US economic power 'is declining'

Discussion in 'Money Talk$' started by KenH, Oct 5, 2009.

  1. KenH

    KenH
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    US economic power 'is declining'


    US economic power is declining as a result of the financial crisis, the head of the World Bank has said.

    "One of the legacies of this crisis may be a recognition of changed economic power relations," said World Bank president Robert Zoellick.

    The US, the world's biggest economy, has been in recession for almost two years, while emerging economies like China and Brazil have grown.

    This may help bring about a long-term rebalancing of the world economy.

    'Changed relations'

    "A multi-polar economy less reliant on the US consumer will be a more stable world economy," Mr Zoellick said.

    He was speaking in Istanbul before meetings of the the World Bank and International Monetary Fund (IMF), where there is some discussion about how to reorganise the leadership of the bodies so that they better reflect the diversified world.

    For example, China recently got a permanent chair on the IMF's 24-seat policy-making committee.

    - more at http://news.bbc.co.uk/2/hi/business/8289302.stm
     
  2. Crabtownboy

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    The decline in US economic power has been pretty obvious over the last few years -- in fact more than a few if you have been following the dollar on the world market. A nation cannot continue to run deficits forever. Just like family budgets there is a point where the piper has to be paid. We are seeing the end of an era.
     
  3. Johnv

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    The economic power of the US waxes and wanes over time. A current decline is to be expected after several years of incline. It will likely decline to a normal level, and when it drops too much, it will incline back to a normal level.
     
  4. just-want-peace

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    Only when pretty much left to the market forces!

    This administration's dabbling in the mix will do nothing but create all manner of un-fixable problems.

    1 Bank bail outs
    2 Taking a major role in auto production
    3 Artificially fixing the minimum an employer can pay (Minimum Wage)
    4 Exercising no, none, nada, zilch fiscal responsibility
    5 etc, etc, etc.

    The magnitude of gov't intervention in today's economy is it's death knell, and the more they get involved, the quicker a collapse will come!

    I'm normally a very optimistic fella, but in matters of gov't involvement, I'm very pessimistic - particularly when they go outside their constitutional mandates.

    And before the libs start screaming, yes, it's a common ailment to both sides (two sides?????????, really two approaches with the same goal)!!!
     
  5. billwald

    billwald
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    > it will incline back to a normal level.

    What is the normal level? World norm is 80% working poor?????
     
  6. Johnv

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    The economic strength of the US and the percentage of world's working poor aren't necessarily dependent upon each other.

    I do, though, concur with the post y just-want-peace. Attempts to "fix" the economy often result in less pain now, but prolonged pain later, so to speak.
     
  7. billwald

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    Neither does the strength of the US economy have anything to do with the state of the American working class. The large middle class is a post WW2 freak phenomenon. Before WW2 the US was maybe 80% poor and working poor (dirt poor, half lived on the farm) with maybe 15% middle class. The historical middle class was doctors, lawyers, engineers, small business owners . . . who had live in servants. I suspect most of the blue collar/white collar middle class will disappear.

    The BIG SCAM of the last 50 years was our owners convincing the working people that they are "middle class" and thus superior to mere working class people, now relabeled "poverty class." Traditionally, working people were poverty class.
     
  8. Johnv

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    Classes in the US aren't necessarily defnitive. Many working class Americans are also middle class.
     
  9. billwald

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    Keep in mind that before WW2 most middle class Americans had live in servants. Half the people through Ellis Island "went into service."
     

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