Re: [gang8] Re: Monday's WSJ Front Page and pg 15-triumph of the

[Clifford Poirot <cpoirot@xxxxxxxxxxx>]

Henry, could you elaborate on what you mean by the distinction between
national banking and central banking, and when, where and how this switch
was made in Japan?

-----Original Message-----
From: Henry C.K. Liu [mailto:hliu@xxxxxxxxxxxxxx]
Sent: Tuesday, May 20, 2003 1:36 PM
To: gang8@xxxxxxxxxxxxxxx
Cc: pkt@xxxxxxxxxxxxxxxx
Subject: Re: [gang8] Re: Monday's WSJ Front Page and pg 15-triumph of
the


Yes Gunnar, and don't forget the BIS which singlehanded caused the
Japanese banking crisis by shifting Japan from national banking to
central banking, and made all the merits under national banking appear
as liabilities under central banking.

Henry

Gunnar Tomasson wrote:
> Re. the following:
>
>
>>So there we have it-the WSJ, the FED and the IMF warning us against the
>>dangers of deflation and frank admissions that falling prices don't bring
>>the economy back to full employment. It's as if I woke up on some bizarre
>>parallel universe where the WSJ excoriates Bush and the FED and the IMF
>
> take
>
>>the GT seriously. There's got to be a catch somewhere.
>
>
> Comment:
>
> A deflationary threat in a world awash in liquidity should signal to the
FED
> and IMF that, through their somnolent watch over the world financial
system
> in the post-Bretton Woods era, they have sown the seeds of Japan-style
> STRUCTURAL problems in the Global Economy.
>
> Gunnar
>
>
>
>
> ----- Original Message -----
> From: "Clifford Poirot" <cpoirot@xxxxxxxxxxx>
> To: <pkt@xxxxxxxxxxxxxxxx>
> Sent: Tuesday, May 20, 2003 10:36 AM
> Subject: Monday's WSJ Front Page and pg 15-triumph of the GT?
>
>
>
>>The front page and page 15 of Monday's WSJ are well worth a look and of
>
> some
>
>>considerable interest to Post-Keynesians. Here is a brief synopsis:
>>
>>"Caution: Tax Cuts Are Bigger Than They Appear in Budget" : While there is
>>some disagreement on this list over the desirability of tax cuts and
>>deficits, I don't think anybody on this list would approve of Bush's long
>>held strategy of using mirrors and gimmicks to redefine the size of the
>
> tax
>
>>cuts. This article pretty much directly accuses Bush of lying and
>
> hypocrisy.
>
>>"Newly Defined "strong dollar" Signals U.S. Shift": Now this one made me
>>almost burst out into raucous laughter and roll on my office floor-a
>
> "strong
>
>>dollar" policy is no defined by Treasury Secretary John Snow as "general
>>public confidence" and "difficulty to counterfeit". Perhaps it can be used
>>in Bounty commercials too-a comparison test between the dollar and the
>
> Euro?
>
>>Which one will hold up when wet...?. Again, clearly we have some
>
> differences
>
>>on this list about the advisability and meaning of the current dollar
>>devaluation. And again, regardless of what one thinks about this (I'm in
>>favor) I wonder why is the Bush administration resorting to redefining
>
> terms
>
>>rather than admitting what is going on?
>>
>>I think it is significant politically that a paper that has practically
>>become the Republican Party propaganda page, takes Bush to task (far more
>>than the NYT has been willing to do) for his verbal sleight of hand on two
>>significant economic issues.
>>
>>More interesting from a theoretical point of view is the FED's new found
>>concern on the problems of deflation "Having Defeated Inflation, FED girds
>>for New Foes: Falling Prices". Follow the story to page 8 where the IMF
>
> now
>
>>says we need to prevent deflation, rather than fighting it.
>>
>>So there we have it-the WSJ, the FED and the IMF warning us against the
>>dangers of deflation and frank admissions that falling prices don't bring
>>the economy back to full employment. It's as if I woke up on some bizarre
>>parallel universe where the WSJ excoriates Bush and the FED and the IMF
>
> take
>
>>the GT seriously. There's got to be a catch somewhere.
>>
>>
>>
>
>
>
>
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