Ron wants a hands-off approach, and I say just the opposite eventho I am strongly for a total laissez faire, but only when the playing field is level and all play under the same rules, and no special favors or conditions allowed.
Now Doug... Don't go trying to put words in my mouth again.
I certainly don't believe in a hands off approach or I would be an advocate of abolishing the Fed.
However, that said, I don't believe in tying the hands of the Fed either with regard to monetary policy. Forcing the Fed and IMF to retain substantial portions of their reserves as non-liquid gold assets that can't be sold is not the way to handle this.
Btw, as for the theft of IMF money by Russians, I don't think anyone has any illusions about that. That's why any continued loans are merely for the purpose of paying off their annual interest payments (ie: the russian CB never actually get its hands on the money).
Should we loan them money? Tough question. But considering the alternatives are pretty unpleasant, I say why not. Besides, we spent far more than that each year arming ourselves for what we felt was inevitable conflict.
I'd rather buy them the time, than have to face a renewed global arms race with them, with their govt under a nationalistic authoritarian.
Regards,
Ron
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