In the United States the tough questions are just what kind of spending will feel the brunt of the restraint and to what extent will production have to shift to accommodate a new mix of spending.
In particular, without added doses of foreign saving, we are going to need to generate more of our own if we wish to fund high levels of business investment in capital goods and household purchases of new houses and durable goods. If we do not increase our saving, investment will have to be cut back.