The G20 in Seoul: It's a Whole New World

Two years after it succeeded the G7 as the world’s primary venue for economic cooperation the G20 is running into a reality that limited its predecessor and is only more constraining since China, India, Brazil and 10 more interests took seats at the big table: Different national conditions demand different policies.

Here’s another stark fact: When you’re biggest economy on the planet you can do pretty much as you please, and describe it in whatever terms you choose. Thus the US Federal Reserve embarks on a second round of quantitative easing, despite the damage it may do to the US dollar and the implications for other countries that already do or would like to export their way to economic health.

Turning to another front with important implications for investors, in the wake of a resounding defeat in Nov. 2 midterm elections Congressional Democrats and President Obama are more likely to pass and sign a bill that merely extends preferential tax rates on dividends and capital gains rather than enact a permanent policy. Events of the last 24 months have also re-shaped the debate on this issue.