News & Politics

G-20 Pumps $1 Trillion in Play Money, Gold and Whatnot into Lousy World Economy


As rioters remonstrate with the police, the world leaders at the G-20 Summit (which was originally a cozy gathering of six world leaders, but like many all-star events has swollen in recent years) convenes in London. They apparently won’t touch the recent Chinese proposal for a new world currency standard to replace the worthless U.S. dollar, but they will pump $1 trillion into the world economy — $500 billion in International Monetary Fund reserves, and $250 billion in “Special Drawing Rights“; also, $250 billion will be disseminated by various banks around the world in furtherance of trade. You may wonder where it all comes from. Some of it is play money, such as the SDRs, which are “potential claim on the freely usable currencies of IMF members”; some comes from the sale of IMF’s gold reserves (won’t they need that when we enter the End Times?), and some (or, seen a certain way, all) of it comes from you, us, and other citizens of this global financial state. But look, G-20 is also going to crack down on tax havens, which shows that with their declining exclusivity the leaders are learning a little populism, or at least noblesse oblige. In any case, Wall Street seems to like it.


Most Popular