At this year's G-20 summit in Toronto, the world's leading economies sealed their fate. Rather than reach a consensus on the need for fiscal consolidation or for more aggressive fiscal stimulus, the assembled officials have, in scrupulously diplomatic and often hilariously vague language, agreed to disagree on the future direction of the global economy. The U.S. will continue to borrow vast sums in an effort to keep demand afloat, a policy that will aid exporters in Europe and East Asia and the oil-rich states of the Gulf. Virtually all of the other G-20 nations will, in marked contrast, embrace fiscal retrenchment.
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