Spending at home is part of the solution to correcting massive trade imbalances between the west and the developing world. Yes it will mute global trade. Many argue this is the wrong response. I think it is inevitable.
I liken it to a typical family or company that has been through a period of big and easy money who then experience a downshift or persistent contraction in cash flow. At first they may try to keep spending as they were, but eventually they will suffer much stress and fear and go bankrupt or, they will start to change their habits. Sooner or later they will start to cut their own grass, clean their own toilets and repair and recycle equipment in house. They will learn to live on less and they will get much more efficient with the cash flow that they do have.
In so doing, they will work their way out of debt and out of financial distress. They will learn to compost capital into their own economy rather than spread it everywhere else. If the crisis lasts long enough, their behaviour will forever be altered–for the better. In this way the experience will be life altering, and serve their financial health for the rest of their existence. An economy comprised of people with strong fiscal health and discipline is a strong, resilient economy.
This clip on the legislative proposals being made to reign in speculation in basic commodities is also inevitable and necessary to restore health to our financial system.
Those who are trying to lead us back to the destructive habits and policies that created our current financial crisis must be over ruled by reason.