Some good points have come out of the G8 summit held in Enniskillen, Ireland.
It was prefaced with the arrival of President Obama, where he started with an endearing and inspiring speech, that is sure to have sowed the seeds of peace and progress through co-operation and understanding, a theme which has built and matured in Ireland since the visit of President Clinton fifteen years ago.
The G8 leaders seem to have agreed on tackling the question regarding tax havens and thereby tax evasion by corporations and individuals. The loopholes which have till now existed are going to be closed through legislation and a requirement for corporations and individuals to disclose fuller details regarding creation of profits, taxes paid, where domiciled, where taxes paid, etc. This will mean the national treasuries benefit from tax collection.
Such legislation will also help the Emerging economies, such as Russia, India, South Africa, Brazil and China (otherwise the BRICS nations) who at the moment are bereft of tax to the tune of some $180 Billion which corporations operating in their jurisdictions adjust through having their identity domiciled elsewhere. This will be a boon for all these economies.
President Obama mentioned the trade amounting to One Trillion Dollars annually each way between the U.S. and the European Union, and the fact that Europe invests Four Trillion Dollars into U.S. annually, and the U.S. does likewise into the European Union. This helps to preserve some 9 million jobs on both sides of the Atlantic. This is a cause for mutual celebration.
Federal Reserve Chief Ben Bernanke has reiterated the policy of continuing with the stimulus, but tapering it if improvement or deterioration in the economy dictates. In any case, the policy will be to take a step away and observe the need of the economy. This augers well for continuation.
The Bank of Japan seems to have tamed their stimulus, and this again augers well so that it does not aid inflation. To the contrary, Japanese goods and investments available overseas will create a good market, and help prosperity, especially in the developing world.
As usual, you can send me your comments by filling in the form ----> Your comments please.