There is a World Economic Summit taking place in Davos Switzerland (I think - doesn't matter). Anyway, I went to the website and listened to one of the sessions. It was the Jan 21 - "World Economy - Setting the Agenda".
One of the speakers was Stephen Roach of Morgan Stanley.
He said that even though the U.S. economy is 'recovering' the lack of job growth is 'troubling'. His 'theory' is that what is happening is labor arbitrage. Paraphrasing.. the world economy is being driven by 1 engine - the U.S. consumer. He said that the U.S. economy is "running on fumes". We are extracting value from overpriced assets and depleting savings. is a breeding ground for asset bubbles. He said that the U.S. policies are unsustainable. What will happen to the world economy when the U.S. consumer can no longer prop up the economies of the world?