To highlight the sheer uselessness if not outright stupidity of G-20 meetings, one need only look at the alleged main achievement of the boondoggle:
“The G-20 endorsed setting up a global body monitoring steel overproduction.”
The Wall Street Journal reports G-20 Reaches ‘Broad Consensus’ on Supporting Global Economy, China’s Xi Jinping Says.
China rallied the Group of 20 around a call to use new levers to revive global growth, though the group’s nine-page statement was short on concrete steps and there were few signs that Beijing would lead by example.
Speaking at the conclusion of the meeting, the International Monetary Fund’s Christine Lagarde said, “There must be more growth and growth must be more inclusive.”
In opening the summit, Mr. Xi urged leaders from major economies to be an “action team” rather than a “talk shop.” Ahead of a spectacular gala performance Sunday night, he pointed to the logo the host country designed for the summit — a stylized bridge consisting of 20 lines in light green — as Beijing’s way of promoting international cooperation.
“The Group of 20 is like a bridge, bringing together people from all over the world,” Mr. Xi said.
For foreign delegates, the event reinforced a sense of China’s power, including its capacity to nearly empty a city of nine million. Offers of vacations and encouragement for residents to go out of town had turned Hangzhou into a ghost town of empty streets for the meeting.
Behind closed doors and in press conference, China faced pressure from its guests. According to one European official, tensions over the communiqué adopted by G-20 leaders revolved around steel from China, which produces half the world’s supply.
“If you’re looking for blood, steel overcapacity was the issue,” the official said.
In the end, the G-20 endorsed setting up a global body monitoring steel overproduction—a result the official said was Europe’s main achievement at the summit.
The final communiqué, as others at G-20 gatherings before it, didn’t single out China, saying, “We recognize that excess capacity in steel and other industries is a global issue which requires collective responses.”
Ding Xuedong, chairman of China Investment Corp., the country’s giant sovereign-wealth fund, said he has noticed a rising tide against globalization.
“We’ll need to improve communication with other countries and enhance transparency,” he said.
Top Five G-20 Achievement Candidates
- Recommendation for global body to monitor steel overproduction
- China turns city of 9 million into a ghost town to hold the summit
- Christine Lagarde’s speech on inclusive growth
- Final communiqué blaming everyone for excessive steel
- Australian prime minister’s speech on need to “civilize capitalism”.
For option number 5 please see Australia’s Prime Minister, an ex-Goldman Sachs Banker, Warns G20 to “Civilize Capitalism”
You Make the Call
I do not believe this is close.
The top achievement of this G-20 summit has to be China’s ability to empty a city of 9 million people, on command, turning the city into a virtual ghost town.
Mike “Mish” Shedlock
China had 300% capacity for hot rolled steel production 10 yeara ago. They have overcapacity in LED production. Makes you wonder of China’s provinces are competing with each other fo who can go bankrupt first.
They are going to have to de-value the Yuan significantly and multiple times during 2017.
It should be very interesting to observe the impact on global “markets”.
Another (big) reason why there is ZERO chance of the Fed tightening now, or any time in the foreseeable future.
The natural tendency in a free market, is towards “overproduction” in any industry. Defined as output prices too low to sustain the average producer in the long run. Simply because, while on average, entrepreneurs may be accurate in their forecasts of demand for their output in the future, their individual forecasts will form something like a bell curve. And the guys at the optimistic end, will build capacity beyond that which the future requires.
This is a good thing. Very possible THE good thing about capitalism. As it serves to provide the maximum amount of goods for customers, for the lowest possible prices. Prices lower than break for most customers, most of the time.
While ensuring that most ventures, go bankrupt. Which is also a good thing, as the rewards available to those who do not, are very high, and something would be very fundamentally wrong, if such high returns came risk free.
Socioeconomically, this feature, not bug, of capitalism, renders any advantage currently held by someone, very transitory. Preventing the formation of permanent upper classes at odds with the rest of society. All the current meddling to prevent this “overcapacity”, and baling out/preventing bankruptcy, is simply the current upper classes leveraging their influence over governments much too powerful for any society even remotely capitalistic, to subvert this, again and with exclamation marks, FEATURE!, NOT BUG, of capitalism, from working the way it is supposed to.
“The Group of 20 is like a bridge”
No, just more like a bunch of dickfarmers.
Cuban needs to worry more about the Mavericks drafting poorly … Dirk approaching 40 (he was on the team before Cuban bought it) … and when he hangs it up … look out below.
What do you have against dickfarmers?
🙂
You just can’t make this stuff up….
I guess they relocated the 9 million people to one of the other uninhabited “Ghost Cities”.
They do come in handy, once in a while.
LOL
I traveled around China ten years ago as the housing market there was starting to heat up. By far, the best city I saw was Hangzhou. No need to evacuate the people, they are quite content in that very modern city.
Hangzhou has underground bomb shelters all about the town. They are prepared, for whatever it’s worth, to shelter-in-place come what may. I can’t break bad on Hangzhou, even if I want to hate on the G-20.
Couldn’t these G-20 boondoggles be replaced by a fabulously staged video conference? Think of the carbon footprint reduction!
Marc Cuban: “I Have No Doubt The Market Tanks If Donald Wins”
Yeah, sorry Marc, more like the Fed will increase rates and crash the markets when, not if, Trump wins.
Subtle difference, but a difference all the same.
http://www.zerohedge.com/news/2016-09-06/gloves-come-marc-cuban-warns-market-crash-if-trump-wins
Might want to check out the capital ratios of those counter parties you’re buying those hedge contracts from Mark, you supercilious arrogant prick.
Mark Cuban screwed Yahoo for $5.7B on the sale of now since defunct broadcast.com and has been living the life of a billionaire ever since.
Really no need to heed any business advice of his, unless you have a dotcom that are looking to dump on some unsuspecting tech company.
” though the group’s nine-page statement was short on concrete steps and there were few signs that Beijing would lead by example.”
Yeah, well … the shrimp cocktail was worth the trip …
Christine Lagarde said, “There must be more growth and growth must be more inclusive.”
Give me a G. Give me an R. Give me an O… Lagarde needs a set of pom poms, to cheer on growth.
Christine Lagarde said, “There must be more growth and growth must be more inclusive.”
Trader Joe above was on point. She went there for the dickfarmers.
damn – I meant to put that bridge logo in the list of achievements
Another G-20 meeting? Wake me when it’s over, blah blah blah “much ado about nothing”.
“The G-20 endorsed setting up a global body monitoring steel overproduction.”
Twenty new jobs for rent seekers.
Don’t you get it?
Now that the big stuff is fixed they are moving on to the small stuff!
We live in an age of marvels!
The log was spot on.
A bridge to nowhere!
OOPs I mean “logo”