Posted on 06/05/2008 11:41:54 AM PDT by BGHater
The world economy is cooling this year thanks to a slowdown in the United States, but something new is playing out: This slowdown is serving to amplify a shift in financial power toward Asia and developing nations.
Countries such as China and India are now big enough to help guide the global economy. In the past, a sharp downshift in the US and Europe would decisively slow the rate of global growth.
Saying this may wound some pride.
But we are not at the very top of the food chain anymore. Whats happening in Asia over the last 20 years has been amazing. Sometimes you have to tip your cap. They seem to be a whole heck of a lot smarter than we.
Remember that novel idea of not buying anything if you didnt have the cash in your pocket.
What’s sad is, our own government is making it happen.
No matter who is elected next fall, envirowacko policies are going to damage our economy for a long time...probably forever.
Why not ask the everyday Chinese citizen how he's like'n life?
We Americans brought this on ourselves by buying imports, cars and electronics, primarily. The people in Asian countries are not as dumb, they buy mostly domestically produced products.
I am not just talking about China. I am talking about the entire region.
What’s sad is, our own government is making it happen.
No matter who is elected next fall, envirowacko policies are going to damage our economy for a long time...probably forever.
Right on the money. Poverty awaits us.
This is nonsense, at least for now. America is fully 23% of the ENTIRE world GDP and by far the largest consuming nation on the planet. What exactly would China and India do with all they manufacture if not sell it to us and the Europeans? Compared to us, China's GDP is 3.2 trillion and India's about 1.1 trillion. Their combined GDP is LESS then 1/3 of ours, which is almost 14 trillion and when compared to ours AND the EU it is a minuscule 1/10th or less Total world GDP is around 54 Trillion. Of that we are 13.8 trillion and the EU is about 16 trillion. Together that amounts to 60% or so of total world GDP. If both America and the EU nations falter the entire world economy sinks for sure. The fact is since we are the single biggest consumers in the world, if WE slide into recession the rest of the world will follow. It may not always be so in the future but it most assuredly is at this time
The biggest long term damage to the US economy may well be the sovereign wealth funds from the Gulf States and China coming in an hoovering up US assets.
As I said on another thread, you wanna restructure the State Bank of Kentucky (eg) - well, you can’t - we need to make a call to Abu Dhabi - they own 30% of the stock of the bank now.
The weak dollar and high oil prices are making the Gulf awash with petro-dollars, which they’re reinvesting in US assets at knock-down prices.
-- Bill Gross, PIMCO
The article mentions China and India. You are using unnamed and undefined “emerging economies”. These are 2007 numbers, explain how you reconcile your chart with these numbers.
Rank Country GDP (millions of USD)
— World 53,640,000
— European Union 16,370,000
1 United States 13,790,000
2 Japan 4,346,000
3 Germany 3,259,000
4 China 3,249,000
5 United Kingdom 2,756,000
6 France 2,515,000
7 Italy 2,068,000
8 Spain 1,415,000
9 Canada 1,406,000
10 Russia 1,286,000
11 Brazil 1,269,000
12 India 1,090,000
http://en.wikipedia.org/wiki/List_of_countries_by_GDP_(nominal)
Thanks for posting.
Anyone interesting in this article might find this one even more interesting...
http://www.realclearpolitics.com/articles/2008/04/the_age_of_nonpolarity.html
...the comments are interesting, also.
“But we are not at the very top of the food chain anymore. Whats happening in Asia over the last 20 years has been amazing. Sometimes you have to tip your cap. They seem to be a whole heck of a lot smarter than we.”
yeah amazing what fascist regimes can get done huh. now if the Chinese corruption did not skimp on the construction material in their schools maybe tens of thousands of kids would still be alive to reap the rewards. or how about those wonderful factories that pay 200 bucks a month to work 10 hours a day.
I agree with you. The US is long, long decades away from being supplanted by any other state. But remember, it is possible. It takes a country to only maintain a minor number of able and dedicated engineers, scientists and other professionals to give it a cutting age. In this regard, the US is supreme, bar none. As long as America has the qualities in it to sustain the above, it is more than enough.
In the 1980s the Japanese were supposed to become the financial power.
http://towncriernews.blogspot.com/2008/06/reason-im-paying-439-gallon-for-gasyou.html
The Reason I’m paying $4.39 a gallon for gas....
I hope you're not serious. Chinese live in a totalitarian communist country. They buy what they're allowed to buy.
I couldn’t agree more. In addition as long as this country remains the destination of choice for the majority of those seeking to expatriate we will continue to reap the rewards of their services.
Of course it would be more desirable to have our own home grown and educated geniuses but that is a discussion for another time.
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