Sometimes things are simpler than they seem, other times not. For example, China's consumer spending grew at an 8% rate for the last 10 years. But interestingly, consumer spending in China only accounts for 35% of its GDP compared to 70% here in the United States. China's public debt as a percent of their GDP is only 18%, in this country it is 53% - a telling statistic. The average Chinese consumer puts aside 25% of their disposable income in savings, which as a country adds up to about $2.5 trillion a year.

Many of us live beyond our means; most of them live beneath them. There are differences, however, that account for the reduced consumer spending: prices are expensive there, health care rare, unemployment benefits scant, and pensions are poorly administered. There are virtually no student loans. But overall, consumption is king here in the US whereas production is more important in China. At this point, much of the world is relying on the Chinese consumer to start spending more - but don't count on it.

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