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Strategies & Market Trends : ahhaha's ahs -- Ignore unavailable to you. Want to Upgrade?

To: Mark Adams who wrote (2747)	7/22/2001 5:54:12 PM
From: ahhaha	Read Replies (1) \| Respond to of 24758

The guy is below amateur. He has no clue whatsoever. He recommends what a demand manager would: authoritative control. This is his conclusion: The current global economic system is not stable, because the authorities of the major players of the system have neglected to coordinate their policies. This is completely mistaken and isn't a market, but a command criterion. At least the central banks understand that they must look to their own economies and ignore what others do. Consider what would happen if they all "coordinated". That's equivalent to one economy being assigned an order to recess while another is assigned an order to inflate. The reckless monetary policy of one authority can throw the whole system into chaos as discussed throughout this article. Another false claim. Monetary policies are independent if for only because you can't spend yen or another currency here. In the age of the global economy, monetary policies become much more complicated than the old time before the globalization. This is only true if central banks try to coordinate monetary policy. The time of simply rising or lowering interest rates to retard or advance the growth of an isolated economic entity is gone. It isn't gone, unfortunately. Trying to manipulate interest rates by monetary authority is the only fault left in the financial structure of the world. Monetary authorities must constantly watch the value of their currencies when conducting monetary policies, and must encounter the difficult task of determining what is the proper value of their currencies relative to others. I couldn't give a worse script than this for international financial disaster. It's equivalent to saying there should be no free market in currencies. Such difficulties will only dissipate when a truly global economy with one global currency and one global monetary authority emerges. The old one worlder socialist theory of absolute control as the source of economic prosperity. What ever happened to the value of diversity? Under such a truly global economy the whole world can be considered as an isolated economic entity and the happy days of simpler monetary policy and the outdated macroeconomic models will return. I rest my case. However, before we reach that utopia, we must struggle to learn how to stop the economic death spiral of Japan and how to deflate the bubble of the United States of America with minimum pain. He claims Japan's problems arise because their rates are too low. The few problems Japan has, which are amplified out of proportion by media looking for something wrong, result in low interest rates. First material world and then financial modelling. It seems very difficult for people to understand that the financial world doesn't create a single loaf of bread. What this guy writes isn't worth reading. He's not even up to SI level.