Opinion: (Barack Obama, the US President [my comments are in brackets]): “When leaders of the largest economies meet next week in France, our citizens will be watching for the same sense of common purpose that allowed us to rescue the global economy two years ago from a financial crisis that was sparked by years of irresponsibility.
“Because of the co-ordinated action the Group of 20 took then, the global economy began to grow again. [The crisis was not overcome, it was only concealed. It continues to develop only to flare up even stronger.]
“Still, progress has not come fast enough and today the global recovery remains fragile. [It is not recovering, but falling apart—if we dare to face the truth.]
“Our challenge is clear. [It is not clear, judging by what the President says next.] We must stay focused on the strong, sustainable, and balanced growth that boosts global demand and creates jobs and opportunity for our people. [This can never happen; the bubbles have burst, and excess production will need to be stopped.] This requires action in several areas.
“First, as the world’s largest economy, the US will continue to lead. The single most effective thing we can do to get the global economy growing faster is to get the US economy growing faster. That’s why my highest priority is putting Americans back to work. It’s why I’ve proposed the American Jobs Act [a plan to increase the number of jobs]… It’s why I signed landmark trade agreements with South Korea, Colombia and Panama….
“At the same time, we’re building on the nearly $1,000bn in spending cuts agreed this summer.
“Second, the crisis in Europe must be resolved as quickly as possible. This week, our European allies made important progress on a strategy to restore confidence in European financial markets, laying a critical foundation on which to build.
“Given the scope of the challenge and the threat to the global economy, it is important for all of us that this strategy be implemented successfully – including building a credible firewall that prevents the crisis from spreading, strengthening European banks, charting a sustainable path for Greece and tackling the structural issues at the heart of the current crisis.
“Third, each nation must do its part to ensure that global growth is balanced and sustainable so we avoid slipping into old imbalances. For some countries, this means confronting their own fiscal challenges. For countries with large surpluses, it means taking additional steps to support growth. For export-oriented economies, it means working to boost domestic demand.
“Avoiding old imbalances also means moving ahead with financial reforms that can help prevent another financial crisis. In the US, we’re implementing the strongest reforms since the Great Depression. Across the G20, we need to make sure banks maintain the capital they need to withstand shocks, and there needs to be greater oversight and transparency to avoid excessive risks, especially with regard to derivatives.
“Finally, the G20 nations must deepen co-operation on the range of global challenges that affect our shared prosperity. We need to move ahead with our commitment to phase out subsidies for fossil fuels and transition to 21st-century clean-energy economies.” [It’s an old-fashioned approach that does not take into consideration the new integrated world and the fact that we can’t increase excessive and unnecessary production. It shows a lack of understanding of the need to study the new integrated, interconnected world and to restructure our life to suit its laws.]