Economic Policymakers Should be Required to Study Behavioral Psychology

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Dear Friends:

Every economic policymaker should be required to study Behavioral Psychology. Recent monetary and fiscal moves by the government of the United States in response to its severe domestic economic recession have lead many in the International Community to wonder if the folks at the Fed, the Treasury Department and the Oval Office missed one too many classes in either history or behavioral psychology. Perhaps both.

Please read the following, excerpted from the Washington Post, by way of BuzzFlash:

Bailout Overseer Says Banks Misused TARP Funds
www.washingtonpost.com/wp-dyn/content/article/2009/07/19/AR2...sent by etspoon since 17 hours 11 minutes, published about 4 hours 10 minutes
"Many of the banks that got federal aid to support increased lending have instead used some of the money to make investments, repay debts or buy other banks, according to a new report from the special inspector general overseeing the government's financial rescue program. The report, which will be published Monday, surveyed 360 banks that got money through the end of January and found that 110 had invested at least some of it, that 52 had repaid debts and that 15 had used funds to buy other banks."-- Binyamin Appelbaum, Washington Post Staff Writer
tags: banks, bailout, criminality

My comment in response:
There is a terribly large "blind spot" in government policymaking. It is in the area of intersection between economic fixes (bailouts, awards, "infusions," which latter term is my favorite) and behavioral psychology. If you drop a large sum of money in a profligate child's lap, especially after he has proven himself to be a naughty bully as well as a terribly greedy and short-sighted lout, he will see it as encouragement (my more articulate colleagues would call this "positive reinforcement"). If you then fail to attach very specific terms and conditions to the use of that sum -- like, by way of example, making loans to consumers and the businesses that employ them -- as well as the clear and enforceable threat of substantial punishment for noncompliance, you've given the profligate more than just a gift; you have given him a gift at the expense of every consumer, every business and every taxpayer in the entire economy. Every so often, one of the government's policy pundits has to repeat the silly exercise of trying to put out a fire by pouring gasoline on it. And, invariably, he is compelled to do it in someone else's house. --DC

Faithfully,

Douglas Castle




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KEYWORDS, TERMS AND ORGANIZATIONS:

globalism, CFR, NGO, UN, WTO, IMF, central bank, outsourcing, offshoring, capital markets, import, export, international trade, strategic alliances, e-commerce, entrepreneurship, social networking, banking, finance, trade, ventures, business, securities, stock exchanges, indexes, futurism, trends, citizen ambassadorship, enterprise, capitalism, international politics, commodities, prime rate, LIBOR, foreign currencies, foreign exchange, blogs, blogging, bloggers, aol, google, yahoo, msn, AP, news, media alerts, world government, world governments, international affairs, treaties, tariffs, trade restrictions, marketing, advertising, business development, arbitrage, obtaining capital, promotion, publicity, EU, NATO, military affairs, government regulation, trade restrictions, liquidity crisis, business opportunities, web-based businesses, communication, communications, technology, intelligence, embassies, consulates, business resources, Douglas Castle,The Internationalist Page, The Global Futurist, international politics, elections, time management, cyberspace, AI, energy, industry, productivity, Mixx, Digg, Technorati, Sphere, Facebook, YouTube, MySpace, LinkedIn, advertising, economics, strategy, management, cooperation, widgets, blidgets, links, incoterms, CCH, UCC, freight forwarding, custom house brokers, diversity, employment, culture, micro-loans, technological convergence, trends, financial planning, FOREX, futures, stock index, inflation, recession, sub-contracting, Department of Commerce, the next generation, amnesty, humanitarianism, foreign aid, philanthropy, charity, cooperation, peaceful cooexistence, a world without walls...

