[Marxism] Michael Hudson: The game is over

S. Artesian 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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