[Vnbiz] Not on Vietnam but may shed light on the inflation debate....a readers rsponse from

Hong-Phong_Pho at ita.doc.gov Hong-Phong_Pho at ita.doc.gov
Wed Mar 12 14:43:12 PDT 2008


Dear Craig:
Thanks for posting the links.
Think of globalization as a zillion-piece puzzle that's not static (more 
like a three-D movie), and integration as on on-going process.  The WTO is 
but an evolving framework with basic rules to try to manage all the flying 
pieces on the economic front.  Globalization has been taking place since 
people from one tribe started to cross geographic boundaries to interact 
with others, whether or not peacefully. Setting up rules helps facilitate 
the interactions to make them more predictable and productive.  It's far 
from creating a single world market.  Even FTA are different from the 
integrated markets  like the EU.  I think of them as working on different 
corners of the puzzle that's part of the whole, just at higher 
"resolution".  Trading blocks proliferation doesn't necessarily contradict 
the WTO common denominator.
Greed is when the desire to have your own piece of the pie is taken to 
extreme, couple with the willingness to crush the desires and needs of 
others to have your way.  Greed can and must be regulated, not banned. But 
without the fire of entrepreneurship and the motivation of private 
ownership, things just don't seem to work very well economically for most 
people in society (except for the very few at the top whose greed is 
unregulated).
Best,  HPP




"Craig Stevenson" <cstevenson2000 at gmail.com> 
Sent by: vnbiz-bounces at mail.saigon.com
03/11/2008 03:39 AM
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Re: [Vnbiz] Not on Vietnam but may shed light on the inflation debate....a 
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[ Vietnam Business Forum ]

Dear Phong:
 
I will post the links to the podcasts as soon as I have found them and you 
can review the perspectives of those more knowledgeable than me.  In 
addition to the points on Silica, they discuss options and the absolute 
futility of one single, even that all possible options well planned might 
not even being enough, certainly isn't enough at current levels of 
technology.  Transmission of energy is the key .
 
One major question is that if the world is moving toward free markets and 
globalization is creating a single world market then why has there been a 
proliferation of regional trading blocs? 
 
(certainly different forms and levels of integration, but nonetheless is 
more the trend where the WTO is but a baseline of trade integration and 
even an FTA a higher level of commitment to speak nothing of customs 
union, common markets, and monetary unions)
EU
NAFTA
ASEAN
Mercosur
GCC
 
 
WTO = the lowest common denominator and not nearly as special a 
relationship as those listed above
etc....
 
Might it be that the vision of market supremacy has changed will change 
where there is such intervention in markets.  Might it not be better were 
development, and primacy of trade relations be conducted on a bio-regional 
scale?
 
These are the questions which I believe will rise in importance as we move 
forward.  If there is one-thing that I have learned over the years it is 
that common consensus rarely results in actual manifestation of that 
conceded; ie things rarely turn out to be as expected.  Wild Cards, 
Alternative Futures, an human expectations all shape what is coming. 
Excuse me for believing my perspective right, but I have been proved right 
too many times over the last 15 years.  As always, perhaps, my persepctive 
is wrong, I just don't think so and hear few arguments that convince me 
otherwise.  Finally, I do not think greed is the admirable quality (that 
should be) driving the development of man. 
 
Craig
 

 
On Mon, Mar 10, 2008 at 8:22 PM, <Hong-Phong_Pho at ita.doc.gov> wrote:
[ Vietnam Business Forum ]



Dear anh Craig: 
It goes without saying that governments will try to intervene, some more 
than others, some only as necessary, others much more than necessary. 
Between the two extremes of command and market economy, I think we can 
generally agree and which one works better at generating wealth.  As to 
distribution, it's academic if all you have to spread around is poverty. 
Vietnam is still recovering from economic commandism, that's why I try to 
steer clear of any suggestion to have the government engaged in such 
direct interference.  I am not oblivious to pressures you mentioned. 
Vietnam is already restricting rice exports to help ensure food security. 
Subsidize rice prices if you have to by discharging reserves.  Subsidizing 
fertilizers for farmers as necessary. 
Dear anh Hoanh: 
So much for "All private companies have to do the same thing to "pass-on 
the saving" to the customers if they want to stay in business for a long 
time."? 
So why won't the U.S. government just take all the "windfall" profits from 
the U.S. oil companies and give U.S. consumers a break on gas price? 
Instead, between local and federal taxes, gas prices are even higher than 
charged by the oil companies. 
You talk about US still subsidizing oil companies.  Do you know what these 
subsidies are for and why they are in place? 
Yes, supply and demand still work, even in this environment.  Oil 
companies took big risks for big returns. 
Best,  HPP 

