[Vnbiz] Ministries participate in fighting inflation

Fri Apr 11 07:53:58 PDT 2008

Anh Hoanh:

Do you see Phong as representative of the US government, is that the reason
for your preoccupation with the US government.  Or rather would it be a
rather trite rallying point around which you can manipulate imagery to
strengthen your perspectives in some quarters.                    Just
wondering?

US government and ITS problems are that the government turned its back on
the people to be the dumping ground of currency peggers where the media has
boggled the minds of the citizenry to be oveconsumptive, deluded morons as
lobbyists have riven the seat of government from the hand of the people and
placed it in the lap of the money-crazed financiers who expropriate the
wealth of the people for their own selfish benefit.  Have no fear as my
generation will take it back.

Next, there is neither an implicit nor explicit VALUE of the dollar.  In a
world not manipulated by central banks, currencies rise and fall.  Where
intervention in currency (and capital) markets has been a practice, we reap
the result which is excessive monetary growth, the reckless development of
overcapacity in some countries (and most industries within them) which
deprives other developing nations of their rightful share of value-added FDI
and productive capability (on purpose I might add), and increasing inflation
and recessionary (even deflationary) bubbles due to eratic capital flows
that result from these manipulative, yet purposeful, activities.  Movements
in Russia, and Venezuela, to bring the commanding heights of the economy
back under the control of national regimes might herald trends around the
corner were we not careful in addressing the root causes, not the root
misconstrued causes, of these problems.

In a balanced financially globalized world, peggers, as originally
envisioned, would spend thus helping other nations, like Vietnam, to grow.
Peggers are walking on dangerous ground and I am surprised that this level
of discourse has not raised more eyebrows (although perhaps some are raised
now, and I suspect, for all the wrong, cliches/reasons).  When a currency
goes out it must return for it to mean something.  Some may see mounds of
cheap plates, plastic bowls, DVD players, and Digital cameras as a benefit
(ie the US does consume too much, but not for the reasons you see, but
rather for the development of bridges and roads and skyscrapers in a few
select developing nations to the detriment of all and a much less fair
distribution of growth across the world).

In a system that benefits the wealthy, and a few select and privelaged
developing nations, do not be surprised at the eventual backlash that such
policies are leading to.

Might the continueed reliance on pegging be the cause of excess capital in
the US via the purchase of treasuries and other US assets which forced down
interest rates and pushed excessive housing speculation in the US?

Might such continueed pegging be necessary for a world productive system
which is predicated upon ever higher levels of consumption for its
conception of growth?

Might the Chinese and other peggers have actually provided the financing for
US operations in Iraq via such currency manipulation policies?

Were they against such operations, why would they continue to fund such
operations, but for that it benefited them, and few others to do so.  But I
thought that they were principled, that things were changing in this new era
of globalization, I thought that things were going to be different as weight
shifts East from West.  All I have to say is be very careful, as the
American people may wake up to the fact that piles of subsidized things
might not be worth what was written in the small print.

Without movement away from such manipulative free trade policies I suspect
the world might be surprised at a US that reindustrializes itself (after all
the US is the 4th most populous nation and there are plenty of lower skilled
Americans who could and would be able to work in factories).  Finally, I
suspect the world underestimates the willingness among Americans to "suffer"
for the greater and longer term good, despite desire by American elites to
maintain their privelages over the masses. An opposing argument is that
domestic consumption is rising in currency pegging nations, and I would say,
ex out capital investment, ie the continued growth in capacity development,
and exports, and where does that leave us.  It leaves us at very little
domestic consumption related to a recklessly disproportionate amount of
productive capability. Essentially an overly mercantilist adventure which
may just leave many marooned on a deserted island.

