'White People Caused The Credit Crunch'

Brazil's President, while meeting Gordon Brown, has said the global financial crisis was caused by "white people with blue eyes".

Gordon Brown and Luis Inacio Lula Da Silva

Gordon Brown with Brazilian President Luis Inacio Lula Da Silva

Luiz Inacio Lula da Silva made the comments after talks with the Prime Minister to try to forge a global consensus on how to save the worldwide economy.
Sky News' Joey Jones said it was an "uncomfortable" moment for Mr Brown.

"The President does not mind using fairly flamboyant language. He likes to give extensive answers to journalists.

"But some of it was rather awkward for the Prime Minister, who was standing there listening to the President.

"A few eyebrows will have gone up at what he said."

Downing Street says the remarks were meant for "domestic consumption".

Jones said: "People in Brazil are very frustrated and angry at what they feel is the injustice of the situation: a crisis that has essentially come from the banking sectors in places like the United States and the UK, but is affecting their country."

'Crisis Created By White People With Blue Eyes'

Following the meeting, Mr Brown told reporters he will urge G20 leaders to back a multi-billion pound fund to reverse a slide in world trade.

"I'm going to ask the G20 summit next week to support a global expansion of trade finance of at least $100bn (£69bn) to help revive trade in all parts of the world," he said. A shortage of trade credit, which allows exporters and importers to settle accounts, has been a factor in a sharp drop in global trade which is exacerbating the economic downturn.

Along with the trade stimulus plan, the Prime Minister said he wanted to see global standards on salaries in the finance sector.
He went on to say he believes South America is key to achieving an agreement at next week's G20 summit in London.

The Prime Minister's previous stop on the tour in the New York was marred by fears about the state of Britain's finances. He played down talk of a split with the Bank of England, after Governor Mervyn King suggested the country may not be able to afford a further fiscal stimulus.

At an event organised by the Wall Street Journal, Mr Brown insisted they were both committed to doing "whatever was necessary" to revive the economy.

But he also sparked speculation that he was backing away from more tax cuts and spending by emphasising the importance of "quantitative easing" to his plans.

Doubts over the state of the public finances were further heightened when an auction of Government-guaranteed bonds failed for the first time in seven years.

Meanwhile, Czech Prime Minister Mirek Topolanek lashed out at President Barack Obama's fiscal stimulus package and financial bail-out, branding them the "way to hell".