P.S.  Insolation favors countries closer to the equator.  Silica is sand, 
among the most abundant resource on earth.  Scientifically, we are not 
there yet for photovoltaics, so solar will have to be one a among a number 
of alternative energy solution.  HPP 



"Tran Dinh Hoanh" <tdhoanh at gmail.com> 
Sent by: vnbiz-bounces at mail.saigon.com 
03/09/2008 09:39 PM 

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Re: [Vnbiz] Not on Vietnam but may shed light on the inflation debate....a 
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[ Vietnam Business Forum ]

Dear anh Craig & CACC, 
 
What you said about alternating price support and 
alternative-energy-research depending on economic conditions makes good 
sense.  We ought to think about that seriously.  The world is so depending 
on oil that world politics is so messed up due to oil.  Eventually we will 
run out of oil anyway.  I think the world will be much more balanced if 
solar energy becomes a main source of energy.  It will be a great 
equalizer, just like Internet, because, with little variation here and 
there,  the sun very much shines equally on all countries. 
 
BTW, I wonder if there is any alternative energy research currently in 
Vietnam?   Does anyone know the answer? 
 
Have a great day! 
 
Hoanh

On Sat, Mar 8, 2008 at 1:40 AM, Craig Stevenson <cstevenson2000 at gmail.com> 
wrote: 
[ Vietnam Business Forum ]


Dear CACC: 
 
Frankly, aren't oil reserves for VN nearing elimination.  Without 
resolution of the Spratley's (Sorry I do not know the VN name) crucial to 
any real further discussion of this.  Really, despite high costs at 
present shouldn't we be discussing taxes to be used for other generation 
of enrgy resources, alternatives.  Subsidy might lessen the blow to the 
consumer which is important to offset wage increase demands and perhaps to 
subsidize fertilizer to farmers etc to offset domestically produced food 
costs for the same reason.  Any talk of subsidy should also speak of taxes 
in the same manner marked to prices in the market.  Perhaps, oil rises and 
subsidies kick into place, oil falls and subsidies lessen or taxes kick in 
at certain prices which go earmarked to an energy indepndence fund, etc... 

 
Phong, in all reality, wouldn't current events seem to imply that the 
concept that "markets rule and should rule" is undermined to the very 
large imbalances in a world economy that isn't actually, fully dependent 
upon market forces.  All intervene in every market to varying degrees. 
Further, it might be that the curent "market-supremacy model", built 
for/from political expediency in an era of the cold war, that currently 
philosophically reigns, might not actually be relevant, or lasting, in a 
world where, despite how we (would, might) prefer it be, doesn't exist in 
reality.  A peg distorts the market, as does a tax, as does financial 
globalization, inequality, interdependence, and speculation unfortunately. 
 Might it not be that neither Hayak nor Keynes is right.  Of course 
neither should VN reutrn to a command economy, especially after the 
distribution of wealth effects of late, nor should it blindly follow a 
market rules philosophy. I believe the world misunderstands  the nature 
(and certainly misjudges the implications) of the fundamental shifts that 
could occur quite quickly do to global imbalances and I guarentee possible 
movement doesn't likely tend toward free market liberalism. 
 
Craig 
On Sat, Mar 8, 2008 at 12:39 AM, Tran Dinh Hoanh <tdhoanh at gmail.com> 
wrote: 
[ Vietnam Business Forum ]


Dear brother Phong, 
 
Oil will never be a "market economy."  At least not in our lifetime.  Oil 
is a global monopoly.  Oil price is a monopoly price determined by OPEC. 
So the price of oil is not really ruled by supply and demand of a market 
economy. 
 
That is why in a year when the American citizens paid exhorbitant prices 
for gasoline and gas price rose continuously (and still rising as of now), 
Exxon had a 41-billion-USD profits in 2007, the largest profit in the US 
corporate history.  Four largest oil companies had more than 100 billion 
USD of profit in 2007.   
http://www.usnews.com/articles/business/economy/2008/02/01/exxons-profits-measuring-a-record-windfall.html 

 
And the US government is STILL subsididing US oil companies. 
 
Vietnam oil is controlled by two monopoly arms in import and export.  And 
the monopolies won't go away anytime soon because of the important role of 
oil in the national security and economy and becasue the monopolistic 
nature of the global oil industry. 

So any talk about "market economy" and the law of supply and demand in oil 
is unrealistic.   It is "supply and demand" in a distorted and 
monopolistic environment.  What we need to do is to understand the 
monopolistic character of oil industry to structure production, 
distribution and pricing in a way that is fair and good for citizens and 
the national economy, and not to allow absurd things happen like in the 
US--the government subsidizing oil companies, and in a year when citizens 
pay rapid price increases, oil companies post record windfall profits. 
 
Have a great day! 
 
Hoanh 
 
 

-- 
Tran Dinh Hoanh, Esq., LLB, JD
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