I think it was Marie Antoinette … who responded to a call from the people for bread with "let them eat cake". The ultimate response from the people was "off with her head".
Gordon Brown has at last gone one better,
As the people of the world looked to the mighty leaders to do something, and create financial stability for the world. To make an environment where peoples expectations and aspirations could be met over time. Well in true Gordon Brown style he has responded with "lets give them fudge"!
The announcements out of the G20 started with $5 trillion … which rapidly shrank to $1 trillion and soon emerged as $500 billion additional funding for the IMF, of which $200 billion represented a shift in Japan and the Euro Zone foreign reserve holdings from US$ to loans to the IMF. Gordon Brown said $40 billion would be coming from China, I suspect it might be more. There is no commitment from the UK or USA to providing the IMF with additional funding, so we must assume that the IMF will be making a bond issue.
The people of the UK have become used to Gordon Brown's fudge and know that it is mostly illusory. The people of the world will soon be saying "look the Emperor has no clothes".
So what has come out of the G20 summit apart from fudge?
1. The start of a move away from US$ as a reserve currency.
2. Regulation of Banking, and the financial derivatives market.
3. A witch hunt of Tax Havens.
What has failed to come out?
1. A move to stable exchange rates, that would encourage trade and investment.
2. That countries accept liability for the toxic assets generated in their economies and traded around the world.
3. An environment where free market can work, without artificial trade barriers.
Alas people, London has treated you to an expensive junket and all you have out of it, is the Obama smile and the biggest dollop of Gordon Brown fudge ever.