Yes the world needs America and it's progressive economy.
Way too many countries are dependant on their business.
Poo rcountries but also the rich countries.
Topic: Is the world economy dependent on the American economy? - page 5. (Read 7878 times)
The US economy is the largest in the world. And they invest so many of their dollar (they being companies and consumers) it's mandatory for the world growth.
If their currency of economy would diminish another economy will take that role, however the impact on most western countries would be very big. Since china mostly invest in export not in import.
If their currency of economy would diminish another economy will take that role, however the impact on most western countries would be very big. Since china mostly invest in export not in import.
I was interested in this topic and after some reading I find some interesting facts:
"About 40% of the product of Third World nations is exported to First World countries. One might be tempted to say that this means that 40% of the labor of Third World workers is value added to imperialist economies."
"The Japanese save a lot. They do not spend much. Also Japan exports far more than it imports. Has an annual trade surplus of over $100 billion, yet
Japanese economy is considered weak, even collapsing. Americans spend, save little. Also US import more than it exports. Has an annual trade
deficit of over $400 billion. Yet, the American economy is considered strong and trusted to get stronger. But where from do Americans get money
to spend? They borrow from Japan , China , and even India . Virtually thers save for the US to spend. Global savings are mostly invested in US,
in dollars."
"India itself keeps its foreign currency assets of over $50 billions in US securities. China has sunk over $160 billion in US securities. Japan 's stakes in US securities is in trillions."
"The US has taken over $5 trillion from the world. So, as the world saves for the US , Americans spend freely. Today, to keep the US consumption
going, that is for the US economy to work, the countries have to remit $180 billion every quarter that is $2 billion a day to the US ! Otherwise the US economy would go for a sick. So will the global economy."
"The United States is still the largest global economy, with a GDP that is nearly $9 trillion higher than the next largest (China)"
US economy has a major impact on world economy for sure, who depends more in this circle is hard to tell (if Americans dont buy some countries cant sell, and oposite). But for sure if American economy collapse that will pull down others as well.
"About 40% of the product of Third World nations is exported to First World countries. One might be tempted to say that this means that 40% of the labor of Third World workers is value added to imperialist economies."
"The Japanese save a lot. They do not spend much. Also Japan exports far more than it imports. Has an annual trade surplus of over $100 billion, yet
Japanese economy is considered weak, even collapsing. Americans spend, save little. Also US import more than it exports. Has an annual trade
deficit of over $400 billion. Yet, the American economy is considered strong and trusted to get stronger. But where from do Americans get money
to spend? They borrow from Japan , China , and even India . Virtually thers save for the US to spend. Global savings are mostly invested in US,
in dollars."
"India itself keeps its foreign currency assets of over $50 billions in US securities. China has sunk over $160 billion in US securities. Japan 's stakes in US securities is in trillions."
"The US has taken over $5 trillion from the world. So, as the world saves for the US , Americans spend freely. Today, to keep the US consumption
going, that is for the US economy to work, the countries have to remit $180 billion every quarter that is $2 billion a day to the US ! Otherwise the US economy would go for a sick. So will the global economy."
"The United States is still the largest global economy, with a GDP that is nearly $9 trillion higher than the next largest (China)"
US economy has a major impact on world economy for sure, who depends more in this circle is hard to tell (if Americans dont buy some countries cant sell, and oposite). But for sure if American economy collapse that will pull down others as well.
I would say all the countries in earth are interlinked in one way or another to each other all of them depend on each other in some proportion. The reason why any small happening in united States or Europe effect global market because these two economies are heavily connected working on a lot of leverage with many many different countries through which causes the dependence on global markets. It is not about the united States of America or the Europe being saturated deveped economies it is just that these economies work with other small economies on a lot of leverage which brings a lot of volatity in the market place due to high leverage and high risk.
Not only the american economy but i think that chinese economy has impact in the world economy as they export a lot for the rest of the world.
I think a large part of the economy relies on the American economy. But I don't think the whole economy depends on it.
very much so, but not just US, if China fail, we would also fail.
