Decoupling is a myth.....

http://www.bloomberg.com/apps/news?pid=20601039&sid=aiFx.vaF6eXs&refer=home

Another of my favorite Bloomberg author has stated today that China and India (2 of BRIC countries) are not really decoupling from US's economic woes. The initial thought was that China and India should be able to chug along fine with high GDP growth even though US and Europe are entering recession. But, China's economy is too dependent on US consumer whims, and that is the biggest problem here. And US consumers account for 2/3 of the economy.

As Americans are cutting spending like crazy, so too will China's GDP which is decelerating to 7% or even lower next year.

My prediction: All 4 BRIC countries will have to do more from now to counter the recession and possibly deflation.