Comments on: Summers: "The global consensus on trade is unravelling" http://www.nakedcapitalism.com/2008/08/summers-global-consensus-on-trade-is.html Mon, 23 Nov 2009 01:41:08 -0500 http://wordpress.org/?v=2.8.4 hourly 1 By: doc holiday http://www.nakedcapitalism.com/2008/08/summers-global-consensus-on-trade-is.html#comment-13501 doc holiday Mon, 25 Aug 2008 23:28:00 +0000 http://www.nakedcapitalism.com/2008/08/summers-the-global-consensus-on-trade-is-unravelling/#comment-13501 OT?<br/><br/>Beijing swells dollar reserves through stealth<br/>http://www.telegraph.co.uk/money.../ ccchina126.xml<br/><br/>China has resorted to stealth intervention in the currency markets to amass US dollars, using indirect means to hold down the yuan and ease the pain for its struggling exporters as the global slowdown engulfs the economy.<br/><br/>A study by HSBC's currency team in Asia has concluded that China's central bank is in effect forcing commercial banks to build up large dollar reserves, using them as arms-length proxies in a renewed campaign of exchange rate interventio<br/><br/>Lehman Brothers warns of a risk that a housing slump and the 55pc equity crash since October could combine with a global downturn to set off a "vicious cycle". House prices have already fallen 18pc in Guangzhou and 9pc in Beijing. Prices are now falling in cities that make up over half China's population. OT?

Beijing swells dollar reserves through stealth
http://www.telegraph.co.uk/money…/ ccchina126.xml

China has resorted to stealth intervention in the currency markets to amass US dollars, using indirect means to hold down the yuan and ease the pain for its struggling exporters as the global slowdown engulfs the economy.

A study by HSBC’s currency team in Asia has concluded that China’s central bank is in effect forcing commercial banks to build up large dollar reserves, using them as arms-length proxies in a renewed campaign of exchange rate interventio

Lehman Brothers warns of a risk that a housing slump and the 55pc equity crash since October could combine with a global downturn to set off a “vicious cycle”. House prices have already fallen 18pc in Guangzhou and 9pc in Beijing. Prices are now falling in cities that make up over half China’s population.

]]> By: John http://www.nakedcapitalism.com/2008/08/summers-global-consensus-on-trade-is.html#comment-13497 John Mon, 25 Aug 2008 19:46:00 +0000 http://www.nakedcapitalism.com/2008/08/summers-the-global-consensus-on-trade-is-unravelling/#comment-13497 I find it harder to read long posts about people you disagree with than people you agree with. I'm like the pigeon who can only peck the lighted lever to get the birdseed.<br/><br/>That said, must-read, always-read blog...obviously. I find it harder to read long posts about people you disagree with than people you agree with. I’m like the pigeon who can only peck the lighted lever to get the birdseed.

That said, must-read, always-read blog…obviously.

]]> By: Anonymous http://www.nakedcapitalism.com/2008/08/summers-global-consensus-on-trade-is.html#comment-13494 Anonymous Mon, 25 Aug 2008 15:47:00 +0000 http://www.nakedcapitalism.com/2008/08/summers-the-global-consensus-on-trade-is-unravelling/#comment-13494 "Readers are welcome to correct me on this one, but whose consensus are we discussing, exactly? Again, China and Japan might give lip service to grand pronouncements while keeping their eye on the ball of what the gives and the gets were at the negotiating table. China, for instance, rebuffed Paulson in his recent entreaties to open its financial markets to foreign players. In fact, one could make a case that any country with a pegged currency (or as with China, a dirty float) is committed to maintaining a trade surplus, which means their commitment to achieving specific national outcomes ranks above any vision of international cooperation. And frankly, that's a rational stance."<br/><br/>Calling on China to open up its financial sector to American firms while the sub-prime mess is going on is disingenuous to say the least. “Readers are welcome to correct me on this one, but whose consensus are we discussing, exactly? Again, China and Japan might give lip service to grand pronouncements while keeping their eye on the ball of what the gives and the gets were at the negotiating table. China, for instance, rebuffed Paulson in his recent entreaties to open its financial markets to foreign players. In fact, one could make a case that any country with a pegged currency (or as with China, a dirty float) is committed to maintaining a trade surplus, which means their commitment to achieving specific national outcomes ranks above any vision of international cooperation. And frankly, that’s a rational stance.”

Calling on China to open up its financial sector to American firms while the sub-prime mess is going on is disingenuous to say the least.

]]> By: etc http://www.nakedcapitalism.com/2008/08/summers-global-consensus-on-trade-is.html#comment-13493 etc Mon, 25 Aug 2008 15:22:00 +0000 http://www.nakedcapitalism.com/2008/08/summers-the-global-consensus-on-trade-is-unravelling/#comment-13493 Larry Summers, Blinder and their free trade ilk haven't seen anything yet. The only reason they made any progress toward their version of "free trade" was because the US economy was doing so well that it could afford to make trade deals that benefited other countries more than the US; effectively lowering US trade barriers without demanding an exact quid pro quo. Now that the US economy has stagnated, and likely will for a while, Summers, Blinder and co won't make any progress. It'll be like Matt Groening used to say when people asked him where they hadn't made a Simpsons movie (before they actually did), you can't get a deal done when everyone takes the greediest position possible. Larry Summers, Blinder and their free trade ilk haven’t seen anything yet. The only reason they made any progress toward their version of “free trade” was because the US economy was doing so well that it could afford to make trade deals that benefited other countries more than the US; effectively lowering US trade barriers without demanding an exact quid pro quo. Now that the US economy has stagnated, and likely will for a while, Summers, Blinder and co won’t make any progress. It’ll be like Matt Groening used to say when people asked him where they hadn’t made a Simpsons movie (before they actually did), you can’t get a deal done when everyone takes the greediest position possible.

]]> By: crmorris http://www.nakedcapitalism.com/2008/08/summers-global-consensus-on-trade-is.html#comment-13486 crmorris Mon, 25 Aug 2008 12:18:00 +0000 http://www.nakedcapitalism.com/2008/08/summers-the-global-consensus-on-trade-is-unravelling/#comment-13486 Fine, thoughtful, post, Yves Fine, thoughtful, post, Yves

]]> By: Danny http://www.nakedcapitalism.com/2008/08/summers-global-consensus-on-trade-is.html#comment-13480 Danny Mon, 25 Aug 2008 11:17:00 +0000 http://www.nakedcapitalism.com/2008/08/summers-the-global-consensus-on-trade-is-unravelling/#comment-13480 Larry Summers is an apologist for the status quo. He, along with many other 'bubble' economists, who failed to recognize, and even propagated the ideas which led to the 'soundness' of the US economy. I say good riddance. Larry Summers is an apologist for the status quo. He, along with many other ‘bubble’ economists, who failed to recognize, and even propagated the ideas which led to the ’soundness’ of the US economy. I say good riddance.

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