G20 leaving 'sheep' in 'wolf' care, says Morales

Sat, 04 Apr 2009 00:40:04 GMT | PressTV

Bolivian President Evo Morales

Bolivian President Evo Morales has slammed the G20 summit's decision to inject USD 750 billion to the International Monetary Fund (IMF).

Morales said that countries at the root of the crisis cannot solve the problem, or in his words: "the wolf cannot keep the flock," a reference to the injection of more than 1,000 billion dollars through the IMF and the World Bank to fight the global crisis.

"It's like giving money to the wolves, or to entrust the care of the flock: the wolf is not going to keep the sheep, it will devour them," Morales told the foreign press in La Paz, commenting on the decisions G20 in London to tackle the crisis.

"It is not possible that the countries of capitalism, which has caused the financial crisis, are now the same from where comes the solution," said the Socialist leader, adding that few countries are at the origin of this financial crisis, but '180 (Countries) must cope'.

"As long as we do not touch the structural points of capitalism, it will be difficult to resolve the financial crisis," said Morales about the G20. "If we want to solve economic problems, we must first end the free market, then the speculative capitalism."

Morales remarks echoed those of the Venezuelan President Hugo Chavez, who said earlier in the day that the G20 nations' plan to spend more than a trillion dollars would strengthen "one of the great guilty ones behind the crisis: the International Monetary Fund."

"It's impossible that capitalism can regulate the monster that is the world financial system... Capitalism needs to go down. It has to end," Chavez said during a visit to Tehran on Friday.

Bolivia is experiencing the beginning of economic deceleration with 5 percent growth at best in 2009, against 6.5 percent in 2008.

US jobless rate jumps to 25-year high

Fri, 03 Apr 2009 16:12:31 GMT

Over 5.1 million jobs have been lost since the beginning of recession in 2008

Unemployment rate in the US has reached its highest level in 25 years, after 663,000 jobs were lost in March, official figures show.

The Bureau of Labor Statistics reported on Friday that the jobless rate spiked to 8.5 percent in March from February's figure of 8.1%.

The figure, however, is less than the 741,000 jobs lost in January -- which now stands as the biggest monthly drop in 59 years.

This means that 5.1 million jobs have now been lost since the beginning of the financial downturn in 2008, over 2 million of them in the past three months alone.

The unemployment rate roughly lined up with economists' forecasts of a loss of 658,000 jobs in March, according to a survey by Briefing.com.

The job losses were felt throughout all areas of the economy including the manufacturing and construction sectors, business and professional services industries as well as the government.

Employers have also cut back the number of working hours, as the average hourly work week fell to 33.2 hours, lowest in record since 1964.

The number of people forced to work part-time, but who would prefer to get a full-time job, also climbed 423,000 to nine million.

The sharp and continuing increase in unemployment suggests that job losses are likely to keep increasing for the rest of this year and into 2010.

G20 split on financial downturn

April 03, 2009 - Leaders of the 20 world's most powerful countries meet in London to find a way out of the current global financial crisis and help prevent future crises. Will the G20 reach a unified stand on how to kickstart the ailing global economy?

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G20 leaders arrive in London ahead of summit

March 31,2009 - World leaders have begun arriving in London ahead of this week's G20 summit, where they will discuss ways of dealing with the global financial crisis.

But the summit is attracting much anger, with large protests expected.

Barbara Serra reports from London.

G20 protesters' anger amid global recession

March 28, 2009 - While politicians are set to discuss their solutions to the global recession at the G20 summit, hundreds of small groups have held demonstrations to have their say.

Tens of thousands of people took to the streets of London in a peaceful march calling for changes to be made to the global financial system.

But events in Rome and Berlin were marred by some violence. Al Jazeera's Nazanine Moshiri reports.

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U.S. Seeks Expanded Power to Seize Firms

By Binyamin Appelbaum and David ChoThe | Washington Post Staff Writers | Tuesday, March 24, 2009

Obama administration is considering asking Congress to give the Treasury secretary unprecedented powers to initiate the seizure of non-bank financial companies, such as large insurers, investment firms and hedge funds, whose collapse would damage the broader economy, according to an administration document. The government at present has the authority to seize only banks.

