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Back to the Future

While the disconnect between spending and earnings -- as measured by the current account deficit in the United States and the current account surplus in China -- narrowed in both countries during the recession, the imbalances are widening again as the recovery is underway, as some of the economic patterns that contributed to the financial crisis return.


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The global recovery, enabling the problem
Article | The catastrophic economic downturn that began two years ago was supposed to shake up the global economy, ending an era in which Americans consumed too much and saved and exported too little.

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