The G20 meeting in Seoul, Korea, which ended yesterday, was a non event as was expected. At the core of discussions was the unequal growth in different economies in the world with some countries, i.e. the US, running huge a deficit while others, i.e. China, running a huge surplus. The US accuses China of deliberately distorting trade by keeping its currency, the yuan, deliberately undervalued to increase exports and resulting in massive current account surplus. The Chinese countered this by alleging that the recent quantitative easing by the US was an attempt to deliberately weaken the dollar. Germany supported China because it is also running a current account surplus while other countries allege that the US action has increased liquidity in their economies causing inflationary pressures and strengthening their currencies. The US has every right to try and stimulate its own economy to ease the ravages of unemployment. What no leader had the guts to say was that China is a liar and a hypocrite. The exchange rate of the yuan to the dollar being fixed it has, along with the dollar, lost value against other currencies giving it even greater advantage. Now that it is the number two economy in the world and growing at 9% a year countries are not willing to displease the Chinese especially as the Chinese have a record of reacting like mad dogs. Meanwhile China is buying up mines in poorer countries where they treat locals with brutal contempt. The governments make money while the people lose out. It is possible that there will be an almighty economic crash in the world. If it destroys China it will be worth it.