Niall Ferguson: The World Is In Denial, The Great Repression Lives On
Joe Weisenthal|Dec. 14, 2009, 5:10 AM | 659 |1
PrintTags: Economy, Financial Crisis, Debt, U.S. Government________________________________________________________________
Niall Ferguson is in the media a lot, but this interview with Consuelo Mack (via Paul Kedrosky) is one of the best summations of he's views we've come across.
Some of the points he gets across:
Governments and households are in denial about how the world has changed post-crisis.
Wall Street is in a worse state than prior to the crisis because now the government backstop is explicit, and because the remaining players now have a bigger oligopoly than before.
The yuan-dollar link is badly hurting other countries, like Japan and Germany, because the Yuan really should be strengthening. Instead it's weakening.
The Fed will have to catch its lenders by surprise -- a shock devaluation of sorts -- if it wants to inflate its way out of debt.
It won't be that long before the US has a true equal -- China -- in the global economy.
As the US gets poorer, chaos around the world will increase, as we can't afford to create stability. Aready we're seeing it in Iraq, Afghanistan, Somalia, and elsewhere.
Good Video at site:
http://www.businessinsider.com/niall-ferguson-the-world-is-in-denial-the-great-repression-lives-on-2009-12
