Let's play a game
Let's play a game. The game is called 'Agree or Disagree'.To play this game we will look at a lengthy article by Steve Roach enh1d On the Road to Global Rebalancing. In italics are paragraphs or statements by Stephen Roach. My responses are in normal print. Here goes:It was exactly six years ago when I first coined the term, “Global Rebalancing.” The equity bubble had burst, America was heading into recession, and an unbalanced, US-centric global economy was in trouble. A rebalancing was in order, I argued at the time -- and the sooner the better! AgreeAn unbalanced world was able to buy time. With the benefit of hindsight, it is not that difficult to figure out how. Fearful of a Japanese style deflation in the aftermath of a burst equity bubble, America’s Federal Reserve rushed to the rescue -- spearheading a massive monetary easing that pushed short-term interest rates down to the unheard of 1% threshold. That prompted a seamless move from one asset bubble to another, as