That which was signed was a pledge. Which means the signatories will make their best effort to establish regulatory guidelines that safeguard (supposedly) the functioning of International Finance.

One cannot expect more. Regulatory guidelines, for them to function strictly on an international level, must become statutes (of law). A prosecutor must be able to indict a supposed perpetrator/transgressor (of crime/regulatory transgression) at a national court. Designing and implementing such a treaty would have been as difficult as was establishing the UN. It was not on for reasons of practicality.

So, what the world gets is an oversight body that can blow the whistle. The G20 elephant gave birth to a mouse, perhaps …

Given that the major centers of financial engineering are the UK and the US, it is important that regulations be enacted into regulatory law in these countries. But, such will not be an obligation. Which makes implementation of the guidelines a bit onerous.

Let’s presume that the SEC limits strictly bank leverage borrowing to 10 times its reserves. But the British regulatory equivalent of the SEC (the Financial Services Authority) decides to limit the leveraging to 30 times an UK bank’s reserves. This gives a UK bank a decisive competitive advantage to raise money for investment purposes. (This leveraging ratio was a key component of the SubPrime Mess.) And the US can do nothing about it.

The G20 document has no teeth, but it does allow whatever oversight agency to blow loudly a whistle such that disturbing exceptions to the norm, as the example above, are brought to attention. It is then up to the Finance Ministers to bring the matter up at the international meetings that will supposedly discuss matters of the Oversight Authority.

Then again, maybe they won’t and Hi-Finance will be, once again, Business As Usual.

This is international finance regulation, of a sort. It is not as harsh and strict as domestic finance regulation can be. After all, without law statutes in the matter any regulation whatsoever is just a wordy document.

Whilst the cat’s away the mice can and will play …

I AM JUST SHARING MY THOUGHTS TO HELP WORLD ECONOMY.

· GLOBAL WARMING DUE TO OLD VECHICLES. SO G-20 SUMMIT DECIDES TO SCRAP VECHICLES MADE PRIOR TO 31DEC 1999 WORLDWIDE.

FINANCE OF NEW VECHICLE TO BE GIVEN AT HISTORICAL LOWEST BANK RATES.EMI OF 5 YEARS.

1. TO CONTROL ALL COMMODITY PRICE FOR NEXT FIVE YEARS. AVERAGE INCREASE OR DECREASE OF 7% ANNUALLY ALLOWED.
2. ALSO TO FIX NEW RATES OF ALL COMMODITIES & EXCHANGE RATES OF ALL CURRENCY WHICH WILL BE BASEPRICE FOR 5 YEARS.

EXAMPLE CALCULATION SAY SILVER COMMODITY IS TODAY $14.

AVERAGE OF YEAR 1999 IN $ – 09
AVERAGE OF YEAR 2000 IN $ – 10
AVERAGE OF YEAR 2001 IN $ – 11
AVERAGE OF YEAR 2002 IN $ – 12
AVERAGE OF YEAR 2003 IN $ – 13
AVERAGE OF YEAR 2004 IN $ – 14
AVERAGE OF YEAR 2005 IN $ – 15
AVERAGE OF YEAR 2006 IN $ – 16
AVERAGE OF YEAR 2007 IN $ – 17
AVERAGE OF YEAR 2008 IN $ – 18
TOTAL 135 SO AVERAGE OF LAST 10 YEARS $ 13.5.

BASEPRICE TO SAVE ECONOMY = 50% DIFF OF (CURRENT PRICE- AVERAGE PRICE OF LAST 10 YEAR) + AVERAGE PRICE LAST 10 YEAR
= 50% DIFF OF ( $ 0.5 ) + $13.5.
= $ 0.25 + $13.5
= $13.75

MAKE BASEPRICE OF ALL COMMODITY & EXCHANGE RATES ON ABOVE FORMULA.THIS WILL HELP TO MOVE ECONOMY,WITHOUT
RAISING INFLATION.

SIR, WE CANNOT ALLOW COMPANIES LIKE GM,CHYLSER AS IT WILL AFFECT MILLIONS OF JOB IN WORLD.
IT WILL CREATE MORE PROBLEMS OF CREDIT DEFAULTS.

PLEASE CONTACT ME I HAVE MASTER PLAN FOR TOXIC ASSESTS.

THANKING YOU,
WITH BEST REGARDS,
APURVA KACHALIA.
MUMBAI ,INDIA.

CONTACT NUMBER :- 0919322991262, 0912223882785.

It struck me this morning that the issues for the G20 are a type of prisoner’s dilemma, i.e. Coordination leads to the best outcome for the group, but coordination is difficult to achieve given the individual incentives.

Does this strike you as a productive way to frame and communicate the problem?