Sublime

underlying imbalances that explained the sources of growth in the global economy,

It is this deleveraging process that is at the heart of the global financial crisis.

the impact of the currency revaluation cannot be undermined by an expansion of credit at repressed interest rates,

Fredonian demand for foreign capital will reduce investment and credit-fueled consumption abroad and the higher return on capital will otherwise increase foreign savings.

We fail to think in terms of the overall system.

points to imbalances between production and consumption in the major economies as the primary source of monetary instability.

The second, less obvious, way is to reduce directly the mismatch between revenues and expenses by lining up debt servicing costs with operating revenues.

and unless there is an equivalent drop in investment (if anything, investment is likely to rise to take advantage of higher real estate prices)