edzry
Junior Member
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- Aug 12, 2010
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pengurusan local withdrawal dan deposit yang pantas oleh tuan jai...
Jom..RATE terbaik 3.2/3.0 sahaja..apa tunggu lagi kan ?paid
memang pantas moshed
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pengurusan local withdrawal dan deposit yang pantas oleh tuan jai...
Jom..RATE terbaik 3.2/3.0 sahaja..apa tunggu lagi kan ?paid
harap2 akaun aku aprove hari nie...apply kamis malam jumaat aritu..... sebab broker nie jer terima paypal...
Apsal tak dapat masuk trader's cabinet pulak ni?...dari semalam lg..#:-S
Leaders at the Group of Twenty meeting in Korea made several important steps toward guarding the still-fragile global economy; a framework for realigning trade imbalances and a pledge to refrain from competitive devaluation (a currency war).
Perhaps more important is what was left unsaid. Since August 27, when Fed Chairman Ben Bernanke first intimated that the Fed was willing to provide more liquidity in the form of a second round of Quantitative Easing (QE2), the subsequent depreciation of the dollar has caused an enormous amount of capital (hot money) to flow into the rapidly expanding emerging economies, a situation that works to appreciate the local currency and to increase the risks of asset bubble formation.
For example, the Korean won has gained 7.6% over the last 3 months while the Malaysian ringgit and the Thai baht have risen by 11% and 12% respectively this year.
According to the Institute of International Finance, net private capital flows to emerging Asia were forecast to reach more than $270 billion in 2010 and as much again in 2011 even before Mr. Bernanke indicated his willingness to print. The World Bank said in June that such inflows of capital were posing a growing risk to East Asian macro-economic stability.
Aside from interventions in currency markets, some countries (notably Brazil) have recently implemented controls on capital in an effort to stanch the inflows. Such controls can take the form of taxing foreign investment in government bonds, for example.
So while it appears, at least for now, that an agreement has been reached in terms of refraining from competitive devaluation, by not mentioning capital controls the G-20 communiqué still leaves the door open for the emerging market economies to react to these dangerous inflows (which are due in large part to the Fed’s new willingness to start printing dollars again) by using them.
This situation regarding capital controls is exactly what is wanted now by the Fed and the Treasury. Here’s why:
QE2 will be of little use to the U.S. economy if these enormous capital flows, in a search for yield and return, persist towards the emerging markets, which is exactly what would continue to happen as QE2 becomes a reality in the absence of capital controls. The idea, then, is to somehow encourage as much of the liquidity that the Fed will create to circulate within the U.S. as possible, and that is where controls on capital flows by foreign governments will come into play.
The difficulty is that normally, rising interest rates and an appreciating currency is the recipe for attracting domestic and foreign investment, two ingredients which are likely to be in short supply as the Fed cranks up the presses (an important reason why, no matter what, the policy of the U.S. will be to have a “strong dollar”). For this reason, the Fed will need to create inflation, or at least the expectation of higher inflation, in order to attract net capital flows away from the emerging markets and into the U.S.
A test of these ideas could be forthcoming as early as this week because South Korea is expected to enact some form of tax on foreign investment.