The Argument That the US Has a Savings Problem

Both parties are equally culpable in creating these savings and balances. I talk about this a lot in the book as well, that China's failure to really rebalance and restructure its economy is a serious problem for sustainable growth. But on the other hand, that doesn't excuse America's open-ended budget deficits or asset-based savings encouraged by the Federal Reserve. It's not as if the U.S. as the world's most powerful economy is doing the world a huge favor by consuming to excess.