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06 October 2008

U.S. Economy was fake after all!

The U.S economy has been known as largest in the world.

But just recently it collapsed dramatically. Well, the time has come.

Most of the U.S. GDP, which is largest in the world comes from consumption, not production.

They buy many things from abroad. How come that is possible for people who don't produce so much buy goods from abroad? 

It is because foreign countries lend them money buying U.S. treasury bonds. The biggest owner today is China.

They just print dollar bills if they have to pay the debts back because the U.S. dollar has been the world's key currency. Every country in the world uses that.

But the dollar value is just depreciating. And then this subprime loan crisis hit the economy. No one can rely on the U.S. economy.

Now the world is reconsidering how to deal with the U.S.

The U.S. is no longer supepower of the world. No country can be like that any more.

The U.S. is softlanding to be one of big countries in the world. President Obama would be the symbol of non-superpower America.

Maybe that is normalization of the world.    

That may be the beginning of interesting era of human history.

22:26 Posted in USA issues | Permalink | Comments (0) | Tags: economy

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