Wednesday, October 01, 2008

Stupid, isn't it?

Everyone around the world is waiting on tenterhooks to see whether the US Congress decides to bail out the US Financial system. And, if so, will that save the US's role of consumer of last resort to keep the whole world trade system going.

I wonder why Lula doesn't just pick up the phone, call his opposites in China, India etc. and say "Tell you what. All that stuff you want to make, but can't sell to the US anymore. We'll have it. We're cutting import taxes on the things you want to sell here. You do the same with our chickens and stuff. Let's all get to keep a bit of what we're making for ourselves for a change."

I'd guess that there are lots of things governments in BRIC countries could do, fairly cheaply, to stimulate trade which routes around the current failures in the US and Europe.

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