[quote=patb]it does mean a regulator does need to make sure
that if a country or it’s private parties borrows in
foreign currency, there is a limit to it, or that
it’s driven by business deal not as currency speculation.
[/quote]
We know what the regulators should do, patb, but how do you set up a system that ensures they do it?
For example, we are borrowing large amounts from China with no repayment plan, and we’ve been doing it for some time. That money was pushed back into the US economy, and showed up as ever more inflated asset prices bought on borrowed money.
What are our newly energized regulators doing to stop this unsustainable craziness? Pushing for more and cheaper loans, and resisting drops in inflated asset prices. And vastly expanding their powers to do even more of it. So regulators doing MORE isn’t always the solution. What we need is a system that gets regulators to do the RIGHT things.
