Ben Bernanke is Wrong When He Says that Emerging Economies Will Rescue the U.S. Economy

October 16, 2006 -

U.S. Federal Reserve Chairman Ben Bernanke recently stated that the enormous U.S. trade deficit that the U.S. has incurred over the years is nothing to worry about because it merely reflects global savings patterns. He states that emerging economies have a huge glut of savings and thus the U.S. necessarily must have a great debt to bal…