Comments on: Suncorp remuneration a case of market failure http://www.crikey.com.au/2009/09/14/suncorp-remuneration-a-case-of-market-failure/ now with extra source Sun, 12 Feb 2012 02:48:10 +0000 hourly 1 http://wordpress.org/?v=3.2.1 By: james mcdonald http://www.crikey.com.au/2009/09/14/suncorp-remuneration-a-case-of-market-failure/#comment-37616 james mcdonald Tue, 15 Sep 2009 00:13:19 +0000 http://www.crikey.com.au/2009/09/14/suncorp-remuneration-a-case-of-market-failure/#comment-37616 And free global currency markets would not have enabled China's undervalued yuan (which amounts to a tarriff on all imports and subsidy of all exports), their quarantining of excess trade profits from the domestic economy, and purchase of all the bonds the US could print no matter how low the interest rate, using those excess profits. Thus enabling the Reserve to keep those rates ridiculously low, so that consumers could borrow too much, too cheaply, to buy too many subsidized Chinese exports. And then there's the artificially easy money for housing which has been commented many times. Come to think of it, where was this free market we keep hearing about? And free global currency markets would not have enabled China’s undervalued yuan (which amounts to a tarriff on all imports and subsidy of all exports), their quarantining of excess trade profits from the domestic economy, and purchase of all the bonds the US could print no matter how low the interest rate, using those excess profits. Thus enabling the Reserve to keep those rates ridiculously low, so that consumers could borrow too much, too cheaply, to buy too many subsidized Chinese exports. And then there’s the artificially easy money for housing which has been commented many times.

Come to think of it, where was this free market we keep hearing about?

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