APEC 2024 Peru. Biden shafted to a corner in the back row. Xi in front row next to Peru's President
5/21/2010
Twisted logic of high finance
Attacking a country’s currency, stock market or financial system, if done by a country is tantamount to a hostile act, an act of war. Done by a bunch of fund managers, it is ok. They can bring down the currency or financial system of a country and it is considered legitimate, part and parcel of investment strategies! And sovereign countries allow this to happen and could not do anything about it.
Who are these fund managers? A bunch of crooks, or are they a cloak and dagger operation of some govts? The latter seems easier to handle while a bunch of crooks are free to do whatever damage they could to bring a country to its knee, to bankrupt countries.
And the US is accusing China as a currency manipulator for controlling the exchange rate of Yuan. They want China to free the Yuan to allow the crooks to manipulate it under the guise that if it has a weakness they have the right to bring it down. With the crooks operating as an irresponsible wolf pack out to destroy countries and their financial system, it is better that countries return to the fixed exchange rate system to protect themselves.
Mahathir in this sense has done the right thing. China is also doing the right thing to protect itself. Let the West and their freedom to act, irresponsibly, to destroy themselves at their own time. But Obama knows that this is wrong and trying to curb the madness in the finance industry inside the US.
Chin Leng Sir:
ReplyDeletePresident Obama must have heard or read You, he is reining in the crooks. Heard him saying so in BBC this morning.
Ex PM Mahathir is one of the wisest man in the East. He deserves salutes.
patriot
From the Same Station(BBC), some Americans were calling Obama names and questioning his(Obama) competency.
ReplyDeleteThe US of A will have tides of woes, which is a good thing. It will have to be busy with itself and halt meddlings with other sovereign nations.
patriot
I have not listen to BBC for a long time. The govts of the world must stand up to the destructive actions of the fund managers, starting with the US. They cannot go about destroying countries with impunity.
ReplyDeleteIf this is not stopped, they could destroy the world's finance system. How can the govts of the world be so cock and allow them to continue to do this dastardly act as if it is their right to do so. They are very destructive and irresponsible!
Haha, Ohama said he is reining them in, but he is not punishing them.
ReplyDeleteWhatever does that mean?
Completely disagree with this. The whole post is founded on a single premise: that the state has a “legitimate” place in the economy. If that is the case, then it follows that the economy is a command economy and therefore anything done “against” it – even when the “commanders” are doing absolutely wrong and criminal things – like converting sovereign insolvency (debt that the govt has no way or no intention of paying – why care, the present govt only in office for 4-5 years) into “assets” (and their derivatives) and flooging off those “assets” to would-be institutional investors as well as granny and grandpa investing for their retirement.
ReplyDeleteThe speculator, hedge-fund shorter – people like Soros and Paulson do a great service by bring JUSTICE to the market, and good for them that they profit from their moves.
Govts and states need to be hammered in the markets, as a matter of JUSTICE, if not discipline. In Aust’s own experience: past govts have been hammered terok terbokok for behing in untoward and authoritarian ways with regard to Aust’s economy. We, as a country survived --- threw out the bad legislation and institutions and became more open and market friendly. Aust was one of the world’s leading “command economies” for many decades – and this was despite the large numbers of free marketers among the population. The country gets the govt they deserve – Aust has always deserved its govts – and suffered for it.
We are much better off now, but not for long. These motherfuckers in office at the moment are not only dumb – they’re nuts too.
What is wrong with shorting a market? Nothing, it is a legitimate move. Even if you take the “greedy profit” out of the equation, a short position may be a protective position – to protect your hard-earned capital.
The govt doesn’t have any right – in or out of LAW -- whatsoever to “cover up” its blatant financial mistakes
Matilah, that is another way of looking at the role of big funds and speculators.
ReplyDeleteBut they are not Robin Hood either. They whacked the govts for their own benefits and often over killed and killed the people as well.
And the bad part is that they are not responsible to anyone and,... this is the best part, the govts allow them to do it, legitimate.