[eli_gottlieb]

I suspect we're agreeing in at least part on the idea that you've got to have currency flows on both sides of the production/consumption cycle.

Definitely. I can say that at least right now, one of the major problems is that labor is "penned in" by national borders, but capital isn't. The labor side of things has gotten too weakened because capital can arbitrage itself to seek optimum pricing, and labor can't.

So yes, to a certain degree I'm in favor of capital and/or trade controls simply because I think a real one-world open-borders policy cannot possibly work right now, and free trade/capital flow without free movement of labor is just an arbitrage opportunity waiting for eager capitalists.

I'm not convinced that depression is strictly an issue of overproduction -- it's more a vapor-lock in which the currency pump between production and consumption seizes up.

True enough. A "real depression" also seems to have another major component: a weight of private debt that the nonfinancial economy cannot reasonably carry. This prevents price and currency adjustments from correcting the other imbalances naturally.