Re: [OPE-L] Call in the reserves By Harold James

From: Rakesh Bhandari (bhandari@BERKELEY.EDU)
Date: Thu Dec 23 2004 - 19:43:11 EST


At 10:14 PM +0000 12/20/04, Paul Bullock wrote:
>Rakesh and others,
>
>I am a little bemused by the constant reference to Japan and then
>China's holding of dollars without reference to the 3rd largest
>holder Britain ( not much less than China), which also shares a
>creditor's risk. Which will of course explain why Gordon Brown was
>lecturing all and sundry on the dollar during his recent visit.
>

There is no "Orientalism" here, I do not think. Focus is on Asia to
the extent that  central banks  have much of the holdings and have
hitherto been manipulating currency markets. Many economists
(Roubini, Eichengreen) now warning that incentive to defect from this
defacto cartel is great, though this will have devaluing the assets
held by one and all. Prisoner's dilemma analysis. Moreover, to the
extent that US foreign policy is seen as less provision of collective
security than open self-aggrandizing imperialism, incentive for
defection rises.

rb


>
>Paul Bullock.
>
>
>----- Original Message -----
>From: "Rakesh Bhandari" <<mailto:bhandari@BERKELEY.EDU>bhandari@BERKELEY.EDU>
>To: <<mailto:OPE-L@SUS.CSUCHICO.EDU>OPE-L@SUS.CSUCHICO.EDU>
>Sent: Wednesday, December 15, 2004 11:42 PM
>Subject: [OPE-L] Call in the reserves By Harold James
>
>  >   Very strained argument that dollar depreciation may lead to new
>>  forms of state socialism. rb
>>
>>


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