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

We are witnessing a the post industrial era in world economic development. Many people are describing this situation in an historic perspective. And most likely it is. Just like the prior industrial era of the early 20th century economic development and ideas must progress in a pragmatic way. And for the first time each nation has become much more interdependent on other nations. For example so much of the production of goods have moved off-shore from the United States. As a nation the United States is more dependent on other nations for financing our growing debt. These were not issues during the Great Depression nor were they issues during the great industrial growth following WW2.

So for the most part there is not much of a road map into this new world economic situation. However we can still study the issues that caused the Great Depression of the 20th century. We now understand the significance of the economics of money and banking. We understand the significance of the role of the money supply and how it affects markets and economic growth. We know that government plays a significant role in not only fiscal policy but also monetary policy via control of the central banking systems. We have tools and institutions in place that can actually move and stabilize markets and create economic growth. What we haven't had up until now is a sound policy of managing this economy in terms of global responsibility. Politics, fear, and old ideas have to a great degree held us back.

The G20 needs to work together by re-establish a sound money and banking system that is based upon long term growth and sound banking and economic policies. Greed in and of itself can no longer have the power over our elected officials. Party politics must step aside and allow honest economic ideas to flourish. Power structures will have to accept this change. The huge international banks have completely failed. New and much more powerful regulations of these banking institutions are a must.

We need to realize the importance of labor and must be willing to insure that all are able to participate in the creation of economic growth. Countries must work together and invest heavily in their own infrastructures, move away from uncontrolled military expenditure and horrible long wars.

Right now I believe Obama has been leading us in the right direction. Our government along with all of the G20 must be will to spend the money necessary to re-build our energy and technological infrastructures. Private and corporate enterprise simply can't do enough at this time. We are going to need sweeping changes including health care reform in this country in order to level the playing field so that this nation can compete with other nations. The bottom line is we are going to have to rely on governments to make huge investments and manage these investments professionally and not politically. The Cold War is over and for the first time in history nations must work together like never before.

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.

I'm no Obama fanboy, but I have to admit that I like some of the things I am seeing the US Government do on this matter. I do not think a lot of people realize how almost all of these things (economy, climate, manufacturing, etc) are intertwined. By working hard to stop the drug trade, they are working hard to show what the economy of the USA really is - and this is a good thing! By making companies that have not yet joined the JIT (just in time) manufacturing methods (at least as well as they can) and telling them bankrupcy might be the best option, they promote businesses that do have JIT models to be introduced, and likely thrive. The main financial mess - Madoff and others - is a bit more difficult. Those we put into power and give authority over this sort of thing have failed for too long, and I hope that all of these leaders realize that without government stepping in (please, just periodically - REALLY) and SOLVING problems (please, no band-aids), then there is less likelyhood of the need to do so again. I think the US President has a good idea of how to get the ball rolling, but everyone else has to be willing to do a lot of hard work, and that means each and every one of us, no matter which country, no matter which leader, no matter which political party. The time of partisanship is over - we can now see who the partisans are in the US (almost all of the ones currently elected into office). I don't know how it is in other countries - the people who live there can answer better than I can, but I very strongly feel that the direction did move, and it did get pointed generally where it probably should go - provided this is temporary and is actually effective. With the collaboration and cooperation of other leading countries, the world might actually become a better place, where hopes and dreams can be realized without having to worry about unscrupulous bankers / mortgage companies putting relevant details in fine print of contracts nobody but an attorney could understand anyhow.

I hope so, anyway.

To sum it up, legalizing drugs and taxing them isn't the answer (but might help!), unions aren't the answer, a one world currency is not the answer, and nationalization of most industries is not the answer (although I begin to understand why Hugo Chavez has done this a little better as each day passes). Oh, I also can't understand why there is an increase on tobacco taxes, but not alcohol? If anybody can explain THAT, it might help - but I think maybe they are as fond of their brandy as they are their paperwork ;)

What is a recession ? It is when the consumer gets scared, buy less and saves more.

Why is he scared ? Because he is afraid he might loose his job.

Remedy: Each government on a planetary level should garantee that non one will be allowed to loose his job, and funnel the capitals which are now totally waisting in assuring that everyone will keep his job, even if the production should need to cut back some to compensate for unsold inventory.

Results: recession will be very short and shallow, because sales will be kept at much higher level, due to the confidence that a job guarantee will give.

Let market forces take care of the banks, let them go out of business if they cannot perform. Incouraging new banks to crop up with Government funding making it mandatory that the financial flow will keep going especially to labour intensive industries

Naturally this measures would need to be temporary until the world econmy will once more become lively again

Sure there are a bunch of new financial rules that will need to be inforced, more efficient capital and goods rule will need to be drafted , but those are second tier problem. Voilà the recession is gone. But will they follow my recepy ? Are you kidding ? I am a nobody, don't get paid, and I am not invited to TV talk shows, therefore they will keep waisting money, without results, and God only know where they will lead us. My new car, washing machine, and my exotic vacation ? Forget about it, for I might be without a job next month, and the misery goes on and on. Amen

One issue that comes to mind right away addresses the concerns that many, many people have, and that issue stems from the very idea of creating a "one world" or "global" economy. In other words, that concern is: If the economy goes down, then the whole world goes down with it. If only one council exists to oversee everything, it can prevent the creation of new growth from other sources that the very council created to oversee it wants. Therefore, there is unfortunately a potential for all too many to be excluded from participating in a global economy. The least our governments working together could do is make a global economy much more dynamic than that, much more inclusive than that, and in turn that would make a global economy much more resistant to downturns, recessions, depressions, and could allow for much speedier recoveries if anything negative should occur.

