United States Heading towards a Depression?

Looks scary, right?

 

Just read that China's growth last quarter was a whopping 8.1%, and they are complaining it's the worst growth in three years.

Meanwhile, the U.S. economy grew a measly 3% last quarter, and Obama claims it's his recovery.

 

USA replaced Britain as the world power and now China is replacing USA.

 

USA replaced Britain as the world power and now China is replacing USA.

 

In 1980, everyone was learning Japanese while Jimmy Carter was president because the same thing was being said about Japan. Funny how that works.


US DJIA


US NASDAQ


Chinese Shanghai index


China has it's own problems, and a lot more than these charts indicate. Now that the US is manipulating it's currency, I suppose the subject of currency manipulation may actually get discussed in a serious way, as China has been doing it for more than a decade without consequence.

Specifically to your troll, nothing lasts forever. Not Rome, not the UK, and not the US. China may be the next great super power, but I'd say a Chinese revolution is just as probable if not more. Either way, short of a nuclear war or the complete collapse of the world economy (lead by the US), it won't be happening in the next few decades.

 

Hey O, how do you account for the drop in the Chinese Shanghai index over the past year?

 

I'm no expert, but as a layman, I'd attribute it to a variety of things. Weaker demand from the flailing European economy, political pressure in the US to crack down on what appears to be state sanctioned violations of intellectual property rights, devaluation of the US dollar which, concurrently, is strengthening domestic manufacturing. One could also call China's incredible ramp up a bubble. Lets also not forget they remain a dictatorship which steps on the rights of it's citizens and crushes free speech. How long can a rally in any such government really go without political change or a revolution?

Theres a lot of hullabaloo about how China is our banker and we best not piss them off lest they decide to stop buying our debt, but the other side of that coin, with all the money they have already lent us says, we go under, they go under. Can't go to war with us, lest we declare the debt noncollectable. At this point, we could probably run our currency into the ground, levy all kinds of import tariffs on Chinese goods, and they'd have to suck it up. If memory serves me right, we did something similar to Japan.

 

Interesting perspective! I never thought about it that way.

OTOH, I heard that Russia also holds a lot of USA debt and back in 2008 Russia threatened to dump or sell the debt on the open market to destroy the US economy. So, debt leverage works both ways.

 

I think if they could get away with doing that while not completely screwing themselves, they would. So would China. Its the blessing and the curse of a global economy. Theoretically, it also prevents military conflict.

 

Only a simple minded person thinks that stock exchange has anything to do with reality. When there are stocks with P/E of 70 and 100, does anyone think that it is a good idea to wait 100 years to get back your own money? China is already passing USA as economy power and while USA is going bankrupt and decreasing their military spending, China has the money and is increasing their military spending. Most likely China will match and pass USA in firepower and the only way to stop this is to start WW III, which in mind the world is already getting ready for it.

 

So don't look at charts, just take your word for it. Gotcha. Hey, since you seem to know it all, can you tell me if it's going to rain today? I don't have time to look it up as I'll be selling one of my "unrealistic" stocks for a healthy profit. I think I'll buy a nice "unreal" boat with the cash. Perhaps I'll donate some of that fictional money to a political party I think is going to levy import taxes on Chinese goods. They shouldn't be upset, as it's all a fiction. Gworld says so!

As I said earlier, that would play out to the US's favor.

1) Instant absolution of National Debt owed to those on the other side of any conflict
2) Ramp up of military spending which is by definition domestic spending and always stimulative
3) US has spent the last decade doing nothing but testing its weapons systems, and training its military in real battlefield situations.

Conversely, if China's military manufacturing is anything like their commercial manufacturing, their weapons fall apart after the first day of light use and lead based paint and backfires will kill more of their own soldiers than the enemy.

We might as well be arguing about the color of pixie wings. I'm sure this bothers you immensely, but China is addicted to capitalism. Its a non starter

 

The price of oil is DIRECTLY affected by the markets.

Case in point, last week as the stock market dropped, so too the price of oil and the price at the pumps.

If that trend continues, prices on Oil, and just about everything will continue on that downward trend.

Right now the market is hyper-inflated. As it deflates so too does the price of every other inflated commodity on the market.

For things to truly stabilize and the economy to recover we'll need to see the SM lose approximately 1/3rd to 1/2 of its inflated value.

Not good for investors and speculators, but fantastic for those of us that live in a little place called reality.

 

The ads are getting better. This one has a nice little beat track mixed into the background.
[video=youtube;KVDs9mSG3AA]http://www.youtube.com/watch?v=KVDs9mSG3AA&feature=player_embedded[/video]

 

What chart? Stock exchange chart? The same chart which had a high value for Enron, Worldcom,....? As I said, this is probably too difficult for simple minded person like you to differentiate between stock exchange and real world economy.

I nominate this as one of the most stupid things that Mia has posted and that is quite an achievement when you look at his previous posts.

 

Julian, the army of one.

You'd be alone in your assertion as usual.

 

I don't see anything surprising in such claims

 

I'd be very surprised if that 3% in the US was anywhere near accurate.

 

What in your opinion the more credible data?

 

Everyone sing along!

 

This is an interesting point of view.

[video=youtube;T1dDIrOCbUo]http://www.youtube.com/watch?v=T1dDIrOCbUo[/video]

If this is true, i wonder for how long will they keep it this way.