I believe some features of the current economic situation are as important as they are implicit or forgotten in most daily discussions – or at least in those few I do follow.

I will spell out these features as best I can. I rely much more on my personal world view as built over a few decades than on study and analysis, or competence in business, economic and social studies.

Here is what I think is happening:

  1. Crisis of the market-based approach to assess credit risk (the “credit crisis”)
  2. End of colonialism (at the hands of the market-driven “globalization”)
  3. Deep, long-term adjustment of the economy (the “downturn” and the “paradox of thrift”)

I shall articulate each separately.