From: To: "jeevacation®gmail.com" <jeevacation®gmail.com> Subject: FW: WSJ article on a Paris G20 Initiative proposal Date: Sat, 29 Oct 2011 07:10:17 +0000 FYI From: [mallto Sent: Friday, October 28, 2011 5:24 AM Subject: WSJ article on a Paris G20 Initiative proposal Dear Davos 2011 and Dalian 2011 YGLs, I chatted with a number of you in Davos and Dalian on the topic of the importance of mutual equity stake-holding relationship in the current context of elevated geo-strategic tension, as well the YGL initiative on G20. Attached for your leisurely reading is an article WSJ just ran today on a proposal of a multilateral sovereign wealth fund, which is part of the "YGL G20 Paris Initiative" proposals to the French chair. http://cn.wsj.corn/gb/20111028/1CAI153108_ENversion.shrml) WSJ has run it in both Chinese and English, which allowed me to directly circulate it to Chinese policy makers. The concept is also embedded in the Euro zone rescue package that was reached yesterday. Europe calls for capital injection from China. Chinese will likely call for a multilateral package where BRIC countries and IMF all get involved. They will probably also want any investments to be equity in nature. I welcome any comments. Kevin A Multilateral SW I:: (20 Should Promote Growth by Investing Surplus in Productive Assets The Wall Street Journal October 28, 2011 The G20 leaders will meet later this week in Cannes, and one of the key challenges they will confront is how the world should manage the continued global economic imbalances -- the surplus nations will keep generating surpluses while the deficit nations will accumulate more deficits. The last year the US had a trade surplus was 1976, and the country has been running a trade deficit every year since for 35 years. China has been running a consistent surplus since early 1990s. Countries like Saudi Arabia and UAE have been generating surpluses from their oil sales for the past twenty years and will conti