Friday, October 14, 2011

Should the new global IMF-based rescue plan be welcomed?

For details, see:

Yes, such a plan should be welcomed, and I do welcome it.

However, the question is whether, by the time comes to implement the plan, emerging countries such as China, having their own problems with which to deal as a result of the current crisis, will have enough money spare to put in. Sphere: Related Content

1 comment:

Susan McAlister said...

Hello Prabhu,

I enjoyed your blog post. I won't be in Phoenix to hear you speak but I am grateful that you posted it on your blog for more to read. I wish you had a larger following in our country. As an "average American" I can tell you the uncertainty and disgust for the way things have been handled with our country's economy is ever present in my mind. My husband lost his job (software engineer) but is working on small contracts and trying to start his own business. I feel we are on the precipice of either economic disaster or a slow recovery. Watching the news is not encouraging. I agree with the points you have made. I am a conservative and a Christian. We met in England on your sons' Calaspia tour.
I have watched for years as our jobs have been sent overseas. Wondering how we expected as a nation to replace those lost jobs. (because they were manufacturing jobs, I could only assume they didn't want the pollution in our country and wanted cheaper labor although manufacturing in Am. has been cheaper labor historically.) I have watched how greed and loose lending regulations have created a housing market that was completely inflated and based on fairy tales. I am now watching a president ask for unimaginable amounts of money with no real plan for that money, with the continued fairy tale idea of creating new jobs merely by pumping money into the system thus devaluing the dollar further. While Bernanke keeps interest rates so low it instills further uncertainty.
I would like to know your opinion of a flat tax. It would cause the wealthy to pay more but it would lower the amount the poor pay and level out the middle class. It seems so much simpler and just to me, however as I said I am just an average American-home-schooling- mother. I am not an economist but a pragmatic reader of the Bible and it seems to me that wisdom is shouting but few are listening. I am thrilled that you are optimistic. I wish I were.
One of your twins asked me about what I thought of the 2008 presidential race and I said that Obama frightened me. He has succeeded far beyond what even I was afraid he would do. I do realize that Obama was not the cause of our economic downfall. I just think he is doing more damage every day he is in office. Obama has not instilled any confidence and until there is something on which the entrepreneurs and innovators can stand on, I do not see a recovery taking hold. I for one appreciate hearing what someone who is not in the middle of the situation has to say about it. I know you are a well respected economist and speaker in your own circles so I value your insight all the more.
Thank you,
Susan McAlister