Geithner: G20 must boost spending

Timothy Geithner, the U.S. Treasury Secretary, said on Wednesday some very important things about helping the global economy out of the financial and economical crisis. His main point is boosting the consumer’s spending, but also a lot of other things to prevent a next recession will be mentioned during the first coming G20 meeting.

Geithner said that is extremely important for the G20 nations to commit it selves to necessary actions for the period that matches the duration of the global crisis. The U.S. Treasury Secretary will explain everything during a weekend meeting in the southeast of Britain where all the finance ministers from G20 and developing nations will be present.

Geithner also explained to the press that it is necessary for all countries to decide to take actions in order to strengthen their financial regulatory system. He will also tell more details about actions that the United States will take. He is going to do this before another G20 meeting in April where all political leaders will try to put an end to the global recession.

There have been a lot of talks about reformations, but now it is time for action. While doing this, the G20 nations must work together to restore global growth. Geithner also mentioned that it’s important to build up a strong supervisory and financial regulatory framework at the same time. That is in order to prevent that a crisis like this would occur again.

Geithner ended his press meeting with probably the most important thing: healing the global economy by boosting consumer’s spending. In order to do that it’s vital for the G20 nations to invest in the International Monetary Fund (IMF). When the IMF has more resources it can invest much more in publics works and create a lot of jobs. This would be a perfect impulse for boosting consumer’s spending and helping the entire world out of its recession.

I totally agree with the U.S. Treasury Secretary. As I mentioned before in previous blogs; I find it very important to work on the demand side of a national economy. Geithner does a great job here by planning on telling to the G20 and developing nations that it’s important to give a lot of attention to this element. Give resources to the IMF is a good start.

With his other measures I also agree; it’s important for a national economy to go its own way but sometimes (and especially nowadays) it’s vital for the health of the countries economics to have some governmental guidance. Building up a strong supervisory and financial regulatory framework to prevent a future crisis are examples of this guidance.

Source: http://money.cnn.com