Topic: Is the world economy dependent on the American economy? - page 6. (Read 7878 times)

No, the USD was removed from the gold standard because the Vietnam War had weakened the fiscal position of the US.

De Gaulle asked the US to make good on its debts in gold, and Nixon closed the gold window at the Fed, effectively repudiating the debt.

Nixon's closing of the gold window contributed to the general "Twilight of Authority" (sociologist Robert Nisbet's phrase), and precipitated the high inflation of the 1970s. 

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.

like what one of the user told, world economy means lot of things , if you take fianancial part then most of the country are dependent on american economy. but some country are well equiped by their own resources so they dont need any others help but they are reformed by their own wealth, but the major part of financial process of all country are going through dollars which is why they are depending on american economy.

To an extent, some countries are more influenced than others by the US depending on who their biggest trade partners are.
If they barely trade with them no one really cares unless it influences a partner who trades with them signifcantly as well which is the ripple effect.
In general terms yes but the extent varies if your DPRK who gives a damn you care about China

Why have a doubt? It is a negative value, thats why it is called the 'PetroDollar'. It is a clever scam.

Yes for sure. Only dollar is used to buy petroleum products, until and unless we stop buying petrol with dollars we are dependant on american economy. Nobody knows the real value of dollar until that. wondering is dollar a positive value or negative?

Smart yes. Most propably it would be devastation for a lot of countries whom export a lot to the US of A.

But most multinationals have subsidiaries companies across the globe (Most of them haul the most revenue for tax reasons), so I guess they would keep on delivering theri goods.

With other words, yes it would be devastating, but no most (rich) economies would survice.

I think most companies rely on the American financial system, and not so much on their economy. The chinese economy is bigger in terms of export.

The american economy bigger in terms of import.

Then offcourse there are the IT companies; Google, Microsoft, media like twitter and facebook.

Those provide mandatory services for other companies to run efficiently. So yes they need the complete American economy

I must said that it maybe happen all those years ago, like in my previous post, but, did you see how chinese economy is growing up?

Things are changing so fast and there is more than one country in the world who is pushing hard, so i think im able to say, dependent? no, influence? yes, like some others...

yes in a way the economy of America greatly influences the worlds economy since the dollar is used in all countries. but that does not mean that we are totally dependent on the dollar

I would say the world economy is dependent on the US economy for at least the short term, The world does look at the US for trends etc, but i really think that in the near future maybe 20 years some other powers will share the top spot such as eu and china.

Guess so many countries been really close to US and I think they are being economically dependent to America. Which is make no sense, cant you stand for yourselves? Just making US look more powerful.

I think that the economy of America is pillar of the world economy.
If it has ups and downs i think that it will affect directly the world economy.
You can see in europe how one country can affect EU economy and the EU price.

Yes, world economy is dependent on US economy to some extend. If you follow the stock market of the entire world then you will realize that every major economy affect world economy. If the european market falls then their impact will be on entire asian markets like India, China, Japan etc. If there is a recession at one part of the world then it always affects the other parts of world. So as per me not only US economy but all the major economies like Asia and Europe always leaves their impact on world economy.

How do you define total dependency? If one day the US evaporates (economically), and the world sinks into an ever expanding war of all against all (Europe disintegrates, India nukes Pakistan, China attacks Russia, Russia cancels Ukraine, Arabs and Turkey denounce Israel, and so on), would you still not call it a total dependence?

The United States of America are the most powerful country in the world. In all the ways. One of this way is even their economy. In this meaning it is natural that the economy of entire world depends from the american economy. I can give an example about this thought. This is a fact and not a supposition. The financial crisis of 2007–08. According to Wikipedia:

The bursting of the U.S. (United States) housing bubble, which peaked in 2004, caused the values of securities tied to U.S. real estate pricing to plummet, damaging financial institutions globally.

The financial crisis of 2007–08, also known as the Global Financial Crisis and 2008 financial crisis, is considered by many economists to have been the worst financial crisis since the Great Depression of the 1930s. It threatened the collapse of large financial institutions, which was prevented by the bailout of banks by national governments, but stock markets still dropped worldwide. In many areas, the housing market also suffered, resulting in evictions, foreclosures and prolonged unemployment. The crisis played a significant role in the failure of key businesses, declines in consumer wealth estimated in trillions of U.S. dollars, and a downturn in economic activity leading to the 2008–2012 global recession and contributing to the European sovereign-debt crisis. The active phase of the crisis, which manifested as a liquidity crisis, can be dated from August 9, 2007, when BNP Paribas terminated withdrawals from three hedge funds citing "a complete evaporation of liquidity".

"Somos todos Americanos" - Simon Bolivar

Definitely yes.

But American economy is also depending on World Economy.

Look at Greece. It is a tiny country. It is %2 of Europe. (By economy) Yet they are important as f**k.

US wont let other countries economy grow when its economy was drop, like crisis in 2008. So thats why US companies always try to spread their branches in the world, so indirectly, we can say economy situation in America can affect other countries.

I depends .. in some aspects yes while in other its no ..
btw i have read some article according to which "World economy depends on US economy "
while in other article its opposite ..
the article is in the favor of "world economy depends on us economy "
https://www.wsws.org/en/articles/2005/05/usec-m30.html

After reading this i can say yes ...