mighty joe gets the heat lamp
this son of han dom
has a nice way of ignoring stuff
to preserve his sense of himself
a nice trait if you can know its operating
and step away from the proprietary carcas now and again
=================================
joey boy:
I caught this
too late and too far up stream
to find a commment panel
response sensible
this is a very good post
so good i want to respond to it in detail
in this private personal e mail :
u write
"If one were to go back to the 1990's,
and ask most neo-liberal economists
what currency policy would best promote free-markets.... "
--- i'd add after the words 'currency policy ..'
this:
' for emerging economies'( EEs )
it was only an imf approved
recipe for them third raters ---
" the answer would be some sort of peg to the US Dollar."
--- for EEs agreed -----
" The presumption is that a fixed peg
would enforce discipline on governments
by insuring that they could not
get out of bad economic decisions
by playing with the value of the currency"
----------------- lets zero in here
its about government " social welfare policy "
over spending 8/10 -------
". You had people arguing tooth and nail
for fixed pegged currencies,
and where they caused major economic problems,
the response was basically "they deserved it."
----------- response by who wall streeters ???------------
"What has changed? "
--------------- well those former EE peggers are mostly
after some interval of chaos
de facto pegers againl
so on that front nothing has changed----------
"What has changed is that the country
that needs "strong fiscal medicine"
now just happens to be
the world's only hyperpower"
------------------------ aren't you conflating the us fisc with all north countries
the euro zone is hardly in fiscal free fall ...yet
and if it is to get there it will be in part because of a systemic north currency over valuation
the slavic east inside the ec
is running south type currency scams
wage rates are one quarter the zone's big three wages --------
" and isn't some random third world nation
and the "tough love" is going to
personally adversely affect
the economists that are making up the theories"
-------------- what ???
the top 20% of north jobsters
are benefiting from the global forex tilt
ie including economists
if there's a motive here its an altruistic attempt
to save domestic wage klass jobsters pay rates -----
.
"I don't find this objectionable
from a moral point of view.
It is a natural human tendency
to adjust one's theories
in the face of self-interest"
------------here's where you miss the players
the trans national corporations
are on the side of
maintaining
the tilt
here in europe even japan
its self interst agasinst self interest
and its all happening
right here
inside the freedom country itself ---
" and that is just a political reality
that one has to deal with."
---fair enough -----
It may be "unfair" in some abstract sense, but life is unfair.
----------- indeed ------------
"What I do find annoying
is that people refusing to admit
that this is what happened"
------------------ a case of the old double standard eh ???
one for the other guy one for me
nope wrong i refer you to the various parties involved
and i state if the trans nats didn't like this set up
they'd change it
the prc has little to say about it
unless its in the self interest of the corporations
it don't happen for long
that
as you say
is
"political reality"-------------------
" and that the US's basic objection
to the peg is that it hurts
the US in this case,
and the US wants to be able
to run massive budget deficits forever "
------------ here is where the fabric gets twisted
us is not a singular entity with a commen set of interests
right ?
sauy your part of the middle 60% of households
tell me how the present global tilted
forex set up
has a long run win in it for u ???
as to 'deficits for ever '
that i doubt is the ...plan
thats phase one
the part wherer america becomes
a profit tax free zone
in phase n
the boys will close the deficit
how ??
on the backs of the jobsters....
thru social spending/ tranfer system cuts
and payroll /comsumption taxes hikes
thats the plan
and it'll happen
if they ain't stopped
some where along the road to phase n
by the ripped off jobster majority
as to whens n
recall the us is worth 50 or 60 trillion dollars
which gives em years and years of
external borrowing
and as you say
indeed
"'makes fixing the problem more difficult. "
.
"The other point is that I think
you are focusing too much on ultimate endpoints
and not on the path there"
----------- very acute point
the path is all we ever really experience
we never can get ..."there "
the horizon bends out of sight
but we can say talk about the next twenty years
in say
five year chunks
and get a fair idea of what looks
optimal for the next five any way
i have and its got one clear out crop
we need to pull off
a global
forex re alignment
a north south plaza accord -------------- .
"No having a reserve is not going to protect
you if you have bad fiscal policies,
but setting up a system
where you have a few days to figure
what to do in the face of a run
is not a small thing. Also",
"one has to note that in 1997,
most of the countries that the Asian flu killed
weren't running bad fiscal policies"
-------- joe its you who needs to fathom
the full implications of that fact
in short
the asian flu of 97
was a clear
N/S tilt increasing adjustment
one of an episodic series
of such adjustments
running back even
to before nixon goosed the globe in 71 --------------.
"Long term, markets tend to be rational,
but there is quite a bit of short-term irrationality
which you can safely ignore"
---------" ignore" any asset market
..only at your risk my friend
long term
it all looks like destiny
that's ultimately
all there is
to MARKET rationalist's religion
whether or not
u see it as providential
is a sectarian matter -------------
Posted by pinky at May 12, 2006 04:38 AM