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Politics : Idea Of The Day -- Ignore unavailable to you. Want to Upgrade?

To: NickSE who wrote (23287)	2/5/1999 11:00:00 PM
From: IQBAL LATIF	Respond to of 50167

Thanks Orbit for regularly updating the charts.. I am back in town that is my home town. I had some good time in Karachi with Karim and some other lurkers of the thread.. I think it was nice to take a break, but my break is lecturing on global economies for five hours a day. Tip of the day- Why Malyasia and Indonesia both of them in a different economic fundamentals RAN into trouble? If you want to see a country expected to get into trouble looks at its reserves as a percentage of its short term debt. Malayasia had these reserves twice the size of its short term debt. This was plus point, but it was running an unsustainable current acount deficit of 10% of its GDP. Malayasians ran into trouble once the hot money stopped coming in..They just could not finance the 10 percent deficit thru domestic savings that led to run on their reserves and currency. On the other hand Indoneisans who were running a conservative current account deficit of only 3.7% had only half as much reserves as a percentage of short term debt, when hot money stopped flowing in the redemption of its short term debt aggravated its currwent account deficit and its currency lost all significance. The moral of the story is that nothing is as good as prudent management of your money, US is running a budgetary surplus which is good and prudent imagine if its consumers also start running a surplus that is they stop spending if that happens and employment slows down ice age like Japan contagion will grip US.. So dance when non0-inflationary numbers come even sometime some inflation is good..Idea of the day..