Meeting of leaders of the Group of 20 nations ( G - 20 ) in Russia heats up . Each state leaders urged the United States ( U.S. ) in order not to worsen the global economic turmoil .
There are two things that captivated the G - 20 leaders . First , the U.S. decision to tighten economic stimulus . Second , the U.S. plans to attack Syria . The leaders of the G - 20 countries assess two things is going to worsen the global economic turmoil .
As of Friday ( 09/06/2013 ) or the last day of the G - 20 , U.S. unfazed by the pressure of G- 20 leaders . " New risks have emerged in recent months in the emerging markets . Policy our partner , America , certainly have an impact on the risk of the global economy , " said Russian President Vladimir Putin , as quoted by Bloomberg , on Friday ( 09/06/2013 ) .
Seeing as though the U.S. remained adamant tighten stimulus , leaders of developing countries agreed to establish a joint fund . Participants are Brazil , Russia , India , China , and South Africa ( BRICS ) . Together they raised $ 100 billion emergency .This emergency fund serves as a reserve fund to withstand shocks in the financial markets due to the withdrawal of funds BRICS stimulus by the U.S. central bank ( the Fed ) . BRICS leaders will assess the suffering caused by the withdrawal of the stimulus .
For the sake of counteracting the effects of stimulus the Fed tightening , BRICS also agreed to put fresh money 50 billion dollars as capital to build the BRICS Development Banks . The bank funds will be used to help infrastructure projects in BRICS member countries .
Syria attacks worsen
U.S. military attack plans against Syria also adds to the economic volatility BRICS . " Every political destabilization , the escalation of political tensions always affect the mentality of investors . Investors are always afraid of war , " said Andrey Kostin , Chairman of VTB Group , the second largest state-owned bank in Russia .
Michael Wittner , head of commodities research at Societe Generale , said Brent oil prices could rise to the level of 120 dollars - 125 dollars per barrel if the United States launched a military attack on Syria . In fact , Capital Economics Ltd. estimates that , in the worst case scenario , oil prices could jump to 150 dollars per barrel .
If oil prices shot , then this could potentially reduce the 1 percent of global economic growth . U.S. President Barack Obama said , if canceled the invasion , the U.S. military will gradually retreated from Syria .
On the other hand , German Chancellor Angela Merkel urged the global central banks curb credit growth for the sake withstand market turmoil . " The role of the G - 20 should be very important for the country's leaders to communicate about plans to anticipate the effects of stimulus the Fed tightening , " said Indonesian Finance Minister Chatib Basri .
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