Tuesday, October 19, 2010

Capital Controls for Singapore

Our leaders surely hope that day never comes when we have to implement capital controls for our financial security as the tsunamis of liquidity washes ashore Asian markets. We wouldn't be the last to raise capital barriers. Many Asian economies might have to do it to protect the massive money printing by the Fed. Most likely the Latin Americans would lead the way.

If China raises capital barriers, the rest of Asia would move quickly to do the same, including Singapore. A long time from that moment, historians might look back and identify it as the turning point leading to a major or may be global war :-(

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