The international financial system could be said to be in crisis. It requires frequent intervention by central banks and other national and international bodies to reduce fluctuations of currencies. It does not tend to eliminate current account deficits or surpluses; exchange rate fluctuations do not lead to movements toward balanced trade, nor do they appear to follow from flows of international reserves: some countries (notably Germany and Japan) run persistent surpluses while others (notably, the US) run persistent (even rising) deficits. Nor does ‘free’ trade appear to operate according to the Ricardian Law of Comparative Advantage. ‘Free’ international credit markets do not appear to provide credit in a socially acceptable manner: some countries and activities appear to receive far too much, while others receive too little. The world is experiencing nearly universal stagnation while governments appear to be unwilling, perhaps unable, to do anything about it.