Friday, 19 June 2009
The Serpent Ssssssspeaks
Either Peter Mandleson does not know which is sadly plausible or he is lying through his teeth. (Do snakes have teeth?)In todays WSJ he argues that the banking crisis reveals the weakness of nation-based regulation. What nation based regulation would that be? He knows full well the FSA is an EU inspired institution enforcing EU directives. Furthermore, the rules regarding mark to market (the culprit in the freezing of interbank lending) come from the Basel2 Accords which are internationally adopted rules including the United States.
International regulation has caused much of the crisis and yet their answer to the probelm is yet more regulatory integration. This is what North senior refers to as the beneficial crisis. Create a crisis, blame the nation, confiscate more power.
Is it possible to preserve the benefits of open trade and an open global economy, addressing macroeconomic risk while totally respecting the choices of sovereign governments?Mustn't have nations acting in their own interests. New world what you say?The answer has to be: not really. No government in the global economy, and certainly not economies on the scale of the U.S., China, Japan and the European Union, can claim a prerogative over domestic action that entirely ignores the systemic affects of its policies. The only way forward is a totally renovated approach to international coordination of economic policy.
| Letters from Limbo: The Serpant Ssssssspeaks By North In todays WSJ he argues that the banking crisis reveals the weakness of nation-based regulation. What nation based regulation would that be? He knows full well the FSA is an EU inspired institution enforcing EU directives. ... Letters from Limbo - http://peteslettersfromlimbo.blogspot.com/ |
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