Global Rebalancing and sustainable recovery

Let me just momentarily dip back into the blogosphere with this link to Edward Hugh’s post…… The G20 and Why Export Dependency And Global Imbalances Matter

Edward touches up on several recurring themes here in my blog, many of which I touched as I tried to figure out what was going on with the global economy. Edward links them all up – changing demographics, global financial and investment flows, developed country investment managers’ quest for yield that took them to the most speculative areas of the world. His main point – many of what we see are symptoms of major demographic change. He comes to the same conclusions –the need for a rebalancing of the global economy, and the taking up of the consumption slack by the developing world.

This is what we need to see for green shoots to truly sprout. Otherwise, we will only keep coming back to the same old issues over and over.

But in order to have permanently sustainable development, emerging countries need to learn to get their acts together. Getting them to do so successfully would be the next worthwhile arena of discussion.