Comments on: US Rate Cuts Leading to Economic Controls and Subsidies in Asia http://www.nakedcapitalism.com/2008/02/us-rate-cuts-leading-to-economic.html Sun, 22 Nov 2009 06:06:33 -0500 http://wordpress.org/?v=2.8.4 hourly 1 By: foesskewered http://www.nakedcapitalism.com/2008/02/us-rate-cuts-leading-to-economic.html#comment-4156 foesskewered Tue, 19 Feb 2008 03:38:00 +0000 http://www.nakedcapitalism.com/2008/02/us-rate-cuts-leading-to-economic-controls-and-subsidies-in-asia/#comment-4156 lune<br/>Sometimes, it's hard to impose those controls that you mentioned, how many hot inflows label themselves as such? No one's gonna label themselves as speculative money, you can't set up control booths and check each transaction, as unfortunate as it sounds , checks are often on retrospective basis, and often after a problem has blown up.<br/><br/>brad, true, the dollar peg is not a problem of the fed, but should these countries move away from a dollar peg it would mark another chip in the pedestal that holds the $ above the rabble. Besides, on a more pragmatic note, unless you've got realistic alternatives or huge pockets (read petrodollars) de-pegging is not an alternative.I've said in various blogs (yep, sad old blogger here) that overconsumption and a questionable attitude towards debt is a root cause of present troubles, goading the consumer to maintaining both is not a solution, as Yves has pointed out. lune
Sometimes, it’s hard to impose those controls that you mentioned, how many hot inflows label themselves as such? No one’s gonna label themselves as speculative money, you can’t set up control booths and check each transaction, as unfortunate as it sounds , checks are often on retrospective basis, and often after a problem has blown up.

brad, true, the dollar peg is not a problem of the fed, but should these countries move away from a dollar peg it would mark another chip in the pedestal that holds the $ above the rabble. Besides, on a more pragmatic note, unless you’ve got realistic alternatives or huge pockets (read petrodollars) de-pegging is not an alternative.I’ve said in various blogs (yep, sad old blogger here) that overconsumption and a questionable attitude towards debt is a root cause of present troubles, goading the consumer to maintaining both is not a solution, as Yves has pointed out.

]]> By: Lune http://www.nakedcapitalism.com/2008/02/us-rate-cuts-leading-to-economic.html#comment-4143 Lune Mon, 18 Feb 2008 21:34:00 +0000 http://www.nakedcapitalism.com/2008/02/us-rate-cuts-leading-to-economic-controls-and-subsidies-in-asia/#comment-4143 Why don't these countries regulate the convertibility of their currencies? I realize that free convertibility of currency is one of those IMF and western economists-backed ideas that is considered sacred by free-marketers, but many of these problems would go away if countries like India went back to their traditional currency controls which prevented speculative money from coming into (or leaving) the country. What exactly is the problem with strictly controlling capital inflows to promote "healthy" inflows (e.g. import/export, long-term capital investments, etc.) while banning "unhealthy" inflows (e.g. short-term speculative money)? It sure would beat price controls and 20%/month inflation Why don’t these countries regulate the convertibility of their currencies? I realize that free convertibility of currency is one of those IMF and western economists-backed ideas that is considered sacred by free-marketers, but many of these problems would go away if countries like India went back to their traditional currency controls which prevented speculative money from coming into (or leaving) the country. What exactly is the problem with strictly controlling capital inflows to promote “healthy” inflows (e.g. import/export, long-term capital investments, etc.) while banning “unhealthy” inflows (e.g. short-term speculative money)? It sure would beat price controls and 20%/month inflation

]]> By: Anonymous http://www.nakedcapitalism.com/2008/02/us-rate-cuts-leading-to-economic.html#comment-4128 Anonymous Mon, 18 Feb 2008 13:33:00 +0000 http://www.nakedcapitalism.com/2008/02/us-rate-cuts-leading-to-economic-controls-and-subsidies-in-asia/#comment-4128 The bloomberg article is mistitled; it is unfair to blame bernanke for the results of dollar pegs. China and Singapore are actively choosing to follow the Fed and follow the dollar; they don't have to.<br/><br/>On one point US policy makers have been consistent -- US monetary policy will be directed at conditions in the US, not set for the entire dollar zone.<br/><br/>bsetser The bloomberg article is mistitled; it is unfair to blame bernanke for the results of dollar pegs. China and Singapore are actively choosing to follow the Fed and follow the dollar; they don’t have to.

On one point US policy makers have been consistent — US monetary policy will be directed at conditions in the US, not set for the entire dollar zone.

bsetser

]]> By: Anonymous http://www.nakedcapitalism.com/2008/02/us-rate-cuts-leading-to-economic.html#comment-4119 Anonymous Mon, 18 Feb 2008 08:13:00 +0000 http://www.nakedcapitalism.com/2008/02/us-rate-cuts-leading-to-economic-controls-and-subsidies-in-asia/#comment-4119 "Artificial price curbs and subsidies only feed more demand for oil and other commodities"<br/><br/>This statement says it all. Commodities are the new bull market, especially food. Go corn!<br/><br/>(great work!) “Artificial price curbs and subsidies only feed more demand for oil and other commodities”

This statement says it all. Commodities are the new bull market, especially food. Go corn!

(great work!)

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