The G20 central bank and finance ministers met in Shanghai in April and cheered the rally in the markets patting themselves on the back. They then issued their communication effecticely blaming the private sector for not paying enough taxes for them to squander. They issued their Financial Action Task Force on Money Laundering (FATF) which is really the directive to hunt down money globally for taxes. The G20 never blames government, but always blames the private sector. Their working group meeting in Shanghai only emphasized more taxes absent any understanding of how the world economy functions or that it was the free-flow of money that revived the world economy after World War II. They have not been able to come up with any constructive proposals for reviving the global economy whatsoever. Instead, they once again complained that the recent market turmoil just doesn’t reflect their view of “underlying fundamentals of the global economy”. The oil price has collapsed some 70% since June 2014 hurting emerging markets like Brazil whose currency plummeted by 50% with the Russian ruble is down by 60%. Yet in their own communication they promote more investment in “green” energy and to reduce foscil fuel consumption while embracing the climate change agenda. Of course they fail to see the conflict there.

While global economy is moving into another recession, they managed to pin all the blame on psychological problems of the people, to explain their own failure to ignite the economy. They do not understand that they are incompetent of generating confidence when they employ negative interest rates and do not even realize that they are wiping out pensions, life insurance companies, and accelerating unfunded pensions in government. Their solution? More taxes. They actually laid it out fairly specific in the Finance Minister & Central Banker communication (April 14-15 Communiqué_ G20 Finance Ministers and Central Bank Governors Meeting):

“The G20 reiterates the high priority it attaches to financial transparency and effective implementation of the standards on transparency by all, in particular with regard to the beneficial ownership of legal persons and legal arrangements.  Improving the transparency of the beneficial ownership of legal persons and legal arrangements is vital to protect the integrity of the international financial system, and to prevent misuse of these entities and arrangements for corruption, tax evasion, terrorist financing and money laundering.  The G20 reiterates that it is essential that all countries and jurisdictions fully implement the FATF standards on transparency and beneficial ownership of legal persons and legal arrangements and we express our determination to lead by example in this regard.   We particularly stress the importance of countries and jurisdictions improving the availability of beneficial ownership information to, and its international exchange between, competent authorities for the purposes of tackling tax evasion, terrorist financing and money laundering. We ask the FATF and the Global Forum on Transparency and Exchange of Information for Tax Purposes to make initial proposals by our October meeting on ways to improve the implementation of the international standards on transparency, including on the availability of beneficial ownership information, and its international exchange.”