Yes. The influence from China is getting bigger day after day. It is the largest users of commodities. The price of commodities dropped a lot due to slowdown in China.
Hmm I am not sure about the economy about if the dollar goes down. If that happen I think the EU county will just help America to go up again. But I think that some is dependent with American economy, but all because is just one country what you are talking about the world have also there money so yeah.
For bitcoin I think so, that was the first place where bitcoin I have heard of. But for normal economy I don't think we are dependent with America they are still Europe and England and other country's. Well the economy have been always going down and up so yeah.
very much so, but not just US, if China fail, we would also fail.
Is the world economy dependent on the American economy?
Yes it is. But let's not forget that the world economy is dependent on other big countries' economies too.
Personally I don't understand why some people talking about the USD as something special, as something you can just print and then buy anything in the world with. Can't you print say pounds or euros or almost any other world currency exchange it with dollars and then buy anything?
Maybe I'm missing something, so I'd like to see the explanation why am I wrong.
As much I many people don't want to admit US economy is still leading factor on some markets, mainly oil markets are being controlled exclusively by dollar.
Also some countries are not using their own currency to trade with each other but instead are using US Dollars as a medium.
You probably will be surprised but there are countries that do not have their own currencies, but these countries don't use American dollar for example Andorra Also some countries are not using their own currency to trade with each other but instead are using US Dollars as a medium.
There are a few countries that are using the US dollar exclusively. For example, Ecuador and Panama. In both these countries the dollar is officially used as a legal tender, i.e. taxes and duties can be paid with it
Is the world economy dependent on the American economy?
No. Right now it's China that's controlling it.
As much I many people don't want to admit US economy is still leading factor on some markets, mainly oil markets are being controlled exclusively by dollar.
Also some countries are not using their own currency to trade with each other but instead are using US Dollars as a medium.
You probably will be surprised but there are countries that do not have their own currencies, but these countries don't use American dollar for example Andorra Also some countries are not using their own currency to trade with each other but instead are using US Dollars as a medium.
Is the world economy dependent on the American economy?
Yes. This really shouldn't be a question.
When a country has the world reserve currency, the rest of the world kind of really becomes dependent on that country. When the currency of choice is used to trade 90% of goods between countries, it becomes very important to see that country succeed.
As it stands, the world is incredibly dependent on the US economy, and it will not change until a country like China takes over the world currency position, which would throw the US into serious turmoil, e.g. Britain once the Pound was replaced as the world reserve currency.
Yes. This really shouldn't be a question.
When a country has the world reserve currency, the rest of the world kind of really becomes dependent on that country. When the currency of choice is used to trade 90% of goods between countries, it becomes very important to see that country succeed.
As it stands, the world is incredibly dependent on the US economy, and it will not change until a country like China takes over the world currency position, which would throw the US into serious turmoil, e.g. Britain once the Pound was replaced as the world reserve currency.
The whole world is not totally depending on US economy but until now lot of new products are invented from USA so they will patent their new technology and who ever buys it must pay the fee for it so indirectly many countries are depended on USA. If slowly new inventions comes from other part of the world than there hold will slowly reduce and currently it is already happening. So or later no one will be depending on USA economy.
Is the world economy dependent on the American economy?
Yes. This really shouldn't be a question.
When a country has the world reserve currency, the rest of the world kind of really becomes dependent on that country. When the currency of choice is used to trade 90% of goods between countries, it becomes very important to see that country succeed
Yes. This really shouldn't be a question.
When a country has the world reserve currency, the rest of the world kind of really becomes dependent on that country. When the currency of choice is used to trade 90% of goods between countries, it becomes very important to see that country succeed
It cuts both ways. The reserve status of the US dollar leads to a conflict of "interests", since there is a fundamental antagonism between the US national and global interests, where the former is sought to pursue a current account surplus (to maintain confidence in the US dollar), while the latter requires a current account deficit (to maintain the US dollar as a global reserve currency). Long term, this system is unsustainable (due to imbalances piling up), and everything should eventually go topsy-turvy...
