Lord Turner, chairman of the Financial Services Authority, has signalled a regulatory crackdown on foreign exchange carry trades which he insisted served little or no useful social and wider economic purpose.
Here we go, trying to pick winners again.
The wise, the omniscient, the benevolent, dictator will make everything better for us. But where do we find such wise, omniscient and benevolent people?
Anyone got any bright ideas here? For I\’ve absolutely no idea at all how we sort through the millions upon millions in the country to find those few who know enough and are selfless enough to be able to do this correctly for us.
Just as one example, we\’ve a Prime Minister who we are told has saved us all by boosting Keynesian spending to prevent a recession turning into a depression. How excellent, chalk one up for the Great Man thesis of government.
But this very same man, as Chancellor, was responsible for over-spending in the boom years (yes, even Ritchie agrees here). When, under those same Keynesian rules, he should have been fiscally contracting he was fiscally expanding.
So even if we find people who are sometimes right, the power being bestowed upon them requires that they are always right: and how and where do we find such Gods?
For if we manage only to uncover those with feet of clay and yet give them such powers we\’re not going to be any better off than we are now, are we? Perhaps worse off in fact…..