Ron,
With all of the supposed US expertise, why haven't these problems been addressed long before now if they have been so obvious even to the lay people on this thread?
Yes, this is the question that I asked myself a few days ago. The obvious choice is that these guys are clueless, but I can't really believe that is true. I think they must have a good idea about what is going on. If we examine the facts:
1. Emerging markets that receive 'help' are encouraged to raise interest rates to stabilize their currencies. These interest rates assure that the economies will crumble into recession. They also attack budget deficits to assure that the countries currency is more stable, again recessionary. The only benefit is the ability to pay off their debt while the people suffer for it.
2. IMF funding from taxpayers is used to help these countries pay off their debt.
3. They recognize the problem, (overcapacity), because they are encouraging non debtor nations to lower interest rates and stimulate their economies by increasing deficit spending.
Then the only explanation is that they are bailing out the big financial institutions with the last drop of blood from these emerging markets and whatever they can get from the public taxpayers. I believe that these are the players that back Clinton and he will go to the mat for them on this issue.
Now I guess no one wants Citibank to do a LTCM, but why don't they provide more market 'demand' by lowering rates. No one in the bond market agrees with me on that for sure. Maybe they just want to break these markets and then come in and buy up the capacity cheap and then lower rates?
That is much more in line with the Government we all know and love.
Best Regards,
Derrick
PS: So I'm a sucker for a good conspiracy theory, it's better than thinking that they're all a bunch of idiots. |
