal. We note that none of the citizenry of the G20 were asked to vote wether or not ‘their’ money was to be used in this way. This ‘solution’ was arrived at in secret and delivered as a fait accomplit. No one with any decency would accept such a thing. And to top it all off, this solution WILL NOT WORK.

6. We are undertaking an unprecedented and concerted fiscal expansion,

You cannot make something out of nothing. Value cannot be created out of nothing. Any fiscal expansion must come from the production of work; governments are unproductive – they cannot produce anything, they can only take from the productive and give to the unproductive. This is called ‘stealing’.

which will save or create millions of jobs which would otherwise have been destroyed, and that will, by the end of next year, amount to $5 trillion, raise output by 4 per cent, and accelerate the transition to a green economy. We are committed to deliver the scale of sustained fiscal effort necessary to restore growth.

This plan will not save or create real jobs. It will in fact, destroy real jobs and capital.

7. Our central banks have also taken exceptional action. Interest rates have been cut aggressively in most countries, and our central banks have pledged to maintain expansionary policies for as long as needed and to use the full range of monetary policy instruments, including unconventional instruments, consistent with price stability.

Central banks and fiat currency are the cause of this problem. They do not have perfect knowledge, and therefore are not able to set the interest rates correctly. Only the market can do that. It was the artificially low interest rates set by the Federal Reserve that started this crisis. The fact that you do not know this disqualifies you from being able to present a solution.

8. Our actions to restore growth cannot be effective until we restore domestic lending and international capital flows. We have provided significant and comprehensive support to our banking systems to provide liquidity, recapitalise financial institutions, and address decisively the problem of impaired assets. We are committed to take all necessary actions to restore the normal flow of credit through the financial system and ensure the soundness of systemically important institutions, implementing our policies in line with the agreed G20 framework for restoring lending and repairing the financial sector.

You cannot be for the market and also be for forcing people to lend money where they do not feel that it is prudent to do so. Trying to expand access to credit to people who had no business buying a house was one of the factors that caused this situation. When you get out of the way, money will begin to flow instantly. By standing together as you are, you are in fact acting like a dam, blocking the flow of capital. Money is like information; it wants to be free. When you finally give up your delusion that you understand economics and get out of the way, the dam will burst and money will flow and wash away this problem.

9. Taken together, these actions will constitute the largest fiscal and monetary stimulus and the most comprehensive support programme for the financial sector in modern times.

And it will fail spectacularly. Stimulus packages will not work, cannot work, and have never worked.

Acting together strengthens the impact and the exceptional policy actions announced so far must be implemented without delay.

Acting together intensifies the storm, increases its devastating power and will make everything 1000 times worse.

Today, we have further agreed over $1 trillion of additional resources for the world economy through our international financial institutions and trade finance.

What is the ultimate source of the money? It can only be tax or printing press or savings. Why is it that you cannot speak plainly? Say you are going to do one of the three!

10. Last month the IMF estimated that world growth in real terms would resume and rise to over 2 percent by the end of 2010.

They could not predict this crash, and yet, we are to believe that they can predict the future now?

We are confident that the actions we have agreed today, and our unshakeable commitment to work together to restore growth and jobs, while preserving long-term fiscal sustainability, will accelerate the return to trend growth.

And this is why you FAIL. Confidence is not enough; confidence does not get work done, it does not create value. What confidence DOES do, is deceive the confident into believing paper money is real, that it has value, and that by printing it, you create value out of thin air. Commitment to a false idea is suicide. In this case, that is a good thing. Long-term fiscal sustainability can only be had with gold coins as the money. The trend growth that you refer to was produced by the printing of fiat currency. Those graphs should be thrown out immediately, as they represent an unattainable goal.

We commit today to taking whatever action is necessary to secure that outcome, and we call on the IMF to assess regularly the actions taken and the global actions required.

If you want to fix this, you need to STOP TAKING ACTIONS. It is your taking of actions that has been and which is causing the problem!

11. We are resolved to ensure long-term fiscal sustainability and price stability and will put in place credible exit strategies from the measures that need to be taken now to support the financial sector and restore global demand.

