On Friday a private dinner party was held in the Canadian Embassy where officials from seven world economic powers were present. Their topic of discussion circled around the most troublesome economic problem that threats the Obama Administration.

The US Treasury Secretary Mr. Timothy F. Geithner was found trying convincing his counterparts of Japan, Europe and Canada to force China for raising the value of the nation’s currency .renminbi. This is of utmost importance otherwise the trade imbalances that are posing threats to the global economic recovery can’t be balanced out.

But in the annual meeting of the International Monetary Fund that was held the very next day the issue of the currency tension were voiced in a tepid manner with just some fleeting and indirect statements.

The disagreement between the increasing worries over the Chinese currency and the response of the governments indicated that it would be difficult to have a sound international economic cooperation even after a lapse of two years from the beginning of the economic crisis.

Officials stated that due to the crisis, as emerging economies fought the recession better than Japan, the US and Europe the influence got shifted from the richest powers to Asia and the Latin America.

One of the European official, who was present in the meeting had been found saying that no longer are the times when the seven advanced economies can decide on the world economic policy without consulting the emerging countries. There is no other way but to accept the fact.

The controversy over the valuation of currency is crucial. Almost all the world leaders are in agreement of the fact that to stabilize the world economy more, the imbalances between countries like Germany and China who are creditors and Britain and the US who are debtors have to be sorted out.

According to analysts if this can be done the US unemployment scenario will get better while China won’t be threatened with the fear of inflation.