The next one's the big one, will force various parties to 'get real'.
I don't think so!
The next crisis will shake stuff up and almost certainly accelerate the path to genuine re-balancing but I despair about these people who think that eventually there will be some co-ordinated rational 'policy' worldwide that will 'restore sanity'.
That alleged prior sanity (when was that again?) was an illusion.
All will progress towards the chaos inherent in a dynamic equilibrium. Stuff will change faster than "sane policy makers" can react to.
Ultimately the system will find its own sane balance based on the technological, cultural and energetic constraints that exist. And the eventual solution will have bugger all to do with policy, which at its best, can only remove temporary impediments to where the system, that complex adaptive thing, intends to go.
[Edit: and after that, various snakes will come out from under various stones and try and claim credit for the new normal]
Exactly. There is still a hell of a lot of debate and supposition about what stopped the last Great Depression.
And when he says the good old economic cycles don't really exist in developed economies anymore - I would argue that is primarily because the technocratic moneyists have tinkered with the system and are having to be more and more brave to stop it all blowing up in their faces. A little knowledge is a very dangerous thing when you're trying to 'fix' a complex machine. They have real time experiments with no control sample. And all too often policy is compartmentalised and subject to orthodoxy, despite the fact that they impact on each other. Such as the thrust towards unfettered trade and capital flows without consideration of other factors or even the simple game of wanting to be in surplus or the race to the botttom in taxes or regulation. All too narrow by far.