The administration plans to send legislation to Capitol Hill this week. Sources cautioned that the details, including the Treasury's role, are still in flux.

China economy ‘has bottomed’, says central bank adviser

HONG KONG, March 25 – reported by malaysianinsider – source : Reuters

China’s economy has touched bottom but further interest rate cuts remain an option, a Chinese central bank adviser said on Wednesday.

Fan Gang, who sits on the Chinese central bank’s monetary policy advisory committee, said a 25 per cent rise in car sales and accelerating investment in China indicated the economy was showing signs of improvement.

“Before (the economy) bottoms out, it has to bottom. I believe it has bottomed, with the stimulus package and signs of recovery in some industries,” Fan said in an interview during the Credit Suisse Asian Investment Conference in Hong Kong.

Steel and energy consumption were declining at a slower rate and may have turned positive in March, while the transportation sector was warming up, he said.

However, high inventories and overcapacity in some industries remained the biggest short-term challenges for the economy, he said.

Further interest rate cuts remained an option.

“I don’t think anybody would rule it out. But it depends on China’s liquidity, how China’s recovery takes place and how the stimulus package works out,” he said.

As exports have collapsed in the face of sharply declining global demand in recent months, high inventories and overcapacity in some industries posed the biggest short-term challenges for the Chinese economy, Fan said.

The Chinese government has targeted 8 per cent growth this year, its lowest growth since 1999, but the World Bank forecasts only a 6.5 per cent expansion.

Fan said China’s sharp economic slowdown meant deflation was an issue in the short term, but he warned that inflopment of a diversified and competitive monetary system would be useful because competition between currencies can create more discipline.”

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Najib: RM250b liquidity to help entrepreneurs

KUALA LUMPUR, March 23 - Reported by Malaysianinsider - source : Bernama

The government has a huge liquidity of RM250 billion in its coffers to help local entrepreneurs cope with the current global economic crisis, Datuk Seri Najib Tun Razak said today.

The Deputy Prime Minister said the government would also provide incentives to encourage banks to issue loans to businessmen in need of financial aid such as providing repayment guarantees to banks to reduce the liability risk.

"One of the important elements in facing the global economic and financial crisis is to ensure the country's financial system is able to disburse loans to entrepreneurs who are in need of financial aid," said Najib, who is also Finance Minister, when opening the 2009 MIDF (Malaysian Industrial Development Finance Bhd) Bumiputera Entrepreneurs' Symposium.

"So long the banking sector does not give out loans, until then efforts to stimulate the world economy will not succeed," he said. Among the incentives provided are credit guarantee scheme for small-time businessmen by the Credit Guarantee Corporation under the supervision of Bank Negara which will provide 80 per cent guarantees for loans approved under the scheme.

Zambia bans foreign currency use

Sun, 22 Mar 2009 18:13:24 GMT | PressTV

Zambia has banned the US dollar in domestic transaction, along with other foreign currencies to ensure the kwacha gains economic value.

In the last six months, Zambia's kwacha has plunged 30 percent against the US dollar, forcing a decline in export earnings and pushing foreign investment to almost zero.

The bank of Zambia has banned non-residents from borrowing kwacha in order to boost currency losses.

Zambian Trade, Commerce and Industry Minister Felix Mutati reiterated that there would be heavy penalties on business that uses foreign currencies especially the US dollar.

According to Mutati, introducing statutory instruments is aimed at ensuring business firms trade in Kwacha and that "the effects of dollarisation" are curbed.

Zambia's main industry comes from its copper resources which are the largest in Africa. However, the recent fall in world copper prices has taken a heavy toll on the Zambian economy.

The International Monetary Fund (IMF) says because of its dependence on copper, Zambia is "highly vulnerable to the adverse effects associated with the global recession."

Zambia now hopes to save its drowning economy with measures, such as using a $200-million loan from the IMF to boost its foreign currency reserves -- which have since August 2008 gone down by 40 percent -- and enforcing a one-year foreign currency ban.

California's unemployment level climbs to 10.5% in February

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Prior to G20 summit, EU trying to jumpstart economy

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