if you haven't registered at GMO and can't view the report at that link, it can be seen (though not downloaded nor printed) also at scribd
If the examples of history are ignored (as is all too often the case) then policy error is likely to be a serious source of deflationary pressure. This is the last thing a debtladen economy needs, especially a debt-laden economy that is teetering on the brink of deflation anyway. But that doesn’t mean that policy makers won’t try to tighten. Indeed, one of the world’s worst economists and a paragon of orthodox belief, Alan Greenspan, opined in a recent Wall Street Journal OpEd that “an urgency to rein in budget deficits” is “none too soon.” Did you need more evidence that this was a really bad idea!?!
And Montier's old pal, Albert Edwards (still at SocGen) also has some stuff to say:
For Edwards, the Japanese lesson still holds…. FT Alphaville.
Ten Stock-Market Myths That Just Won't Die. Brett Arends, WSJ.
The consumption gap. Stephen Roach, Foreign Policy.
oil spill link of the day:
Conservatism's Death Gusher. George Lakoff, Berkely Blog.
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