Clegg: G20 summit is no time for playing politics

Speaking ahead of the G20 summit, at an event by Greenpeace, Leader of the Liberal Democrats Nick Clegg will say: "A grand one-day summit cannot alone deliver us out of the global economic crisis."

But its timing, and the expectations raised, means that this week's meeting is of immense psychological importance. People desperately need to see that their leaders are able to work together, take radical decisions, and stick to a plan that offers hope. If not, this summit could become the fateful moment when recession lurches into outright slump.

"What is at stake this week is a great deal more than the particular wording of a one page communiqué. If the G20 fails to convey a sense that there is a route out of the anguish, we face further chaos in the markets and mainstream politics across the developed world will end up in the dock.

"There is a very real prospect that if the G20 does not agree immediate action that re-injects confidence into financial markets there will be yet another dangerous market stampede. The nerves of investors and institutions have already shown themselves to hinge on the certainty provided by governments. Disunity and half-measures could well spark further panic, sending the worlds economy into freefall and raising the spectre of a 1930s style depression.

"But this imposes obligations on opposition politicians too. If people see their politicians willing negotiations to fail so that they can point the finger and score points in some party political blame game, my fear is that the withdrawal from mainstream politics will be wholesale.

"We are at a psychological tipping point. History teaches us that economic meltdown can lead to despair, despair to fury, and fury to violence and extremism. We are on the verge of a profound disengagement from conventional politics. And the space that creates is too easily filled by populism, manipulation and hate.

"It is the responsibility of all politicians to stop this, and that means getting behind the G20 Summit. Of course we must not suspend scrutiny and we must continue unequivocally to speak out for what's right. But we must set aside the shallow wrangling. We cannot afford to undermine the G20; we have to make it work."

Brown the Saviour Takes Message to God from The EU

Well....not only is Gordon Brown a financial genius but he is now to be regarded as a political svengali as well having united the EU on the issue of the "global recession and is taking its message to Obama in the US. What a load of old tosh!!!

EU member states by the sound of it are far in fact from being united with a rift opening up between Western and Eastern Europe and the French doing what the French always do in a crisis (or at any other time for that matter) and looking after the French interest, in particular its car industry. However states reputedly agreed that they do want better regulation, action on the shadow banking system and hedge funds, no protectionism, fiscal and monetary stimulus and no maintainence of the old status quo on the role of our financial institutions.

Our man Brown says that he will be taking a clear message to Obama when he visits him that "Bold global action, a global grand bargain, is not now just necessary but it is vitally urgent to deal with the challenges of the world economy".

Now...call me crazy but the only clear message I am getting from what has been reportedly discussed in Europe last weekend is that Europe wants lots of altruistic things but doesn't have a clue how to go about getting them by themselves. Not only this but we are about to send the architect of our own domestic crisis to the US with his cap in his hand to ask for a solution on behalf of Europe to the "global problem".

Call me crazy, but I'm not too sure that the best way to solve the current financial situation is to go and ask the new kid on the block in global politics for advice. On the up side, at least Bush has gone otherwise we would probably end up invading another Muslim state in the name of salvation for democracy and capitalism (I wonder by the way if Sadam Hussein is jumping up and down in Hell, saying smugly to everyone, "See! I told you all my system was better").

It will be interesting to see what the political outcome of this meeting of minds in terms of a solution to the problem. It would be nice if it were a bit more that somple reassurances and gratuitous solidarity for the sake of the cameras. It would be nice to think that we could maybe come up with a real global solution and not one where everyone signs up except the US and the UK. In reality however, the US like China and India are not bound by the conventions and restrictions of the EU and they are naturally likely to want to protect their own interests far above all others. That is after all what made these countries economic giants in the first place and will maintain their status for generations to come.

If Europe wants to survive and retain any status as an economic power, it will have to start looking out for its own interests as well and it may even need to be done on a country basis opposed to a union basis. What might be needed to stimulate growth is a reduction or even suspension of EU regulation which has hampered local, regional and national economies since the EU came into being.

What will be just as interesting about this meeting is of course what kind of relationship Brown and Obama will actually have. Will it be one of master and subordinate like Bush & Blair? Will Brown manage to alienate himself from the US president by going in on the first meeting with his hand out asking for help? Will the two become the next "odd couple" and save the world? What is clear to me though is that nothing possitive comes from this meeting then it should be time for a change at the top.