Sunday, June 11, 2006

 

Open Sunday Thread

A reader suggested an open topic thread for this Sunday afternoon. "Can we have an open Sunday thread?"

Comments:
Okay, JL2, you asked for it, you got it (thanks to Ben). Now, what do you want to do with it? ;-)
 
I've written a note about how the US Dollar can remain the world's reserve currency but at a lower level in terms of relative exchange rates.

If interested, you can find it here:

http://halalmoney.blogspot.com/2006/05/evil-thoughts-1.html
 
Here's something from a Bloomberg editorial:

'Surprise interest-rate increases in South Korea and India last week were reminders of an inconvenient truth: The era of easy money in Asia is over.'

'In recent years, Asian central-bank policies provided generous doses of liquidity, keeping borrowing costs low and putting a floor below stock prices. Until now, loose monetary policy worked marvelously.'

'The strategy may have run its course now that inflation is accelerating. On top of pressures on wages and property values, Asia is grappling with the fallout from high oil prices. More and more, their effects are seeping into consumer prices.'

'The question is whether Asia's economies are ready for tighter credit conditions.'
 
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