As good as things are in the US, there is one threat that remains to the strength of our economy – the rest of the world.
Europe is flat, Japan is a basket case, and Russia is just beginning what should become an epic collapse mirrored only by their experience 25 years ago. China may be hitting the wall, which for them is a rate of growth less than 8% per year – it’s a catastrophe when everyone has financed today based on huge expectations for tomorrow.
Yet, for all that, the total product of the planet is expected to grow by 3.8% in 2015. The developing world is picking up the Great Convergence and with US leadership should still take us into the next boomtime in 2017. But there are risks all around us.