[lbo-talk] Jamie Galbraith: Apocalypse Not Yet...

[joanna bujes]

"A change in European policy-toward a high-growth, full employment 
Keynesianism-could bring a decisive shift in the world balance of 
economic power. Such a shift would create profits in Europe (where there 
presently are few), attracting capital. It would open up a European 
current account deficit, where there is presently a surplus. Soon the 
euro would not be a scarce currency any longer, and the reduction of the 
dollar's reserve status could truly get underway. Unfortunately for 
Europeans, European policymakers don't see-and won't seize-this 
opportunity. Frankly, they are too reactionary and too stupid. That's a 
tragedy for Europe, though in some ways it's undeserved good luck for 
the United States."

I don't get this option. Isn't everyone sitting on their cash hoard and 
not investing because we are in a crisis of over-accumulation? If Europe 
goes to full employment (more production)...who is going to buy their stuff?

Joanna