Friday, October 08, 2010

Currency wars threaten global recovery

Read this article:
http://www.bbc.co.uk/news/business-11484532

My view
Here is another example of the failure of the current global system. There is no point in having a global economy, if it causes the types of economic problems that have to be addressed through "currency manipulation". It is better to allow countries to have some form of protectionism to preserve their national identity and interest, rather than have a globalised economy that serves the interest of the large global companies.

Read my view on "restructure the global economy" in www.tankinlian.com/latest.aspx.
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3 comments:

Jamesneo said...

Hi Mr Tan i agree that higher tax should be imposed on the super rich but i doubt the usefulness of such a move if it is done one earned salary only. In this blog article by charles hugh smith :
http://www.oftwominds.com/blogsept10/class-warfare09-10.html

we can see clearly that the situation is more complicated and that in many case, the super rich might not have any earned salary but derive their money from unearned income streams. Over-taxing the rich doctors, ceo or small business ownersand other such productive people would then become counterproductive to the economy.

October 08, 2010 2:08 PM
Tan Kin Lian said...

Hi James Neo,

I strongly believe that the high income earners, such as doctors, hedge fund managers, bankers, CEOs, lawyers should be taxed heavily. It is better that they earn modest salary, so that they do not charge high fees on helpless customers, or create financial products to cheat the public (they call it creating value).

October 08, 2010 3:30 PM
Jamesneo said...

The problem is that many of this hedge fund managers, bankers, property tycoons might have more earnings from capital earnings from stocks and other unearned incomes. Thus if no capital gains tax is levered on this people, the "create financial products to cheat the public" will continue. My view is that a balanced say 40-50% earned income and 20% capital gain tax for capital gain earnings greater than 100k might be better than let say a 60 or 80 % tax on the earned income.

What i mean is that we should not over tax the middle productive people like what is mentioned in the article i mentioned but must start to tax more the super 1% rich that derive their wealth from financial speculations that is actually some of the cause of the financial mess the world is in.

October 08, 2010 4:50 PM

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