re: Global Depression

[AlanHarvey@xxxxxxx]

What is bizarre is that Keynesians, post- or not, have no better explanation
for the run of the economy in the US than this.  Does nobody credit the
official line of low interest rates?  How about the perpetually vigorous
buying public?

The trouble with the Global Depression is that sooner or later it will end
there and come here, by the following mechanism:  Other countries will add
their demand back into the global economy, which can only tickle inflation in
the U.S., which will motivate the myopic Fed to raise interest rates, which
will end the expansion, which will scare the stock market, which will reduce
consumer spending and the climate for investment. That's bizarre as well, I
suppose.

> Nathan Newman wrote,
 (snip)
 >The United States has become this bizarre anamoly, partly explained by the
 >labor "flexibility" (meaning creation of unregulated bad jobs) but needing
 >broader explanations as well.  Part is obviously the US's role as the
 >center of the current computer revolution related to networking and part
 >may be driven by the hyperprofits of global capitalism inducing "wealth
 >effects" spending here.

>Tom Walker wrote:

>> Although the anomaly is much less bizarre if you consider the role the U.S.
 dollar as reserve currency has played in permitting an even more anomalous
 balance of payments deficit. In its function as "borrower of last resort",
 the U.S. can appear as a kind of cornucopia in reverse.>>