Saturday, May 19, 2012

Why this G8 Meeting is a Joke

The G8 is currently meeting at Camp David. However, in assessing the diverging dynamics at play for each of the big five, I believe this G8 meeting will be a total joke.

This is my judgement of each leader's participation -

OBAMA - Obama's sole concern is re-election. He wants Merkel to continue to bail out the eurozone. However, he will not offer anything that jeopardizes his domestic position electorally.

MERKEL - Merkel is left in a terrible position. The Greeks want to stay in the EU but also want the EU to bankroll them into the future. No one wants to support the Germans in bailing out a country that has no intention of paying off its debts. Merkel is alone.

CAMERON - Cameron wants fiscal discipline to take precedence. While no one wants to give the British Government credit for the comparatively low cost of British borrowing (Cameron's fiscal reforms have ensured the UK is seen as a reliable borrower), only Merkel agrees with Cameron's 'austerity' approach. Obama certainly doesn't.

HOLLANDE - I can't work out whether Hollande is A) Stupid B) Crazy or C) Combination of both. France has a 85% debt-GDP ration. Instead of proposing cost cutting reforms and inducements for economic growth, Hollande intends to reduce the pension age, return to the thirty five hour work week and institute a 75% top rate of tax.

PUTIN (MEDVEDEV) - Putin simply doesn't give a damn. So he sent Medvedev, who is irrelevant. I find it sad but also truly hilarious that Obama consistently ingratiates himself with the Russians. They are playing us Americans for fools.

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