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US superpower status is shaken

that professor is an idiot...

yes today budget deficit is high, but that's only because economy is bad once iraq is over in 2010-2011 it'll save 100 billion a year, and also all that defecit spending will be over since economy has recovered.

and remember inflation for a few years is a good thing and that's what the fed is trying with 2-5% inflation for a few years debt is reduced by 20-25%.

and TARP 700 billion will be paid back, same with aig bailout, gm bailout, and chrystler bailout.

that's an extra 700 billion

and the home refinancing is like a mini-stimulus in itself since it allows some people to refinance saving them 100s a month.

and the healthcare thing is likely to stop a lot of people from being bankrupt and reduce their worries allowing them to spend more.

personally my parents save a high % of their income, i ask them why and they say that even though they have insurance what if they lose their job? that's the reason they save so much, this bill will reduce their worries and we already are spending a ton of money.

since september we brought:

42 inch tv
laptop
itouch
new cellphones
200 dollars worth of luggage

and we plan on buying

another laptop
sofa
an x box 360/ps2

not only that we've been traveling a lot and plan to travel 1000 miles next week.

and all this when we aren't really rich we make approx 40,000 a year.

oh and top of that i plan on going to college this year which adds another 3000 dollars (i got 18000/21000 in financial aid this year).

i think Obama is smart he's spending on higher education/domestic issues competing with other countries and spurring innovation.

and now the spending on alternative energy is like the next big boom, the new wind mill, solar, advanced battery factories wont be opened in china but here since tech is still very sensitive.

and since energy is free for these sources oil imports will be reduced thus freeing up a LOT of money to spend on other things.

when alternative energy boom is over the next frontier WILL be nano tech frontier and once again we will lead, since 90% of the most prestigious research universities/labs are located here.

and my prediction after nano revolution will be a space revolution which will ensure tech is created to explore deep space. but space revolution is 100 years away.

anyway

green revolution 30 years
nano revolution 40 years
space revolution 200 years? (if we find other planets like earth it could be 1600s-1800s all over again)
 
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You better do a bit more reading of Economics 101.
This financial crisis was not to do with wars it had more to do with bad debts from housing in the US, sub prime loans. Having them wrapped up to look good and sold on.
It is more complex that your assumptions.

US is spending 860 Billion US on WOT , Do think bad debt from housing has greater impact then wastage of money on WOT?

As for the old prof::
John Gray: "The era of American global leadership, reaching back to the Second World War, is over... The American free-market creed has self-destructed while countries that retained overall control of markets have been vindicated."

For someone who was in the London School of Economics his simplistic comment is really an insult to his supposed intellect. The whole financial collapse was due to more than the “free-market creed”. The Prof needs to do a bit more scratching of facts.

Prof is right , free market economy need restructuring to eliminate the element of greed and corruption.

And this one::"How symbolic that Chinese astronauts take a spacewalk while the US Treasury Secretary is on his knees."

Funny, I thought the US sent at least 2 space shuttles into space in this time period. Hence the US Treasury can not be that badly off. The prof needs to come out of his cupboard.

Chinies have world largest US dollar reserves , they are buying assets all over world right now ,soon they will demand change in trade currency other then dollar, that will be the last nail in coffen.
 
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i think USA economy is more then 90% standing on the foreign investors, and depend very little on local investors. Now a days most of USA industries and banks are facing liquidity problems and are moving towards down sizing. Due to which a large and heavy portion of foreign investors are moving out of USA, due to which the problem is multipling itself due to which every day is a bad day for the USA economy. When such huge investment moves out then it would be difficult for country to survive. so according to me this is the main problem USA is facing.
 
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i think USA economy is more then 90% standing on the foreign investors, and depend very little on local investors. Now a days most of USA industries and banks are facing liquidity problems and are moving towards down sizing. Due to which a large and heavy portion of foreign investors are moving out of USA, due to which the problem is multipling itself due to which every day is a bad day for the USA economy. When such huge investment moves out then it would be difficult for country to survive. so according to me this is the main problem USA is facing.

