US Economy Has Not “Decoupled”

For a while around the time of the Financial Crisis some wondered whether or not developing nations were “decoupled” from issues in the developed world. As it turns out, they were not.

A reverse version of this could be developing, as a weakening Chinese economy (that the Chinese government is averse to greatly stimulating) and steady weakness in Europe may combine to potentially create a force of economic weakening that may this time blow west instead of east.

The US economy has gotten a lot of attention recently for its relative economic strength. But we may soon better appreciate the fact that the US economy does not exist in a vacuum.