Thursday, May 07, 2009
asian monetary fund
The “Asian Monetary Fund,” so passionately derided by Summers and Geithner at the time, is back. There is little a crisis-plagued U.S. can do to stop Asia’s $120 billion foreign- exchange reserve pool. Its creation is the clearest sign yet that Asia is getting serious about combating the global crisis. Done right, it will bode well for the region’s outlook. ...
Their concern was that it would eclipse the IMF in the region and, by extension, the U.S.’s say in how Asia retooled economies. They feared doling out billions of dollars in aid with few policy-change strings attached would prove dangerous. And they got their way. That changed this week.
[T]he West is weak, particularly the United States. No one from the IMF is dictating terms in Asia today. Nor will they for the foreseeable future. The die is cast. The United States badly overplayed its hand in the 1990s. Asia senses it is weak, overburdened with debt and depression. This is therefore their opportunity to break free and I believe Asia will use it.
whatever else the crisis may be, it is facilitating the shift of global economic power from the west to the east. that shift has long been in the cards as manufacturing capacity and foreign exchange piled up in eastern capitals while a burgeoning middle class began to emerge around them. now real operational control of the global economy is following.