The UN recently released a world economic report in which it pointed out that the U.S. is still vital to the world economy. The UN report points out the following, as reported by Caribbean360.com:
[T]he world economy is still strongly tied to US fortunes, and the slodown in the country’s housing market is already a major factor in slowing world growth to 3.4 per cent for 2007, down from the 4 per cent achieved in 2006.
But the report does more than point out what is blindingly obvious to many of us. The UN report goes so far as to suggest that a coordinated strategy is needed in order to address this problem of imbalance, and also to keep the U.S. dollar from plunging. While the U.S. dollar is showing strength on the currency market for now, it has been weak in recent months, and a plunge in the value of the dollar, joined by a slowing economy in the U.S., could have serious implications for the world economy.
So, while you may not have to be too worried about the U.S. economy failing in the near future (the other developed countries of the world won’t let it — it would bring them all down with us), the question remains: what happens when the global imabalances are addressed?