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Stephen Roach on the Cost of Global Resilience

Very well put with only one caveat; if the global recession doesn’t hit in the second half of 2007, then the party can go on for another 3 or even 4 years, perhaps longer.

The reason for this is that the U.S. economy, though still extremely important on a global basis, no longer commands 25% of all economic activity. U.S. global input is at 18% and declining. The 82% non U.S. share perceives it as a necessity to disconnect from the U.S. altogether. Such being the case; foreign governments will continue to push their economies and borrow today in order to build for tomorrow.

This is a concept that most American economists simply can not grasp as it is perhaps viewed as anti-American. The truth be told, this is not anti-American. It is the will to achieve financial independence. Teflon-like resilience is good but a strong will to become independent is far more potent.

Disclosure: This comment was submitted by a CrossProfit analyst and may not reflect the opinion of CrossProfit.com.
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