This is known as Triffin's Paradox
As much I many people don't want to admit US economy is still leading factor on some markets, mainly oil markets are being controlled exclusively by dollar.
Also some countries are not using their own currency to trade with each other but instead are using US Dollars as a medium.
Also some countries are not using their own currency to trade with each other but instead are using US Dollars as a medium.
If we talk globally then Yes. The United States is still the world's largest economy although the share is gradually declining. The use of the dollar as the world reserve currency ties the world's financial system to American system. Therefore, the malaise of the American economy affects the world economy and the problems in the world economy in the end will affect the American economy.
Is the world economy dependent on the American economy?
Yes. This really shouldn't be a question.
When a country has the world reserve currency, the rest of the world kind of really becomes dependent on that country. When the currency of choice is used to trade 90% of goods between countries, it becomes very important to see that country succeed.
As it stands, the world is incredibly dependent on the US economy, and it will not change until a country like China takes over the world currency position, which would throw the US into serious turmoil, e.g. Britain once the Pound was replaced as the world reserve currency.
Yes. This really shouldn't be a question.
When a country has the world reserve currency, the rest of the world kind of really becomes dependent on that country. When the currency of choice is used to trade 90% of goods between countries, it becomes very important to see that country succeed.
As it stands, the world is incredibly dependent on the US economy, and it will not change until a country like China takes over the world currency position, which would throw the US into serious turmoil, e.g. Britain once the Pound was replaced as the world reserve currency.
The whole world is not totally depending on US economy but until now lot of new products are invented from USA so they will patent their new technology and who ever buys it must pay the fee for it so indirectly many countries are depended on USA. If slowly new inventions comes from other part of the world than there hold will slowly reduce and currently it is already happening. So or later no one will be depending on USA economy.
The dollar was removed from the gold standard because the world had so much faith in the dollar, it did not even need to have a gold standard.
People started trusting to dollar and subsequently started depending on the American economy.
People started trusting to dollar and subsequently started depending on the American economy.
No, the USD was removed from the gold standard because the Vietnam War had weakened the fiscal position of the US
The war in Vietnam may have exacerbated the situation to a degree, but it surely was not the primary cause for the abandonment of the US dollar-to-gold ratio. In fact, the matters started getting worse for the Dollar right after it had been established as the global reserve currency in 1944 according to the Bretton Woods agreement. The reserve currency status allowed the US to run large trade deficits that were "covered" by issuing yet more dollars. The central banks as well as private investors that accumulated excessive amounts of paper dollars began converting them into gold. In order to somewhat alleviate the pain in the ass, the US and several European countries set up the so-called London Gold Pool in 1961 (that is a few years before things got serious in Vietnam), which primary objective had been to maintain the Bretton Woods system of fixed dollar-to-gold ratio by manipulating the London gold market. Obviously, this could only postpone the inevitable collapse of this system...
Long story short, the US had been abusing the system it established right from the start (until they could no longer profiteer from it)
Is the world economy dependent on the American economy?
Yes. This really shouldn't be a question.
When a country has the world reserve currency, the rest of the world kind of really becomes dependent on that country. When the currency of choice is used to trade 90% of goods between countries, it becomes very important to see that country succeed
Yes. This really shouldn't be a question.
When a country has the world reserve currency, the rest of the world kind of really becomes dependent on that country. When the currency of choice is used to trade 90% of goods between countries, it becomes very important to see that country succeed
It cuts both ways. The reserve status of the US dollar leads to a conflict of "interests", since there is a fundamental antagonism between the US national and global interests, where the former is sought to pursue a current account surplus (to maintain confidence in the US dollar), while the latter requires a current account deficit (to maintain the US dollar as a global reserve currency). Long term, this system is unsustainable (due to imbalances piling up), and everything should eventually go topsy-turvy...
This is known as Triffin's Paradox
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