World Leaders Move Swiftly, Urgently to Curb Currency Crisis
Urgent Need for Collaboration in Dealing with Currency Problems
Government leaders of Australia, Britain, Canada, Mexico and other Asian countries have called on all 17 members of the Eurozone to deal with the worsening problems of the Euro currency.
In a strongly-worded letter to the Group of Twenty, these nations called on Eurozone governments and institutions to "act fast in resolving the euro crisis and deal with the debt menace to stop it from adversely affecting the world economy."
World governments have been troubled by successive admonitions that the worsening debt situation can ruin development in the Eurozone and destroy the international market.
In the meantime, the European Central Bank (ECB) urged member nations to avoid extravagance so as not to put at risk the currency's condition.
"Increased fiscal disparity in the European Union territory and the dismal situation in individual member countries may jeopardize progress, stability and employment as well as the sustainability of the European Monetary Union," according to a report co-authored by Juegen Stuart, ECB's outgoing head economist.
World Bank president Robert Zoelick also reiterated the need for developed nations to be prompt and responsible enough in getting to the bottom of the problem before it devastates the rest of the world's financial system.
International Monetary Fund head Christine Lagarde stated that prosperous countries should make it a priority to "balance their budgets."
U.S. Treasury Secretary Timothy Geithner maintained that enhancing growth should be at the top of the economic agenda of governments all over the world. "Growth is feeble so governments must do everything like adjusting fiscal policies," he added.
In a related report of the businessspectator.com.au, U.S. stocks have tumbled on Thursday together with other world markets after investors responded to the dreary situation of the U.S. economy and the status of Euro banks.
The Washington Post noted that commodities worldwide were also down, as the viewpoint for economic growth - specifically in China, which is the world's second-largest economy, became weaker. The reduced prices meant less demand for various commodities from oil to agricultural products and valuable metals.
This precarious situation was set off by the declaration of the U.S. Federal Reserve that it realizes "considerable downside risks" to the economy of the United States.