The Gold Standard | G-20 farce

Financial markets needed an excuse to exhale and they got one in the form of an empty and banal G-20 statement. They pledged a strong and co-ordinated international response to address the renewed challenges facing the global economy. Statements are easy to type in word processors. How would the response be co-ordinated? Will everybody agree to print money and will every government spend its way out of trouble? More amusing than these charades is the naive belief in these charades. Short-covering on these charades is logical from an individual investor’s profit-preservation or loss minimisation goals but individual investors should not let their savings follow these charades.

DISCLAIMER: This is an archived post from the Indian National Interest blogroll. Views expressed are those of the blogger's and do not represent The Takshashila Institution’s view.