Friday, June 27, 2008

Socializing Capitalism...?

At the recently held meeting of energy ministers in Jeddah, P.Chidambaram, our Finance Minister (FM) proposed a Price Band Mechanism – that the consuming countries must guarantee that oil prices will not fall below an agreed level and producing countries must guarantee that oil prices will not rise above a guaranteed level.

Seems fair to Oil importing countries as of now… Now what if the Oil exporters demand a similar price band for their imports - iron ore, steel, consumer goods, IT offshoring contracts and even currency exchange / global interest rates - can the world cope?

What could be its economic nomenclature – socializing Capitalism or Capitalized Socialism?
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