[lbo-talk] Wolf: The US deficit needed is 10% of GDP indefinately

Charles Turner vze26m98 at optonline.net
Tue Jan 13 04:02:05 PST 2009


On Mon, 12 Jan 2009 16:54:15 -0500 (EST), Michael Pollak wrote:
> Wolf basically feels we're fucked until the international economy
> gets properly balanced

Thanks for the link, Michael-

Given that I'm economically challenged, does your statement above refer to this quote from the Wolf article?

"But the US is not strong enough to rescue the world economy on its own. It needs helpers, particularly in the surplus countries. The US and a few other advanced countries can no longer absorb the world’s surpluses of savings and goods."

If so, is Wolf asserting that "balancing" is the requirement for countries like China to consume more of what they produce, and the U.S. to produce more of what it consumes?

Best, Charles



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