Re: current events

[Doug Henwood <dhenwood@xxxxxxxxx>]

On Fri, 4 Mar 1994, Jim Devine wrote:

> any thoughts from pen-l on the following?
>
> (1) the L.A. Times business section today had an article suggesting
> that the Fed upped interest rates in order to pop a  developing
> speculative bubble in financial markets.

That may be. The central bankers have been emitting plenty of signs lately
that they're concerned about leverage, particularly hedge funds and exotic
derivatives. The front page of the new IMF Survey, for example, features
an article on the topic based on a study they published last summer.
Reading the Survey the way Kremlinologists used to read Pravda, that looks
very much like anxiety to me. Still, the lunatics in the bond market are
still worried about inflation (commodity and wage), and are pressing the
Fed for another tightening, and soon. They still think we're at or near
full capacity and full employment and that an out-of-control boom may be
underway.

>
> (2) The L.A. Weekly had an article (by economist Richard Rothstein)
> arguing that  Clinton wants to raise  world labor standards  (in
> line with ILO desires), i.e., upward harmonization.  The case in
> point is labor standards  in Indonesia.  Rothstein wants us to
> support Clinton's efforts.
>
Hahahahahahahaha. Does he have evidence for this, or does it rely on faith
in Clinton's inner liberal?

Doug

Doug Henwood [dhenwood@xxxxxxxxx]
Left Business Observer
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