Saturday, November 13, 2010


SEOUL - In the face of a currency war between US and China, global leaders agreed to refrain from “competitive devaluation” and bring in exchange rate flexibility to ensure that no country gets undue advantage. The G-20 Summit came to an end on Friday with leaders pledging to finalize specific measures to resolve the currency dispute at the next summit in France next year. Korean President Lee Myung-bak hailed progress at the summit as “remarkable” when he announced a joint statement at 4 p.m. “For now, in conclusion, [the world] is out of the so-called currency war,” he said. Leaders of the G-20 also agreed to reform the International Monetary Fund so that advanced countries transfer more than 6 percent of their share in the IMF to emerging countries, and work further on regulatory reform for large banks. They also agreed to support for developing countries and the creation of a global financial safety net. But no guidelines on current account balances led by the U.S., where Korea had tried to mediate, were adopted due to opposition from Germany. The guidelines, which would have capped a country’s current account surplus or deficit to no more than 4 percent of GDP, will be revised by the IMF and come up for discussion again at next year’s G-20 Summit in Cannes, France.

“We will move towards more market determined exchange rate system and enhance exchange rate flexibility to reflect underlying economic fundamentals and refrain from competitive devaluation of currencies.
Advanced economies including those with reserve currencies will be vigilant against excess volatility and disorderly movement in exchange rates,” G-20 leaders declared.

In July, the G-20 summit in Toronto passed the problem on the currency exchange to the summit Seoul. At the end of their meeting yesterday, in the South Korean capital, the leaders of rich and emerging countries have agreed to submit their national policies to the IMF's magnifying glass to see if they meet the objective of reducing external imbalances. But we have to wait at least until mid-2011 to see how they will attempt to resolve the different international policies and avoid the currency war” amid the global superpowers. It would be easier to find a peaceful and fair solution if we stick to what the Supreme Lord tells us.

With joined palms and with great devotion, the Princes began to offer prayers to Lord Krishna, as follows: “O Lord, O Supreme Personality of Godhead, we must admit that we were puffed up with our material opulences. Because we were all envious of each other and wanted to conquer one another, we all engaged in fighting for supremacy, even at the cost of sacrificing the lives of many citizens.” … As soon as a king or a nation becomes rich in material opulences, it wants to dominate other nations by military aggression. Similarly, mercantile men want to monopolize a certain type of business and control other mercantile groups. Degraded by false prestige and infatuated by material opulences, human society, instead of striving for Krishna consciousness, creates havoc and disrupts peaceful living. Thus men naturally forget the real purpose of life: to attain the favor of Lord Vishnu, the Supreme Personality of Godhead.

Commentary of the “Mahabharata Summation” :
to the Fifth Chapter of the Sabha Parva,
Entitled: “Lord Krishna benedicts the Imprisoned Kings”.
New Vrindavana Community - June, 1985.

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