Friday, November 28, 2008
Head towards the light...
...a silly analysis by a Chinese statesman. The Euro imposes "discipline" to the extant its members find it palatable to adhere to its rules (and so long as the "rules" are subject to political interpretation given changing economic and political climates)
The economic climate is changing...and so are the rules.
Its an interesting opinion, and one that marches lock-step with post-modern communist ideology. I care less about the outcomes political thinkers attempt to engineer (as they so often fail miserably to do so)...I care far more about their analytical and emotional processes that categorize these outcomes as "desirable". Utopia has always been an excellent outcome to engineer, but thinkers such as Plato, Thomas More, and Marx each used a different calculus in heading towards the light.
This line of thinking applies to the U.S. as well given the current administration and pending supermajority in congress.
The Recapitulator also sends his condolences to those affected by the actions of terrorists in Mubai. Sushil, be well.
Britain's efforts to hold on to sterling are doomed to failure in a global economy dominated by powerful currency blocs, said Hong Kong's leader Donald Tsang.
By Ambrose Evans-Pritchard, International Business Editor
Last Updated: 11:12PM GMT 27 Nov 2008
Mr Tsang, an elder statesman of Asian finance, said open trading states must adapt to the realities of modern finance.
"I do not believe in the sustainability of a small floating currency. Look at the pound, it's being attacked," he said in interview with the Daily Telegraph.
"The euro is a good move. People have to abide by the Maastricht criteria, so it imposes discipline. Other options are less palatable if you really want to become a big strong economic union."
Mr Tsang, the chief Executive of the Hong Kong Special Administrative Region of the People's Republic of China, is a veteran of East Asia's currency crisis of the late 1990s and the SARS epidemic. As a Beijing loyalist, he offers clues into the current thinking of the Chinese leadership. His comments on sterling are a warning sign that China may ultimately prove reluctant to buy large amounts of UK Treasury debt in the future.
Mr Tsang, as always wearing his signature bow tie, said it will be impossible for the Far East to launch its own currency union until China makes the renminbi convertible. This is not yet remotely on the agenda.