Wednesday, April 7, 2010

Some thoughts on economic and policy dynamics

IMO An EU "Common Market" (or even a simple EU Free Trade Area that some Euroskeptics want) means - needs common laws & a common democratic government.

Equivalently, IMO, global trade, economy & rules need a global democratic government.
Does the G20 have the political - democratic legitimacy to decide any laws or rules for participating members (not to mention non-participants)?

How come many/most Eurosceptics, especially those very concerned about sovereignty, for consistency, aren't also skeptic of the G20, WTO, any international agreement, plus SWFs?

A catch 22? US economic optimism rises after last Friday's job stats in the US and as a resut the price of oil rises!

Competition law and policy: Should the "relevant market" in some sectors today be the sum of 153 WTO member economies?

Policy: How does competition law apply in the financial markets - industry? a) National b) global?

Competition law is supposed 2 protect from big brothers in the markets. But what protects from big brothers in public policy?

Pseudo-dilemma: Big brother government or big brother biz?

The lessons of the 2009 world prices crises in oil and staple foods. It hiked up the cost of inputs and became an economic crisis. Then came the unrelated subprime led financial and then economic mega-crisis - tsunami! But let us not lose sight of that crisis and lessons from it:
IMO, it makes a case for national (or regional, eg EU or ASEAN) self-sufficiency in energy and basic foods. In other words, the ability of a country to not depend on imported energy (oil, etc) for its energy and basic nutritional needs.

IMO the US and European countries need to re-design their taxation systems and philosophy of taxation from scratch in order to fit the new systemics and adapt to this era.

Is free trade dead or in decline? IMO, no, because real (global) free trade has not been "born" yet! What we have these days is merely trade that more less un-free than 30, 60 years ago.
Plus as long as free trade and mobility of capital are not coupled with immigration freedom, system is unfair and unbalanced.
Plus IMO, an international - world trade and economic system that does not empower SMEs (small + med size companies) cannot enjoy world popular support. Thus, it has to empower them (see: redesign the system).
In addition:
Should the (old) political-economic theory that trade promotes democracy be re-examined in light of modern age data? As well as David Ricardo's "comparative advantage" theory?

In the US there is a lot of fuss re China's policy via its currency in the last decade (since WTO entry of China) and its effect on US exports and US jobs. My thought is: If one looks at Yuan vs USD vs Euro in 2001-2008 charts, what does one see, from an EU - Eurozone point of view?

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