Timothy Geithner, US treasury secretary, made it very clear to the world that US consumers alone cannot support the world economy. He made this statement during his visit to Berlin. While in Berlin, he held talks with German finance minister Wolfgang Schaeuble.

 Greece, Portugal and Spain have seen a massive increase in their borrowing costs. Also other EU members have become cautious after seeing the condition of countries like Greece. Germany despite being Europe’s biggest economy is also following suit.

On the other hand, Geithner mentioned that the world economy can’t depend in future on the US consumer spending as it has happened in the past. According to Greither there is a heavy decrease in the spending of US consumer and the world needs to figure out new ways to compensate for that. One of the ways is to improve your domestic demand and hence creating a market for the goods in your own country.

 Recession and a bunch of economic troubles have caused the US consumers to be less source of demand for the world in the coming years. Till now the world economy has been very dependent on the US consumers but now they definitely need alternatives.