SamuelRSmith said:
libellule said:
SamuelRSmith said:
libellule said:
SamuelRSmith said:
This is exports-imports. This doesn't rank wealth, at all. In fact, as current accounts will always, by definition, end up balancing, this implies that in the future, the USA will have one of the largest trade surplusses in the world, and China, the largest trade deficit (either that, or minimal surplus/deficit for very, very, very long periods of time).
This is, in no way, a measure of how rich or poor a country is.
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I do not get what u are saying. Wealth ? what are the wealth that US possess outside a debt ?
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I... err.. don't get what you're saying. I didn't even mention the wealth of the USA, I'm just saying this isn't a measure of wealth (which you implied it was, through your title).
But, if you want to know, the USA has more wealth than any other country in the world by just about every measure - it's the most resource-rich country in the world, its workers are the most productive (The average American is 40% more productive, each year, than the average European... and the average American produces the same amount as 11 Chinese people, or 43 Indians!), also, 90% of the world's largest corporations and brands are based in the USA. And, somewhere along the line, pretty much every major non-American corporation has a lot of American money invested in it.
Remember, the only reason the USA was able to accumulate such a debt, is because the lenders are confident that the USA are capable of paying the debt back.
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wait, but all this is possible because of the infinite debt.
and lenders are not confident, lenders work fo the US. Nobody would be confident to continue to give that much money to people that will never be able to give back the money lent ... At the opposite, the grec debt is, in % of PIB, a lot smaller that the US one ... but because rating agency work agaisnt Grece and because there are a lot of speculations, they explain everybody to NOT give money to Grece because it is supposed "risky" ...
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Huh? Resource-rich land is not a product of debt, it's a product of the land. High productive workers isn't a product of debt, it's a product of education and training. Being home to the largest corporations and brands isn't a product of debt, it's a product of decades of business-friendly laws (low taxes, low regulation).
Greece IS a risky place to invest, compared to the USA. Greece's current economic situation is FAR worse than the USA's, Greece have a very high chance of defaulting on their debts... the USA, at this point in time, does not (not that the debt binge can go on forever, but American politicians HAVE started to see the light now... rather than Greece, where they didn't see it until the debt collectors were knocking on their door) .
Nobody is forced to lend money to anybody, it's all done optionally. People have stopped lending to Greece (I say "lending", I /mean/ buying Greek bonds) because they no longer trust that they'll get all the money back. Investors still think that they have a very, very good chance of getting their money back from the USA.
As a side-comment, I do believe that, as the USA starts repaying its debts, we will see a rebirth in the US economy, as the State is going to have to draw back to a level that it used to be, back when the USA was in its golden days.
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