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take note the USA is in bad shape the dow [Copy link] 中文

Rank: 4

Post time 2010-9-13 21:48:29 |Display all floors
Was at 10,000 ten years ago and still that price now the nasdaq was over 5000 now 2200.  The national       debt was 6 trillion now 13.5 trillion,  But my new veiw on economics is productivity is so high you do not need workers just consumption this is why the U.S. is number one and having debt no longer matters.  Consumption by any means is key China will be number one when their people consume more then the U.S.

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Rank: 4

Post time 2010-9-14 00:33:16 |Display all floors
The growth of the US economy has centered too much around consumer spending - that's a serious structural problem US is facing now......

Domestic consumption (i.e. ing imported stuff at Walmart, serving coffee at Starbucks, etc) accounts for about two-thirds of its GDP, way too high even compared with many other industralized countries.

And this means buying numurous goods and services from countries like China, which directly translates to on going huge trade deficit......

China needs to increase its domestic consumption, but not to the extent of that of America for sure

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Rank: 6Rank: 6

Post time 2010-9-14 02:38:47 |Display all floors
I also believe the US consumption level threatens its productivity on a long term basis, as investments don't cover write-downs anymore, which inevitably lowers productivity. In addition, the nation gets much more vulnerable to crisises, as recessions don't only decrease investments, but also harm consumption and therefore reinforce themseleves - a vicious circle that gets it dependant on foreign money in order to work.

However, other countries have to pay the USA, as they need the biggest consumption market in the world in order to keep their own economy alive and invest their money, which they can't use at home. Thus, nations like China, Japan or Russia pay the USA, altough they know they're gonna lose: if they don't, their own economy will get stuck in a recession, which would probably lead to severe political instabilities - especially in China.
I can only advice the chinese government to do what it is already doing: promote imports in order to gain independence and economical and political power.

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Rank: 4

Post time 2010-9-14 03:14:12 |Display all floors
Look in the supermarkets gas stations or anywhere less people are needed to work a cell phone breaks or a t.v. people throw it away and buy it new no repair men needed.   All thats needed is money to consume the services a base for companies to  too more people out work and consumption risese look at U.S. companies are raking in huge profits welfare progames are great letting people decide witch companies provide the best services keeps innovation and productivity high and rising. When the govenment decides what companies stay in business and gives money to them directly  that kills competition innovation productivity. Big welfare programs are essential for future growth.

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