Woolly Wullie

Mr. Hutton again:

Brown should also go back to Bretton Woods basics. He should propose the end of floating exchange rates and argue for a system of managed exchange rates between the euro, dollar and yen to bring back more predictability into the system. The American, EU and Japanese governments would undertake, as in the first Bretton Woods, to take whatever economic action is needed to maintain stability between their exchange rates.

Yup, we need fixed exchange rates again. So that we can then impose capital controls to make sure that they\’re not destabilised, so that interest rates have to bounce around to maintain them, so that we can force deflation upon an economy to maintain them…..and of course, no speculator has ever grown rich by breaking such systems now, have they?

Exchange rates are simply prices and like any other price they are best discovered by the market.


And having led the way in requiring banks to recapitalise themselves, he should now block Barclays\’s plan to do so with very expensive sovereign wealth fund cash, a proposal that is scandalising Barclays customers, shareholders and other Western governments. Banks everywhere are wondering whether they should follow Barclays\’ behaviour and focus on repaying government funds fast, so undermining the entire global recapitalisation exercise and prioritisation of new lending. Instead, Barclays should be obliged to take government cash like the rest of the banks.

I\’m not sure there\’s a possible comment to add to this except What The Fuck?

5 thoughts on “Woolly Wullie”

  1. So are Barclays shares diving- faster than those of say HBOS, RBS, Lloyds? are customers switching accounts to the aforementioned three, are borrowers borrowing elsewhere to get clear of Barclays? If so then doubtless Barclays will be forced to reluctantly accept public money- otherwise one has to conclude that shareholders and customers are happy. It isn’t the business of anyone else other banks or other governments, unless and until they actually buy a share of the company.

  2. If Hutton’s latest funny turn becomes Brownian policy, the traitorous Delusional One will take us into the Euro. You heard it here first. This lunatic has got to be /jailed/hanged/ stopped. Hutton, I mean. Oh – all right, then – Brown, too.

  3. When governments undertake to fix exchange rates, they – or the taxpayers ultimately – will pay the costs when it breaks down. When rates float, the businessman choosing to trade internationally knows his exposure and protects himself. If he doesn’t he loses, we don’t.
    Sound a no-brainer to me.

  4. Willie is upset that Barclays told HMG to fuck off. Barclays prefers the slightly more costly funding option so that it can retain its freedom to set corporate pay. After all, the managers of B. could legitiimately argue that they did not push the bank into the sort of mess that has engulfed other banks, so why should they lose their commercial freedom of action?

    Hutton is just sore that a few banks have told the state to mind its own business. He’s nothing more than a socialist ideologue.

    Tim, I have a question for you: if Hutton really is as retarded as his comments suggest, how in God’s name does this man hold down a day-job?

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