Former Federal Chairman Paul Volker recently interviewed by Charlie Ross at the PBS discussed sundry of topics from the US economy, global economy, global imbalances, the US banking system, emerging markets, US dollar, the Obama administration, taxation and etc...
Here are some excerpts on emerging markets and the US dollar:
``It’s pretty unusual but symbolic in the change of the world, instead of the emerging world being the hardest hit by this crisis, emerging world has been coming out pretty well. Now they’ve built out big reserves so they weren’t financially hit…
``But the growth in the emerging world is quite remarkable and amidst of this turmoil the emerging world together, you know, is like the United States in terms of the impact on the world economy, you couldn’t have dreamed of that 20 years ago, 30 years ago…
``It’s good, on the other hand, it is symbolic or more than symbolic of the relative, less dominant position the United States has, not just in the economy but in leadership, in terms of intellectual
``“I don’t know how we accommodate ourselves to it…You cannot be dependent upon these countries for three to four trillion dollars of your debt and think that they’re going to be passive observers of whatever you do.”
``They want to be at a table, but coming to table doesn’t create consensus.
``We will wanna import from China we will export to China, we gotta get more balanced relationship too but I don’t think that balanced relationship is inherently antagonistic…[Not a zero sum game] not at all
``But I don’t think no substitute to the Dollar now, unless we screw up and I hope we don’t, but that will the real danger for the dollar…
``The world needs a currency, the financial world is globalized, they are very much interconnected…
``It’s very convenient to have something that you can use right away for another payment and that’s what the dollar serves and that’s why people hold so many dollars…because it is convenient. And it is reasonably stable and convenient and useable and it won’t go away in a hurry."
Part 1 (if video won't activate pls click on the "part 1" link)
Here are some excerpts on emerging markets and the US dollar:
``It’s pretty unusual but symbolic in the change of the world, instead of the emerging world being the hardest hit by this crisis, emerging world has been coming out pretty well. Now they’ve built out big reserves so they weren’t financially hit…
``But the growth in the emerging world is quite remarkable and amidst of this turmoil the emerging world together, you know, is like the United States in terms of the impact on the world economy, you couldn’t have dreamed of that 20 years ago, 30 years ago…
``It’s good, on the other hand, it is symbolic or more than symbolic of the relative, less dominant position the United States has, not just in the economy but in leadership, in terms of intellectual
``“I don’t know how we accommodate ourselves to it…You cannot be dependent upon these countries for three to four trillion dollars of your debt and think that they’re going to be passive observers of whatever you do.”
``They want to be at a table, but coming to table doesn’t create consensus.
``We will wanna import from China we will export to China, we gotta get more balanced relationship too but I don’t think that balanced relationship is inherently antagonistic…[Not a zero sum game] not at all
``But I don’t think no substitute to the Dollar now, unless we screw up and I hope we don’t, but that will the real danger for the dollar…
``The world needs a currency, the financial world is globalized, they are very much interconnected…
``It’s very convenient to have something that you can use right away for another payment and that’s what the dollar serves and that’s why people hold so many dollars…because it is convenient. And it is reasonably stable and convenient and useable and it won’t go away in a hurry."
Part 1 (if video won't activate pls click on the "part 1" link)
Bloomberg has also an account of the interview here.
Part 2 (if video won't activate pls click on the "part 2" link)
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