[Vnbiz] Ministries participate in fighting inflation

[Vu The Binh]

Dear a. Hoanh, Craig et CACC,

Just to have something to chip in.

Keeping faith in the government is not a bad thing. You can see that all 
local investors for the stock market did those thing and waited for 
government solutions: to "rescue the stock market".

But in the grass root level, I'm surely that at least 51% of the people 
don't care about what the government "say". (emphasized here: say). The 
people care about what government "do".

Alright, the ministries will try to make projects more effectively, such 
as cutting the small ones, or the ones which are related to low-level 
officers. Then it will effect to the enterprises here, where many 
businesses depend to the government funded projects/expenses.

OK, the reality is income of ordinary state employees is 150$ on 
average, it's not enough for buying water, rice, electricity, gas. They 
need to be survived.

OK, government can say nice things. People knows the way to deal with 
inflation, as they have to do that, no other choices. If the inflation 
of 2008 is under 20%, I can buy you a beer, when you have chance to 
Hanoi, a. Hoanh. (Surely that I hope I don't have to buy that ;-)

It's not a discussion, just to share some thoughts.

Have a nice weekend,

Binh.


Tran Dinh Hoanh wrote:
> [ Vietnam Business Forum ]
> 
> 
> 
> ------------------------------------------------------------------------
> 
> Dear anh Craig,
>  
> The reason I mention about the US government is that I am familiar with 
> the US government's work and ability (and I can't say much about Europe, 
> because I am not knowledgeable enough about Europe).  Nothing against 
> the US government in particular.  I can only talk about things and 
> places I feel competent about. 
>  
> My problem is that most of the time, people think and work under the 
> assumption that governments and experts from advanced countries know 
> that they are doing, so if you are in a developing country, your best 
> shot is to simply follow international experts, (be they World Bank or 
> ADB or whatever).  And every time a developing country does something 
> that is not what the experts want in general, the immediate reaction is 
> that "they are reverting to the old Commie days"  or "The conservative 
> soliciasts are back" or "They are so behind the time, with straw-mud 
> huts ."  (There are all real examples).
>  
> Mind you, I happen to believe that only the homeowner knows exactly what 
> best for his home.  Experts are there for consulting works, but the 
> homeowner must be able to make his own decision for its best interest.  
>  
> In my own experience, when you come up with a truly outstanding 
> solution, chances are all the experts will go against it or dismiss it 
> as nothing so outstanding. Most experts will come up with averagely good 
> solutions, not outstanding solutions.  I just want all our brothers and 
> sisters to be confident in our own ability to excel and confident in our 
> own work, even in the face opposition from many.  When we solve a crisis 
> situation, we don't have the luxury of being shaky. 
>  
> My experience is that whenever you have a truly outstanding solution, 
> most people will not be able to see it, just because it is truly 
> outstanding.  Most people can only see average mainstream solutions.
>  
> Through this dollar crisis, I have discovered so many outstanding minds 
> int he Vietnamese government.  Their solutions may not be understood 
> deply enough for others, but in my judgment is the best solution for 
> Vietnam, considering everything going around the region and the world, 
> and the future.  I am very confident about that.  Whoever have doubt, 
> just please mark my words and watch how things will play out gradually. 
>  
> One interesting thing about all this is that the entire nation has been 
> switching their mind to the mood of fighting a war.  That is the best 
> Vietnamese operation mode I have always hoped to see.  We Vietnamese are 
> displaying to the world how good we can be in fighting a war, including 
> a war against inflation and a worldwide recession.
> We will solicit advices from experts, but we will come up with our own 
> solutions.
>  
> I haven't got a chance to go over the technical content of your message, 
> Craig.  Please give me some time.
>  
> Have a great day!
>  
> Hoanh 
> On Fri, Apr 11, 2008 at 10:53 AM, Craig Stevenson 
> <cstevenson2000 at gmail.com <mailto:cstevenson2000 at gmail.com>> wrote:
> 
>     [ Vietnam Business Forum ]
> 
> 
>     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    
>      
>     -- 
>     Tran Dinh Hoanh, Esq., LLB, JD
>     Washington DC 
> 
> 
> ------------------------------------------------------------------------
> 
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