We're on the road again, this time to our nation's capitol. We have another wedding to attend and since the other set of grandkids lives in Va., this should be a fun trip. All of D.C. is atwitter of course. Seems thatin addition to us the World Bank/IMF annual is scheduled for this weekend. What that means is the price of hotel rooms and drinks goes up, you can't get a meal in a decent restaurant, every hire car for 100 miles around is taken and there are more working girls between 8th and 14th streets and up and down Conneticut Avenue than you can possibly imagine...working boys, too, if the truth be known.
Having a bit of time on my hands I though I would try to look up a few old buds to see what's really happening and report back next week, but we already know one amusing incident that is about to take place tomorrow. The Suit, following the lead of The Leader and the The Leader's brain trust, will announce that the U.S. of A believes that it is time that some of the old members of the IMF move over and allow greater space and voice to the newly emerging nations to play a greater role in the affairs of the organization. There is a very clear aim inplace here. This administration is all for "change" whereever they find it. It fits very nicely with the belief that we and others have been too big for our britches for some time now and the other benefit seem to be co-opting the Brazils and Indias of this world to "Join the club" and get China to revalue its currency.
I shall express no comment on this stupidity. I shall say, however, that I have never understood the purpose of the IMF since Bretto Woods went out the window other than to give cover to gutless politicians who, having screwed their constituants are looking for unpopular ways to right the ship and have the IMF that they can blame. Cutting the IMF down to about 50 people with two twlwphones and a copy machine seems to me to be the better option rather than packing the board with a whole new lot of recently minted importance.
Oddly, on the other side of town The Institute of International Finance is taking the exact opposite tack. You have heard of the Group of 20 have you not? This used to be the Group of 5, then 7, then 10 and now 20 of the most important financial nations. Well, it seems that the IIF has gotten it into it's collective head that maybe 20 is a tad unweildy and that it shoild be reduced down to about 7 again. The great part of the proposal is that they leave out Great Brittain who invented the Central Bank and a couple of other concepts that are with us today. I have no idea why but I intend to find out..not that it makes a damn bit of difference; the Group of 20whatever is a wonderful forum to get together, have a couple of drinks, great meals in the most expensive spots in the world--all on taxpayer expense mind you--and agree on absolutely nothing of consequence. It is useful for 19 of the members as it allows The Leader to make a fool out of himself from time to time which gives great amusement in these troubled times.
So there we have it: a movement to make one Tower ofBabble larger whilst across the street is the argument that large means unwieldy. You choose. Can't we all get along?
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Oh, the Japanese announced a change in their rate structure yesterday. Their target rate will no longer be 1/10 of 1% but somewhere between 0% and the afore-mentioned noumber. Huh? Nevertheless markets around the world surged as apparently people believe that this confirms the 'begger thy currency" policy of the entire world. Denny is going to make a fortune. The rest of us (me) are just going to sit around and slowly go mad. It's a beautiful day to travel.
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