[Vnbiz] June trade deficit down

[Charles Vo]

I agree.  There was just so much money in the system due to the foreign capital in the past years flowing into Vietnam.  The government did squat really in terms of curbing the money supply.  There was no sterilization of the additional dong added to the system.  I believe that this shock treatment that is happening to the system now in high interest rates has to continue into the foreseeable future until excesses are completely rung from the system.  This means many banks will have to close down.  Many businesses will close.  Just because the government can print money doesn't that they should haphazardly like Zimbabwe.  Vietnam has edged close to Zimbabwe territory.  Considering the Fed didn't raise rates, it's not a absolute necessity for the SBV to raise rates in July.  However, I would still raise rates.  I can't imagine what the carnage will be when the battered USD actually begins the strengthen during Obama's administration.  Count me out as one
 of the folks who thinks there is a global recovery right around the corner.


--- On Sat, 6/28/08, Duc Phamcao <ducpc83 at yahoo.com> wrote:

> From: Duc Phamcao <ducpc83 at yahoo.com>
> Subject: Re: [Vnbiz] June trade deficit down
> To: vnbiz at vietlinks.net
> Date: Saturday, June 28, 2008, 10:37 PM
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