Book Get a copy of The American Phoenix, by Diana Choyleva and Charles Dumas HERE. 2012 will bring another global economic crisis. It could have been avoided if America and other deficit countries had embarked on currency devaluation and tighter domestic policy to sustain recovery and growth, boost exports and savings, while cutting excessive debts built up in the pre-crisis ‘gilded age’. But they didn’t. Instead, they continued to run large government deficits, effectively transferring debt from private to public hands, rather than reducing it through rising national savings rates.Savings-rich countries, notably China, have not helped. To get the global economy in better balance they needed to reduce exports by revaluing their currencies and encouraging domestic demand. Instead, the second, third and fourth largest economies in the world have continued to increase their net exports, thwarting recovery in the United States, Britain, and southern Europe. This economic imbalance, say Dumas and Choyleva,…