Long term pice stability can only be had with a gold coin standard for money. Since gold cannot be printed, its value cannot be corrupted – the money cannot be debased. When denominated in gold, the price of almost everything has not changed in decades. Global demand is not your affair. You do not have the competence to engineer it, and everything you do to try and generate it causes more problems.

We are convinced that by implementing our agreed policies we will limit the longer-term costs to our economies, thereby reducing the scale of the fiscal consolidation necessary over the longer term.

People used to be convinced that the earth was flat. You are all in the same camp. You all believe that paper money has value, that you can control ‘the economy’, and that your insane spending measures will fix this, when every indicator says that it will make things worse. Insanity: doing the same thing over and over again and expecting different results. Albert Einstein.. What you are doing, is, by this definition, INSANE. It was debt that created this problem. You cannot borrow your way out of debt.

12. We will conduct all our economic policies cooperatively and responsibly with regard to the impact on other countries and will refrain from competitive devaluation of our currencies and promote a stable and well-functioning international monetary system.

The only way to create “a stable and well-functioning international monetary system” is to get out of the way and allow the market to determine what money should be and how it should work.

We will support, now and in the future, to candid, even-handed, and independent IMF surveillance of our economies and financial sectors, of the impact of our policies on others, and of risks facing the global economy.

The IMF did not see this crisis coming. They are not omniscient. They do not have the ability or the right to supervise the private affairs of nations.

Strengthening financial supervision and regulation

13. Major failures in the financial sector and in financial regulation and supervision were fundamental causes of the crisis.

This is a LIE.

Confidence will not be restored until we rebuild trust in our financial system.

This is FALSE.

We will take action to build a stronger, more globally consistent, supervisory and regulatory framework for the future financial sector, which will support sustainable global growth and serve the needs of business and citizens.


Global consistency means the absence of a free market, where the individual can choose the best jurisdiction to do business. A world run by incompetents at the IMF and the G20 is a world where innovation and business will be stifled. The needs of business and citizens are best served by each of the two groups acting without onerous regulation laid down by incompetent people.

14. We each agree to ensure our domestic regulatory systems are strong.

They already are strong. So strong in fact, that people spend all their time thinking up ways to get around the regulations so that they can make a profit. No one would put their money into risky derivatives if there was a less risky alternative that paid the same returns. The fact of the matter is that the already overburdened regulatory and taxation system makes it very hard to earn a profit; this is the true mother, the genesis of the exotic financial products.

But we also agree to establish the much greater consistency and systematic cooperation between countries, and the framework of internationally agreed high standards, that a global financial system requires.

The ‘global system’ does not require this. Greater consistency means a playing field where no one has the incentive to win, much less step out onto the field.

Strengthened regulation and supervision must promote propriety, integrity and transparency; guard against risk across the financial system; dampen rather than amplify the financial and economic cycle; reduce reliance on inappropriately risky sources of financing; and discourage excessive risk-taking.

Regulation cannot promote propriety or integrity. Regulation in fact, promotes and exacerbates the tactics of evasion. Transparency already exists in the place that it matters; between the client and the entity that offers a financial product. You cannot “risk across the financial system” AND be in favor of fiat currencies and fractional reserve banking, the latter being the most dangerous. The economic cycle (which is actually The Business Cycle) is the creature of governments with their bad money, regulations and interference in the market. The state cannot decide what is and is not inappropriate. Only individuals can make this determination. When the state involves itself in legislating risk-taking, moral hazard is the result.

Regulators and supervisors must protect consumers and investors, support market discipline, avoid adverse impacts on other countries, reduce the scope for regulatory arbitrage, support competition and dynamism, and keep pace with innovation in the marketplace.

Regulators failed to spot Madhof (the scapegoat). They are incapable of protecting consumers, even if it was appropriate for them to do so, which it is not. Markets are self disciplining, just like the weather. No doubt you at the G20 would like to control that also. Avoiding adverse impacts is also impossible. If it were possible to do it, the IMF would have stepped in to stop the current crisis from emerging.

