April 2nd 2009, The Day The World Came Together
Updated : Apr 4, 2009
World leaders yesterday finalized a $1 trillion deal to combat economic crisis.
US President Barack Obama hailed the G20 summit agreement as a "turning point" for the global economy which would put it back on the path to recovery. While summit host, British Prime Minister Gordon Brown, declared: "This is the day that the world came together to fight back against the global recession. Not with words but with a plan for global recovery and reform."
Under the $1trn deal, which followed several days of intense diplomatic negotiation, struggling economies will be offered money provided to the International Monetary Fund by wealthier nations.
The G20 leaders also agreed a clampdown on bankers' pay, rules to target tax havens and regulate hedge funds and a new financial early warning system to prevent a future economic meltdown.
Mr Brown said: "Today's decisions, of course, will not immediately solve the crisis. But we have begun the process by which it will be solved. I think a new world order is emerging with the foundation of a new progressive era of international co-operation."
Stock markets across the world rose sharply following the announcement of the deal at the ExCeL conference centre in London's Docklands.
The summit ended as there were signs the world economy was stabilising after months of sliding.
Confidence among US consumers climbed in March after reaching the lowest level on record a month earlier. UK house prices unexpectedly rose in March for the first time since October 2007, while Chinese manufacturing increased.
Under the deal, the IMF will be directly given an extra $500bn which will be lent to countries whose economies run into trouble. The IMF may also be given permission to begin selling its gold reserves.
A number of eastern European countries have already turned to the fund for assistance. The IMF will also embark on an ambitious plan to effectively begin printing money. Countries will be able to swap so-called "special drawing rights" issued by the IMF for currencies such as dollars and euros. This will provide a immense injection of money.
VeryHappyPig says thank god!!
