How can our governments work together to overcome the global recession?

Simply put: Combine the finest minds in the field of Economics, Banking and Finance from all over the world and get them to agree a way in which we can tackle the problem, without political bias.

A politically neutral discussion with these experts, over the course of however long it may require, may be a better way to come up with a solution - as opposed to gathering World leaders to discuss a solution in one day to an infinitely complex issue. Remember that Governments may choose to pursue their own political ambitions - as opposed to the most suitable economic strategy - when deciding on policies. This can, in itself, have a disastrous effect on the economy.

This is a problem that needs a very long term solution; in other words longer than a usual term for a President or Prime Minister. I dread to think of any proposed solutions made by a current leader (and agreed in G20) to be ignored by his/her successor simply because of a difference in his/her own political ideals.

We have numerous types of financial systems all over the world, each with different regulatory systems. I think maybe having cohesion and standard protocols in terms of finance and banking internationally may prevent such disaster in the future.

Look at the US for examples. There are 2 regulatory systems for banks; The Office of the Comptroller of the Currency, and The Fed (which has joint reponsibility with State Banking Authorities). These 2 parties have overlapping jurisdictions when it comes to banks in the US. Furthermore, you also have the Securities and Exchange Commission overlooking the securities market. Confused? I am too.

I am no expert, but I know that having such a complicated regulatory system in the US can give rise to several problems which can lead to a financial crisis.

Maybe if we can set international standards by which ALL financial intermediaries can adhere to, it would perhaps be slightly easier to monitor and regulate financial systems all over the world, and hence equipping governing bodies with better means to prevent financial crisis from occuring.

With better monitoring, we can tackle the following factors:

1) Increases in Interest rates

2) Increases in uncertainty

3) Asset Market effects on Balance sheets

4) Problems in the Banking Sector

5) Government Fiscal Imbalances

6) Asymmetric information (e.g. adverse selection & moral hazard)

all of which are contributory factors in a financial crisis.

IS 12/04/2009

The Market has spoken, the market is not some magical Genie. It reflects what we've done. China has a big economy, and people make China seem so much more hefty then it really is. China has a lot of money all in Dollars, so if they stop trade with the US the value of the US Dollar will take a dive. So if China had 1 Million US dollars (I know its more but for simplicity's sake) it would become half a million Dollars. China is no key. I am Chinese and am saying this. The Global economy is very American-centralized. So we can fix the American economy by stopping "stimulus plans" The Market is no game, it weeds out competition, right now its telling US many companies are not fit. We let the recession take place, without increasing taxes on importations. Once the US begins to grow the world will follow, they will start to buy from China(as well as from Europe and India) again. Everyone will generally start to grow. It is not a Crisis the market is doing what it does best, this is Capitalism at its peak. You compete for the Market. Stop freaking out, some money may be needed as a stimulus but I don't see a reason to stop the global economy with tariffs. It shouldn't be ignored. Half the reason we're doing so bad is because the Media turns everything into a soap opera. JUST LEAVE IT BE, the market will correct itself. Maybe with a few companies gone, but the world is functionally capitalist. So stop panicking and brace yourself for a few rough years. Let the faulted companies go down.

The problem is not really that which is presented. The problem is that for many years the world has enjoyed living the lie that says resources both natural and manufactured are limitless, therefore we can all share in the abundance if we only work hard enough. This has created huge wealth for the few and enormous poverty for the many but held out a hope that in some distant future we would all be part of the wealthy elite. What the current crisis has done is reveal the truth, or at least part of it. The whole system is a deck of cards and so based on corruption and lies that the main movers cannot even believe each other any more. What they should do is help all of us weather the storm, stay alive and healthy and at the end of it admit their shared guilt and start making the distribution of wealth fairer by law. There is no sense in a single person having and unearned income of several million a week whilst people in Africa or South America are dying of starvation or illness. There is no morality in that and that is the thing the whole world never mind governments needs to do now. We need to totally reject the Hayek/Thatcher/Regan philosophy that there is no such thing as society only grabbing, demanding, devil-take-the-hindmost, individuals and start to value the sense of community that despite the high value put on selfishness still comes out at times of real trouble. I do not mean Charity giving either, useful as that is and people are very generous when asked, I mean giving something of yourself. Holding out your hand to someone in need when you have little yourself is not kind or generous, it is heroic and the world needs heroes now, not in ten years time.

Will I go too far if I say that there actually are other people that are the factual world leaders, and that is why the so called world leaders that are meeting now at the G20 conference could hardly manage to do anything regarding most of the important issues worldwide now, as they could not do anything in the past?

It's just somebody else who governs this whole world.

I know I go too far but this is the obvious cold hard truth.

Just think about that and why for decades already the situation of the world only worsens while all the world leaders continually meet?

There is one very simple and massive step that can be taken that would help enormously, and that is:

Governments around the world should "limit" the media coverage and therefore cushion the negative picture being painted of the worlds economy. I say "limit" as a compromise before people cry it's our human rights to be informed about the recession.

Quite simply those of us who aren't even in financial difficulty are staying indoors and not spending money because of the fear being installed by the media coverage. No wonder business's are shutting down, there are no customers, we're too scared to spend!

