On Sat, 27 Jun 2009, martin wrote:
> On Jun 27, 2009, at 1:27 PM, Michael Pollak wrote:
>
>> Lessons from the Jazz Age for creditor nations
>> By James Macdonald
>>
>> snip
>> Now, as then, the laws of economic gravity will eventually bring about
>> a resolution to our current global imbalances. Let us hope that
>> historical short-sightedness does not lead to a repeat of the 1930s
>> outcome.
>
> Supposing that there is a balance. Supposing that the role of 'global
> police' has value equal to US debt. Is that the trade? A nation of cops?
I don't understand this point at all. That wasn't an option in the 1930s and it isn't now. The only options are mutual cooperation difficult but best -- or suffering the consequences of an unmanaged unravelling. Where on earth do cops come in? If the 1930s shows anything it's that nations leaning on each other not only can't possibly solve this sort of cooperation problem but makes it worse.
Michael