CIA factbook: USA worst economy in the world!

[metalfacepc]

I believe that America can maintain (and even lower) its debt, it will just take some time. For this reason, I think it is unfair to say "poorest," but this amount of debt is still alarming

 

[PingviN]

I believe that America can maintain (and even lower) its debt, it will just take some time. For this reason, I think it is unfair to say "poorest," but this amount of debt is still alarming

Yes, time has proven to be an excellent way of reducing debt. More time will probably solve everything.

 

[JS80]

That doesn't rank the economy. That ranks the suckers, with China being the biggest suckers with the highest positive current account balance, and us being the beneficiaries of the Chinamen's stupidity and being last.

 

[RFE]

That doesn't rank the economy. That ranks the suckers, with China being the biggest suckers with the highest positive current account balance, and us being the beneficiaries of the Chinamen's stupidity and being last.

Surplus cash is foolish, whereas tremendous debt is advantageous?

Perhaps you should go out and take advantage of some banks by maxing out multiple credit cards. Those foolish banks might just let you benefit from such a clever move.

 

[iGas]

Balance of trade

US Trade Balance 1980 2010.svg

The steep trade imbalance trend seems to be started from the Clinton years.

North American Free Trade Agreement (NAFTA)

Trade Balances

The U.S. goods trade deficit with NAFTA was $94.6 billion in 2010, a 36.4% increase ($25 billion) over 2009. The U.S. goods trade deficit with NAFTA accounted for 26.8% of the overall U.S. goods trade deficit in 2010.

The United States had a services trade surplus of $28.3 billion with NAFTA countries in 2009 (latest data available).

NAFTA's Winners And Losers

Overall Impact
The long-time growth in the U.S. trade deficit accelerated dramatically after NAFTA became effective in 1994. According to the Bureau of Labor Statistics, the $30 billion U.S. trade deficit in 1993 increased 281% to an inflation-adjusted $85 billion in 2002.

 

[Jhhnn]

That doesn't rank the economy. That ranks the suckers, with China being the biggest suckers with the highest positive current account balance, and us being the beneficiaries of the Chinamen's stupidity and being last.

The Chinese are engaging in enormous investment in infrastructure & growing industrial capacity, also in investment in a variety foreign ventures & sovereign debt instruments, including our own. They have money to burn & their economy can't absorb the excess income as fast as they'd like.

It's not really fair to compare their emerging economy to our own. OTOH, it's perfectly reasonable to compare ours to Germany, for example... Where the whole concept of corporate governance is different, where unions, communities & suppliers all have a voice on corporate boards...

 

[Mr. Pedantic]

I'll just make this one post in P&N to say that near enough as makes no difference, the US deficit is equal to the 2nd through 29th largest deficits combined.

 

[JS80]

Surplus cash is foolish, whereas tremendous debt is advantageous?

Perhaps you should go out and take advantage of some banks by maxing out multiple credit cards. Those foolish banks might just let you benefit from such a clever move.

We send them toilet paper they send us their slave labor. Then they send us back toilet paper and buy US treasuries earning 0.01%. Again, who is the fool?

 

[Jhhnn]

We send them toilet paper they send us their slave labor. Then they send us back toilet paper and buy US treasuries earning 0.01%. Again, who is the fool?

They buy treasuries atm for the same reasons as anybody else- they're a safe parking place, earning more than nothing.

They also use american dollars to buy commodities & technology in the world market, and still have a surplus. they can't spend fast enough, unlike us...

Their economy is dynamic, and changing, quite by design. It'll be a lot different 10 years from today, if they have their way about it, and there's no reason they won't-

http://chinawatch.washingtonpost.com/2011/03/change-of-model-imperative.php

 

[Craig234]

nm

 

[piasabird]

As soon as we raise the debt ceiling and increase taxes then the the USA will be the greatest nation on earth. Maybe we can tax political adds at %100.

Do you really believe this baloney? Every time we increase the cost of doing business in the USA all the jobs go overseas and an even alarmingly higher rate.

Can you say 3rd world Country?

 

[Craig234]

As soon as we raise the debt ceiling and increase taxes then the the USA will be the greatest nation on earth. Maybe we can tax political adds at %100.

Do you really believe this baloney? Every time we increase the cost of doing business in the USA all the jobs go overseas and an even alarmingly higher rate.

Can you say 3rd world Country?

The problem isn't the 'cost of doing business in the USA'. If the 'cost of doing business' were the same in the USA as in every other country, America would BE a third world country. That would mean that workers here made the dollar or two a day so many other countries do, that costs like real estate were worth the same low amounts, etc.

And that's the direction things have been shifting, as business owners and the financial community take all the growth while workers are cut against and again to grow profits.

