That Healthy Decoupling

That Healthy Decoupling:
For the first time in many decades, the world will have to deal with several leading economies that will be competing in a more equal footing. The euro is a reality, Japan has exited its lost decade, despite the recent economic shock, and emerging markets have mostly emerged. The abnormality of the unique position of the US as the only economic locomotive has mostly ended with this crisis. This will allow the US to focus on solving its domestic problems with less concern that the needed restructuring will unduly drag global growth, and hopefully deliver a more balanced global economy. This will also imply that countries that don’t rise to the occasion will run the risk of lagging behind for a long time. The different approach to plant closures across the Atlantic in the restructuring process of the auto industry is a very clear signal that some European countries have not yet realized the competitive threat they are facing.