Tuesday, December 9, 2008

Socialism equals pragmatism???

It is really upsetting that despite the kluster screw up of the US the USD stays the main reserve currency. It is perceived as the save haven, which fundamentally does not make sense. It is purely an issue of market dominance I find.
How else would it be possible that the Treasury can sell debt at such discount prices?
http://www.ft.com/cms/s/0/fe71a61e-c585-11dd-b516-000077b07658.html

And once everyone has loaded up on dollars they will cut their debt down through inflation. I would find some Asian currencies like the Singapore dollar a much saver bet. Fundamentals are much stronger and those economies benefit much more from the falling commodity prices.
http://www.financeasia.com/article.aspx?CIaNID=90696

Socialism is now sold under the word pragmatism and every leader who does not pour out money is considered heartless and stupid. Yes, I admit that is what socialists always say about people who think differently. But this time the argument comes from people of whatever couleur as long as it means an expansion of power. My respect for Germany's chancellor Merkel who does not fall victim to herding (just yet).
http://www.iht.com/articles/2008/12/08/business/summit.php

Bail out in comparison - great article
Bankers in the US are not squeezing their banker friends to badly it seems.
http://www.investmentnews.com/apps/pbcs.dll/article?AID=/20081207/REG/312089971/1009/TOC

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