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    How can resources be transferred to the corporate sector?
    Güven Sak, PhD 23 December 2008
    IMF Managing Director Dominique Strauss Kahn underlined three points in his speech in Spain: first is the banks shall be recapitalized in a coordinated way to re-ensure the operation of the banking system. Second is that it was time for expansionary fiscal policy to tackle the approaching depression. Any country that has the capacity should expand public expenditures. Third, emerging market economies should be provided with liquidity support without questioning. The aforesaid statement of the IMF Managing Director in fact shall make us sweat suddenly and profusely. We are not used to hear this kind of statements from the IMF. However, this makes sense as we are faced with unusual conditions. In such a period where no one has time to think for any other, everyone shall start evaluating his [More]
    Would the IMF lend the US?
    Güven Sak, PhD 20 December 2008
    Central Bank of the USA, FED cut down the interest rates to zero. Furthermore, it announced that the expansion in its own balance sheet is a long-term trend. Balance sheet of the FED has tripled times in the last year. Now, they announced that this was not a short-term step and the trend would continue. Instead of asking "What does this mean", we will assume another approach. We will ask: If the US government applied to the IMF and enumerated the steps taken, would it be able to sign an agreement? The answer is, no it would not. Then, if the US was not monetizing and was dependent on the IMF for foreign funds, what would be done in such hard circumstances? It should have first taken the steps initiated today and then apply to the IMF. And this brings us to the topic of today: In the recent [More]
    Chavez, making effort to protect the revolution, does not have time for making a revolution
    Güven Sak, PhD 16 December 2008
    Avila Mountain is almost 3000 meters high. At one side of el Avila, there stands the Caribbean Sea and at other side stands the Caracas city. Caracas is the capital city of Venezuela. For the last decade, Caracas is the capital city of Chavez. It might sound new, but it has been 10 years since Chavez has taken the office. In the 10th year of his rule, Chavez, once more is trying to amend the constitution of Venezuela. As per the current constitution, he cannot be elected as the president again. However, he, probably "for the sake of the revolution" wants to be elected as a president for more than three times. Venezuelan people responded this demand with a "no" in the referendum held the year before. It appears that the issue will again be subject to referendum at the beginning of 2009. The [More]
    Our problem is that we now recognize empty talks
    Güven Sak, PhD 06 December 2008
    Almost two thirds of the national income of the world (according to the development indicators of the World Bank) originates from two countries: the US and China. Thanks to the high paced growth performance of the US and China in the previous decade, world economy as a whole demonstrated a rapid growth performance. However, two developments announced the week before showed that nothing will be the same anymore. First was announced by the National Bureau of Economic Research of the US (NBER) and second by the World Bank. Let us see what were those about? [More]