What is the importance of the US losing its position as the number one economy in the world?
- Thread starter zdreg
- Start date
We are the Reserve Currency of the world. Meaning everyone borrows against the dollar. The Dollar is King Dick. Happened after WW2. We run the world economy because of it. And while there is this talk that the dollar is going down etc. It aint going anywhere, we are still better off than the Euro, the Yuan, and any other currency out there aka more stable. People are always jelly because of it.
I have a basic understanding. Im sure bits and pieces are missing.
I have a basic understanding. Im sure bits and pieces are missing.
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Funny when ET trolls post such garbage. Did you know that China's economy is built on a bubble? That 80% of its exports depend on the US and Europe and the drop in demand for Chinese products because of tens of millions of Americans who lost jobs has a huge lasting effect on China? The result is obvious, tens of millions of Chinese are being laid off, most of them making just $3 a day. Let that sink in. They were very bitter because they saw the US giving its citizens stimulus checks and they said the Communist Chinese government has not given them anything in the form of assistance. The Chinese exported like $500 billion each year to the US before Corona Virus and most of that has been gone for a while. Without the US, China would be hurting economically, for decades down the future. The US still is one of the largest economies in the world and one of the largest market for goods as well. Ignore that at your peril. One more thing. Chinese put all their savings in those empty apartment cities with no one living in them. What happens when the Chinese housing bubble bursts and all those mortgages default?
Yes, but they do have a growing middle class and more millionaires and billionaires than the USA. A huge local market. I am not disagreeing with you on principle. I know that China has a huge headwind and a very large poor rural population, they disregard individual life and liberty. But as an economy, they do not have some of the US/West problems either. The US is more socialistic than CCP, and that is a laugh.
Their millionaires and billionaires are made up of top communist party officials since, the state owns all the businesses and run the entire country. There are still a lot more poor Chinese there that earn $3 a day. They will never get rich. Lucky if they do not get laid off. And those who have good paying jobs have bought those empty apartment buildings and taken on mortgages. If they have mass layoffs, all those mortgages default.
The Yuan can never be a World reserve currency on par with the Dollar - or even the Franc for that matter. The Chinese Communist Party expends huge resources pegging it artificially low against the Dollar. That is one of the central tenets of their trade policy. Chinese exporters that take in Dollars by law are required to turn those Dollars in to regional State (CCP) banks to be exchanged for Yuan.
The US Dollar is allowed to be floated on the open market. Most of OPEC prices their oil in Dollars. Russian gangsters exchange their Rubles and Euro for Dollars (with the help of Dutch banks, big scandal). Drug cartels sell their products for Dollars.
Currency is a tool of trade. Stable currencies that are allowed to be floated on world markets become fiat currency.
The US Dollar is allowed to be floated on the open market. Most of OPEC prices their oil in Dollars. Russian gangsters exchange their Rubles and Euro for Dollars (with the help of Dutch banks, big scandal). Drug cartels sell their products for Dollars.
Currency is a tool of trade. Stable currencies that are allowed to be floated on world markets become fiat currency.
Many underestimate the Chinese. As long as a pro business, pro free market President sitting in the White House, US is going to be fine.
Looking at the current younger generations, more and more are becoming Marxists, and yes, they will vote left wing policies. That's when US will collapse.
Either we convert them to be free marketeers or watch how leftism brings the largest economy on earth down the drain. The choice is yours now.
Looking at the current younger generations, more and more are becoming Marxists, and yes, they will vote left wing policies. That's when US will collapse.
Either we convert them to be free marketeers or watch how leftism brings the largest economy on earth down the drain. The choice is yours now.
Leftist kids tend to become adult capitalists when they find out that working six months out of the year to pay taxes is a bitch when it comes their turn to support a family. Been that way since 1923.
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Agreed. China's Yuan is gaining ground but only among neighbouring countries and the countries that they have bribed for years. It's still not on a global basis. With their conversion to local economy, Yuan's influence should get even smaller. But US and the West should really use this opportunity to strengthen its economy, increase its productivity and beef up its information security so to solidify its so far "world reserve currency" status otherwise once China completes its "one belt one road" project, China's Yuan can still overtake United States and the West and have a chance to become the world's new reserve currency.