Bond Outlook [by bridport & cie, April 1st 2009]
| Everyone says “no protectionism” ... and then protects. Everyone says “we must have a united approach” ... and then they divide into two groups, one in favour of still more stimuli, the other saying “enough is enough”. Very silly threats have been made by Sarkozy that he will walk out if he does not get his way on greater regulation of hedge funds, derivative trading and bank bonus control. Most members of the G20 want these things anyway. Russia is wading in with proposals for a new international financial order (including the Chinese idea of a third, IMF-run reserve currency), dismissed by some as “self-serving”, but seen by others as thoughtful if not a touch hypocritical. Banking secrecy in Switzerland is being strongly attacked by countries which themselves offer amazing tax avoidance opportunities through company domiciliation. To expect a sensible and united outcome from such a grouping requires a great deal of optimism! |
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| Ban Ki-Moon would like to see the G20 consider helping poor countries suffering from a recession which they did not cause, and also to encourage “green economics”. |