"The third leg of the world's
intractable depression is yet to come. If trade economists at the United
Nations are right, the next traumatic episode may entail the greatest
debt jubilee in history.
"It may also prove to be the definitive crisis of globalized
capitalism, the demise of the liberal free-market orthodoxies promoted
for almost forty years by the Bretton Woods institutions, the OECD, and
the Davos fraternity.
"... We are left with a world in a state of leaderless policy inertia, unable to escape slow suffocation. Trade is stagnant. Deflation is still knocking at the door a full seven-and-a-half years into the economic cycle, even with the monetary pedal pushed to the floor. The next downturn will test this regime to destruction."
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