Kindly post the link again. I can't find it and I did not get a chance to read it. ![Wink](/static/images/graemlins/icon_wink.gif)
![Wink](/static/images/graemlins/icon_wink.gif)
Replies sorted oldest to newest
quote:Originally posted by Mitwah:
Now with respect to your points 1 and 2 that you posited, how different are those of the AFC's Action Plan to breathe life back into Guyana's economy and to curb the flight of capital; the greatest assets being human? I hope you are able to see the paralell if or when you do take the time to read the AFC's Action Plan.
quote:Originally posted by Henry:
If you want to stop flight capital, you do what Mahathir did: capital and exchange controls. You make a rule, for example, that any foreign investment that enters the country must remain for a minimum of one year, to prevent what is called "motel money," money that comes in, does something sleazy, and leaves the next morning. Exchange controls means that you do not permit the buying and selling of the Guyana dollar on currency markets: the government sets a rate of exchange for each major currency, and anyone who wants to buy or sell Guyana dollars must abide by those rates, or go buy someone else's money. I would frankly be quite surprised if the AFC endorsed these policies, because the Brits would go bananas.
quote:Originally posted by Henry:quote:Originally posted by Mitwah:
Now with respect to your points 1 and 2 that you posited, how different are those of the AFC's Action Plan to breathe life back into Guyana's economy and to curb the flight of capital; the greatest assets being human? I hope you are able to see the paralell if or when you do take the time to read the AFC's Action Plan.
I haven't found anything like that on the AFC website. Perhaps you could point it out to me. I found ther-financing&catid=41:action-plan&Itemid=27" target="_blank">this, which I believe would tend to encourage speculation rather than suppressing it. Speculation is the cancer which has laid the world economy low.
quote:HENRY: 1. Drive the gangsters out of the financial system with Glass-Steagall, and
2. Use the new, useful financial system to channel investment into infrastructure, the technonological upgrading of the means of production, and improvements in the material and cultural well-being of the labor force.
This approach fostered a stunning resurgence of the US economy under FDR, and a very similar approach produced the German "Wirtschaftswunder" under Adenauer.
quote:HENRY: If you want to stop flight capital, you do what Mahathir did: capital and exchange controls. You make a rule, for example, that any foreign investment that enters the country must remain for a minimum of one year, to prevent what is called "motel money," money that comes in, does something sleazy, and leaves the next morning. Exchange controls means that you do not permit the buying and selling of the Guyana dollar on currency markets: the government sets a rate of exchange for each major currency, and anyone who wants to buy or sell Guyana dollars must abide by those rates, or go buy someone else's money. I would frankly be quite surprised if the AFC endorsed these policies, because the Brits would go bananas.
quote:Originally posted by Henry:
Baseman, you said you were in Thailand at the time of the military coup there. I am going to venture the guess that you were there as part of an IMF delegation, interested in crushing any resistance to IMF rule. But the really successful leaders are those, like Dr. Mahathir or Nestor Kirchner, that defied the IMF. The IMF, like Communism, is a failed and bankrupt system.
quote:Mitwah: I kinda remember an article about the use of LCDS funds. Perhaps you could post it.
quote:Originally posted by Henry:
Baseman, you said you were in Thailand at the time of the military coup there. I am going to venture the guess that you were there as part of an IMF delegation, interested in crushing any resistance to IMF rule. But the really successful leaders are those, like Dr. Mahathir or Nestor Kirchner, that defied the IMF. The IMF, like Communism, is a failed and bankrupt system.
quote:Originally posted by TK_REDUX:quote:HENRY: If you want to stop flight capital, you do what Mahathir did: capital and exchange controls. You make a rule, for example, that any foreign investment that enters the country must remain for a minimum of one year, to prevent what is called "motel money," money that comes in, does something sleazy, and leaves the next morning. Exchange controls means that you do not permit the buying and selling of the Guyana dollar on currency markets: the government sets a rate of exchange for each major currency, and anyone who wants to buy or sell Guyana dollars must abide by those rates, or go buy someone else's money. I would frankly be quite surprised if the AFC endorsed these policies, because the Brits would go bananas.
