Guest post: The Crisis as a repercussion of global imbalances, by Peter Dorman

Peter Dorman wrote this piece in 2009 shortly after the financial implosion and has recently revised it. While I agree with almost all of what he has to say, one comment seems to me pertinent: The global rebalancing which Peter mentions, toward the paper’s end, is (a) uncertain and, to boot, (b) certain, if it happens, to prolong the Crisis ad infinitum. Why? Because, as I keep arguing in the context of my Global Minotaur, our irrational global order simply cannot grow in a balanced manner, unless forced to do so by political intervention at the global level. Or so me thinks…