But, you know what? Forget the big picture for a moment. Let's just only look at the personal saving rate. Does anyone have any doubt that saving less and less, until America's households began to liquidate savings to consume, was a major underlying cause of the current crisis?
And dollars will rain down from helicopters to pay for all these, people merrily collecting them in baskets (or is it wheelbarrows?) to exchange for such trifles as food, clothing, fuel and shelter. Oh yes, and spaghetti grows on trees, so if you believe any of the above just "place a sprig of spaghetti in a tin of tomato sauce and hope for the best".
But if you do not, do the exact opposite of what Ms. Emily Kaiser (the Reuters analyst) suggests. Save now because the borrow-spend-grow paradigm is shifting fast. How do I know? Because Mr. Obama says so, and he is the President of a country that accounts for a quarter of the world's consumption. Here's what he just said during his trip to Europe:
"In order for growth to be sustainable, it can't be based on speculation, it can't be based on overheated financial markets or overheated housing markets, or U.S. consumers maxing out on their credit cards, or us sustaining nonstop deficit spending as far as the eye can see. The whole point is to move from a borrow-and-spend economy to a save-and-invest economy."