I agree that it is truer now then ever but I also feel that US will get stronger relative to the rest of the world over time. John
Oh really? Wait until the U.S. defaults on their debt -- you'll see a lot of foreign hankies waving in the air.
What if the US economy gets to the point where it can not spend so much on imports? What will happen to the China's ect? Will their growth still be as high as it is now? Or will it get smaller? And with such an expanding growth of people in China and India, what will happen to them? Who will buy their cheap crap? Maybe ChinaMart, I mean Walmart will go out of business.
Not exactly. China is the one that heavily relies on US consumption of cheap consumer goods. Korea & Japan rely on a high amount US consumption of consumer toys but Europe & Asia are big consumers as well. (Btw, Samsung and LG rock). Japan practices predator economics, so do not assume that their electronics industry needs US to sustain itself. India relies on the outsourcing charade, mostly on US but quite a bit on Europe as well. Brazil relies on agri exports to the whole world, US is only a chunk of it. Russia could not care less about US, there is not much trade going on there and in fact the relations are slowly worsening with time. US media makes it a point to negatively portray Russia as much as possible because there is a chance that it could hold up the region economically if US was to flop. The key nation is China, with its mounting bad domestic business debts and sweatshop operations that keep the masses employed, for the time being. It's really a slave to US and Europe that has realized that the masters are helpless on their own. But then we can always compare military strengths.
I am sorry but I thought this was absolutley awful. You are jumping to conclusions that are FAR from true. For example you mention how the spending of americans is going "erradicate the economy". That is simply not true, spending isn't a problem, we aren't in an inflationary period. And did you even read the 10 pages thread on the trade deficit? Also, you need to learn about kensyian economics and realize why have a huge growth in GDP isn't always a good thing. This is just an awful paper.
you are so off the cliff if you think the USA is going to default. I seriously laugh at this, this is awful. you know you and the original poster could do really well being economic advisors to the democrats.
I would say the consumer is the most powerful in the United States. On my various trips around the world, it was fairly obvious that the consumers in these foreign lands were not quite as strong. In Asia, for example, it seemed that many were lucky just to have a used banged up Toyota Corolla which most New Yorkers seem to have some version of... Iran and the United States are actually very good friends. Each one cannot live without the other. Iran needs the United States to constantly consume oil like drunkards. The United States needs Iran's oil. However, they seem like enemies with all the bravado and rhetoric. They are indeed the odd couple where one cannot live without the other. So, if the United States does have a headache, the rest of the world will suffer. At least the women are better looking and much more friendlier in these foreign lands. On that note, if you have not been then you should go. The women in the United States are simply overbought and either have no P/Es or ones that rival that of Yahoo during the tech boom in the late 90s. Dont put that in the school newspaper, however, thats between you and me.
Concur on that. Went long south america in size (size zero that is!) and have never regretted my decision.
US doesn't import from Iran (at least not above the table). http://www.eia.doe.gov/pub/oil_gas/...ons/company_level_imports/current/import.html