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G-20 communique abandoning stimulus in about face

The Financial Times points us to the G-20 communique abandoning stimulus because “they recognize financial market concerns”:

Finance ministers from the world’s leading economies ripped up their support for fiscal stimulus on Saturday, recognising that financial market concerns over sovereign debt had forced a much greater focus on deficit reduction.

The meeting of the Group of 20 finance ministers and central bank governors in Busan, South Korea, also dropped proposals for a global banking levy, instead giving countries leeway to do what they thought best for their domestic circumstances.

The communiqué of the meeting made it clear that the G20 no longer thought that expansionary fiscal policy was sustainable or effective in fostering an economic recovery because investors were no longer confident about some countries’ public finances. “The recent events highlight the importance of sustainable public finances and the need for our countries to put in place credible, growth-friendly measures, to deliver fiscal sustainability,” the communiqué stated…

“Financial market concerns” are what? The economy, which is ultimately Main Street? Or profit for the industry? And how do you help your Congressman and Senator see the differences enough to help your own situation with making enough to live somewhat comfortably?

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