As a Venezuelan, it is hard to see too much difference between the Basel Committee’s statism and that of Hugo Chavez’.

Sir, Shahin Vallée, from what I read a fanatic central planning convert (so presumably a communist) writes: “if central banks are trying to expand the monetary base permanently, their natural ally is fiscal policy, which can direct spending to where it would have the most powerful effect”, “Fiscal and monetary policy can be uneasy bedfellows” May 2.

The Basel Committee, for the purpose of defining the capital requirements for banks, set the risk weights for the "Infallible Sovereign" at zero percent, while defining the risk weights for citizens, SMEs and entrepreneurs as being 100%. That is the kind of mindset of those who believe that technocrats can direct other people’s money better, than other people their own. It is amazing how this mindset still survives.

Vallée now suggests a debate on how central banks and governments can cooperate better. Holy Moly! I want a debate on how we citizens can fight the cooperation between central banks, the governments and some of their cozy friends, like some too big to fail banks and members of the AAArisktocracy, all so that we can save our economies for our children.

And of course, if I have misread Shahin Vallée, I have no problems retracting my opinions. On the contrary, I would be very happy to do so.

PS. If you need an aide memoire about how idiotic that regulation concocted by the Basel Committee here is one:

@PerKurowski ©