28 ОКТОБАР, ЂОРЂЕ СОРОШ "A much larger and more flexible package is needed to reassure markets. The central banks at the centre should open large swap lines with the central banks of qualifying countries at the periphery and countries with large foreign currency reserves, notably China, Japan, Abu Dhabi and Saudi Arabia, ought to put up a supplemental fund that could be dispersed more flexibly. There is also an urgent need for short-term and longer-term credit to enable countries with sound fiscal positions to engage in Keynesian counter-cyclical policies. Only by stimulating domestic demand can the spectre of a world-wide depression be removed.
Unfortunately the authorities are always lagging behind events; that is why the financial crisis is spinning out of control. Already it has enveloped the Gulf countries, and Saudi Arabia and Abu Dhabi may be too concerned with their own region to contribute to a global fund. It is time to start thinking about creating special drawing rights or some other form of international reserves on a large scale, but that is subject to American veto.
President George W. Bush has convened a G20 summit for November 15 but there is not much point in holding such a meeting unless the US is serious about supporting a global rescue effort. The US must show the way in protecting the peripheral countries against a storm that has originated in the US, if it does not want to forfeit its claim to the leadership position. Even if Mr Bush does not share this point of view, it is to be hoped the next president will – but by then the damage will be much greater."
The writer is chairman of Soros Fund Management and author of ‘The New Paradigm for Financial Markets’
Copyright The Financial Times Limited 2008
1 НОВЕМБАР, Гордон Браун: Gordon Brown Asks Gulf Wealth Funds to Invest in U.K. (Update1)
By Gonzalo Vina
Nov. 2 (Bloomberg) -- U.K. Prime Minister Gordon Brown urged sovereign wealth funds from the Persian Gulf to invest in British companies needing more financing because of the credit crunch.
``The Gulf states will have a vital role to play in agreeing the plans to get the world economy moving again,'' Brown told reporters before arriving in Riyadh. They ``are an increasingly important source of inward investment to the U.K. As long as they play by our rules and operate in a commercial manner, we welcome investment from sovereign wealth funds.''.........
Separately, Brown reiterated the need for gulf states to boost the International Monetary Fund's $250 billion cash supply by ``hundreds of billions of dollars.''
``If we are to stop the spread of the financial crisis, we need a better global insurance policy to help distressed economies,'' Brown said. ``That is why I have called for more resources for the IMF.''
Countries including Saudi Arabia will probably contribute more to the IMF ``so we can have a bigger fund worldwide,'' Brown said. ``I think people want to invest both in helping the world get through this very difficult period of time, but also I think people want to work with us so we are less dependent on oil and have more stability in oil prices.''
Arab nations and china haven't been represented enough on international bodies such as the IMF, he said.
Last Updated: November 2, 2008 03:53 EST