Some Asian countries have engaged in the Asian mercantilism for manufactured goods. In a similar fashion, the U.S. has practiced mercantilism for financial assets.
The world is not experiencing any ordinary recession. Bubbles are deleveraging (or bound to deleverage) regardless of government interventions (QE, stimulus, etc). This seems to be far from over.
Many nations are acting for their own interests. The bottom line is: are they acting for the interests of their people?
The issue of mercantilism may need to be understood in this context as well. How long can any form of mercantilism go on? Many countries may have to rely on self-sufficiency to a significant degree somewhere down the road. Is each nation ready for this? How will the welfare of the people be protected?
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