17 November 2011

Plutonomy Limits

Citigroup Plutonomy Report, 2005, Excerpts
Concentration of wealth and spending in the hands of a few has its limits. There are signs around the world that society is unhappy with plutonomy. If voters feel they cannot participate, they are more likely to divide up the wealth pie, rather than aspire to being truly rich. The population at large might still endorse the concept of plutonomy, but feel they have lost out to unfair rules. This is a threat more clearly felt during periods of falling wealth. A collapse in wealth in the plutonomies, felt by the masses, could easily raise the prospects of anti-plutonomy policy.

The “global imbalances” is not as dangerous and hostile as one might think. A more balanced view acknowledges these nasty imbalances, but predicts a gentle, gradual dollar decline, a yuan revaluation, and the hope that Asians and European consumers will embark on a spending journey, righting the world.

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