Is it Tuesday already?
While we were out enjoying our last weekend of summer, our Global leaders got together in China this weekend, met for 3 days and accomplished – NOTHING! Well, not nothing – China and the US did ratify the Paris Climate accords and that's huge (more on that later) but it also wasn't actually G20 business, the G20 released their communique with 48 bullet-points that essentially reiterated their last meeting, after which nothing happened.
China's markets popped because, as Xinhau News put it: "The world has been hoping for Chinese wisdom and prescription to cope with common challenges after the country took over the G20 presidency." "We will continue to reinforce macro-policy dialogue and coordination, work in the spirit of partnership to promote mutual help and win-win cooperation, and focus our minds and energy to pursue strong, sustainable, balanced and inclusive growth," Xi said.
- A mix of effective tools, including fiscal, monetary and structural ones, must be implemented to buffer against short-term risks and unleash medium- to long-term potential, Xi said.
- "This will send a strong signal of G20's commitment to promoting global growth, and help shore up market confidence and ensure stability of global financial markets," Xi said.
- "We are determined to break a new path for growth to inject new dynamism into the world economy," Xi said.
- Past realities teach us that merely relying on fiscal and monetary policies does not work for the world economy, Xi said, adding that the world should pursue innovation-driven economy and create a new round of growth and prosperity.
Hey, hey – someone needs to tell this Xi guy that he's all worried about nothing. Stock markets are trading at record highs, what could possibly be so bad?
What? No, pay no attention to that chart! Just because GDP growth (worldwide) is falling into the crapper DESPITE tens of Trillions of Dollars in stimulus by our mighty Central Banksters, the markets are trading at their all-time highs – especially in the US, where everything is AWESOME.