U.S. once again cast as world's consumer of last resort

As Europe cuts spending and China again floods the globe with low-cost goods, Americans are once more being cast as the world's consumers of last resort.

With U.S. unemployment still near 10% and workers' incomes largely flat, that may be a prescription for fresh trouble. One factor keeping the world out of balance, the Obama administration and many experts contend, has been China's policy of keeping the value of its currency artificially low, allowing the Asian giant to keep churning out exports.

In a surprise move Saturday praised by President Obama, Beijing said it would allow more flexibility in exchange rates. But the Chinese statement, which was light on details, suggested that any change would be gradual. How fast the global economy can evolve will also turn on how much spending patterns change in the biggest economies, especially America's.

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