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To: Freedom Fighter who wrote (215916)	1/22/2003 12:40:38 AM
From: Simba	Respond to of 436258

Wayne, The article is right on target. Capital Account Convertibility (CAC) and speculative short term capital flows while great for wall street interests and hedge funds do little for the emerging economies. Greenie and Summers are just a mouth piece for these interests. From a basic flows standpoint CAC does not make sense between countries that are many order of magnitudes different in their economies. Imagine a large dam filled with a huge potential and capacity emptying a significant portion of its water into a small pond. You bet there are going to tsunami's and similar effects during a rapid draw down. The result is water hammers and highly volatile shock waves. Basic science predicts that. On the other hand free trade in goods makes good sense between such ecnonomies. No CAC and free trade in goods can coexist. India and China were proven to be smarter in not following the so-called Asian tigers during the Asian boom and the bust. Simba