Excange control is now quite popular in many emerging markets. I don't know why you believe the British has anything to do with AFC? The Brazilians tax hot money inflows. Argentina and Chile also do the same. We have to distinguish between hot money and FDI. The AFC is unambiguous on the need for foreign investments. The party is also bullish on diaspora investments. No one will be harassed and discriminated against. No investor will be frustrated in the name socialism. We however have to guard against speculative inflows. Even the IMF is now in support of some form of guarded capital control. The only entity in Guyana that was exposed to this kind of investment - CLICO - collapsed. TK wrote a series of columns in the SN explaining this about a year ago - it was meant to explain why the Guyana $$$ has stabilized.
quote:Originally posted by TK_REDUX:quote:Mitwah: I kinda remember an article about the use of LCDS funds. Perhaps you could post it.
Unfortunately I cannot remember which article. Sorry!
And what on earth would make you say that?quote:Originally posted by TK_REDUX:quote:HENRY: 1. Drive the gangsters out of the financial system with Glass-Steagall, and
2. Use the new, useful financial system to channel investment into infrastructure, the technonological upgrading of the means of production, and improvements in the material and cultural well-being of the labor force.
This approach fostered a stunning resurgence of the US economy under FDR, and a very similar approach produced the German "Wirtschaftswunder" under Adenauer.
I happen to support that approach. I also think your interpretation of FDR is right. The repealing of Glass-Steagall was one of the first seeds to be planted that eventually led to the Great Financial Crisis of 2007-2009. So we are pretty much in agreement. This interpretation is pretty much consistent with people like Robert Reich and some other democratic party lefties. These guys however will not support the North Korea and Iranian government as you would do.
The solution is a return to the fixed exchange rate system of the original Bretton Woods agreements, before they were destroyed by the Nixon administration. We must create an environment where parasitical currency speculators are starved and destroyed.quote:Originally posted by baseman:
Henry, I don't fully support setting Fx rates as this leads to a a biforkation in Fx rates and the development of a parallel currency market. This has wide-reaching implications with currency flows occuring outside the system. The AFC will have a prudent market economy-based system underpinned by a pragmatic fiscal and monetary policy. This, as part of a sound macro-economic policy, is where the Govt's hand should be most visible. The Fx rates should be "market" driven. Whatever any Govt does, they should avoid policies which create viable arbitrage opportunities for an underground economy to flourish. Everyone loses, except the few in the underground and Govt control is effectively diluted.
quote:Originally posted by Henry:The solution is a return to the fixed exchange rate system of the original Bretton Woods agreements, before they were destroyed by the Nixon administration. We must create an environment where parasitical currency speculators are starved and destroyed.quote:Originally posted by baseman:
Henry, I don't fully support setting Fx rates as this leads to a a biforkation in Fx rates and the development of a parallel currency market. This has wide-reaching implications with currency flows occuring outside the system. The AFC will have a prudent market economy-based system underpinned by a pragmatic fiscal and monetary policy. This, as part of a sound macro-economic policy, is where the Govt's hand should be most visible. The Fx rates should be "market" driven. Whatever any Govt does, they should avoid policies which create viable arbitrage opportunities for an underground economy to flourish. Everyone loses, except the few in the underground and Govt control is effectively diluted.
quote:HENRY: The solution is a return to the fixed exchange rate system of the original Bretton Woods agreements, before they were destroyed by the Nixon administration. We must create an environment where parasitical currency speculators are starved and destroyed.
Deregulation of finance began in the 70s. Prior to that, there had been 40 years of stability due to the intelligent regulations instituted under Roosevelt. "Cycles" are a consequence of stupidness.quote:Originally posted by baseman:
There needs to be changed/modification to prevent such excesses. But again, something else would happen in 10/15 years. Remember te S&L crisis in the mid 80's.
Guyana is unfortunately a minnow swimming among sharks. If the world doesn't change, the prospects at home are not good.quote:Originally posted by TK_REDUX:
I will not jump on that dankey to be champion of the world when my house is not in order. Charity begins at home...as they say.
AFC is a remora.quote:Originally posted by TK_REDUX:
That is where the AFC comes in...we have no doubt we can circumvent the sharks and do better for the people.
Access to this requires a premium membership.