So Brad de Long believes.
But he issues a caveat: "Can anything stop this progression? Yes. A collapse of world economic growth—which would create a very dangerous and angry world. Or a sudden return to thrift on the part of American consumers — so that we can finance the industrialization of the rest of the world rather than having them finance our consumption. But neither is likely."
No Jobs bill, no restraint on credit card mendacity, and a tax on 'Cadillac' health plans. Persistent high unemployment, a debased dollar, and debt peonage will cripple the U.S. consumer and force global re-balancing. A slow motion crash of the world economy.
1"Our future as a financial colony" - The Week; de Long
2"An American Savings Glut" - previous post
Subscribe to:
Post Comments (Atom)
1 comment:
In a booming economy my purchasing power has been in slow crash mode for the last 15 years, unless I borrow it. Yes, my house is worth a lot more, but I need a place to live......not to give up security so I can maintain a standard of living.
A slow motion crash of the world economy will have to move at a snails pace to avoid a collapse.
Post a Comment