> As far as we are concerned it would be more progressive to have a central
> global bank which could be accountable. To whom it is accountable could
> then become explicitly open contested territory. If financial movements of
> a short term nature are so turbulent, (and really a form of insurance
> against risk which just makes the whole thing even more risky) why not
> propose for example a Tobin tax not at a modest 1% but at 5% or even 10%?
> This would generate central funds of the order of $1000 billion a year, and
> could plausibly stops stampeding finance capital, and might have some other
> uses.
>
> Chris Burford
>
> London.
Chris, did you take into account what would happen to Capital flows if the tax wasenacted. I think the volatility of Capital would go way down so the Tax would not raise the revenues you expect. Much of this Capital flow is based on true casino capitalism. Options, Futures, Derivatives .... Much of this would disappear. This is great but its also quite lucrative to the players who know how to play this game. You might deprive Citibank of its Major source of Revenue!
1. This always seemed a nice idea but a but Utopian, in particular who would enforce the tax. As I understand it, these days the US can't even get the German Central Bankers to agree to lower interest rates. There doesn't seem to be all that much Unity among international Capital. Given this is the case you might have to see the a credible threat of revolution or some such before this in in place. You are saying that Finance in the Industrialized World is lobbying to make the game more predictable and are in "agreement" on controls like the Tobin Tax. This would be very hard to believe. A good person to be queried on this is our Treasury Secretary secretary, after all he should no he is the ex-CEO of Goldman Sachs.
2. If you wanted an institution which could fulfill a credit monitoring function and a financial policeman, I wouldn't want an institution like the IMF which is cannot at present print currency and awaits handouts from the US and other developed customers to mainly bail out developed lenders. More convincing would be an institution like the World Bank which at least is Market Capitalized. See how much luck you would have in persuading the Industrialized world to cough up 5% of its Tax Revenues for the World Bank. Better yet simply allowing them to print currency! For heaven sake you can't even get Sweden and Britian to join the EU. This is a tiny step. Despite the rhetoric, world wide Capitalist Solidarity is probably not much stronger these days than Labor Solidarity.
--mike -- Michael Cohen mike at cns.bu.edu Work: 677 Beacon, Street, Rm313 Boston, Mass 02115 Home: 25 Stearns Rd, #3 Brookline, Mass 02146 Tel-Work: 617-353-9484 Tel-Home:617-734-8828 Tel-FAX:617-353-7755