I believe that all of this debt is going to catch up with us soon, and we aren't going to be able to borrow any more money. It's just like me trying to get a credit card when I owe a lot of money on ten others; it's not going to happen. Basically the only reason that we can establish ourselves as the last resort buyer and promote all of these economies to produce and export, is because we are such a wealthy nation. I agree totally with Greider's ideas on fixing this problem. He states that, "The system must be refocused on the demand side: the promotion of rising incomes, in step with rising productivity." (Greider 14) The governing elites must accept that we are no longer a part of the Cold War, and that we cannot keep mopping up all of these exports. After all, we do account for 44 percent of the world's consumption and only make up 4 percent of the population. We must get our own money and allow these countries to establish their own freedoms, and in regards, remove our export model out of these countries. I take Greider's side on this article and think that we must start realizing that the money is going to run out soon.
Pettis" throughout his article focuses on many of the same points that Greider does. However, Pettis" generally talks about it more as a world-wide cycle in which is enhanced when money is present, and constricts when it is no longer there. Pettis states that, "Globalization takes place largely because sudden monetary expansions encourage investors to embrace new risks,"(Pettis 90) Thus, he is saying that every time an economical "boom" like the one we are currently in takes place, these foreign investors see opportunities to receive more income for their countries, and immediately take it. The whole idea is to raise their economy, so when in dire need of money, they start exporting and bringing in capital that helps all aspects of their economy. I agree that globalization is basically a cycle.
