Read this, then tell me what the “endgame” of currency rebalancing will be? If the dollar plunges, which our massive current-account deficit demands, what happens to our economy? If that forces Europe and Japan into recession and deflation, then how much boost will the lower dollar give us, since they’ll have trouble buying things from us? It WILL stop our deflation, which is good, but what else does it do for us? Help me out.
And how much effect is the widening gap between rich and poor having on all of this? If the general public has no savings, lots of debt, and less and less of the overall wealth, then how can “stimulus” do much good? It seems that most of the “stimulus” winds up going to fewer and fewer rich people. Seems to me that the rest of us gotta get rid of some of that debt and get a bigger share of the wealth before we can increase their consumption.
Help me out, leave a comment.