Wednesday, June 01, 2005

Playing the Same Game

Interesting critique of globalization in the International Herald Tribune today. Clyde Prestowitz, in his oped "The yuan might shift; the imbalances won't," says the problem with globalization isn't the idea, which I believe is a good one. The problem is that the countries involved aren't all playing by the same rules. They're making, we're buying.

Thus, globalization has evolved into a kind of pyramid scheme. To maintain global growth, the United States must consume and borrow ever more while foreign banks buy ever more U.S. Treasuries so their producers can export ever more.

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