"If you owe the bank $100 that's your problem. If you owe the bank $100 million, that's the bank's problem."

Now read what you have said....:usflag:
 
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"If you owe the bank $100 that's your problem. If you owe the bank $100 million, that's the bank's problem."

Now read what you have said....:usflag:

You are right..but if i take your example of bank then i mean to say that if you did investment in bank and after few year you abserved that bank is moving towards dust bin, then definately you would move you whole cash from that bank and invest it in another. Same is the case with USA...bank is not your personal you only did some investment in that, but by observing the economic and political condition of a country and the other financial institution's condition, you will change your decision. USA economy is composed of many different investors from different countries. the economic resession USA is facing, causes investors to move or withdraw their investments and invest them in other country with better condition including stable economy, lost labour cost, no threat of war and terrorism, stable political conditions and huge investment opportunities, USA although have a huge oppotunities for investment but they are also facing problems like WAR, Terrorism, High cost of Production. And Due to this, cash is moving out of the USA banks and investors are no more seem to be interested in doing Investment in USA. Recession causes reaction just like chain reaction, that move continiously.
 
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I don't think US will fall. But if economic crisis in USA continue, other countries which are depending on US will defiantly fall. And also USA is still a Super Power, and doing well so no other Super power and challenge the USA's Super power status.

Ps: they are consuming 20% of world resources, while contributing just 5%. So if economy crisis continue, then those countries who are contributing in those 20% world resource will definatly fall. For example, Oil producing countries!!
 
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You are right..but if i take your example of bank then i mean to say that if you did investment in bank and after few year you abserved that bank is moving towards dust bin, then definately you would move you whole cash from that bank and invest it in another. Same is the case with USA.......

I am not an expert in economics.

The way i see is that if china wants to take the money, America will not stop China. But in doing so China will devalue the dollar that in return will be a huge loss to China.

I think A.M. or others can explain this.
 
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Anyone knowledgeable about "Dollar Hedgemony"?? Well, I seriously suggest people read up on it. It's THE most relevant understanding of macro-economics. Unfortunately it's not taught in any business school and only a few experts exist.

But you will become somewhat confused if you have to search for it yourself. First learn about FIAT FRACTIONAL-RESERVE CURRENCY. This concept is crucial to understanding WHY markets crash every few dozen years or so around the world.
 
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even texas is stronger than mexico, dream is ok but day-dreaming is not.

Texas is in a horrible condition. If you live in Texas you would know this. The states is in dire state. California and NY are hemorraging, bleeding internally.

Don't look down on Mexico, there's much potential. The main problem is 'foreign interference', the most recent election was blatantly stolen through vote fraud --- massive rallies across the nation. This was key (like in Honduras) to keeping the Indigenous Native Mexicans down. 98+% are natives (or nearly so), yet 99% of government are white (or mostly white). Same with all lucrative businesses and media and jobs go to whites. I'm surprised they haven't revolted yet, most Mexicans are 'unaware' of this injustice.
 
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when US bankrupt, US will divide into pieces

the south part may turn back to mexico

Maybe US will divide among conservative (rednecks) republicans and liberal democrats.

Anyone watch Fox news and notice how much they speak against the Obama administration?

Republicans hate Democrats these days more than ever before.
 
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Maybe US will divide among conservative (rednecks) republicans and liberal democrats.

Anyone watch Fox news and notice how much they speak against the Obama administration?

Republicans hate Democrats these days more than ever before.

OMAR WHY toture yourself !
 
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I am not against blacks but the day Obama become US president it show American people lost their will to fight, that why they chose Obama because obama policy was to withdraw troops for Iraq and finish Afghanistan war quickly.

No dought that American people are falling apart only thing holding them is what ever economy left.

Stills if US do n t stop they will fall.
Nothing last for ever.
 
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