Forums → WEPR → I don't understand america.
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I am a canadian, yet I do not understand how 15 trillion in debt, yet the most powerful economy. I know about alot of factors tie in, like powerful military big country...and what not. I still beleive in Manifest destiny, maybe not a military takeover, but enconomicly. To apparently the most powerful nation on earth.
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I am a canadian, yet I do not understand how 15 trillion in debt, yet the most powerful economy.
Debt refers to the deficit in government spending. Basically, the US has been running a deficit in its spending for over 30 years; it has spending over its capacity. Debt can be held/owned by the public or foreigners, in the forms of Treasury securities such as bonds. The government loans money from various sources, and in turn gives out bonds that promise say a 20% return. That's how the US can keep financing itself.
Nevertheless, that doesn't mean it's bankrupt, it's GDP is still the largest in the world, that's why it's still the world's superpower, it has the capacity, the talent, resources to still surge ahead if it can restructure itself.
Cough, cough Obama doubled our debt while he was in office cough cough
It's ridiculous to blame solely Obama when the Republicans revelled in their own partisan shenanigans and refused to come to compromises.
Do you really think your getting that money back?
ofcours. (i do not say when, but we get it sometime.)
that in the meanwhile we rent you money again doesn't count. those are new payments whit new rules about paying them.
untill a few months ago usa had a AAA+ rating, this means they always payed back their debts. usa went down to AA+ and ow we are now renting less big amounts to the usa because it's a little less sure we gonna get it back. but AA+ is still trustworty. now if your debt keeps going up till the point it's going to be very hard for you to pay it back. we will lower your rating 1st to A and then B or C. and everytime your raing go's lower your less trusty and we will eventualy stop renting money to you untill you have paid us back.
so your choise here is:
1: don't pay back and don't be able to rent any money anymore in a few year.
2: pay us back and we rent you money.
the usa debt isn't standing still there are transactions whit other countrys all the time. in both ways. thats how this system works.
Blaming the president really makes no since
i will never blame a president himself. the president is the leader of the government. but the government as a whole is responsable for the actions the government takes.
and i do not agree whit either of the 2 partys neither do i disagree whit some they do. i just have no need to choose side as it is not my country and is not importend for me.
its supoose to be a 2 i was ahead of myself when typing
so china has the 2nd biggest debt?
in reality. china does not have a debt at all. they have money to spend
Cough, cough Obama doubled our debt while he was in office cough cough
just take a little look at the pics i posted. and you see your wrong.
just take a little look at the pics i posted. and you see your wrong.
Granted there was an increase, but it wasn't double the previous amount. Obama is just one in the long list of presidents who has increased the amount of debt to be fair too.
Cough, cough Obama doubled our debt while he was in office cough cough
cough cough Obama took over the ****hole Bush started cough cough.
I don't understand why people blame a single person for a bad economy. It's not like he was able to really do much that could impact the economy that much. The GOP wouldn't allow it.
china does not have a debt at all. they have money to spend
Right now they do. But they're economy is a big real estate bubble. It's almost a mirror image to the USA in the early 2000's, exception being the different ways the governments run. China isn't going to stay that way forever, eventually they are going to take a dive similar to the way the US did. The pace and speed will be different because of the communist set-up, but the result will be the same.
314d1 had it right. The economy will always drop and rise in a pattern. Some less severe at times but nevertheless, there really is no reason to complain that the government is doing bad during an economic drop, and then praise it while it's at an economic high.
China isn't going to stay that way forever, eventually they are going to take a dive similar to the way the US did
except from the bubble and the 1 child law there is no sign china will make the same dive. also has china a few trillion befor a red number pops up, unlike the usa had.
314d1 had it right. The economy will always drop and rise in a pattern.
and i never denyed that. (you learn that in the 1st year of any economy study) but that was not the point. the system we talk about now is how the debts between countrys work. and i explained that.
Right now they do. But they're economy is a big real estate bubble. It's almost a mirror image to the USA in the early 2000's, exception being the different ways the governments run. China isn't going to stay that way forever, eventually they are going to take a dive similar to the way the US did. The pace and speed will be different because of the communist set-up, but the result will be the same.
