"Vietnam effectively devalued its currency by almost 2% Tuesday to bring official exchange rates closer to black-market rates, which have fallen sharply as Vietnamese investors buy dollars to escape soaring inflation. ... The central bank ... also increased its main interest rate for dong-denominated loans to 14% from 12% in a bid to tamp inflationary pressure", WSJ, 11 June 2008.
Amazing. Dung sounds like Hank Paulson. When Dung steps down, one can't help but wonder if there's a Goldman Sachs Managing Directorship waiting. The Vietnamese want to support their stock market so do not increase interest rates. Helicopter Ben similarly supports US banks. There's an old Polish saying: "Communist, capitalist, fascist, it all makes no difference. When the Germans and Russians get together it's bad for us". In today's context: "Communist, capitalist, fascist, banker, formerly communist, it makes no difference. When the monetary manipulators are are work, it's bad for the working class". I remember the Brits in 1967 saying they would not devalue the Pound. Sure. See my 27 September 2007 and 12 May 2008 posts.Two days after Dung's speech, Vietnam devalues the Dong by 2%. Not enough. More's coming.