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Is the E.U. good for Poland?? [180]
The point is that China is in the process of becoming the worlds leading economy. In my opinion, in another 10 or 15 years this will be widely acknowledged and the yuan will be the currency of choice, especially with regard to the pricing of oil. This will have further negative consequences for the American economy and wil devalue the dollar even further
Now USA consumes 40% of world's oil.Do you think it will change in the next decade?Who determines the currency of paying if not the seller and the buyer?
Furthermore Yuan is fixed artificially to have such a low value.If it is left to take its natural value,it will rapidly increase in value harming chinese exports.If the dollar is devalued,Yuan is also devalued.Why should the chinese have interest in keeping devaluated Yuans instead of equally devaluated dollars?
The American economy (even though Wall Street may see it differently) is totally dependent on consumer spending. A huge portion of this consuming is done on credit.
As always.Consumer spending drives the economy,the demand for goods.What should drive it instead of that?
Im sure you are aware of the credit crunch which is strangling the availability of such credit at the moment not just in America but worldwide.
You mean nobody gives credit to Americans?
If however, the Chinese and Indian economies continue to grow at current rates, they will have a much higher domestic market due to the higher levels of wealth in those countries and so will be les dependent on American consumers. The huge increases in the prices of commodities such as grain etc over the past couple of years is due to a movement away from the consumption of just rice in these countries. Basically Indians and especially Chinese are wealthier and are consuming more.
Asians are sly,they do not see things the same way.All these things,consumption and savements have different meanings for them.
The fact is that they cant. If we want to continue to live the way we live in Europe, we must find alternatives to competition on price in the manufacture of cheap goods. The Asians have a competitive advantage with which we cannot compete. I would not include American goods in that category. They are relatively cheap only because of the weak dollar. In reality, American corporations have exported most of their real jobs to cheaper economies.
Europe can compete doing what it does.Using cheap labour from Eastern Europe,millions of illegal immigrants who are nowhere listed and pressing people to work more hours than the ones they are paid for,all this for the ''good of the nation'' etc.The point is how long can you have people agreeing with that especially when they see another alternative.
IMO the only way to compete would be to invest in research and innovation. For example, what about alternative energy sources which could be harnessed to lessen our reliance on imported oil? Of course, the problem with that would be that the so called "free-market" advocates within the financial world would never allow it because they would stand to lose so much if the oil industry suffered any set back. Why do we not have electrically powered cars yet? Why do we not use the Atlantic Ocean, our greatest natural resource or wind power of which we have plenty, to creat alternatives to an oil dependency which just helps to enrich elites in Arabia and Wall Street?
The game of innovations and research is already lost.Americans are far ahead to be reached due to their heavy research funding and brain drain.
The truth is that free market consumer capitalism cannot function if people are educated. Educated people will not feel the need to waste money on branded items they dont need. If people save money rather than spend or invest, "growth" cannot be achieved and the system collapses - as is happening in the financial world at the moment.
I think the truth is that free market consumer capitalism cannot work if some people in the top who gvern decide what the needs are and what should be consumed and what not.When they decide that people make irrtional decisions and so they have to protect them from their harming freedom,then free market capitalism does not work because it is no longer competitive free market capitalism but designed model.
