The Piggy Bank

What a perfect day to release a blog on finance and money saving ideas. The previously named G8 collection of the worlds developed nations is now defunct. Roll on the new G20; an eclectic collection of 20 nations gathered all under one roof at the London Excel centre. Gordon Brown has had an incredible political lift by having President Obama next to him and being ‘oh so sychophantic’.

But what change is the gathering going to make? Well the agreement is that there will be something called quantative liquidity. Essentially, this means that the banks are going to release more cash into the financial markets and the massive figure discussed today was over 1 trillion dollars. Countries will be able to draw upon financial resources, even if they are not in need of financial assisstance and the IMF has been tasked with the onerous task of overseeing this.

There will also be a clampdown on off shore banking institutions and hedge funds, whereby previous greedy bankers and made huge profits and multi sillionaires were able to greedily tuck there earnings far away from the tax man. Whilst I do think this is a great idea that off shore, tax havens will be hurt and this could have a subsequent knock on effect on other industries that are entwined within off shore financial institutions.

As Gordon Brown discussed today, the last time there was a massive recession in the 1930’s the world took ‘15 years’ to come together and try and resolve the issues. This collective gathering today was a massive step in the right direction and hopefully will help relieve the massive pressures and stresses the world is gripped in and allow for movement foward in the right direction and away from financial doom and gloom.