Carlos Lam

What Unites the BRICs? Dollar Envy

The BRICs don't envy America; they're trying to save their collective butts as the dollar continues its long-term downward trajectory. Let's review:

America (us):
* federal obligations (debt+SS+Medicare) at 735% of GDP
* household debt at 100% of GDP
* <5% of income saved (was negative)

BRICs (them):
* federal obligations much lower than 735% of GDP
* household debt under 50% of GDP
* high savings (30-40% in China!)

With THOSE fundamentals, why would they envy us?