Higher household saving depresses consumption because it is the difference between households after tax income and what they spend.

But, with the current low rate of household saving, the cycle of rising deficits and debt will soon make national saving negative.

The Japanese government has been able to sell its bonds to domestic buyers because of the high rate of domestic saving.

The result in Japan would then be rising real interest rates as the low private saving rate runs head on into large fiscal deficits.

Japan s ability to sustain high fiscal deficits, low interest rates, and net capital exports has been possible because of its high private saving rate, which has kept national saving positive.

Second, it could absorb excess German savings by letting unemployment rise as local manufacturers fired workers (because rising unemployment forces down the savings rate).

Saving. A domestic saving rate in excess of 50 has served China well.

One view holds that long term growth risks have been on the rise, raising the premium on assets that are perceived to be relatively safe, and raising precautionary saving in general.

The strength of the Indian economy is underpinned by a high saving rate and robust investment.

Meanwhile, China s savings rate remains stubbornly high.

Apart from accounting for the global divergence in savings rates, tight credit constraints in China might explain the country s high, and rising, savings rate especially as the large rise in national savings is attributable mostly to household savings.

The yen s weakening will mean higher import costs, and therefore a higher rate of inflation.

No politician has publicly stated that US solvency requires such draconian adjustments, because the American public is far from agreeing to the sacrifice needed.

The net saving rate fell to near zero.

The excess saving could also decline if housing construction picks up.

Instead, it reflected a fall in the personal saving rate.

However, aging will keep the saving rate from falling at the same pace.

Frankly, higher US personal saving rates would not be a bad thing.

Since the saving of younger savers is now high and the dissaving of the older dissavers is low, the net saving rate is high.

An economy s current account is the difference between its investment rate and its savings rate.

The household saving rate has collapsed in recent years, falling to less than 2 .

Of course, China s savings rate will also decline, but Japan s experience since the 1980 s demonstrates how a sharp fall in investment can generate large and persistent current account surpluses, even when the savings rate is falling and the currency is appreciating.

The saving rate in each of those 25 years was between 7 and 11 .

That would leave a net national saving rate of just 2.5 of GDP.

And with that lower saving rate will come a smaller current account surplus.

The result in Japan would then be rising real interest rates as the low private saving rate runs head on into large fiscal deficits. That would weaken the stock market, lower business investment, and impede economic growth.

A likely reason for the fall in the saving rate and resulting rise in consumer spending was the sharp increase in the stock market, which rose by 15 between August and the end of the year.

The high saving rate of Chinese households reflects both the normal high rate of saving among younger generations and the fact that older generations had very little income and therefore did very little saving when they were young.

Although the saving rate came down gradually in the 1980 s, it was still 10 in 1990.

Malawi has a low life expectancy and high infant mortality.

There is a high rate of suicide in alcoholics and other drug abusers.

The Committee is deeply concerned about the high rate of abortion of the girl foetus.

Looking ahead, the saving rate may rise even further, and will, in any case, remain high for many years.

So bringing the savings rate down is necessary if domestic and external balances are to be achieved.

A higher rate of expected inflation would also cause the total nominal rate to be greater than 5 .

As political tensions in low savings countries grow, so will the risk of these countries abandoning the euro, causing the price that Germany will pay for its distorted savings rate to rise.

The rapid rise in saving has reduced consumer spending, slowing the pace of GDP growth in 2009 and in early 2010.

This leads to a higher rate of interconnection between its field lines and those of Earth.

If the saving rate continues to rise rapidly, it could push America s fragile economy into another downturn.

One sure way to reduce the savings rate in China would be to develop an American style mortgage market there.

The drop in the saving rate can be readily traced to a massive increase in the rate of household consumption.

Fears of future wealth taxes could discourage entrepreneurship and lower the saving rate.

But then the saving rate fell by a full percentage point, reaching 5.3 in December 2010.

Their net effect will be to raise consumption as a share of GDP and to reduce the national saving rate.

But what China really needs is a greater effort to promote domestic consumption and lower the savings rate.