Japan = US future
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- ukit
http://www.nytimes.com/2010/10/1…
"As the United States and other Western nations struggle to recover from a debt and property bubble of their own, a growing number of economists are pointing to Japan as a dark vision of the future."
- moldero0
“In America, the bet is still that we will somehow find ways to get people spending and investing again.”
- Miguex0
^
- utopian0
Made in China®
- ETM0
@Miguex
Sorry, rather than spout opinion, here's fact:
IN 2009 China's exports to the US were worth $298.3 billion. That was already down 10 percent from 2008 thanks to the recession.
China's global exports total for 2009 were $1.2 trillion (down $200 billion from the year before).
So if the US represents almost $300 billion of the $1.2 trillion total, that means the US alone consumes about 25% of their exports.
So, if one of your clients, responsible for 25% of your entire business decides to spend less, wouldn't you be concerned, at least short term?
- ukit0
The new talk in financial circles is "currency war."
http://www.ft.com/cms/s/0/fe45ee…
It seems like the U.S. has given up on ending China's continuing protectionist efforts to keep their currency artificially low. Instead the Fed will flood the world with money and try to lower the price of the dollar to make the U.S. more competitive.
- ukit0
http://www.reuters.com/article/i…
The United States fired the first shot in the currency war and the rest of the world must be on guard for its deliberate strategy to devalue the dollar, a Chinese economist said in an official newspaper on Thursday.
Chinese leaders have warned before that loose monetary policies in the United States pose a serious challenge for emerging markets, but rarely in such strident language, a window onto the rising anger in Beijing.
"The dollar's depreciation may appear to be market-driven. In reality, it is a depreciation colored by very strong, deliberate actions," Li said in the paper, which serves as the chief mouthpiece of China's ruling Communist Party.
Li said the Federal Reserve's announcement that it might soon launch another round of quantitative easing by buying bonds and other financial assets had been the key factor pulling down the dollar.
The motives were plain enough, he said.
Without a weaker dollar, the United States would have no hope of meeting President Barack Obama's goal to double exports in five years, Li said.
Dollar depreciation will also serve longer-term interests by generating inflation and easing the debt burden that the financial crisis dumped on the U.S. government.
- ETM0
In regards to the thread title, despite the issues with the Japanese economy, Japan is second, after the US, in consuming China's exports.
- ETM0
"If the global financial crisis was about nationalizing private debt, then in the post-crisis period the urgent need of the United States is to internationalize its national debt," he said.
- If the captain is going down with his ship, he also locked all the crew members in their quarters first.ETM
