NEOAVATARA

http://www.cnn.com/2009/BUSINESS/04/02/global.markets/index.html

http://www.cnn.com/2009/POLITICS/04/02/carville.obama/index.html

In the end, the G20 accomplished little more than was predetermined last week.

The leaders of the G20 announced a tripling of the lending power of the International Monetary Fund to around $750 billion.  They also unveiled a $250 billion expansion in the IMF’s reserve currency — the special drawing right — to boost liquidity in the global financial system by expanding member countries’ foreign exchange reserves. They committed to selling IMF gold to help poor countries.

The countries promised not to put up trade restrictions, but no formal regulation was agreed to.  The leaders reiterated their commitment to resisting economic protectionism and promoting global trade.

They also agreed to increase regulations of hedge funds and other international financial institutions, although the U.S. appears to have successfully fought off thoughts of an international regulator.  Also, they will provide a concerted effort to eliminate worldwide tax havens.

These principles were largely agreed upon weeks ago.  Obama was able to avoid the most troublesome issues all together, which he must consider a success.  However, he was not able to convince most European nations to increase stimuli to promote growth of their economies.  Led by France and Germany, these countries basically rejected the Obama proposal for stimulus.

However, overall Obama appeared to be the weakest U.S. President in a generation.  One reason the foreign press liked him so much was that he apologized for everything to everyone.  I still don’t see how we are responsible for Iceland melting down financially, Austrian Banks who overleveraged, the Spanish real estate market crashing, or the ridiculous investment losses suffered by oil rich Russians and Middle Easterners.  Sure, we are to blame for a signficant portion of the economic downturn, but Obama made it sound like this would not have happened except for the United States, which is just a falsehood.  And foreign leaders, seeing that weakness, took advantage of it.

In the end, this summit was neither a full success or abject failure for Obama.  He had a few gaffes (Michelle Obama hugging the Queen and giving her an Ipod (?), Obama bowing to the King of Saudi Arabia; only loyal subjects are supposed to do that).  Overall, however, he got a few of the proposals he pushed for, without having success on the global stimulus package he wanted.  And no major leader walked out of the meeting, which would of been disastrous.  Also, no Carla Bruni.  You win some, you lose some.