3 EM 1 – 20/06/2022

Those of you who followed Nouriel Roubini during the Asian Currency crisis over a decade ago should have already recognized the similarity between that crisis and this one. Roubini was recently interviewed and gave his opinion: “The U.S. has been living in a situation of excesses for too long. Consumers were out spending more than their income and the country was spending more than its income, running up large current-account deficits. Now we have to tighten our belts and save more. The trouble is that higher savings in the medium term are positive, but in the short run a consumer cutback on consumption makes the economic contraction more severe.”

The United States has been the locomotive of the world’s economy. Specifically, in recent decades, the spending by the U.S. consumer has been the driving force behind most of the economic growth in the United States and worldwide.