Free-Market Analysis: The G20 Summit has come and gone. Herman Van Rompuy may be satisfied with its outcome but the chances are that many involved in the Western power elite nexus will not be. There was evidently and obviously pressure put on China to cooperate more effectively with the West on monetary issues, and so far China seems to be resisting. In fact the G20 as an aggregate, and especially the BRIC nations, seem fairly unresponsive to Anglo-American pressure at this date.
In the run-up to the conference it was becoming obvious that there would not be full agreement regarding what the United States hoped to accomplish. The common wisdom holds that the US is concerned with an undervalued yuan, which allows the Chinese to sell easily into American markets. But we have wondered if it is the vast quantity of securities that China has accumulated as a result of its policies that is bothering the West. The growing power of the Chinese, via its accumulation of gold and dollars is likely becoming a drag on any contemplated dollar policy.
The US, for instance, wants to print money, but still has no assurances that other countries will not debase their currencies as well. And while our perspective on these global sideshows is that they have been created to rubber-stamp the policies that the Anglo-American elite supposedly wants put in place, we can see from this most recent G20 meeting that stated Western objectives have not been entirely accepted by any means. On the other hand, we have noted that Western interests are taking a higher profile in China; the Rothschild banking dynasty itself recently received a high-profile banking charter; a large Chinese auto facility is apparently taking a significant position in GM.
It is hard to tell, currently, the significance of these moves. One thing seems certain: Insofar as the G20 is concerned, the Anglo-American elites are not having their way. We have written on several occasions this past week that we would wait to try to figure out what this might mean; and there could be several different meanings actually. But on its surface, it remains a rejection of US policy, as we can see restated in this AP story: ...