HIGHLIGHTS-Speakers at Calgary’s Spruce Meadows conference

TORONTO, Sept 10 (BestGrowthStock) – Following are comments by top
policymakers speaking at the Spruce Meadows conference in
Calgary:

PAUL VOLCKER, FORMER CHAIRMAN OF U.S. FEDERAL RESERVE AND
CHAIRMAN OF U.S. PRESIDENT BARACK OBAMA’S ECONOMIC RECOVERY
ADVISORY BOARD

On the state of the recovery:

“This isn’t what we normally think of as economic
recovery.

“I think it is fair to say that we will not reach in the
United States what’s true in many European countries, true in
Japan, we will not reach peak levels of production, past peak
levels of production for several years even on a reasonably
optimistic trajectory…assuming the economy grew by 3 percent
a year. The American economy, beginning now, it will take three
years or so to get back to previous peaks, that has not been a
normal business cycle behavior, normal recovery.

“I’d like to think of it as a slog … with every step you
take, it takes a lot of energy. You think you’re going
backwards instead of forwards that’s the way this economy feels
at this point. That’s true of the United States, it’s
considerably true of Europe, less true of Canada fortunately.”

On timeline to recovery:

“We are now almost three years since the breakdown of the
financial system, and I’m not surprised if it takes three years
or six years to repair it.”

On European problems and the euro:

“They show some of the same symptoms as we’ve had in the
United States with the risk that it puts the stability of the
euro itself in some jeopardy. .. I’m a great supporter of the
euro, but it’s going to take a real effort there to stabilize
the situation in Europe.”

On structural problems:

“I think we do need some revised structure in the system as
well. I don’t think we can rely upon higher capital
requirements and higher liquidity requirements. Those things
come and go, they’re subject to political influences in
different countries, lobbying influences.

“When a bank goes bad it doesn’t make much difference how
much capital it has, it goes bad. So we need some structural
changes in my opinion.”

MARK CARNEY, GOVERNOR OF THE BANK OF CANADA

On criticism of G7 and G20:

“Time will tell whether G20 nations can better the
underwhelming track record of the G7 in coordinating policies.
The area with the best prospects for success is in financial
reforms.

“Without the successful completion of G20 reforms, the
current recovery is at risk.

“The IMF is effectively without power of sanction, and
informal governance mechanisms such as the G7 have increasingly
lost legitimacy as global economic power has been
transformed.”

On G20 promises to rebalance global growth:

“The only measures that have actually been implemented have
been consistent with the deflation path. While the other right
promises have been made, conviction is required.”

On uncertainty:

“The message that we’ve tried to give … (is) one that
uncertainty isn’t going to dissipate any time soon. The right
policies are being put in place but it’s going to take time.”

“We have a huge productivity gap (in Canada).”

On Basel:

“Basel is the key test. We need common implementation of
the new standard whatever it is. We need a peer review process,
which is being put in place.”

On the financial system:

“We are all acutely conscious of the economic situation. We
will not make the mistake (of) undercapitalizing the financial
system because of where we are in the macro cycle.”

ZHU MIN, INTERNATIONAL MONETARY FUND SPECIAL ADVISOR AND
FORMER DEPUTY GOVERNOR OF THE PEOPLE’S BANK OF CHINA

On double dip:

“We see recovery going up overall, with the uncertainty
that I’ve mentioned. But I don’t see any risk of a double
dip.”

On China’s economic slowdown:

“China is slowing down … I would say the slowdown of
China is very much a good thing, because before we were really
concerned about inflationary pressures and overheating.

“Obviously it is very difficult … to maintain a 35
percent export growth rate. Particularly in today’s very low
international economic situation.

“I would say the slowdown is a very, very good thing for
China. We are very much looking for a soft landing for China’s
economy. At the end of this year, we … expect to see China’s
growth rate around 9.5 percent, way below the 10.5 percent or
11 percent of a lot of popular estimates and forecasts earlier
this year.”

On moving to domestic consumption from exports:

“At the end of this year, China will end up with 16 percent
of consumption growth, which is a very good year for China,
because we need to move away from an export-driven to more of a
domestic consumption-driven model.”

On global demand:

“China is still facing some really serious challenges.
Obviously the first is still how do we move away from an
export-driven growth model to a domestic consumption model. ..
Given the whole global output level gradually lower, we cannot
rely on strong global demand, so we have to (move to a domestic
consumption model).”
(Reporting by Jeffrey Hodgson and Scott Haggett in Calgary and
Toronto Treasury desk; Editing by Peter Galloway)

HIGHLIGHTS-Speakers at Calgary’s Spruce Meadows conference