A better and perfectly respectable answer would have been, "I don't know."
>The London Sunday Times today reports that Japanese GDP will be down 5%
this year. That's deflation. Next year the British and American economies
will shrink, too. Not to speak of a long list of other places like Indonesia
and Russia.>
>Max Sawicky wrote:
>
>> > . . . When the US bubble bursts it will do so in the context of an
already-raging world deflation. . . .>>
>> Is this in reference to the Asian basket cases,
>> or is it more general, and if so, where is it
>> documented most concisely?
I guess you have to be some kind of Keynesian to appreciate the gravity of a genuine pattern (if it be so) of falling PRICES worldwide in mature capitalist economies. This isn't to minimize the suffering in 'formerly-socialist' (or whatever you want to call them) nations, nor the historical significance, but to focus on the potential frailty of the leading national economies.
MBS
Cheers,
MBS