You cannot,”support competition and dynamism” and also be FOR regulation and the sort of fine grained supervision you are advocating. We understand what you mean by ‘keep pace with innovation in the marketplace’; stop any and all new internet based payment systems from taking root and supplanting the ossified, corrupt, sclerotic financial system over which you preside, or pretend to preside.

15. To this end we are implementing the Action Plan agreed at our last meeting, as set out in the attached progress report. We have today also issued a Declaration, Strengthening the Financial System. In particular we agree:

to establish a new Financial Stability Board (FSB) with a strengthened mandate, as a successor to the Financial Stability Forum (FSF), including all G20 countries, FSF members, Spain, and the European Commission;


that the FSB should collaborate with the IMF to provide early warning of macroeconomic and financial risks and the actions needed to address them;

This will never work. The IMF did not see this crisis coming, the biggest ever in world history, and they will not see the next one, if there is going to be a next one.

to reshape our regulatory systems so that our authorities are able to identify and take account of macro-prudential risks;

This will be used to blackmail institutions that are the personal enemies of the insiders.

to extend regulation and oversight to all systemically important financial institutions, instruments and markets. This will include, for the first time, systemically important hedge funds;

Total control by incompetent unproductive over the productive.

to endorse and implement the FSF’s tough new principles on pay and compensation and to support sustainable compensation schemes and the corporate social responsibility of all firms;

This is UTTER NONSENSE. There is no such thing as a ‘sustainable compensation scheme’, and executive remuneration has nothing to do with this problem. The fact that this childish, sour grapes scapegoating language is in this document demonstrates your complete lack of understanding of the problem, its root cause and the steps that need to be taken. It proves that you are incompetent, dull witted and doomed to failure.

to take action, once recovery is assured, to improve the quality, quantity, and international consistency of capital in the banking system.

recovery will not be assured by this plan, and even if it were possible, by what metric are you going to declare that it has happened? Improving the international consistency of capital in the banking system means a global currency. We are not stupid!

In future, regulation must prevent excessive leverage and require buffers of resources to be built up in good times;

It is not the place of the state to say what is or is not excessive leverage. Banking is a private business. So is risk. Neither is the business of government.

to take action against non-cooperative jurisdictions, including tax havens.

Tax ‘havens’ have nothing to do with this crisis. You would do better to ask why it is that money is fleeing your jurisdictions; once you address that problem, no one will have the incentive to remove their money from your shores. As for non co-operative jurisdictions, this means that the G20 is now going to act as if it is the de-fact world government, and there will be no more national soverignty. People will not be able to choose places to invest based on thier own requirements, and nations will not be able to organize their affairs as they see fit. All laws will now pass through the filter of G20, and if you do not agree, you will be listed as an ‘outlaw nation’. This will be the case even if the country, through the democratic process, decides that it wants nothing to do with the G20 and its absurd and destructive policies.

We stand ready to deploy sanctions to protect our public finances and financial systems.

This is a non sequitur. You do not use sanctions to protect YOUR public finances, you use YOUR LAWS to do that. Sanctions are used to disrupt OTHER PEOPLE’S finances and financial systems. The money in sovereign nations is not YOURS it is the property of the OWNERS of that money, and the responsibility of the sovereign nation where the funds are stored.

The era of banking secrecy is over. We note that the OECD has today published a list of countries assessed by the Global Forum against the international standard for exchange of tax information;

None of this has anything to do with the financial crisis. Banking secrecy has no effect on anything, other than the ability of the venal government’s ability to steal the wealth from its beleaguered citizenry. You are using this crisis to extend your reach into places where you have no business being.

to call on the accounting standard setters to work urgently with supervisors and regulators to improve standards on valuation and provisioning and achieve a single set of high-quality global accounting standards; and

None of this will work. You will not have enough time to roll it out; the collapse will see to that. Barring the collapse, there will be a ground-swell of rage that will permanently scupper your plans.

to extend regulatory oversight and registration to Credit Rating Agencies to ensure they meet the international code of good practice, particularly to prevent unacceptable conflicts of interest.

16. We instruct our Finance Ministers to complete the implementation of these decisions in line with the timetable set out in the Action Plan. We have asked the FSB and the IMF to monitor progress, working with the Financial Action Taskforce and other relevant bodies, and to provide a report to the next meeting of our Finance Ministers in Scotland in November.

