"Try thinking about global finance as you might think about your car insurance.
In the absence of a larger IMF, Brazil and its equivalents have two options. They can plan to rely on powerful central banks for emergency loans - during this crisis, the US Federal Reserve has provided $30 billion spiece to Brazil, South Korea, Singapore and Mexico. The problem is that financing from a certral bank may come with political conditions. That might sound fine if the central bank is the FED. But what if it is the People Bank of China which as more than enough reseres to play the IMF surrogacy game? A weak IMF could hand a powerful foreign policy tool to China."
My comment: Other leaders of G-20 believe that China should have a voice with other developing nations such as India as well? Let us watch the outcome on Nov.15, 2008.
Francis Shieh a.k.a. Xie Shihao, a student of REAL ECONOMICS in action. Nov.13,2008
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