HKUGA Policy Group Lunch (16 April 2009)
A view from the epicenter: how does the top aides of President Obama think?
Visit to NY and Washington DC
Allen Fung, one of HKUGA’s director and an active member of the Policy Group, has recently travelled to New York City and Washington DC to meet with some top decision makers in the New York and Washington Circle.
Allen joint conferences and meetings in Council on Foreign Affairs and Brookings Institution and met some senior figures in the US including Paul Volcker, former Federal Reserve Chairman appointed by President Carter, John Negroponte, former Deputy Secretary of State in George W. Bush administration, and Ambassador Stapleton Roy, a fluent Chinese speaker and former US Ambassador to China.
What US says about Global financial tsunami?
The financial tsunami came rapidly and unprecedentedly. While economists were still stickling whether the recession will be in V-, U-, W- or L-shape, the global economy had already plunged into deep troubles. A thrust of avaricious expansion of the credit market and irresponsible lending behavior of the banks had boosted the bubble that was meant to burst some day.
But what was past was past. What concerns the world the most now is where is the global economy heading? Amongst the most important issues is the future of the greenback. Will it devalue? How much? Will another national currency or a supranational one, like the Special Drawing Rights of the IMF or ‘Bancor’ suggested by John M. Keynes, be used to replace the greenback as a, or the, reserve currency?
Do they support Internationalization of RMB?
At the same time, China has been emerging to become a vital player in the global monetary system. While the RMB forex market is still under stringent state control, there are signs that the PRC government is harbouring new ideas by enlarging and diversifying the currency swap deals with various countries from South Korea to ASEAN members to South American countries. These deals, currently totaling RMB760 bil, are scout voyages to the uncharted seas for internationalization of the yuan. And, if continued to expand, these currency swap deals can fundamentally change the landscape of international monetary system, while the prominence of the economy of China is rising at the same time.
There are a lot of unknowns at the moment. What is known is that we are in an immensely interesting yet challenging time.
Care about the global economy beyond your mostly local-based investment portfolio? Please join the HKUGA Regular Luncheon on 16 April (Thursday) [note] and explore what is happening in the world. The cost of the lunch is about $110.
Click to register:
Enquiry: CF WONG (9622 0207) or SK LI (9106 9072)
[note: the HKUGA Policy Group Lunch is usually held on the 2nd Friday of every month, except public holiday. For this month, the lunch will be held on 16th April (Thursday) following the Easter Holiday]