Bosco,
Very few good things can be said about the IMF, but nobody wants the job of admitting that it's dead. When we hear the IMF screaming, and especially when we hear Clinton and Greenspan screaming for them, what we hear are the screams of "the system". Its basic premise is that it is too important to be allowed to collapse, and much as I despise the notion of financing some of its pillars, self-interest compels me to agree.
We've been pushing globalism for too long to drop it now. I don't see much choice except to continue to fund the IMF, but with stricter limits on use of funds and more multilateral oversight.
All economics is based on assumptions about human behavior. and the psychological factors are becoming far more prominent daily. As long as Americans and Europeans believe that things are going to be ok, and keep spending money, the system will clunk along long enough for Asia to get back on its feet. If they panic, there will be real trouble.
I don't think shutting down the IMF will help calm the situation, though I can readily see why intelligent people would be most unhappy at having to pay for it.
I should remind myself not to read the news on Saturday mornings. It seems to induce rambling. <g>
Steve |
