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Politics : Foreign Affairs Discussion Group -- Ignore unavailable to you. Want to Upgrade?

To: Hawkmoon who wrote (161229)	4/29/2005 10:02:25 AM
From: neolib	Read Replies (1) \| Respond to of 281500

I think we both see the situation essentially the same. But my focus is on the negative aspects of positive feedback. Imagine if the choice of investments were decoupled from employment. Lets say that the balance of trade amongst the nations was essentially even, no one nation building a deficit with any other one. But the differences in corruption and transparency, etc were still there. In that case, what would US T-bills look like to foreigners. They would be evaluated solely on the basis of interest & security. That would be a more stable situation, and one that would also likely lead to more reforms in responsibility of foreign sources which would like to compete with T-bills. The tie in with the export driven economies of Asia means that such a balanced view cannot take place, there is a very large bias to favor T-bills well in excess of the interest & security aspects. Your comments tend to focus on the security & interest component, while diminishing the positive feedback kicker I'm concerned about. I'd like to actually know what the relative weights are, but I've never read a good analysis that tries to place numbers on this.