*If you haven't done it yet, you should get your free subscription to THE NATIONAL NETWORKER Newsletter. Tempis fugit! http://twitlik.com/OK

EXIM BANK UPDATES - YOUR OWN VIRTUAL EXPORT DEPARTMENT

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Dear Friends:


The U.S. Government is doing its best (such as that is at this moment) to encourage export activity in order to: bolster domestic employment and entrepreneurial opportunities; supply trade and project financing, as well as international credit guarantees which are not readily being provided by U.S. or international banks and insurance companies; bring the Balance or Trade and the Balance of Payments to better levels; encourage investment by foreign countries in the United States; improve the international standing and reputation of the United States (ostensibly through citizen ambassadorship); and to increase direct funding to the entrepreneurial/ private sector to stimulate innovation and ingenuity.

While I have included two announcements from EXIM, the first of these contains a belated reminder to attend a webinar which has already taken place...In my opinion, these presentations are, generally, speaking, a waste of time. If you are established in exporting, you won't glean any useful knowledge here, and if you are an eager neophyte, the information is not put together in a way that is readily understandable, or, more importantly, applicable. The most important aspect of the letter is simply its tone. It is worth reading for that much alone.



YOUR OWN VIRTUAL EXPORT DEPARTMENT:



Every U.S. entrepreneurial enterprise or company wishing to expand globally on an immediate basis at minimal cost by creating a virtual export department (requiring no addional staffing or corporate infrastructure at all) should visit THE NATIONAL NETWORKER'S INTERNATIONAL AGENT/DISTRIBUTOR PROGRAMS site immediately. It can be accessed at http://TNNW7.blogspot.com .

THE NEWS FROM EXIMBANK [OFFICIAL ANNOUNCEMENTS]:

1. The following information is from the Export-Import Bank of the United States (Ex-Im Bank). It is being sent to subscribers to the Bank's Exporter News email list for those interested in learning fresh strategies for entering new markets, increasing sales, and reducing risks.
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Webinar: Competitive Financing for International Buyers (May 19)
Many U.S. businesses lose international sales because their buyers either cannot obtain financing, the interest rates are too high, or their foreign competitors have arranged loans. The Export-Import Bank of the United States (Ex-Im Bank) assists U.S. companies by guaranteeing financing to creditworthy international buyers, both public and private sectors, for purchases of U.S. capital goods and services.
The guarantee for the commercial lender loans to foreign buyers covers 100 percent of principal and interest against both political and commercial risks of nonpayment. Medium-term guarantees (up to seven years) cover the sale of capital items such as trucks and construction equipment, and engineering services. There are flexible financing options and repayment terms and no limits on transaction size.
Buyer financing can make or break your next transaction so register now!Date: May 19, 2009 Time: 2:00 - 3:00 p.m. EDT Price: $50 Register: https://emenuapps.ita.doc.gov/ePublic/newWebinarRegistration.jsp?SmartCode=9Q7Z >>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>
You are receiving this message because you have asked to receive information from the Export-Import Bank of the United States regarding the Bank's activities.
If you would like to be ADDED to the Bank's email distribution list regarding general Ex-Im Bank activities, or any of the other email publications, please visit http://www.exim.gov/lists/subscribe.cfm
If you would like to MODIFY your email address visit http://www.exim.gov/lists/edit.cfm to revise your subscription preferences, or to DISCONTINUE receiving these general news items from the Export-Import Bank of the United States, please send a blank email to leave-enviroexports-list-63999P@lists.exim.gov.
If you use an anti-spam program or service, add Ex-Im Bank's news and information e-mails (sent from Newsdesk@exim.gov) to your safe or permitted sender list. For details: http://www.exim.gov/lists/whitelist.cfm.

