US consumer ´weakest link´ in world economy

“Self-indulgent” US consumers are the “weakest-link” in a global economy that could come off the rails at any moment, according to Stephen Roach, chief economist at Morgan Stanley

In a bearish assessment of global economic prospects for 2005, Roach told an introductory meeting of the World Economic Forum that rampant US consumption had been the main driver of the spectacular rates of growth achieved in 2004.
However, with economies all around the world increasingly reliant on exporting their goods to the US, a moderation in US spending could have serious repercussions for the global economy

“For me, something just doesn’t add up. The self indulgent American consumer … is an accident waiting to happen,” said Roach, a long-time pessimistic on the US economy.

fxstreet.com