Could the US consumer slowdown rebalance the world economy?

After the housing bubble, all the signs point to a US consumer spending slowdown. But it's not all bad news, says economist Stephen Roach, it could lead to a much-needed global rebalancing.

Long the engine of global consumption, the American consumer should retrench in a post-property-bubble climate. While this could take a cyclical toll on US and global economic growth, it could also provide meaningful relief for a massive US current account deficit the principal imbalance of an unbalanced world. And if consumers elsewhere in the world finally step up, there might be a powerful and lasting impetus to global rebalancing. Sweet dreams for now, but ultimately the only way out for a US-centric global economy. What would it take to turn those dreams into reality?

Could the US consumer boom continue?

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