The $

Chris Burford cburford at gn.apc.org
Sun Aug 19 22:55:39 PDT 2001


At 19/08/01 20:49 -0700, Ian wrote:
>Dollar needs a soft landing, say economists
>
>Special report: global recession
>
>Charlotte Denny and Heather Stewart
>Monday August 20, 2001
>The Guardian
>
>Central banks must intervene to steady the dollar's decline against
>other currencies to prevent a meltdown that could threaten the global
>economy, two leading City economists warn today.

Another very interesting article. Couched in gentle, constructive terms, it suggests

1) global management of the exchange rates between the dollar, euro, and yen, by what would be a coalition of states, not necessarily led by the USA.

2) that euroland should become the "consumer of last resort".

The kindness expressed towards the dollar is a subtle attack on US leadership of the laissez faire process, by drawing attention to the inability of the USA to lead, at least at this moment.

The article looks an authoritative opinion, especially when it makes comments on the yen. HSBC as the descendant of Hong Kong and Shanghai Banking Corporation, would presumably not allow its global department to be less than perfectly informed on capital trends in east Asia.

Chris Burford

London



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