The School of Globalism
“…we may be headed into a world where capital is abundant, deflationary pressures are substantial and demand could be in short supply for quite some time.”
—Lawrence Summers, former Secretary of the Treasury
Professor Summers must be reading Ben Bernanke’s new blog. Or maybe he’s writing it for walking-around money. At $250,000 a pop for making a speech, Mr. Bernanke can certainly afford to pay high-toned hacks to polish his spin-o-nomics. Raillery aside, Mr. Summers’ utterance provokes some pretty fundamental questions: what exactly is this world we’re heading into, and what exactly does that capital consist of?
It is, first, a world of unraveling globalism. So many people who should know better — members of the supposed thinking class who have suspended their thinking — swallowed Tom Friedman’s dictum that globalism was here to stay, a permanent new feature of the human condition. File that idea in the dead letter office, along with Francis Fukuyama’s The End of History. With the help of competitive central bank racketeering, desperate nations have propelled themselves from financial disorder to geopolitical turmoil and history marches on — lately to the ululations of gleeful beheaders. Friedman’s flat world was predicated on a dominant and sound American polity, and we’ll have neither in that world Mr. Summers says we’re moving into.
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