Too bad decoupling did not work. If it did, these bozos could hop from economy to economy, keep inflating and popping bubbles while making billions(or trillions.)
On the other hand, there can't be decoupling because they also outsourced U.S. financial risks as well. If U.S. goes down, the rest of world economy is bound to be sucked into crisis by design.
It boggles my mind when I see some financial types desperately wishing for another hot economy out there where they can go to resume their winning streak. They closed out that option themselves, and they are pretty slow to realize it.
This shows how much their perception is warped. A kind of perception you can find among hardcore addicts.
Unfortunately a large part of fixing the real economy involves getting the leeches out of the gears of production. Given the governmental regulatory overreach, legal system overreach, and corporate bureaucratic overreach (those who think large corporations are a lot more efficient than the US government haven’t watched one up close and personal) this is going to take a while.
The hotter the market, the more money the participants are guaranteed to lose in total. When markets heat up past a certain point, they become a negative sum game; the more they heat up, the more negative the total. For all practical purposes, that's mathematically guaranteed.
In a sane market, rising prices are a red flag to buyers that they should slow down or stop buying. Bulls, however, see the red flag as a signal to charge ahead.
Governments attempt to grow economics by making credit cheap.
Bad move this time by the 'experts'.
A country's economy can grow by increases in population that in turn increase demand for goods and services....more money changing hands.
However, new jobs, that are actually productive and are sustaining, i.e. not government jobs, must also increase with the tax burden remaining the same, most importantly in the short and mid terms.
If the latter isn't the case, the actual improvement in the overall standard of living cannot occur, therefore, no real growth in the country's economy. All other employment (jobs) are created from from the net gains of domestic product development, product manufacturing, coupled with raw material extraction, refinement, and distribution to include food and food products. Government, retail distribution and service sector employment all are built upon this foundation (hard industry).
A country like UAE invests in the known fact abroad, they usually makes good returns of such.
If we look at the continued courtship of contracts and ownership of foreign governments with other countries raw materials to fuel their domestic industries, we can understand that basic economic principle. From that we also can see the significance of domestic construction industry tied that function.
Funny how the 'experts' dream up 'new' economies omitting that basic foundation. Even if a small country is a travel hot spot for vacationing, and that's their main economic stimulus, they are still depending on other countries for that base foundation to function efficiently with those foreign countries' abilities to manage real growth.