2. The following information is from the Export-Import Bank of the United States (Ex-Im Bank). It is being sent to subscribers to the Bank's Country Limitation Schedule (CLS) email list for those interested in receiving information about changes and updates to the CLS.
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The Country Limitation Schedule (CLS) issued by the Export-Import Bank of the United States (Ex-Im Bank) has been updated. The new CLS is effective MAY 14, 2009.
The new CLS may be accessed on-line on MAY 14, 2009 at: http://www.exim.gov/tools/country/country_limits.cfm. The CLS and Cover Letter are also attached as PDF files.
The CLS indicates where Ex-Im Bank is "open for cover" and where Ex-Im Bank is "off-cover". The "open for cover" designation refers to the possibility, rather than the certainty of Ex-Im Bank support in particular cases. Where the CLS presents an X mark, Ex-Im Bank is "off-cover", and is therefore not willing to consider approval of routine transactions. These "off-cover" determinations are due to economic and/or political risks associated with the country.
For more information on the Ex-Im Bank, please visit our website at http://www.exim.gov.
>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>
You are receiving this message because you have asked to receive information from the Export-Import Bank of the United States regarding updates or changes to the Bank's CLS.
If you would like to be ADDED to the Bank's email distribution list regarding general Ex-Im Bank activities or any of the other email publications, please visit http://www.exim.gov/lists/subscribe.cfm.
If you would like to MODIFY your email address visit http://www.exim.gov/lists/edit.cfm to revise your subscription preferences or to DISCONTINUE receiving these general news items from the Export-Import Bank of the United States, please send a blank email to leave-cls-list-63998K@lists.exim.gov.
If you use an anti-spam program or service, add Ex-Im Bank's news and information emails (sent from Newsdesk@exim.gov) to your safe or permitted sender list. For details: http://www.exim.gov/lists/whitelist.cfm.

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If you are a U.S. -based business, this is a wonderful time to export. The U.S. Dollar is at a relatively low rate of exchange versus other currencies...EXIM is "loosening up" its credit parameters while U.S. and international banks are tightening theirs...and, your advantage over U.S. businesses who are not actively seeking out global markets is greater than it has ever been in U.S. history. This is an unprecedented opportunity to grow a global business while other enterprises are struggling to court U.S. consumers who are becoming increasingly inaccessible due to rising unemployment (and the accompanying insecurity regarding expenditure), and due to the continuing unavailability of consumer credit and business capital. The irony is that it is easier for a small U.S. company to get international trade and project financing than it is to get financing for continuation of domestic operations and growth.

It might serve you well to let your business follow the flow of money availability at this time.

Faithfully,

Douglas Castle, INTERNATIONALIST

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KEYWORDS, TERMS AND ORGANIZATIONS:

globalism, CFR, NGO, UN, WTO, IMF, central bank, outsourcing, offshoring, capital markets, import, export, international trade, strategic alliances, e-commerce, entrepreneurship, social networking, banking, finance, trade, ventures, business, securities, stock exchanges, indexes, futurism, trends, citizen ambassadorship, enterprise, capitalism, international politics, commodities, prime rate, LIBOR, foreign currencies, foreign exchange, blogs, blogging, bloggers, aol, google, yahoo, msn, AP, news, media alerts, world government, world governments, international affairs, treaties, tariffs, trade restrictions, marketing, advertising, business development, arbitrage, obtaining capital, promotion, publicity, EU, NATO, military affairs, government regulation, trade restrictions, liquidity crisis, business opportunities, web-based businesses, communication, communications, technology, intelligence, embassies, consulates, business resources, Douglas Castle,The Internationalist Page, The Global Futurist, international politics, elections, time management, cyberspace, AI, energy, industry, productivity, Mixx, Digg, Technorati, Sphere, Facebook, YouTube, MySpace, LinkedIn, advertising, economics, strategy, management, cooperation, widgets, blidgets, links, incoterms, CCH, UCC, freight forwarding, custom house brokers, diversity, employment, culture, micro-loans, technological convergence, trends, financial planning, FOREX, futures, stock index, inflation, recession, sub-contracting, Department of Commerce, the next generation, amnesty, humanitarianism, foreign aid, philanthropy, charity, cooperation, peaceful cooexistence, a world without walls...