Pittsburgh, here we come!

Taking the train westwards now are Agnes (sitting next to me also writing her first blog) and I, finally going to Pittsburgh. The “Big Apple” behind us, out into the countryside, so to say.

Nine hours in a train for just 500 kilometre is somewhat exaggerated but has a good side to it: it provides sufficient time to study the official statements of the G20 about the announced financial markets’ reforms. At last the future finance architecture might be a topic at the summit, given that the discussion of management’s salaries leaves some space for that.

Thoese who read statements like these know that poets are at work here: "The challenges posed by the crisis have highlighted the need to improve our multilateral cooperation in order to further promote global financial stability, foster sustainable development and lift the lives of the poorest from poverty." is my favourite line from a letter coming from Washington to the rest of the world.

Does not sound too bad, but what is the hidden meaning? A consequent boycott of tax-havens showing no solidarity? An international tax on financial transactions? A capable international finance supervision agency? A new reserve currency? An international taxation of  disproportional growing financial wealth?

Surely not. According to official announcements the reform-proposals contain either well known strategies or mere populist words of politicians running for election: That way the strengthening of the IWF, the evaluation of management salaries and the international financial market supervision agency, which is allowed to talk but not to act, will bring us new stability; according to G20 growth and reduction of poverty are best achieved by budget discipline in fiscal policies, a further liberalisation of the labour markets and by the expansion of free trade. Tax on financial transactions and taxation of the super-rich are not even a topic.

But hope springs eternal in the human breast! Maybe the colourful protest which is spreading out in Pittsburgh can move something!

(translated by Paul Woods, Coorditrad)