29 June, 2011

BIS report out as of two days ago...

And I almost missed it.


This is a very interesting report to come out right now.

I have admittedly not read all of it, and I became aware of it only via the Economist. But I think the BIS should continue its path, and not waver until a more clear direction can be followed. Because at the moment, nobody knows where to go. I have a slight incling, but I am neither an economist nor a political science person, so... what do I know? Well...

This is my diluted, Economist commented viewpoint:

I don't think you can switch to the rules of the New New Economy overnight. A drip feed is still necessary, until new models emerge and people are able to make more sense of what is occurring right at this moment.

But by backing the proverbial straight and narrow, the BIS is indeed doing its job. That is what it is there for. To rein in whoever it feels needs be reined in.

I feel it is the ECB that needs to be reined in. It is the more politically invested of the two bodies, in that sense. But it has as its goal to preserve the euro, does it not? Or am I mistaken? And that is not necessarily what is best for the European economy as a whole, and as a political entity. It seemed like an excellent idea at the time, but it could not take into consideration the level of interconnectedness that the current world economy now has.

Obviously the BIS is involved in political economy. Do they really need to acknowledge that? It is already on the table, I feel.

... but what do I know... I am just a little person, an observer, and a critic. But one who cares deeply. And not for my own interest.

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