Exasperatedly,

Craig

Craig

On Fri, Apr 11, 2008 at 9:07 AM, Tran Dinh Hoanh <tdhoanh at gmail.com> wrote:

> [ Vietnam Business Forum ]
>
>
> Dear brother Phong & CACC,
>
> One minor typo in my previous message that may generate huge confusion.  I
> meant to say: "As far as I am concerned, the US government still don't know
> what to do with ITS own economic problem."  I implied that "experts" outside
> Vietnam think that they know Vietnam solutions more than a Vietnamese is a
> myth that must be dispelled.  If you are in Vietnam and learn economics,
> chances you are the best problem solvers for Vietnam economic issues.
> Vietnam has been among the best performers in Asia and there is no reason
> not to believe that Vietnam is now the best solution solver in Asia.  It is
> very natural that only the best performers may come up with the best
> solutions.  (And here is the leadership truth, when you have the best
> solution, most people cannot see the sense of your solution, because they
> are not the best; if other people can see your solution, then your solution
> may not be the best because you are just like them).  Trust me and trust
> your government in this crisis.  I want you guys and gals in Vietnam to be
> confident about our ability to be the best always.  And I promise you that
> when this entire dollar crisis is over, the world will see that the
> Vietnamese are the best performer in good times or bad times.
>
> Anyway, Brother Phong, I hope you do have a comprehensive solution for
> Vietnam problems.  Please, I'm all ears.
>
> Have a good day!
>
> Hoanh
> ________________
> On Fri, Apr 11, 2008 at 8:09 AM, Tran Dinh Hoanh <tdhoanh at gmail.com>
> wrote:
>
> > Dear brother Phong,
> >
> > I have heard you whine and complain all the time and not even one word
> > on how to solve the problem.  It would be beneficial for all if you have one
> > solution laid out on the table before earning the privilege to complain
> > about the entire Vietname government.   As far as I am concerned the US
> > governmentt still don't know what to do with this economic problems now ,
> > not mentioning its Department of Commerce. Please help us see.
> >
> > Have a great day!
> >
> > Hoanh
> >
> > On Thu, Apr 10, 2008 at 7:57 PM, <Hong-Phong_Pho at ita.doc.gov> wrote:
> >
> > > [ Vietnam Business Forum ]
> > >
> > >
> > >
> > > This house, then mud hut with tin roof, narrow escaped the regional
> > > conflagration that badly damaged the neighborhood then known as the Asian
> > > Financial Crisis.  Even before the smokes cleared, the more conservative
> > > among the firemen went on a victory lap, congratulating themselves about how
> > > well Vietnam fared.  The reality was that, since Vietnam was so unintegrated
> > > at that time that the financial contagion could not spread; there was no
> > > fuel for the fire.  That episode set back progress and reforms for at least
> > > a couple of years.  While the neighbors rebuilt and put in sprinklers,
> > > Vietnam was still trying to delay equitization of the banking sector, and
> > > lost valuable time for putting in place needed regulations for a healthy
> > > financial sector, as if the rope and bucket approach to financial
> > > fire-fighting is still acceptable.  (Former PM V V Kiet, in his report on 2
> > > decades of Doi Moi, outlined this back-and-forth struggles between those in
> > > Party who advocated stability and protection of the Party and those who
> > > would push the limit for more progressive changes.)  It took a few years for
> > > the progressive to gather forces and move forward again.
> > > Now, more than a decade latter, we have a decent wooden house that we
> > > can be justifiably proud of compared to the mud hut, and a couple of garden
> > > hoses for fire protection.  The time to plan for the fire is before it
> > > stated.  With an under equipped fire department, Vietnam can't afford to be
> > > self-satisfied and shouldn't be cheered on indiscriminently.  Moving back to
> > > mud huts isn't a very good options.  Building fire-safe brick houses will
> > > require stronger foundations, a proper municipal water system with enough
> > > pressures, large enough roads for fire trucks, fire trucks and fire fighter
> > > who know how to use foam to suppress electrical fires, and a thousand other
> > > things.  All of these take careful, plodding, planning, much resources,
> > > vision and leadership, a different kind of leadership than arriving at the
> > > fireline with a bullhorn to call on the entire neighborhood to line up with
> > > the ropes and buckets.
> > > Cheers,  HPP
> > >
> > > --
> > > Tran Dinh Hoanh, Esq., LLB, JD
> > > Washington DC
> > >
> >
>
>
> --
> Tran Dinh Hoanh, Esq., LLB, JD
> Washington DC
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