ON THE SINGLE ENGINE (ANGLO) WORLD ECONOMY I’ve followed Roubini for many years

http://www.project-syndicate.org/commentary/us-growth-and-weakening-global-economy-by-nouriel-roubini-2014-10#qijbgttUhPYimsC2.99″—ROUBINI ON THE SINGLE ENGINE (ANGLO) WORLD ECONOMY

I’ve followed Roubini for many years now, mostly because I think using the same frames of reference (incentives rather than statistics), and so I understand him more clearly than I do most other (correlative) economists. I am never interested in up-sides. That is the job of people with specialized knowledge of sectors, and instead I’m interested in politics and entrepreneurship. And Roubini’s ideas emphasize political and entrepreneurial risk, rather than financial opportunity.

This is a short but accurate article on the state of the world economy., I tend to follow Roubini Global Economics and George Friedman (See The Next 100 Years George Friedman) and advise those who are likewise interested in the political and entrepreneurial cycle (rather than financial opportunity) to do likewise.

Here are a few comments from others:

IT”S TRUE, NOT MORAL, NOT PREFERABLE, BUT TRUE

—“Roubini is a realist and he is using the basic operating assumptions of the world economy in his analysis. These assumptions include two crucial monetary facts, namely, 1. the status of the US Treasury bill as an unrivaled store of value (a status unaffected by the 2008 crash and all its consequences), and 2. the centrality of the City of London in global currency markets. The US stores value, produces liquidity (through QE and ultra-low policy rates), and consumes other countries’ manufactures with the money. The UK creams off huge profits from the froth of exchange (and their central bank has also produced a good bit of liquidity to keep the financial markets rolling, I might add). Both these functions are systemically necessary to the current pattern of the global economy, and they have have persisted since the mid-1970s with only incremental changes owing mostly to the rise of China and the consequent relativizaton of the importance of Japan. We may find these two crucial operating conditions aberrant from the viewpoint of neoclassical economics, or just plain unjust from the viewpoint of equality between nations, but they exist, they function and so far, they have only been perturbed, not altered, by the tremendous crisis of the last six years.”—

THE PROBLEM

My problem with this is that it creates very bad behavior in the world, and that is why the empire must fall.