Risk from another perspective

Look at risk from another perspective—the what-if
perspective—as we examine what can go wrong in the current investing
environment.
For example, we explore the threat of those twin deficits. We
think the current account deficit, which must be reduced at some
point, can be slimmed down without too much damage. But that
assumes that there is no threat of protectionism and that the rest
of the world, which has been happy to keep lending to the United
States, does not unexpectedly turn off the credit spigot.
We explain why China has had a close enough economic relationship
with the U.S. economy and its monetary policy to almost
justify calling it the 51st state. We think this relationship is a bulwark
against a messy resolution of the problem with the current
account deficit.