About the US System

Quote from trefoil:

Sigh.
You go through a little crisis, and all of a sudden everyone thinks you're toast.
Take a look at this table: CIA World Factbook Ranking of GDP by PPP

This is the world ranking by GDP in terms of purchasing power parity - no exchange rate distortions here. We're ranked 2 behind the EU, but you know, that's a whole freakin' continent. The closest individual nation is China, with a GDP a mere 55% of ours.
Why is the dollar still the reserve currency? Foreign direct investment in the US is 2.22 trillion, while our investments in the rest of the world equals 2.75 trillion, number one in both categories. They come here and we go to them.
Finally, the most important ranking: how easy it is to start a business. If you're at the top of this list, it's hard, and at the bottom, it's easy. Note that from 145-155 on this, the very bottom of the list, all except one of the countries are former or current colonies of the US or UK, and of course include the US and UK.
Think of this as the long-term advantage enjoyed by the countries in question. All else being equal, they'll beat out everyone else.
In the 50's the USSR beat us to space and made us afraid, in the 70's it was the Arabs who were going to make us their slaves, in the 80's it was the Japanese (remember how they were taking over Hollywood? Best remark on this, by a Hollywood agent: "The Japanese aren't taking over. The Japanese are coming with money, and Hollywood is going to spend it."), and now it's China.
The USSR is gone, no one thinks the Arabs are going to surpass us anytime soon, Japan's been slumping along since 1990.
China looks like it does have a realistic chance of actually surpassing us, but don't count that chicken before it hatches. They've still got a long way to go.
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"Doing Business records all generic procedures that are officially required for an entrepreneur to start up and operate an industrial or commercial business."

This really proves nothing. Sure, it's easy to start a business. What percentage of businesses are actually successful? Every populated area of the United States has been tapped into and large corporations have taken advantage. If I decided to start a chain of grocery stores, for example, do you think I'd be able to compete with Walmart?

Also, certain businesses are extremely difficult to start in certain parts of the US. My father, who has 20 years of experience in electrical construction, can't get an electrical contractors license in his state because he doesn't have a bachelors degree in electrical engineering. This is a new rule put in place a few years ago.

The current numbers mean nil. Lets see what those numbers look like 50-100 years from today.
 
Quote from trefoil:

Sigh.
You go through a little crisis, and all of a sudden everyone thinks you're toast.
Take a look at this table: CIA World Factbook Ranking of GDP by PPP

This is the world ranking by GDP in terms of purchasing power parity - no exchange rate distortions here. We're ranked 2 behind the EU, but you know, that's a whole freakin' continent. The closest individual nation is China, with a GDP a mere 55% of ours.
Why is the dollar still the reserve currency? Foreign direct investment in the US is 2.22 trillion, while our investments in the rest of the world equals 2.75 trillion, number one in both categories. They come here and we go to them.
Finally, the most important ranking: how easy it is to start a business. If you're at the top of this list, it's hard, and at the bottom, it's easy. Note that from 145-155 on this, the very bottom of the list, all except one of the countries are former or current colonies of the US or UK, and of course include the US and UK.
Think of this as the long-term advantage enjoyed by the countries in question. All else being equal, they'll beat out everyone else.
In the 50's the USSR beat us to space and made us afraid, in the 70's it was the Arabs who were going to make us their slaves, in the 80's it was the Japanese (remember how they were taking over Hollywood? Best remark on this, by a Hollywood agent: "The Japanese aren't taking over. The Japanese are coming with money, and Hollywood is going to spend it."), and now it's China.
The USSR is gone, no one thinks the Arabs are going to surpass us anytime soon, Japan's been slumping along since 1990.
China looks like it does have a realistic chance of actually surpassing us, but don't count that chicken before it hatches. They've still got a long way to go.
More...



I would agree with you if the American people were still in
charge. Recent events say otherwise. Too many low-lifes
in gov.
 
How many are successful doesn't really matter as much as the fact you can fail, dust yourself off, try again, and no one is going to look at you like you're crazy. This is actually very important.
I would agree that a generic number is obviously not going to capture all of the on-the-ground difficulties involved, and I'd certainly agree that there's still way too many obstacles in the way to success because of various local crazinesses. Here in NJ, for instance, you can't have an S corporation, so if you decide to incorporate, you face the added complications of paying a separate corporation tax. I tried this once, back when I still had hair, and one year my accountant slipped a digit on a surcharge on the corporation tax. I wound up paying, two years later, when they finally got around to noticing this, more in interest and penalties on that than I actually owed because of that mistake. Annoyed doesn't begin to describe how I felt about that.
So no, I'm not going to say it's that it's all that easy, and of course every business and location is different. But our culture encourages folks to start businesses, and overall our governments aren't as intrusive as elsewhere.
 
