> The private sector is running a deficit of almost 6%. The historical average
> since 1960 is a surplus of almost 3%. That's an enormous departure from
> historical norms. Every other country that's gone this route in recent
> times - Japan, Sweden, Finland, England - have all eventually experienced a
> sharp reversion to the mean - and then overshot.
Rebalancing needn't result in catastrophe; if the dollar fell 35% against the euro, its likely true value, and the new metropoles continue to pour ungodly amounts of liquidity into the world-system (latest news-flash: the EIB is sinking another 400 million EUR into Poland), things might turn out just fine.
-- Dennis