Members of the G-8 nations (Britain, Canada, France, Italy, Germany, Japan, Russia, and the United States) met in Leece, Italy, yesterday to discuss the state of world affairs. The main topic on the table was whether they should end their stimulus efforts and let world economies float their own boats.

The meeting, which Russian finance minister, Alexei Kudrin, described as "stormy," concluded with agreement that there would be no immediate end to the stimulus programs. U.S. Treasury Secretary Geithner indicated that the U.S. had no intention of moving toward a tighter policy. He said, "it's too early to shift toward a policy of restraint." It must be noted that the more fiscally conservative governments of Germany and Canada favored ending the stimulus programs as soon as they are no longer needed.

Continue reading G-8 nations not yet ready to end stimulus programs

G-8 nations not yet ready to end stimulus programs originally appeared on BloggingStocks on Sun, 14 Jun 2009 13:40:00 EST. Please see our terms for use of feeds.

Continue reading G-8 economic powers focus on Africa aid, Iran uranium issues at summit

G-8 economic powers focus on Africa aid, Iran uranium issues at summit originally appeared on BloggingStocks on Mon, 07 Jul 2008 15:49:00 EST. Please see our terms for use of feeds.

Continue reading Oil falls to $140 as Iran signals confidence in talks, dollar rises

Oil falls to $140 as Iran signals confidence in talks, dollar rises originally appeared on BloggingStocks on Mon, 07 Jul 2008 12:48:00 EST. Please see our terms for use of feeds.

Continue reading Dollar rises on talk G-8 leaders will support currency at meeting

Dollar rises on talk G-8 leaders will support currency at meeting originally appeared on BloggingStocks on Mon, 07 Jul 2008 11:11:00 EST. Please see our terms for use of feeds.

Perhaps no other economic phenomenon better characterizes this initial decade of the twenty-first century than the development of -- and GDP growth in -- the developing world.

The economies of Brazil, Russia, India, and China -- often referred to as the BRIC economies -- are major reasons why the developing world will grow 6.7% in 2008, far outpacing growth rates in the United States, Europe, and Japan.

New York Times columnist Roger Cohen argues that what we're seeing is not just the development of markets, not just 'the world is flat,' to use the term popularized by his Times colleague Thomas Friedman, but a reversal: the world is upside down. In Cohen's interpretation, the new economic tigers' accomplishments are large, ongoing, and system changing. Moreover, a power shift is occurring from the U.S and Europe to the new engines of growth.

For Cohen, Brazil is the economic model of the age: abundant minerals and crops, investment capital pouring in, a sugarcane-based energy policy, rising personal incomes, and an increasingly prosperous middle class, with plenty of land to mine, to plant, to expand. It is, in many ways, much of what the United States is not in 2008.

Continue reading Will the BRIC economies surpass the US?

Will the BRIC economies surpass the US? originally appeared on BloggingStocks on Tue, 17 Jun 2008 15:28:00 EST. Please see our terms for use of feeds.

The agendas of the G-8 meetings, gatherings of the finance ministers of the most powerful countries in the world, are still concerned about the credit crisis that has brought many financial firms to their knees and has caused chaos in the housing markets. Even so, they are now much more concerned about inflation.

According to Bloomberg, "Finance ministers from the Group of Eight nations said surging food and fuel prices have replaced the credit squeeze as the biggest threat to the world economy."

It happened fairly fast. At the beginning of the year, the world's credit problems began to accelerate. Mortgage-backed paper write-offs were so bad that many financial company stocks hit multi-year lows in March. Most had to go begging for new capital.

It was only as the first quarter ended that oil prices began huge run-ups and news turned to sharp increases in the price of corn and other agricultural commodities.

The "advantage" with inflation is that central banks can put money into commercial banks and brokerages, propping them up until the storm clouds pass. Getting oil and corn prices down is not quite as simple.

Douglas A. McIntyre is an editor at 247wallst.com.

World's financial chiefs sweat over inflation originally appeared on BloggingStocks on Sun, 15 Jun 2008 16:40:00 EST. Please see our terms for use of feeds.

Continue reading Germany's Merkel says Europe should spearhead financial market reform

Germany's Merkel says Europe should spearhead financial market reform originally appeared on BloggingStocks on Wed, 11 Jun 2008 16:09:00 EST. Please see our terms for use of feeds.