Chart Of The Day: US Decouples From The Rest Of The World… And From The US Itself

The global economy is like a jetliner that needs all of its engines operational to take off and steer clear of clouds and storms. Unfortunately, as Nouriel Roubini tells The Guardian, only one of its four engines is functioning properly: the Anglosphere (the United States and its close cousin, the United Kingdom). AsRoubini continues, the question is whether and for how long the global economy can remain aloft on a single engine. Weakness in the rest of the world implies a stronger dollar, which will invariably weaken US growth. The deeper the slowdown in other countries and the higher the dollar rises, the less the US will be able to decouple from the funk everywhere else, even if domestic demand seems robust. But it’s not just the rest of the world that is decoupling from US growth… as the following uncomfortable chart shows, so is a crucial pillar of monetary policy transmission, consumer wealth perception, and economic stability – the US housing market itself.
The decoupling… globally (China, Europe, and Japan all seeing GDP estinmates slashed)

This post was published at Zero Hedge on 11/02/2014.