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Half a century of debt-fueled growth? As an exercise in revisionist history it's workable, but those of us in the reality-bsed community cannot help but note that Thatcherism has only spent thirty years - closer to a quarter century than a half - on its thirdworldization project.

Apparently that's becoming part of the conventional wisdom, too. From Satyajit Das on Eurointelligence: Economic Stall Speed (28 September 2011)

The most likely outcome is a protracted period of low, slow growth, analogous to Japan's Ushinawareta Jūnen - the lost decade or two. The best case is a slow decline in living standards and wealth as the excesses of the past are paid for. The risk of instability is very high; a more violent correction and a breakdown in markets like 2008 or worse are possible. Frequent bouts of panic and volatility as the global economy deleverages -reduces debt- are likely. Problems created gradually over more than the last three decades can only be corrected slowly and painfully.

Economics is politics by other means
by Carrie (migeru at eurotrib dot com) on Wed Sep 28th, 2011 at 06:53:57 AM EST
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