The Group of 20 has congratulated itself on acting in concert to save the world. But will it?
At the heart of the crisis is a massive imbalance which at some point has to correct. The United States is afloat on Chinese savings.
It wants vast amounts more of others’ savings to stop the unemployment rout — now 8.5 per cent after the loss of 5.1 million jobs in 15 months — and help it spend more even though spending too much on borrowed money got it to where it, and we, are now.