Obviously what I wrote above is just my opinion and just at the date when I wrote it. Talks and sharings are still on its way and nothing has been formally agreed.
Peace and best wishes. Xi On 6 nov, 16:45, "[EMAIL PROTECTED]" <[EMAIL PROTECTED]> wrote: > During the last weeks most think tanks, governmental agencies and > departments, international organizations, universities, etc. are > working hard (or should have been) to prepare the summit on November > 15th., > > Which are the current positions? Basically three, or two dot five. > > The first one, although it has no posibility at this point, is the > right wing wish, to do nothing too significant except to take funds > from developing countries to fund recovery in developed ones in the > hope that, somehow, it will produce developent in dveloping countries > later. Again the top-down approach. > > The third one, although it has no posibility to win today, is to > approve the road map to fix the real problems. It means not just a > change in the financial order and its institutions, such as the IMF, > but also to change the monetary practices and in particular the > international currency. I must understand that public opinions in the > West, and in particular in USA, are not ready for such announcements, > specially when a new administration will come within some weeks. > Politics is above economics, I accept it. Then, we will have to see > more emergency summits along the next two years. > > In the middle, the second one. As I wrote some weeks ago, that summit > will approve three strategies: > > 1. To set up a new financial toolkit that becomes mandatory for > financial institutions of any sort since rating agencies to commercial > banks. Enhancing and fixing current agreements such as Basel 2 and the > Financial Stability Forum (FSF). Obviously, international monitoring > institutions have to be created or empowered. > > As the The Peterson Institute for International Economics states (1) > "The objective should be to turn the IMF into a body where national > authorities agree on the outlines of what each of them will legislate. > In particular, one envisages that an international agreement made in > the IMF will lay down minimum standards that all countries will > ensure. The actual tasks of regulation and supervision will remain > national responsibilities." > > Now, the developed nations have to leave Wonderland and face the real > world. No country will fund them any longer unless those who really > own the economic means control that their funds are used properly. > > As as example, it means that US economic policy will not longer be > allowed to use "shopping and tax cuts the official macroeconomic > policy of the United States." (2) as Jeffrey Sachs writes in an > article that I strongly recommend to my American friends. > > Although as prof. Kenneth Rogoff wrote today (3) "Without its own > currency, the IMF is poorly positioned to intervene with the > overwhelming force needed for lender-of-last-resort operations. In > principle, the IMF could be allowed to print money (it already has its > own accounting unit, the so-called Special Drawing Rights). But this > is not realistic, given the lack of an adequate system for global > governance.". > > Probably he has not received information on the proposal to > subordinate the Fed to a part of the IMF and the US dollar the > currency of the IMF. In any case,. this step will not be approved on > November. Therefore, we will have to let that the rules approved in > November fail and public opinion in the West will be ready for next > steps. > > 2. To create an international structure that reflects the real > situation of the economic and financial order. The West, in particular > USA, has a huge capacity to create global problems, but is Asia which > has a huge capacity to fix them. To balance the power in the IMF and > other international institutions will be a second achievement. The > West cannot count on blank checks any longer to fix their problems. In > particular while it still shows doubts on sovereign wealth funds that > is exactly where the solution will come from. > > 3. And finally, the obvious one. The summit itself. This gathering > shows and prepares the internation public opinion for the truth. This > is no longer a "Western world plus Japan". It is a multipolar world, > despite what people likes or dislikes. > > Peace and best wishes. > > Xi > > (1) http://www.petersoninstitute.org/realtime/?p=153 > > (2)http://www.thebigmoney.com/articles/judgments/2008/11/05/what-obama-n... > > (3)http://search.japantimes.co.jp/cgi-bin/eo20081106a2.html --~--~---------~--~----~------------~-------~--~----~ You received this message because you are subscribed to the Google Groups "World-thread" group. To post to this group, send email to [email protected] To unsubscribe from this group, send email to [EMAIL PROTECTED] For more options, visit this group at http://groups.google.com/group/world-thread?hl=en -~----------~----~----~----~------~----~------~--~---
