Recent action taken by major central banks has bought governments time to spur growth but the European debt crisis and other risks still threaten the world economy, G20 officials said.

Deputy finance ministers and central bankers from the Group of 20 wealthy and emerging nations discussed the risks to the global economy, the euro zone crisis and food price volatility during talks Sunday and Monday in Mexico City.

The euro zone debt crisis, the tightening US budget and slower growth in emerging economies are the “most serious risks to the world economy,” Mexican central bank deputy governor Manuel Ramos Francia said.

Ramos said the European Central Bank’s plan to buy bonds of struggling euro zone nations and stimulus programs launched by the US Federal Reserve and Bank of Japan have “tempered risks, at least temporarily.”

“It buys time,” he said, “but the risks are still here.”

In the case of Europe, ECB action “temporarily avoids the materialization of extreme risks that could have systemic consequences,” he said, adding that it gives the 17-nation euro zone time to implement measures to fix the crisis.

The talks in Mexico were held to lay the groundwork for a meeting of finance ministers and central bank governors in November, the last one hosted by Mexico before it hands over the G20 rotating presidency to Russia.

The G20 officials also discussed the volatility of commodity and food prices around the world, including ways to boost trade, increase productivity and improve price transparency.

“Facilitating international trade in raw materials is something that will contribute to improving prices and volatility,” said Gerardo Rodriguez Regordosa, Mexico’s deputy finance minister.

UK Independence Party leader (UKIP) Nigel Farage told King World News that the end is near.

Farage said policymakers are rushing to create a European class:

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What is really happening here is the eurozone crisis is so serious, and so dire, public opinion across Europe is turning so quickly in every country against the project, that what they are trying to do is seal and complete the project before everybody really wakes up to what’s being done in their name.

That’s what they are about. We are now entering the end game in what has been a 50 year political project. This is all going to come to a very dramatic head over the course of the next two years….

The end game for them is to effectively abolish the nation states of Europe, to completely abolish any concept of national democracy, and to vest all power, all the attributes we associate with normal countries, that is all to be vested in this new European political class.

That imperial ambition has been there from the start, but up until now it has been hidden. I have to say that as far as most of Europe is concerned, I am quite pessimistic. Despite the fact that we have these democratic rebellions taking place in the North, in so much of Europe the current status quo has the whip hand and is in control. For most of Europe they will continue with this insane project, but there are countries that will free themselves from it.”


Shayne Heffernan

Shayne Heffernan oversees the management of funds for institutions and high net worth individuals.

Shayne Heffernan holds a Ph.D. in Economics and brings with him over 25 years of trading experience in Asia and hands on experience in Venture Capital, he has been involved in several start ups that have seen market capitalization over $500m and 1 that reached a peak market cap of $15b. He has managed and overseen start ups in Mining, Shipping, Technology and Financial Services.Read the Terms of Service

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