Quote:
Originally Posted by Shakula
Ofcourse you are right, im just saying that no country will be rich if your export isnt bigger then the import. And ofcourse it can be bad a year, two years, even three years but ofcourse if it continues like this for the US you will end up being a poor country.
But why the US is rich is because the export has been so much higher then the import for so long. Ofcourse it will change, its impossible that most rich countries will be as rich as before (OECD countries) because production etc etc is moving to cheaper countries where the workers doesnt go on strike and stuff. Thats normal. Asia is the future.
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Sure.. agree every country needs to trade externally and, at least have a level trade deficit or a positive balance if they want to remain economically sustainable.
Can't remember the exact year, but the year the US last had a positive trade balance was around 1968. How do you apply the acid test of measuring "rich" or poor in economic terms? By the amount of money each citizen (via the govt) is in debt? If that was the basis of measuring rich, the US would be one of the poorest nations on earth, - not because it has no assets, but simply because the debt level is beyond a forseeable repayment level.
The US is not alone on the shift of the economic powehouse to Asia - that affects almost every western industrialized country. But... where any western nation is not in a fit condition to absorb the impact of an economic shift - that is going to put severe pressure on it's economy and currency value. They will try trading deals with other nations in their region in an attempt to get cheap product for the currency offered in payment (this has already started in the form of CAFTA etc), but hard to match the league of Asia.
Agree... Asia is the future economic power region - the population in that region will be their own mass-market and anything left over can be exported. After Asia, the next candidate for economic power could be Russia - the natural resources, forgetting any industry, are enormous.