quote:The world is finding that without rampant credit growth, through which demand is borrowed from the future, it is very difficult to create enough work for people supplying domestic markets. For China make that rampant exports, supported by rampant credit growth in the US.
As a result, the economic crisis that began with the credit collapse of 2007 is entering a new phase in which countries are trying to steal demand and employment from each other, instead of from the future as they did before.
Martin Wolf wrote in the Financial Times and Business Spectator last week that as a result of the crisis developed countries are suffering from chronically deficient demand.
Interesting but true.