The U.S., The Cleanest Dirty Shirt, But For How Long?

  • The unprecedented leveraging up of the world economy is unsustainable and threatens to unravel or at least produce protracted slow growth in the world economy.
  • The resulting deleveraging is also rendering monetary policy ineffective.
  • As one of very few countries, the US has managed to deleverage at least to some extent, and relatively painless.
  • But the US is merely the cleanest dirty shirt around, and not immune from the deleveraging elsewhere in the world.

The U.S., The Cleanest Dirty Shirt, But For How Long? | Seeking Alpha