Why China Slowdown May Be Great for America

China is slowing down—that much is clear. (Especially after this morning’s dismal trade report.)

What isn’t, though, is what that means for everyone else. For those pondering America’s fortunes, China’s $1.26 trillion in holdings of Treasurys are a source of particular unease, for reasons articulated by economist Stephen Roach: ”Who will fund a seemingly chronic US saving shortfall–and on what terms–if America’s largest foreign creditor ceases doing so?”