If you want to see the USA's probable future look no further than California.
They are reaping the rewards of selfish greed, high living and over rewarding themselves at the top.
Too mean to share the bounty of wealth by paying a bit more tax.
Too demanding in handouts for as little input as possible.
The pack are closing the gap economically and just posturing with military might won't help much. How many terrorists can a state of the art, billion dollar airplane kill ? Not a lot if they hide in the cities.
Democracy and Capitalism desperately need upgrading to get the much needed support of the 3rd world.

imho
 
Using the real deficit numbers from Treasury Direct .gov, and not the make believe/ underestimated official deficit number, the US ran it's first trillion dollar deficit from 9/2007 to 9/2008. So, US investors and foreign investors have to pump $1trillion + per year into our gov't just to keep it afloat. And the deficits are expected to grow with no end in sight as social security and Medicare will start to run big deficits, if they already haven't, as more baby boomers retire.

Anyone who thinks that foreign and domestic investors will continue to dump over $1trillion per year into our federal gov't indefinitely for those relatively low returns needs to wake up. The BRIC countries are due to have enormous growth once the economy starts to go forward again. Wise money would invest in those countries as the gains would be much better than treasury debt. Unless, of course, interest rates skyrocket.

In sum, at some point in the next decade the US gov't will reach a singularity point. At that time, there will be falling available investment to sustain and grow the gov't. So, either we will experience the "Fall of Rome" or politicians will be elected that dramatically cut gov't spending (see California today as a harbinger of what has to occur).
 
Quote from Humpy:

If you want to see the USA's probable future look no further than California.
They are reaping the rewards of selfish greed, high living and over rewarding themselves at the top.
Too mean to share the bounty of wealth by paying a bit more tax.
Too demanding in handouts for as little input as possible.
The pack are closing the gap economically and just posturing with military might won't help much. How many terrorists can a state of the art, billion dollar airplane kill ? Not a lot if they hide in the cities.
Democracy and Capitalism desperately need upgrading to get the much needed support of the 3rd world.

imho
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you ought to try living here.

Too greedy. I know families making close to 160,000 thou losing their houses.

Lets say you got three kids.

to get a middle class house in Carlsbad with good schools meant 800 to million for a mortgage 3 years ago.

So thats say 6000 to 8 grand mortgage.

property tax is a another grand a month.

Hoas, maintenance. Figure 600 to 800 a month.

Income tax to the state - figure 1200 month.

Federal governmnent what 2000 or more a month.
Gas tax etc.

I can not believe how informed people are about how the people with jobs (non government) are getting completely screwed by taxation.

Ca dems destroyed this state with runaway spending on programs designed to increase their voting block.
 
Quote from loza:

This thread amazes me. Clearly the USA is Rome in the later stage of the empire. While this is a fact, I cannot stand assholes (like the OP) who deny the decline and advocate force to temporarily slow this. Reversing this decline is not possible and even they know that!
The reason for this is very important.
We can choose and pick the direction while understanding the internal systemic problems. For example
after the decline of the Roman empire
dark ages and plague followed
while after the decline and fall of the British empire relative calm and a wealthy period was ensured in the much of Europe. I see a problem when this natural decline is fought with tooth and nail and military adventures and mischief drive the US foreign policy. I suspect in my lifetime and even the generation after me things will be the same, as US being the number one superpower, however there are systemic problems in the USA economy. The Empire is not ascending but in descending after reaching its peak, circa 1955.
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people are clueless to the possibility of dark ages and plague coming in their lifetime.
 
Quote from zdreg:

people are clueless to the possibility of dark ages and plague coming in their lifetime.
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rich leaving and moving jobs with them. High probability of above happening in west world. Infrastructure in place already. And just when we saw that light at the end of the tunnel towards permanent prosperity :eek:
 
Quote from trefoil:

Sigh.
You go through a little crisis,
More...

Little crisis, ha...

The US has been in crisis mode since the its first oilwar.

By the way just because nobody is taking over as worldpower that doesn't mean the empire is not falling...
 
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