Will MOAB Trigger Protectionism? | 83 comments (83 topical, editorial, 0 hidden)

Re: Will MOAB Trigger Protectionism? (4.00 / 4)

In general, the coexistence of floating currencies and free flows of capital appears to create great instability with tsunami waves of cash flowing hither and tither in response to some crisis or other. A Tobin tax on capital/flows/currency exchanges as well as onshares/cdos etc. purchases would have the effect of dampening such huge speculative flows whilst not ultimately restricting real long term investments made on rational grounds.

It would also have the effect of raising huge revenues as a form of "ground rent" payable in return for the huge privileges the global financial system confers on the major players and ultimately do a lot to ease public deficits. This is an area where the EU and US under Obama could really take a lead. It is not complex to administer, doesn't require a huge bureaucracy, doesn't ultimately create barriers to real trade, and provides a mechanism for those who benefit most from the system to pay for its maintenance.

notes from no w here

by Frank Schnittger (mail Frankschnittger at hot male dotty communists) on Tue Jan 13th, 2009 at 08:58:30 AM EST

Re: Will MOAB Trigger Protectionism? (4.00 / 3)

Frank Schnittger:

A Tobin tax on capital/flows/currency exchanges as well as onshares/cdos etc. purchases would have the effect of dampening such huge speculative flows whilst not ultimately restricting real long term investments made on rational grounds.

A Tobin tax is impracticable in a global clearing system with consolidated clearing,layers of intermediaries, and disparate jurisdictions which regard lax regulation as a competitive advantage.

In a decentralised networked clearing system, within a suitable global framework, on the other hand, it's a no-brainer.

"The future is already here -- it's just not very evenly distributed" William Gibson

by ChrisCook (cojockathotmaildotcom) on Tue Jan 13th, 2009 at 11:49:58 AM EST
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Will MOAB Trigger Protectionism? | 83 comments (83 topical, 0 editorial, 0 hidden)

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