[Marxism] Michael Hudson: The game is over
sartesian at earthlink.net
Sat Jun 21 10:26:55 MDT 2008
Think Hudson's point is that the Fed doesn't need to support an exchange
rate, and in fact, when the fat is in the fire, central bank interventions
in currency markets to support exchange rate levels are the proverbial gob
of spit in the wind.
And sectors of US economy have really been enjoying the dollar depreciated
export surge; particularly capital equipment exports.
Fed's interest rate policies are always geared to domestic conditions- kind
of a legal obligation on its part given its original mandate (which included
keep unemployment levels low).
Monetary and lending policies are something else again-- and the Fed and the
Treasury have shown their international "sensitivity" several times.
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