The G7 told China this weekend to strengthen the yuan, a suggestion that China is not all that excited about.

The G7 holds a series of meetings between the finance ministers from France, Germany, Italy, Japan, United Kingdom, the United States and Canada – (Canada?). So of course one issue is that China isn’t in the G7, so why should they listen to their recommendation, right? Maybe invite them to join the group and they may be more receptive to suggestions you make guys- hell, they may even help you make the suggestion.

The G7 is pointing a finger at China’s handing of the yuan as part of fueling the global financial crisis- and I have to call crap on that. Some folks on Wall Street gamble big and lose, screw over the American people and borrow a few trillion dollars to make up for it, then go and ask China to adjust the value of their currency to help balance things out again- that’s not balance, guys, that’s status quo. I’m American and I want the Dollar to be the world standard, as strong as it can be, and I want to stay financially powerful, you know? So I hope the argument works. But still, they are under no obligation to adjust just because we are getting weaker, at least in my book. I mean, the U.S. isn’t adjusting to help out anyone else’s currency because they made some dumb economic or financial moves, you know?

"We welcome China's continued commitment to move to a more flexible exchange rate, which should lead to continued appreciation of the Renminbi in effective terms and help promote more balanced growth in China and in the world economy," said the G7.

China basically said- well, that’s nice but we’re fine with our policy as is. We’ll free up the yuan when we want to.

I guess Chinese financial politicians are good at non-answers as well.

This illustrates the interconnectivity of the worldwide financial web- and that basically we all depend on each other at this point- there will hopefully be cooperation, but in truth, the power is shifting to a larger group of countries at the top.

But apparently the G7 is losing importance, mostly to the G20 because it includes other important countries- like China.

"The G7 is not quite dead, but it is losing its relevance," said Dominique Strausss-Kahn, the IMF's managing director. "It's on its way to extinction."

The numbers don’t really support this whole economic recovery thing- U.S. unemployment went UP in September- only .1%, but still.  

"In recent months we have started to see signs of a global economic recovery and continued improvement in financial market conditions. However, there is no room for complacency since the prospects for growth remain fragile and labor market conditions are not yet improving. We will keep in place our support measures until recovery is assured,” said the G7 statement.

…started to see signs… such a vague way of saying it, like, we are cautiously optimistic, or we are beginning to hear whispers of progress…