The problem is our shift in policies that allowed the raping of our wealth by a few at the top.

Which is what has happened - the top 1% getting 88% of the economic recovery's growth. Top CEO income up 23% in 2010 while the rest of America was 0%-1%.

Part of being the 'richest country in the world' is HAVING higher costs.

 

[Genx87]

Define best. Oh you mean trade balance in your book equals best? By all means go hit nigeria and let us know how the rest of their economy looks lol

 

[xj0hnx]

nm

Best Fail234 post evar!

 

[Whiskey16]

The steep trade imbalance trend seems to be started from the Clinton years.

Selective bias, eh?

Coincidently, also the exact period when China altered its economic policy with resounding changes in growth and output. D:

I'm likely not out to lunch upon this, so I won't place such Chinese responsibility upon Clinton and NAFTA.

Hint, NAFTA ain't the USA scapegoat for failure as you appear to have attempted. In a strong generalisation, the USA's failing were of manufacturers' complacency of turning of out rather poorly competitive products -- notably vehicles on to consumer aircraft, etc...changing global markets with new and growing competitors, and new niches that were not adequately capitalised upon. Also strong failures to adapt to GLOBAL (as not only the USA faced such challenges) change in desirable locations for manufacturing and assembly. Greater trade deficits were the result of the USA not being adequately agile in redirecting portions of its economy from pure manufacturing and compounded by increasing the competitive quality of such manufacturing. Large and maturing states have increased the competition for R&D, service, banking, and technical services....

Where the USA once had fewer to compete against in the global market -- it now has many more.

Complex issues with many causes and not a simple of mix'n match of a personal vendetta against a single US political administration and timing of a single trade deal.

 

[RFE]

We send them toilet paper they send us their slave labor. Then they send us back toilet paper and buy US treasuries earning 0.01%. Again, who is the fool?

I do see your point. Granted, if the design or end result is a default, then they are truly the fools. Yet, if our government is hell bent on paying them back, that's a very large burden that we'll be saddled with.

 

[Jhhnn]

I do see your point. Granted, if the design or end result is a default, then they are truly the fools. Yet, if our government is hell bent on paying them back, that's a very large burden that we'll be saddled with.

Heh. The vast majority of Treasury debt is supposedly held by Americans, and there's no differentiation wrt what's held by foreigners. That US investment firm which is a wholly owned subsidiary of an outfit registered in the Bahamas banking in the Netherland Antilles with offices in New York & Hong Kong could be owned by anybody... and there's really no way to tell. It's the beauty of deregulated finance in the global economy...

The Chinese are playing it smart. As they make changes in their economy, promote internal consumption, they have ability to invest their reserves, liquidate their T bonds as required... even if they sell 'em at a discount, they're still doing well, not to mention the fact that their large interest serves to stabilize US policy in their favor. If they dumped their holdings over night, downward pressure on the value of the dollar would be enormous. Not that they intend such a thing, at all, but in the world of international finance, good friends are even better friends when they depend on you to do the right thing...

 

[Trianon]

According to this gentleman, it's all the ut's fault:
http://www.cnbc.com/id/43730337

What else points to the inability of young workers to compete?

“Most disturbing is that the average income of U.S. households headed by 25-year-olds and younger has been declining relative to the average income of the baby boomer population. This is a reasonably good indication that the productivity of the younger part of our workforce is declining relative to the level of productivity achieved by the retiring baby boomers. This raises some major concerns about the productive skills of our future U.S. labor force.”

 

[metalfacepc]

Yes, time has proven to be an excellent way of reducing debt. More time will probably solve everything.

Well, yes, time... along with some austerity measures of course

 

[JS80]

Heh. The vast majority of Treasury debt is supposedly held by Americans, and there's no differentiation wrt what's held by foreigners. That US investment firm which is a wholly owned subsidiary of an outfit registered in the Bahamas banking in the Netherland Antilles with offices in New York & Hong Kong could be owned by anybody... and there's really no way to tell. It's the beauty of deregulated finance in the global economy...

The Chinese are playing it smart. As they make changes in their economy, promote internal consumption, they have ability to invest their reserves, liquidate their T bonds as required... even if they sell 'em at a discount, they're still doing well, not to mention the fact that their large interest serves to stabilize US policy in their favor. If they dumped their holdings over night, downward pressure on the value of the dollar would be enormous. Not that they intend such a thing, at all, but in the world of international finance, good friends are even better friends when they depend on you to do the right thing...

It would be foolish for them to dump it in a fire sale. Fed could pick it up at a discount while they take a haircut all to the benefit to us. You give the chinamen too much credit.