When you look at the situations our governments are facing, and the one idea that doesn't seem to be getting through is something that even an average farmer would be familiar with, that idea being, "Don't put all your eggs in one basket", you have to wonder, what were these people, our leaders, thinking. Sorry to put it as briefly and bluntly as that, but it is a concern that appears to have considerable merit...

So, just to recap, it appears a very positive thing that governments of various nations are working together to improve the world we live in and improve the human condition, however, it would also appear important to provide continued autonomy and independence to the many nations, of the world, and provide "failsafes", if you will, to help and make sure that a world economy avoid(s) the pitfalls and other serious problems that it, too, shall inevitably face. By taking these concerns seriously, even if a global economy should at some point appear to fail, then the economies of individual nations could remain secure...

Personally, I think that once the economies, governments and nations of the world start to fully realize in monetary and social terms the benefits of the inclusion of the many new phenomenons, like "green" technology, alternative fuels, and space exploration into the so-called "industrial complex", it would appear that the end of the current recession would be in sight...

Thankyou for asking...

Things will need to get much worse before they themselves see the light, but the big questions are what happens between now and then, how long will it take, and what will follow? The biggest problem is that to truly solve the problem once and for all would take the kind of measures which will take decades to just map out the way they'd need to be implemented, and I just don't think enough people are going to be able to look that far ahead. Some do, I know, but I doubt we'll feel even the faintest rumblings of a solution to the global problem in the lifetime of any of this planet's current occupants. Mass de-population won't work - because that's not the problem.

Nothing quite like the current economic crisis has happened before, with financial systems the world over all failing in tandem. But it is worth noting that the boom that preceded the present downturn was not an overnight occurrence; it gathered pace over a decade of negative saving and underinvestment--particularly in the U.S.--along with certain corrupt practices that were readily tolerated in the midst of the "boom" period.

It was a sustained "boom" during which the rest of the world financed the large deficits of the U.S. and accumulated huge amounts of dollar reserves, leading to the fall in the value of the dollar. Along with the weakening of the dollar, many of the world's currencies linked with the dollar also weakened. Consequently, wholesale and retail price levels increased in dollar terms.

During this period, the regulatory bodies, auditors and rating companies--in fact, the whole system--failed. Chairmen and members of the board of directors failed too; so have the management and compliance officers. Add to that the failure of many "rank and file" employees.

As a consequence, the existing gap between rich and poor has grown even wider. The poor, who constitute a majority of the world's population, have suffered, and global conflicts have increased. Yet many among the rich have become richer, and the middle class has also benefited considerably from the boom.

Now the dollar is appreciating, the pound is depreciating and there is excess supply in commodities and products. However, human nature, which reacted to the gap and the imbalance in the system, is now taking corrective action to bring about some balance, as it always does when events go to extremes.

The U.S. and the developed world have taken action to bail out the financial sector and some industrial companies. This is to ensure that bankruptcies are avoided and people do not lose their jobs--or the deposits they have with the financial institutions.

However, bailing them out by pouring billions of taxpayers' money into the system is not the answer for an immediate revival of the global economy.

The only way to get out of this recession is to create a lot of jobs.

But jobs in what? We need to find something that we're sure people will want, and then promote it like crazy.

Here's what we know: environmental problems are big, and they'll still be around long after the recession. The market for environmental services is also growing globally. So...governments should be trying to make that market bigger.

How can governments work together on this? They can send a strong collective signal to investors and entrepreneurs, that it's worth investing in this stuff. That'll encourage people to start up new companies, and that'll lead to more jobs being created.

A really good way of doing this is emphasing their commitment to climate change targets over the next 10 years. And an international forum is a good place to let the world know about it.

My two cents anyway :)

We are on the road to a one world Government, it is revolutionary proces that srted with the Globalistion process, however the Politicl processes re fr slower thn the economic process and ther are large parts of the world that are still not ready for Econmic Globalisation yet, that is the real problem, too much surplus and not enough capacity to absorb it. Result: overheated financial and Real estate markets, over supply in some areas notably Asia and under absorption of goods and services in other reas, notably Africa and Latin America, parts of the Middle East/Eastern Europe. The catching up process takes time and Multi billion or trillion dollar Stimulus plans might not really be the answer at all, the next step ? very high Inflation nd worthless money!

This recession like others is less complicated than you think. The past recessions are upgrades to human knowledge and to advance the world. Because we can only learn from mistakes, this recession was bound to happen. We will prevail through this recessions and create stricter standards for home owning and the dogs on wall street. Basically, we will learn form this recession. We will be further united with the world and strengthen our relations. after all, the only way to live is to live as one. Because we are so far apart, we are forced into situations in which we must all worked together. This recession will not be solved by the "big powers" in office, but rather by the citizens of every nation. We will solve this recession by making changes as in energy, finances, and health care. When we have solved this problem, we will arise from the recession stronger than ever and united. You do not need to be a rocket scientist to fix the world. The world needs to utilize all we have and put it together. We need to eliminate the scum that created this recession, the money hunger businessman.

No more Federal Reserve Bank! Last time the United States was debt free was when Pres. Andrew Jackson was in office and he paid off all the debt that we owed to the french. He stopped the creation of Federal Reserve Bank and that is how he kept the country out of control from corrupted politicians. Another thing they should do is not allow Financial institution charge crazy interest rates. They should start having very low interest rates highest being 7% Why? such high interest rates so they can keep people down? No More Credit! With the way things are now they should just basically wipe out our credit based Economyy and start over again with something else. If they Need a credit based economy, witch I think is B.S.threefoldd be a way to change everything, then everyone starts clean and their is always low intrest rates, but most likely this isn't going to happen becausee they need to keep the Elite happy.