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?