[hacyOrgachbic]

This should not be on the history forum. Can it be transfered to the main Off Topic forum by a cooperative Mod?

[hellencomstar]

Sorry for the tardy move, Davout. I've been away.

[rxnixoncom]

Originally posted by Lazarus and the Gimp
Sorry for the tardy move, Davout. I've been away. The vastness and complexity of the problem will not be significantly increased by a 5 days delay.

[CalBettaulp]

Read it. He can remain chairman of the US Federal Reserve.
For now.

[JOR4qxYH]

It's the same thing.

Bernanke is arguing that government intervention is going to be required from both sides.

[Vomekayafboke]

Meh whatever. In 20 years time debate will probably still be raging whether this time period of low interest rates, a multitude of financial bubbles and US' current account deficit was the result of lax monetary policies by the major CB's or some apparently exogenous factor.

[replicamuse]

Originally posted by Colon™


Once upon a time certain people couldn't deal with the fact was spending more than it earned. So they decided to argue that the US wasn't saving too little, no, au contraire, the rest was saving too much! And thus was born the global savings glut. Bernanke recognizes that the current situation is abnormal.
Finally, in the longer term, the developing world should be the recipient, not the provider, of financial capital. Because developing countries tend to have high ratios of labor to capital and to be away from the technological frontier, the potential returns to investment in those countries are high. Thus, capital flows toward those countries should benefit both them and the countries providing the capital. His whole purpose is to understand how the present situation has developed, which is, seemingly, the contrary of what you said.

[CoenceLomneedtrue]

Originally posted by Colon™
Meh whatever. In 20 years time debate will probably still be raging whether this time period of low interest rates, a multitude of financial bubbles and US' current account deficit was the result of lax monetary policies by the major CB's or some apparently exogenous factor. A debate on inflation is also to be expected. Surprisingly, A.Greenspan has just declared that the 2% target of inflation (undisputable credo of the Economically Correct) should be raised to 5% in a near future.

[Slonopotam845]

This is the situation the way I see it. The Fed keeps interest rates low in the United States to keep spending up (bubbles are a side effect). That should be inflationary, but it isn't, because of the high savings rate in the developing world.

So you have lax monetary policy/bubbles, and a global savings glut.