G-20 pumps $1 trillion into beating recession


LONDON, England (CNN) -- British Prime Minister Gordon Brown heralded the emergence of a "new world order" Thursday as the G-20 issued details of an "unprecedented" package of measures to tackle the global economic crisis.

U.S. President Barack Obama called the deal "a turning point in our pursuit of global economic recovery."

The deal agreed by the leaders of the world's largest economies included reform of the international banking system and the injection of more than $1 trillion into the world financial system.

French President Nicolas Sarkozy and German Chancellor Angela Merkel, who had voiced concerns prior to the summit about the wisdom of pumping further public money into economies already in recession, welcomed Thursday's agreement -- though hinted at unresolved disagreements behind the scenes.

There had been concerns that a rift was opening up between the approach being championed by the U.S. and Britain -- more economic stimulus -- and that favored by France and Germany -- more banking regulations.

Sarkozy said the agreement represented "great progress" on reform of financial institutions and said "a page had been turned." Merkel described the deal as "a very, very good, almost historic compromise."

The six-point plan includes banking reform measures and more than $1 trillion to be spent on restoring credit, growth and jobs, as well as measures clamping down on tax havens and a commitment to build a green and sustainable economy. iReport: What's the economy like where you are?

Much of the G-20 communique issued at the end of the London summit restated promises and goals that international leaders had made earlier, relying on language such as "we remain committed" and "we reaffirm our historic commitment."

But Brown said: "Our message is clear and certain. We believe that in this new global age our prosperity is indivisible. We believe global problems require global solutions," Brown said.

"I think a new world order is emerging and with it the foundations of a new and progressive era of international cooperation."
"We will implement new rules on pay and bonuses at a global level that reflect actual performance with no more rewards for failure," Brown said. "We want to encourage corporate responsibility in every part of the world."
Obama said: "We owe it to all of our citizens to act and to act with urgency. We have agreed upon a series of unprecedented steps to restore growth and prevent a crisis like this from happening again."
The G-20 members will also establish a new Financial Stability Board to provide "early warning of macroeconomic and financial risks," the summit's final communique said, but it was not clear if board would have regulatory powers.
Police said they arrested nearly 90 people on Wednesday and were expecting more problems.

Well, Happy Birthday NWO. I hope everybody is happy. It's going to be interesting to see what happens when the G-20 needs to pump another Trillion into the GLOBAL economy.