Thursday, October 16, 2008

you heard it here first: single global economic system

Just a few days ago, I mentioned how we have a collection of National banking systems failing to respond effectively to a Global crisis.

I have no doubt that economists have been talking about the reform or replacement of the collection of ineffectual loose agreements we have today for decades - the parallels to the League of Nations are overwhelming. But, today is when I saw the first remotely mainstream discussion of the subject - in the financial media.

I also have no doubt that any of the proposed changes will have any useful impact on the current crisis. This crisis is just getting started still, with house prices across the planet still excessively high and falling - destroying wealth and taking the economy of those invested in housing wealth and its derivatives with it (including the unfortunate Icelanders, who are talking about how they have 3 to 5 weeks of imported food left to eat before they have to figure out a way to convince somebody to accept their currency). It seems to me, the main function of any UN of the Economy should be to have the powers to keep individual nations from getting so wild and crazy in the first place to prevent this kind of thing from happening again.

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