Friday, April 23, 2010

The U.S. as rule-maker

And yet there are still those who see imminent demise for America, in full view of a world completely dependent on its rule-setting, security, and economic (via the IMF, which is basically an arm of the State Department) strength.

WASHINGTON (Reuters) - The IMF sought to maintain unity within the Group of 20 economic powers on Thursday, urging countries not to go separate ways in reforming the financial sector, as frictions emerged over a controversial plan to tax banks.

At the start of four days of meetings in Washington, International Monetary Fund chief Dominique Strauss-Kahn said countries need to ensure they are moving in the same direction on regulatory reform if they are to curb the risky practices blamed for the global financial crisis.

"Our main concern is to have everyone working together and to maintain the cooperation momentum," he said.

Finance ministers and central bankers will assess progress toward repairing recession-torn economies and building a more stable platform for growth, there were signs of divisions, particularly between countries hard hit by the banking troubles and those that largely escaped the pain.

The IMF this week proposed two new taxes on banks to help prevent a repeat of the kind of risk-taking that contributed to the global credit crisis. Britain and other countries welcomed the idea, but Canada is firmly opposed to such a tax.

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