as for the end of the Super Power: the economy, like all markets, is cyclical. Ups and downs are a part of an evolving entity that reacts to influencing forces. The tech boom (bust) can be mostly to blame for the latest US down cycle. But do not be mistaken-- this is still a cycle. You have to realize the major underlying force at work within this Super Pwer is productivity. As along as americans work longer (not talking slave labor hours) and are more productive than most, they will always be a power. Americans dont fuc around. that is capitalism at its best.
China is interesting. while they have the population, that is about all they have. their economic infrastructure is where comparable to where americas was after WWII. they are an export haven because they have cheap, uneducated labor flooding in from the countryside that will work for the small amounts that the staterun govn demands.. what other choice do they have??- for now.
Also, the staterun govn is finally coming around and waking up to the 20th... oh wait 21st century. they are opening up their borders and welcoming some foreign flow of funds and companys to aid in the expansion of their economy, however when you have the govnt telling the corporations what to do you are going at it slowly-backwards? (as apposed to us corporations telling the govnt what to do)
as for the rest of the worlds economy: if you are to look at the correlation between stock market returns in the US to that of every other developed nation you will see an increasing trend from the past. i can quote %'s if needed. as our world becomes more advanced in technology and communications and as multinational firms share and take in profits across the globe, national economies will become more and more correlated or linked. Surprisingly, these percentages actually increase when only looking at DOWN days in the US stock market... meaning that when we win, so does everyone else... (but not as much) as compared to when we hurt, so does everyone else.
in conclusion: if america goes down, someone better be ready to pick up the slack (europe?) or the whole world is going to feel it... without lubrication
OH-EDIT: throughtout this whole thread McDonalds should be replaced with WALMART.
China is interesting. while they have the population, that is about all they have. their economic infrastructure is where comparable to where americas was after WWII. they are an export haven because they have cheap, uneducated labor flooding in from the countryside that will work for the small amounts that the staterun govn demands.. what other choice do they have??- for now.
Also, the staterun govn is finally coming around and waking up to the 20th... oh wait 21st century. they are opening up their borders and welcoming some foreign flow of funds and companys to aid in the expansion of their economy, however when you have the govnt telling the corporations what to do you are going at it slowly-backwards? (as apposed to us corporations telling the govnt what to do)
as for the rest of the worlds economy: if you are to look at the correlation between stock market returns in the US to that of every other developed nation you will see an increasing trend from the past. i can quote %'s if needed. as our world becomes more advanced in technology and communications and as multinational firms share and take in profits across the globe, national economies will become more and more correlated or linked. Surprisingly, these percentages actually increase when only looking at DOWN days in the US stock market... meaning that when we win, so does everyone else... (but not as much) as compared to when we hurt, so does everyone else.
in conclusion: if america goes down, someone better be ready to pick up the slack (europe?) or the whole world is going to feel it... without lubrication
OH-EDIT: throughtout this whole thread McDonalds should be replaced with WALMART.
Last edited by Arkosh~Kovash (2006-01-26 19:29:40)