I can only imagine if the media stopped reporting on all the negatives, on the hour, every hour, we would be more inclined to treat ourselves from time to time. Maybe the media should only report once or twice a week on the current situation. Wouldn't that suffice?

The other thing the governments could do is learn from mistakes. I hate the goverments usual answer of, well we never seen it coming (i did, that's why I sold my tiny flat before first time buyers couldn't afford it) and we have to look to the future.

That comes across like, "oh well, what is done is done". That's not good enough. Why should I be convinced by any plan that they might come up with, if they never even seen the recession coming in the first place?

So to summarise, consumer confidence is at an ultimate low and this is caused by the constant and depressing media coverage. To increase consumer confidence stop telling us how bad everything is every 5 minutes.

thanks

Its a global mess, created by USA.

As all countries are so integrated with each other now because of globalisation. We need global action to stop this problem for expanding. As banks have buildings all over world now. and do deals in all continents. And transfer money in seconds, in less that a second. we need global authority to stop future problems (sub prime lending mess and excessive risk taking). Therefore we would be able to prevent this from happening again, as the banks will be regulated. the G20 has put the IMF under control to regulate the banking system. Along with FSA. Recessions are very natural, they cannot be over come by any government. One thing we can do is make it end sooner. As this is a global recession we need global help.

The G20 has put money into the IMF with will help developing nations and other countries who are in hardship.

Also if all countries get together they can make more of an outcome because all countries are in recession and need help. all the leaders have different ideas and experience and problems by working together it will help much more.

Its a global problem that needs global action.

Watchmen suggests that alien attack would spur the worlds governments to cease hostilities, work together in the face of a global threat. Well we seem to have a few of those around just now. First we have global warming, which even the U.S is keen to avoid. Many goverments have agreed that working together to reduce pollution globally is the best way forward. Then we have the recent credit crunch. This has resulted in many governments pouring money into their own economies and others. The message is simple work together and these "catastrophic" developements can be redirected to become something more positive. So teamwork thats what the world governments can do, work as a team, and never forget the goal, so that nothing gets in the way of real progress. The example will shine through the ages for centuries empowering humanity in a unique way for the first time in millenia.

We need to concentrate on finding solutions to the crisis rather than governments and media reminding us of the problems that have happened in the past. A new world order had already been discussed and planned years ago yet it wasn't common knowledge, this has caused some citizens to fear the worst and lose faith and trust in the government. If the whole system that we live in drills into us that we're powerless, that we're weak, that our society is evil, that it's fraudulent etc then it couldn't be further than the truth. In the future we should be fully informed as citizens and not feel like we're being manipulated and lied to. We should all feel fully empowered. One of the problems is clear from the question itself: How can our 'governments' work together to overcome the global recession? Consider replacing 'our governments' with 'we'.

What can the governments do? Since the governments are mostly in favour for this 'New Worldly Order'! I mean how can some pesky little humans create a new world order for people to follow when God created an order to how humans live... with the freedom to do what they want... and because the governments are soon enough as I have heard emerging into one world government, governing the whole of the world just like 1 financial banking system ...

They could repent and turn to God. He promises to open the windows of Heaven and pour out so many blessings.

No one has the answer. All the governments can do is talk round in circles, I doubt very much whether they will do any good in the long term with all their global awareness meetings and discussions.

The governments have Humanistic goals which only serve to relieve some situations in the short term, and only then by turning a blind eye to so many other issues.

It is disgraceful how our government is feeding itself from the pantries of the poorest in the nation. They give themselves pay rises bigger than some of the lower paid's annual household income. I know people who are now cutting down on food to make ends meet.

I could feel so despondent about the current global situation and if Gordon thinks he can get us out of this, then he is deceived. We used to be a Godly nation - with Christian values. Good values that other nations admired us for. When I lived abroad until about ten years ago, I often heard about the Commonwealth from the local people and how Britain had been powerful in their nation, then sometimes, they would shake their head and shrug their shoulders, as if to say, but look at them now. What would they say today? I'm glad I don't know.

Humanism, secularism, atheism, globalism are all titles we hear often, as if it is some new religion going to save us, but things have never been so bad and for those with eyes to see, and ears to hear, they are getting worse.

Please, governments of the world, why not call a national day of prayer? Return to God and seek Him whilst He yet may be found.

The starting point, using whatever system, is Integrity. Where's it all gone?

It seems to me that unless you can show your betters that you are on the make, you are considered a loser and given the boot. They sack the honest and conscientious and give bonuses to bank robbers. I know - I am one of the forcibly retired, yet still have to pay royally for the executive who bullied me out of my job in the public sector.

All people ask when they are doing a job is "what can I get out of it?" or "how can I work the system in my favour?". Directors and executives do not manage - their interest in the organisation they work for extends as far as going to meetings to vote themselves perks and bonuses and leaving with the loot, and no more. It's a wonder anything gets done.

And it is no good either saying - we're British and can rise above such corruption (Ha! Ha!) - only little tinpot banana republics are corrupt and their peoples deserve all the poverty that's coming to them. What hope have they got when the civilised nations cannot even set them an example? The promise on a British banknote becomes a meaningless joke.

Once we sack or even jail the crooks and train up the honest to take their places, then we stand a chance of sorting out this recession.