No, it's not entirely a big real estate bubble. China's growth is powered by its multiple export oriented industries, which are sustainable. What America went haywire about was because it lost it's competitiveness on the world market, and reverted to a slightly protectionist state in the 1980s, which certainly didn't help. America already lost its comparative advantage in many areas in the 1970s and 1980s to the emerging Japanese and WE economies. China merely nailed another big one in the coffin for them.
No, it's not entirely a big real estate bubble. China's growth is powered by its multiple export oriented industries, which are sustainable. What America went haywire about was because it lost it's competitiveness on the world market, and reverted to a slightly protectionist state in the 1980s, which certainly didn't help. America already lost its comparative advantage in many areas in the 1970s and 1980s to the emerging Japanese and WE economies. China merely nailed another big one in the coffin for them.
I agree completely with that statement, and I never said it was entirely a bubble, but it does take up a big chunk, but to partydevil, I did say the speed at which they would dive would be different. I'll need to check up on the few trillion you were talking about. But, going into the politics for a sec, events in China, including the activists activity, a leadership switch, and the ever growing loss of power the Communist government has over it's citizens, is a sign that change may be coming over that whole country, which will destabilize the economy for a bit. But I don't think they will change their tactics with the euro in the crapper and America having domestic and financial problems. Again, I'm not saying this is going to happen next year, or the next five, just that there is a very good chance it will happen.
debts between countrys work
lol, right now debts are little more but a joke between politicians. It'll be interesting to see how people work out their debts with other countries when/if the euro fully recovers. China did a good job staying inside itself and not getting attached to the economies of other nations.
change may be coming over that whole country, which will destabilize the economy
china does so, but they take small amounts of land eatch time to "upgrade" they are not going to build in the mainland massively at once. especialy not tibet.
not sure if it will destabilize their economy. but it could be if they go to fast i guess.
It'll be interesting to see how people work out their debts
thats what i explained. you should not look at the debt as 1 big amount or 1 big amount per other country. but all small amounts like 50 million till 10 billion or so.
China did a good job staying inside itself and not getting attached to the economies of other nations.
it's because of 2 things. 1. because it is one of the few producing countrys. they buy from the countrys that sell their ram materials for cheap.(ie africa, south america) then make something from it for cheap and sell it for more to the cosuming countrys. (ie "western world"
2. because they manualy keep their coin low so that labour stays cheap wich makes the produced items chep. and therefor are very attractive for businesses world wide.
I'll need to check up on the few trillion you were talking about.
i would search a link for you if it wasn't 3am and if i didn't just came home from a long day work. i had to go to madrid for a day and i realy want to sleep now after all that traveling. maybe tomorrow if i see time.
But, going into the politics for a sec, events in China, including the activists activity, a leadership switch, and the ever growing loss of power the Communist government has over it's citizens, is a sign that change may be coming over that whole country, which will destabilize the economy for a bit.
No...China is still firmly in the grasp of the CCP. It didn't shake after Tiananmen, and I don't expect minor protests now to do so. After 1989, investment still poured in, and the economy boomed.
I'll need to check up on the few trillion you were talking about.
the chinese foreign reserves just hitted 3.2 trillion.
source
this amount go op eatch 3months by between the 80billion and 200billion
Source: bloomberg.com
knowing they have no debt, it only takes a bit of logic to see they have a few trillion to spend.
i'll keep searching for a actual amount when i have time again. (wich is not now, i just posted what i had found sofar) i know it's out there somewhere as i have readed it in the newspaper less then a year ago. let's hope were able to find it.
we are actually above all countries on the euro combined. USA!USA!USA!USA!
Your an idiot, only one european country norway is higher then the us, and norway is number 1.
Your an idiot, only one european country norway is higher then the us, and norway is number 1.
Proof yeah its wiki but its the same anywhere
[url=http://en.wikipedia.org/wiki/List_of_countries_by_external_debt]
USA! USA! USA!
One must not forget that external debt might not be a bad thing. If debt is owed to one's own people, it's not as malicious as debt that is owned to foreigners, who can apply pressure.
Your an idiot, only one european country norway is higher then the us, and norway is number 1
the netherlands has a higher economic rating then the usa. (just 1 of the many examples.)
this list is only the debt from the government. not all the debt.
[url=http://www.usdebtclock.org/]the total usa debt is close to 57,5 trillion.
btw you link failed because you missed the www. part
oke quoting a url gives a fail...
the quote turns into mm infront of my own link
i tryed to quote the wiki page.
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