subing, Economist, Time

Henry C.K. Liu hliu at
Sun Feb 21 11:12:41 PST 1999

The Economist is somewhat more intellectual Time, which is not saying very much. The real different is that the Economist takes the European view which advocates globally coordinated monetary policies to combat economic crises through reflation. The Europeans are only about 6 months ahead of Greenspan/Rubin/Summers who are generally 18 months behind events. G/R/S, though intellectually honest, are prisoners of their free market ideology and must wait for solid data before yielding any policy postures. Solid datas are generally available 6 months after events and it takes another 6 months for intellectual arguments and another 6 months to make sure that the data were not just temporary flutes. By the G/R/S are always solving dated problems, kicking dead horses around, delaying pre-emptive measures. The current position of G/R/S is that while free market globalization is not perfect, all other alternatives are worse, paraphrasing Churchill on democracy.

The Europeans are not buying becasue they are beginning to see themselves as being next in line as victims. Much valuable time has been wasted since July, 1997. Severe structural damage has already been done to the global economic system by the G/R/S dictated IMF conditionalities. So in that sense G/R/S are correct about there is no alternative (TINA) that would be superior, at least for Americans. The time to kick start economies by easing individual monetary policies have long past and at any rate would not work without US support. The damage has been so severe that by now reflation is just deflation by a different means. In other words, either asset deflation or currency devluation, with no real aggregate benefit to the economy. But it has crucial difference to domestic politics in each nation as to who will have to pay more, subject to varying policitcal philosophy on government intervention and responsibility. That has been the Japanese dilemma The only people who still hold enough power and resources to save the world economy from a total collaspe are G/R/S, and they won't budge until the DJIA falls to 6000, or even then. The only hope is the global labor to unite and reserve the international division of labor of the past 2 decades that has caused all this problem. Just been watching George Will's interview of John Sweeny who states that labor's 2000 campaign strategy is to encourage the rank and file to vote labor issue candidates regardless of party affiliation. That is good news. It is the working people of the world against the investment bankers of the world.


pms wrote:

> >Most economists believe that a repeat of the 1930s is unlikely, if only
> >because people ought to have learned from their mistakes. Yet central
> >banks failed to foresee either the 1930s depression or the great inflation
> >of the 1970s. A big concern for the world economy may now be that central
> >bankers, having successfully scotched that inflation, will prove too slow
> >to come to grips with the prospect of deflation.
> >
> >
> This is what I like about The Economist, and BW. They will tell it like it
> is, instead of ideological posturing all the time, because in that famous
> long run, it's good for Capitalism.
> It is the absence of anything like the above in the Time article about
> Allie, Bobby, and Larry, that makes them anything but heroes.
> I was just playing, about the subscriber thing. Tass is the Tasmanian
> Devil. Dougdaddy's judgements are most excellent.

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