On Dec 19, 2008, at 9:40 AM, James Heartfield wrote:
> But I agree with Patrick that reflation - if that is a fair account
> of Doug's position - is obviously a bollocks of an answer. At best
> it is a stop-gap, that might buy one some time. But it can only
> perpetuate the problems that preceded, which is to say that, like my
> country, the US is consuming more than it produces, and needs to
> produce more (or consume less), and it has allowed services to
> displace manufacturing, putting it at a disadvantage. More of the
> same easy money is not really the answer, any more than a junkie
> needs more heroin.
I don't disagree. Reflation is an emergency measure. The cure is a lot more complicated.
Doug