The only confilct of interest that matters here is the prevalence of financial insiders in the corrupt governments.

17 to 24, snipped, as it is repetitive and refuted.

Ensuring a fair and sustainable recovery for all

25. We are determined not only to restore growth but to lay the foundation for a fair and sustainable world economy. We recognise that the current crisis has a disproportionate impact on the vulnerable in the poorest countries and recognise our collective responsibility to mitigate the social impact of the crisis to minimise long-lasting damage to global potential. To this end:

The state cannot determine what is ‘fair’ and what is not ‘un-fair’. Global potential, like gravitational potential energy, is storable. Sound money stores value; it is called capital (potential to invest). If you want to minimise long terme damage to global potential, sound money must replace fiat currencies that can be printed and debased at the will of incompetents.

we reaffirm our historic commitment to meeting the Millennium Development Goals and to achieving our respective ODA pledges, including commitments on Aid for Trade, debt relief, and the Gleneagles commitments, especially to sub-Saharan Africa;

Others haver written about this, Google them.

the actions and decisions we have taken today will provide $50 billion to support social protection, boost trade and safeguard development in low income countries, as part of the significant increase in crisis support for these and other developing countries and emerging markets;

Where is this money coming from, for the thousandth time, and is this not giving fish to people instead of teaching them how to fish?

we are making available resources for social protection for the poorest countries, including through investing in long-term food security and through voluntary bilateral contributions to the World Bank’s Vulnerability Framework, including the Infrastructure Crisis Facility, and the Rapid Social Response Fund;

More failure on the cards.

we have committed, consistent with the new income model, that additional resources from agreed sales of IMF gold will be used, together with surplus income, to provide $6 billion additional concessional and flexible finance for the poorest countries over the next 2 to 3 years. We call on the IMF to come forward with concrete proposals at the Spring Meetings;

Who is going to buy this gold, and what will they give in exchange for it? Gold is money. The people who want to buy it have fiat currency. People who want to protect the value of their money will line up for this bargain price gold, hand over their worthless dollars and euros and then sit back and watch the spectacle unfold.

we have agreed to review the flexibility of the Debt Sustainability Framework and call on the IMF and World Bank to report to the IMFC and Development Committee at the Annual Meetings; and

we call on the UN, working with other global institutions, to establish an effective mechanism to monitor the impact of the crisis on the poorest and most vulnerable.

A waste of money.

26. We recognise the human dimension to the crisis. We commit to support those affected by the crisis by creating employment opportunities and through income support measures.

How is this going to be paid for?

We will build a fair and family-friendly labour market for both women and men.

It is not the place of the state to build labour markets. While we are at it, a ‘family-friendly’ labour market would be one where the mother gets to raise her children full time, instead of being forced to earn money because the prices of houses is so great (which is a direct result of interference in the market by the state).

We therefore welcome the reports of the London Jobs Conference and the Rome Social Summit and the key principles they proposed. We will support employment by stimulating growth,

Growth cannot be stimulated.

investing in education and training, and through active labour market policies, focusing on the most vulnerable. We call upon the ILO, working with other relevant organisations, to assess the actions taken and those required for the future.

More nonsense.

27. We agreed to make the best possible use of investment funded by fiscal stimulus programmes towards the goal of building a resilient, sustainable, and green recovery. We will make the transition towards clean, innovative, resource efficient, low carbon technologies and infrastructure. We encourage the MDBs to contribute fully to the achievement of this objective. We will identify and work together on further measures to build sustainable economies.

28. We reaffirm our commitment to address the threat of irreversible climate change, based on the principle of common but differentiated responsibilities, and to reach agreement at the UN Climate Change conference in Copenhagen in December 2009.

Utter, unscientific garbage.

Delivering our commitments

29. We have committed ourselves to work together with urgency and determination to translate these words into action. We agreed to meet again before the end of this year to review progress on our commitments.

It is the prayer of every free man on this planet that you meet with TOTAL FAILURE.


We are the best.

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Posted in Economics, Money, No no no!, Politricks, Post Tipping Point, Someone Stupid Said
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