In this article, "The Revenge of the Glut" written by Paul Krugman, the author addresses the world's poor circulation of money. Also, he continues on to explain what cheap money is, and why it is ruining the circulation, mainly, by pooling internationally. This article is adressing the entire world. The majority of the article is based on a speech written by Ben Bernanke, the federal reserve chairman.
He states that the begginging of all these problems began in Asia, during the Chinese financial crisis; when China began trying to outsouce itself it began pumping out money into other countries, creating bad money, which drops the value of their currency, most of these funds and resources pooled into America which began to cause problems for our country. Apparently, many people think that Europes countries have magical and untouchable economies, the write of this article contests this and says that if they take the same deregulation steps that we foolishly did, that they will quickly fall into the same detrimental boat that we're in.
