We are officially saving NOTHING in the US. Doesn't it feel good? Does it somehow feel like the Roaring Twenties before the Great Depression?
Economists, when surveyed accross large periods of time, have been shown to be overly pessimistic. Econo-Girl can concede her attraction to doomsday scenarios. After all, isn't it a good feeling to be superior in one's perspective relative to others? Isn't it fun to be saving up that "I told you so"?
So the mice of international balance are gnawing at heels of Americans. How long can we keep it up?
The big implication in the No Savings For Americans news is that a reversal in employment will really have severe impacts on people. They will lose their houses, cars, etc. Kids will be thrown into the streets. People will become Democrats overnight, suddenly seeing the benefits of a social safety net.
Econo-Girl believes that this news must shift the focus to employment figures as a bellweather for the economy, much more so than it has been in the past. It seems EVERYTHING is dependent on Americans keeping their jobs, what with no savings and all. And if we stop spending, then no one will be buying those goods from Asia.
The final question is: how far will self-interest and self-delusion go? There are a LOT of people who are needing the current balance to work.