haxxiy said:
The European Union and China have larger economies than the US, though, and India will join them in less than 20 - 30 years. The thing is, inertia goes a long way. There's still plenty of accumulated prestige and wealth in the US and that isn't disappearing. See, even nowadays, many decades after the end of the British Empire, see how powerful the UK still is culturally and diplomatically. Or the prestige of French as an international language coming all the way from the 19th century and before. |
The world has fallen into the keynesian trap, once you fall into it, you can't leave. Japan was said to take over the world during the 80s, but their growth was based on printing money to generate a false growth, it took a huge toll: the growth evaporated and the country only survives because of ridiculously low interest rates to support the increasing goverment debt (over 240% of their GDP).
China right now is the Japan of the 1980s, they ahave been using the central bank printing press to artificially boost growth for over a decade and it is already starting to take the toll, it just a matter of more years ahead until they hit the current situation of japan (no growth at all).
Europe is already deep into the keynesian trap, their rates are negative, the ECB is printing money like crazy to give to their elite friends, and their growth is almost non existent.
The only thing that grows in Europe and Japan now is the debt, with negative interest rates, it's easy for governments to blow their budgets.
US and China are still having some growth, but it is just a matter of time until the Fed and PBOC blow up all their economies by raising their interest rates, and when it happens, they will go to 0 or negative rates like Japan and Europe and will stay in this trap like forever.
Last edited by CuCabeludo - on 01 November 2018
