Re:“We urgently need much stronger international institutions" I'd more or less argue, in support of your thesis, that the global financial crisis, in fact, was a product of globalization - GATT/WTO liberalization of international terms of trade and services.Services includes not only IT but also what Clinton Admin pushed - under WTO - and got was international financial transactions (by push of a mause!) across national boarders. In other words, the global financial system finally superceded the concept of national-state and its inherent sovereign rights. The Asian financial crisis was a first class case of such a bissare laissez faire capitalism gone wild....Now, what will beat this financial meltdown of international finance and how? And is there a preventive policy available to avoid it in future? Strengthening of IMF/IBRD and other revlevant institutions, I fear, will NOT address the systemic core faillure of exisiting transactional system. What, in fact, will make it possible to avoid similar situations from arising - slow down process - is by enforcing statutory rules and regulations on operating financial centres - ie. Lond City - to forego their penchant for laissez faire capitalism. Preventive policy framework must include besides other things the final rejection of global derivatives (commodity) markets; hedge funds and investment banks. In other words, as long as we can't monitor and supervise these uncontrolled global transactions - by click of a mause - the financial markets will inevitably mushroom into another bubble and more.... That is the nature of the beast called *free market* capitalism. ECB must be allowed to setup transparent operating system for our financial institutions including banks that are too big to fail. And ECB must be made legally responsible to EP for its management of all financial transactions inside EU-27, thereby enforcing Euro/Single Market to be adopted by all current and future members - including Denmark.
I'd more or less argue, in support of your thesis, that the global financial crisis, in fact, was a product of globalization - GATT/WTO liberalization of international terms of trade and services.Services includes not only IT but also what Clinton Admin pushed - under WTO - and got was international financial transactions (by push of a mause!) across national boarders. In other words, the global financial system finally superceded the concept of national-state and its inherent sovereign rights. The Asian financial crisis was a first class case of such a bissare laissez faire capitalism gone wild....Now, what will beat this financial meltdown of international finance and how? And is there a preventive policy available to avoid it in future? Strengthening of IMF/IBRD and other revlevant institutions, I fear, will NOT address the systemic core faillure of exisiting transactional system. What, in fact, will make it possible to avoid similar situations from arising - slow down process - is by enforcing statutory rules and regulations on operating financial centres - ie. Lond City - to forego their penchant for laissez faire capitalism. Preventive policy framework must include besides other things the final rejection of global derivatives (commodity) markets; hedge funds and investment banks. In other words, as long as we can't monitor and supervise these uncontrolled global transactions - by click of a mause - the financial markets will inevitably mushroom into another bubble and more.... That is the nature of the beast called *free market* capitalism. ECB must be allowed to setup transparent operating system for our financial institutions including banks that are too big to fail. And ECB must be made legally responsible to EP for its management of all financial transactions inside EU-27, thereby enforcing Euro/Single Market to be adopted by all current and future members - including Denmark.
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