America’s Role As Consumer Of Last Resort Goes Missing. Not long ago, before the monetary crisis and the global recession it prompted, economists referred to Americans as the consumers of last resort. When the U.S. progressed at a healthy pace, its citizens were purchasers, firing up demand for the goods China and other nations exported. They kept the world economy humming. It may not work that way anymore, Bloomberg Markets magazine will report in its January issue. A bouncing back U.S. is giving less support to global development than in the past. Homegrown demand and production are more important drivers of the world’s largest economy than they were a decade ago. The tiniest U.S. current-account deficit since 1999 shows the trend, and the discovery of new domestic sources of oil and gas reinforces it. Exploration and production are fueling to development, and the country is spending less on imported energy. Cheaper fuel and raw materials are bolstering manufacturing as well, making the U.S. more of a competitor to emerging markets nations and less a reliable consumer of their goods. “Global growth is slowly becoming more of a zero-sum game,” says Manoj Pradhan, emerging-markets economist at Morgan Stanley in London and a former International Monetary Fund official. “U.S. growth is not reverting to the pre-crisis model, which created lift for everyone else.”
Posted on: Tue, 03 Dec 2013 07:58:49 +0000
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