I have been reading his blog for years (ever since Calculated Risk, another great economics blog, pointed to him). He has been beating the same drum the entire time. His point is that the mechanics of how an economy work at the macro level reduce to a simple set of equations between investment, savings and consumption. And that those equations force hard choices that have political implications.
I have passed some articles to economics professors I know, but haven't heard whether Pettis' ideas make sense from a theoretical perspective. I know they make sense to me, a layman.
> And that those equations force hard choices that have political implications.
All economic decisions have political implications because all economic decisions are inherently political. Recall that until recently, we called it political economy until the Neoclassical school decided they wanted to pretend to be—and be viewed as—a science.
China is about to hit its Brezhnev era. That's my fear.
But for as long as Yi Da Yi Lu and state contracts rain gold, I see no personal reasons to worry