Triple Crisis blogger Martin Khor published the following opinion article for the Malaysia Star on the two issues that prevented progress at the G-20 meetings in Seoul: the new financial near-crisis in Europe and the ongoing debate about the competitive devaluation of currencies.
Inconclusive end to G-20 summit
The world economy remains in a web of serious problems with the potential to break out in new crises. The G20 summit last week discussed them but could not agree on the causes or how to resolve them. Even as the G20 leaders were meeting in Seoul, the real drama was taking place half a world away, as Europe stood on the brink of a new financial crisis.
Ireland faced a big jump in the interest cost of its debt, arising from (and giving rise to) fears that it would have to be bailed out, like Greece some months ago, or even face a debt default.
It seems like the crisis of investors losing confidence could also spread to Portugal, Spain and Italy.