Louis' Post article quoted Administration people blustering about how they're just waiting around for the inevitable failure of the scheme to show the rest of the world that resistance is futile. But what if this works?
seth ackerman
> -----Original Message-----
> From: Doug Henwood [SMTP:dhenwood at panix.com]
> Sent: Friday, September 04, 1998 2:02 PM
> To: lbo-talk at lists.panix.com
> Subject: RE: "Socialist policies will be revived"
>
> Carl Remick wrote:
>
> >Re Louis's quote from the WP: "... the dangers to capitalism
> shouldn't
> >be
> >exaggerated. So far, most of the government interference, including
> >Malaysia's, has been limited to the markets for money."
> >
> >The beauty part of this limited intervention is its potential to
> cause a
> >TOTAL change in social psychology. Now that the high priests of
> >"respectable" economics have ruled it's legitimate for governments to
> >meddle in the marketplace to save financial interests, it will be
> well
> >nigh impossible for them to maintain a vigorous argument against
> >government action to promote social welfare more directly.
>
> There are a lot of mutual funds, derivatives contracts, and offshore
> deposits denominated in Malaysian ringgit that are now effectively ,
> what?,
> inoperative? If a few more countries follow Malaysia's lead, not only
> will
> a lot of financial instruments be directly disrupted, the whole set of
> assumptions that have governed the financial world for the last 10-20
> years
> - of frictionless capital flows and currency convertibility - will
> have to
> be rethought.
>
> Doug
>