Greenspan Humbled By Asia's Central Bankers:

[plasticsundance]

http://quote.bloomberg.com/apps/news?pid=10000039&refer=columnist_pesek&sid=aKmRPPpmFAfg

It's called ``The Asian Bellagio Group,'' a name that is borrowed from the European Bellagio Group, a gathering of academics started in the 1960s. Asia's group includes officials from Japan, China, South Korea and Southeast Asian nations who met in Bangkok last week to discuss the dollar's slide.

The group is a formidable crowd, considering it holds well over $1.1 trillion of U.S. Treasuries. In fact, if Federal Reserve Chairman Greenspan is wondering why his recent rate increases aren't working out as planned, he need only look to the East.

<snip>

Well, the idea has come full circle. Asia is getting fed up with its reliance on the dollar. Besides, economies here are becoming more and more exposed to Chinese demand, and less so to those of U.S. consumers. Leaders here also have misgivings about their lack of clout in western circles. And so, Asia now seems ready to create such an institution to serve its interests.

<snip>

It's increasingly dawning on Asian consumers that their governments are funding the U.S.'s way of life. Capital flowing from East to West reduces incentives for the U.S. to tackle its worsening current account and budget deficits.

[rkc3]

1. I wonder how long stuff like this takes to sink in?

There are a good number of Americans who don't think we need any help from furriners - just look at the attitudes of the millions who boycotted French imports after the war started. Will they ever comprehend the fact that this is a global economy and the US is falling behind?

[applegrove]

2. Greenspan once 'humbled himself' at the feet of Ayn Rand (as a coed).

Perhaps he may get the chance now to bow down and wash the feet of REALITY! Never too late to learn something new.