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U.S. to push for new economic world order at G20

By Alister Bull � Mon Sep 21, 7:19 pm ET

WASHINGTON (Reuters) � The United States will urge world leaders this week to launch a new push in November to rebalance the world economy, but there are doubts national governments will bow to external advice.

A document outlining the U.S. position ahead of the September 24-25 Group of 20 summit in Pittsburgh said exporters, which include China, Germany and Japan, should consume more, while debtors like the United States ought to boost savings.

"The world will face anemic growth if adjustments in one part of the global economy are not matched by offsetting adjustments in other parts," said the document, which was obtained by Reuters on Monday.

The framework drafted by U.S. policy makers foresaw analysis of G20 members' economic policies by the International Monetary Fund to figure out if they were consistent with better balanced growth.

"We call on our finance ministers to launch the new framework by November," the document said, signaling a determined effort to maintain momentum for change created by last year's global financial crisis.

The United States envisages the IMF playing a central role in a process of "mutual assessment" by making policy recommendations to the G20 every six months.

Finance ministers and central bankers from the G20 countries are due to meet November 7-8 in Scotland.

European Central Bank President Jean-Claude Trichet said persuading Europe, the United States and China to accept IMF advice on economic policy may be difficult. In the past, many countries have ignored suggestions the IMF dished out in regular reviews.

Trichet told French newspaper Le Monde the G20 had made progress on reforms to make the financial system more stable after the crisis.

"The most difficult question is still open: Europe, America, China, are they ready to modify their macroeconomic policies in the future -- by following the advice of the IMF and under pressure from their peers, for the common good, and world economic stability?" he said in the piece on Monday.

G7 sources told Reuters there was a renewed determination to cooperate because the crisis had driven home the interconnected nature of the global system. That said, governments would not allow themselves to be told what to do.

"We can't get to a situation where any country is giving up its own decision-making," said one source, who spoke on the condition of anonymity.

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[visitorq]

Translation: we need a new global currency to replace the dollar, so that we can destroy national sovereignty the world over. All those pesky countries that can't "agree" with one another need to be put under the IMF's thumb for their own good.