G20 And The Countdown to Global Disaster

As the world leaders gather in Toronto this weekend for the G20 the prospect of global economic meltdown is an extra participant none of them wants to discuss openly. The main reason this unwelcome guest has shown up again is that the United States of America Government together with  Chuck and Chardonnay Consumer cannot face the reality of their need to cut back spending and start again living within their means.

Rather than face reality,  the Americans prefer to keep borrowing from emerging nations in Asia so that Chuck and Chardonnay can continue buying imports. Americans will thus continue to spend more than they produce. This is La La land and will lead eventually to a global disaster with unforeseable consequences.

The Europeans meanwhile led by the gloomy Germans with France and the UK in tow and prompted by the Greek mess have decided to face up to the problem and get  spending back in balance by government cutbacks and increased indirect taxation. This will result in low or no growth in Europe.

The US Govt is not happy about this because, firstly it will lead to less consumer spending in Europe which could spark another economic crisis and secondly it complicates the US Govt plans.

These are all symptoms of the decline of the USA and Europe and the rise of the East plus Brics which is irreversible. The world will be lucky to get through this change without a major war.