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Clip – Beyond the Euro Crisis – Stephanie Flanders, Jim O’Neill & Diana Farrell – Zeitgeist 2012

>>Jim O’Neill: I wouldn’t be surprised if
we look back in a few years and realize that we’re having parts of the world swapping places
with each other. And you have got China and Germany starting
to consume more, and produce less, and other places doing the opposite. And that’s what it’s all — that’s what it’s
all about, really. In terms of the absolute world struggling
the way that people emotionally talk about it. The Eurozone, after all, itself in the first
quarter was slightly stronger than people expected because of Germany. So, yes, there’s very severe pockets of adjustment
going on, but the notion that the world is falling apart again, it’s not, as of yet,
evident to me.>>Diana Farrell: So you asked where the head
space of America are, and I would offer a few observations.>>Stephanie Flanders: So you don’t think everything
is going to be all right?>>Diana Farrell: I’m probably a little less
sanguine than you are, but I share your sense that if you zoom out of Europe for a moment
it feels much less dire and the U.S. is in a much better place, but I see it very vulnerable
to Europe. But I think a couple of perspectives from
the U.S., particularly closer to the eye of the storm there, is we were guided during
the policy reactions of 2009, in particular, by the conviction, and I wish Europe had had
this conviction earlier, that the people who talked the most about moral hazard are the
people who, in the end, write the biggest checks.

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