Posted on 08/17/2003 8:19:16 AM PDT by harpseal
Now my prefered solution is to just stop writing any new Contracts period not one none zero zip nada. If a private company wishes to fill the void and such a void is economically feasable there are a large number of insurannce companies out there. IMHO absolutely none of them will jump in. Now the problem is those existing pledges of the full faith and credit might have to be honored. he damage this can do to the Federal budget is enormous or maybe they will just mentraixe it so we can have an inflationary depression.
My statement was intended to mean that there is no reason a private business could not handle the job OPIC currently does.
I have been saying that for months.
It does make sense for there to be a company that preforms this function (since it is a valuable risk-mamagement tool for companies),
But what will the premiums from a sound private insurer be? Remember the guarantee that is insurance is only as sound as the company issuing the guarantee and a sound company will charge an actuarially sonde premium.
but there shouldn't be any government subsidies involved. The chance of political turmoil should be one of the risks companies face when they invest in unstable countries.
The political stability of teh USA is one of the great economic advantages the USA has by pledging the full faith and credit of the US government politically unstable countries were equalized in risk with the USA. Clearly imports that result from this US subsidized investment are an abomination but I will not go into all that now. I am looking for ideas about how to handle theproblem soon to be coming of the liabilities caused by teh existsing contracts with teh full faith and credit of the US government included in thsoe guarantees. Do you have an ideas to contribute I am not trying for a discussion of subsidies as we both disagree with subsidies completely. Our area of disagreement is on traiffs. Let that be in this thread please as my goal is to solicit ideas to help deal with this issue.
I agree to the point that no businees except in a clear case of national security or a business that has sold a good or service to the US government has a claim on the national treasury.
ESPECIALLY Harley-Davidson!
I really have absolutely no idea why you put this in this thread.
Be that as it may you have stated you are an economic historian. I am seeking ideas as to what can be done to mitigate a potential problem which is "Existing contracts have been signed by the Federal government to provide a guarantee of indemnification to companies that have invested overseas. It appears from events that unless a plan is formulated those companies which have provided consideration to the Federal government for the consideration of the guarantee will be in a position to have earned the indemnoficatiopn of loss." I am trying to get a total rat risk number but have not yet found the number but we are talking in the billions anyway maybe the hundred billions for an order of magnitude. We disagree on tariffs. Tariffs have nothing to do with solving or causing this particular problem.
Any ideas as to how to approach the conundrum of the existing full faith and credit guarantees without the raid on the treaury (or inflation by simply printing the money). Yes it was horrible that OPIC did this you know I know it and most everyone else jnows it or if they read the two of us agreeing on this point should know it.
I am asking for a narrow focus on what government policies can be implemented so the damge from these existing commitments can be mitigated. I am asking for ideas. I have been writing against OPIC for months now. I have for months asked the question "If OPIC is such a good idea why haven't provate insurers sought this business?"
Once more got any ideas that can be helpful in coming up with a proposed federal policy on this so we do not incur the full damage. Ending OPIC has beenone of my points for fixing probems in teheconomy for quite a while now. I feal safe to say from your above statement you agree such a policy shuld be immediately instituted so that no further Federal guarnatee is issued. Not one, none etc.
That has been onbe of the things I have been calling for for months.
Now Iam at aloss for mitigation of teh damage and am asking for people to think about this subject and come up with ideas.
I will be happy to discuss other trade issues on other threads. if you wish to argue fine. If you wish to exchange name calling fine lets do it on other threads. i am asking for thoughts on this subject from someone who has some educqation in this subject. yes I also have some education in thsi subject and I was hoping by attracting as many Freepers as possible someone could come up with the germ of an idea to address this problem of outstanding contracts.
That is exactly right, and there is a reason for this. Annalee Saxenian has analyzed high-growth areas, such as Silicon Valley, and slower-growth tech areas, such as Route 128 in Boston, and found that the ENVIRONMENT determines everything---that high growth tech areas have low taxes, access to good universities, but most important communities in which people move back and forth between companies cross pollinating. Saxenian did not study India, but based on what she did look at, I'm sure she would place it far below 128---in other words, not that great an environment.
Now, when it comes to India, they simply lack the "freedom" infrastructure that would allow them to ever grow too much, because their quasi-socialistic government will step in to tax their wealth away if they get too successful.
Did you know that among the fastest tech growth centers in the U.S. are places like Yuma Arizona, Minneapolis, Iowa City, (obviously) Austin, Boise, and some two dozen towns that you wouldn't think were "tech centers?" The point is, while some capital is necessary, tech feeds off ideas and people more than any other industry in history, and people are mobile. The industry is not attached to large-scale natural resources, so it will go where the freedom is. Indian "tech" will survive only until it gets somewhat successful. Then Gandhi's socialist stepchildren will steal the wealth and "poof," it's gone.
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