global economy The decoupling debate has been largely put to rest by the latest evidence from the U.S. economic slowdown. Now, Wall Street economists now say the world can cope with a weaker U.S., Bloomberg News reports.

Three years ago, the financial crisis that hit America spread across the globe, dragging the world into its deepest recession in seven decades. But now, as the world is finally emerging from the recession, the U.S. recovery is losing its momentum. Will it drag the world down with it again? Economists say no: This time, if the U.S. sneezes, the world doesn't have to catch a cold.

The experts suggest that international reliance on U.S. trade has declined to the point where lingering U.S. pain doesn't have to spread. In addition, foreign economies have room to grow that the U.S. doesn't, partly because of the U.S. housing slump. Also, unlike the U.S., many countries avoided asset bubbles, kept their banking systems sound and improved their trade and budget positions over the past decade.

In fact, many predict high growth rates in developing nations, but low growth in developed countries, and the gap in growth rates is already widening, Bloomberg quotes David Lubin of Citigroup (C).

That's not all. According to the World Bank book The Day After Tomorrow, which Bloomberg quotes, developing nations aren't merely decoupling their economies from the U.S., they're undergoing a switchover, becoming the drivers for the world economy, and that their growth could help rescue advanced nations.

While some remain skeptical, even the decoupling proponents say that the rosier scenarios are all contingent on the the U.S. pain remaining contained. Based on its decoupling scenario, Goldman Sachs (GS) expects a weakening dollar, higher bond yields outside the U.S., and stronger emerging-market equities -- unless American issues put the world's financial markets on tilt again.

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Jetncat

Can the world thrive without the US? If Obama can help that along he will see to it. Obama wants to destroy the US capitalism system and replace it with the destructive Socialist system. And we are letting him do it by not voting out his cronies on the hill. VOTE ALL SOCIALIST OUT OF OFFICE THIS NOV. AND WATCH OUR COUNTRY THRIVE

October 05 2010 at 4:36 PM Report abuse +1 rate up rate down Reply
wurkinman1

maybe the market could.but not if there is a natural disaster....cause uncle sam will pay their bill.....hey....thats even better insurance than I get...and I pay a monthly premium

October 05 2010 at 3:13 PM Report abuse +2 rate up rate down Reply
ffflip4it

The global economy A to Z has been subsidized by middle class American Credit Card impulse buyer junkies for the past 1/2 century... That's pretty much all gone down the tube... What now remains is a massive unpayable debt and a deep emptiness of spirit... Guess where we're "non-stop" headed?????

October 05 2010 at 11:59 AM Report abuse -1 rate up rate down Reply
ajgorm

Yes we can help the decoupled world out , the decoupled world that is more educated than us and have better health care pans and live longer than us , by out sourcing the rest of our bleeding heart jobs to themm too. While cutting ourselves out of the trade picture bu giving China NAFTA while they do their own banking setting their own currency values to screw us over with. TO THE EXTREME LEFT ! Liberal agenda of poor us.

October 05 2010 at 11:08 AM Report abuse -1 rate up rate down Reply
ingfp

We taught the world free enterprise and now we have lost the ability to teach, learn, grow freely without big government. We are now mind numb media taught idiots. You want verification? Look at the White House!

October 05 2010 at 7:38 AM Report abuse +2 rate up rate down Reply
Bearmaul

Thank you president Obama, I always wondered what living in a third world country would be like and thanks to you I don't even have to leave home to experiance it.

October 05 2010 at 2:04 AM Report abuse +2 rate up rate down Reply
jerald3739

The United States has allowed itself to become a nation of overpaid, underworked fat people. It not only paid too much for too little it promised to provide unrealistic pensions and failed to set aside the money to fund them. Enjoying self-indulgence, the people saw nothing wrong with spending all their money and borrowing when their money was gone. Employers, realizing that they could not afford to support the demands of the rheir employees who wanted more to feed their self indugence, moved to other countries where things were just the opposite. Cut from the same cloth the politicians didn't have a clue as to what to do--so they did nothing. Torn jeans use to be a fashion statement. They now will be a poverty statement. Already big fancy houses and expensive SUV's are a millstone around the neck of those that bought them but couldn't afford them. The future scares the hell out of me!

October 05 2010 at 12:13 AM Report abuse +4 rate up rate down Reply
Hello

Sure they can, but the bigger question is, can they "Thrive Despite" our help all the time?

October 04 2010 at 4:33 PM Report abuse rate up rate down Reply
hillbillylooken

It does not take a Harvard Professor to know if you spread youselt to thin you will fail. The problem with the United States is, our Government always wants to bail everyone else out at our cost. IF, The United States Government would stop financing and supporting every country in the world and start supporting it's self we could be the Richest Country and most powerful in the world once again. BUT, as long as we have these so called leaders and their attitude of making all American's Criminals by passing Laws upon laws taking away the average American the right to work unabused by the almighty Tax Collectors we could come back out of this. I wish I was able to be President, I would VETO Any and every Bill that came across my desk asking to help other countries un less they had a plan to repay us with a good sound interest. They would have a set time they had to pay or they would have sanctions. I would also block all Insurance Companies and any other business who charges unsightly charges for the services they do not meet. Our so called Government is nothing more than a Good Old Boys Country Club that is robbing every American Citizen so tyhey can enjoy their fame. It is time this was stopped. Vote only for those truly committed to supporting the American People. Let's Clean house, Both Republican and Democrat. Stop the Rich from taking over. Vote for the real people.

October 04 2010 at 2:54 PM Report abuse -1 rate up rate down Reply
ajgorm

Of course not . One world currency will not work !

October 04 2010 at 1:19 PM Report abuse rate up rate down Reply
1 reply to ajgorm's comment
ajgorm

The real question is can the world ecomy afford the sinking of the dollar and other currencies they have been working so hard to stabilize. like the unstable EURO ! and Yuan ! and Yen all backed by our treasuries. Ehh

October 04 2010 at 1:41 PM Report abuse rate up rate down Reply