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It's worth noting also that "mercantalist" policies were a direct and conscious reaction to the actions of the IMF during the Asian currency crisis.

There was a firm determination across Asia to build reserves such that they would never be dependent on the corrupt Washington consensus IMF ever again.

by Metatone (metatone [a|t] gmail (dot) com) on Wed Jun 18th, 2008 at 05:41:43 PM EST
That's an interesting point.

When the capital development of a country becomes a by-product of the activities of a casino, the job is likely to be ill-done. — John M. Keynes
by Migeru (migeru at eurotrib dot com) on Wed Jun 18th, 2008 at 05:42:51 PM EST
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is that the lesson they learnt from "do not be a debtor" was "be a creditor", rather than "have a balanced position", and they are going to be fucked a second time (this time by inflation that will wipe out the value of their reserves).

But you're right on where these policies came from: it's just that they pushed them to the other extreme, which is not healthy either.

In the long run, we're all dead. John Maynard Keynes

by Jerome a Paris (etg@eurotrib.com) on Thu Jun 19th, 2008 at 04:30:38 AM EST
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