USA: a third world economy in a few years?

[Udet]

For the many of you who find discussing economics a fascinating hobbie, here you have an article which might be of interest.

http://counterpunch.com/roberts02012006.html

[FLYBOYJ]

Used to read the same thing back in 1974 - folks said by the year 2000 the US would be a third world country....

I'm still waiting....

[Udet]

Mr. Flyboy:

Interesting comment there.

What was exactly going in the US in 1974? (I was born slightly over a decade after that).

Just in case: you ought to notice I made no comments as to the accuracy or possible flaws contained in the editorial.

Just a few facts: Mexico City has a huge number of USA citizens living here. Although I hardly I expect anything from anyone or from anything, I was surprised to see so many USAers living down here.

It´d appear USAers are deeply divided as to their views on Mexico: I have met USAers who love Mexico with all their hearts, and I´ve met several others who hate Mexico and would like to have it erased from the earth.

Have managed to meet some of this USaers here, and when I asked the reasons for them to be here, the response was about identical "in the USA it would be either under-employment or flat un-employmenr".

And I am talking about educated people: college degrees, PhDs, etc.

One of them, a New Yorker, makes $15,000 USD a month here. Lives in a totally luxurious appartment. Bought himself a 2006 Mercedez Benz. He was unemployed in the US until he found a job offering in this capital city.

Could not mean everything, but it is just one fact.

Furthermore Fly Boy, do you recall the news, 6 months ago or so, the chief of the chinese central bank saying to reporters -with an evil grin on his face- that the days of the dollar as the world´s reserve currency already commenced the countdown?

Fly boy, trying to show one joke frequently heard down here regarding Mr. Bush´s planned wall to stop illegal immigration:

"The actual purpose of such wall is not to hinder people from getting into the territory of the USA but to hinder the people already inside from fleeing it when the economy explodes like a ripe tomato."

I beg for your apologies fly boy but this was my last participation here. Economy is pretty much linked with politics, a topic I avoid debating.

Cheers.

[syscom3]

Udet, my economics proffesor discussed the reasons why the US Dollar will be the worlds reserve currancy for the foreseable future, and probably wont change in our lifetimes.

One - The US is an extremely stable political system with a very transparent justice system. Plus as a society, were also very stable. Stability and a justice system that is transparent is a business mans dream.

Two - The US economy still dwarfs the PRC. PRC is still a third world country. Theyre making a lot of dollars right now, but as history has shown over and over, the growth rate it has is unsustainable. Sooner or later, the party is going to end. Note - remember the asian financial meltdown?

Three - The PRC is completely export driven with no home market. A disruption to the trade lanes for any reason would be devestating for them. Ever wonder why they are now concerned about another Korean war? Maybe they see the sea lanes from Shang Hai pass near the Korean penisula.

Four - Many countries have always thought their currancies would prevail. I remember when Japan thought the Yen would predominate. And it wasnt to long ago the Euro was supposed to displace the dollar.

[FLYBOYJ]

Good post Sys, and no debut here Udet - many US citizens working in Mexico that cite reasons you stated may have found themselves in an industry that is either really competitive here or over staffed, so they went elsewhere.

Some folks here hate Mexico because of illegals, some are hardworking and respectful, some come here and totally trash whole neighborhoods. it depends where you live and your take on this.

[Twitch]

Don't get all worked up about "experts" predictions and projections boys. Don't let some "experts" dictate how you should live your lives. It's all a bunch of meaningless crapola propagated by the lame-ass worldwide news media and spin doctors.

Americans living in Cueranavaca are 99% retirees and society dropouts. They also live throughout Baja and own condos in Puerto Vallarta. So what?

[Erich]

interesting thread and alos one of the expectant future ........

presumption brings on strife. Sounds biblical right ? true though. lets not get all too worked up. in 74 lets see Nam was over thank God and I just got married in august of that most bizarre year. Even then many in my southern Oregon community were just trying to survive, the locals probably 3/4r's were working in one of the 6 wood mills that made our area famous, at least at that time. No-more though as there is only 1 mill left and it's production has almost ceased to exist thanks to the worlds enviromentalists shuting down and fighting especially during the slick Willie admin posing 2 monuments in south Oregon removing any chances of retrieving diseased and downed wood and thusly closing any local hiking trails excpet for those fortunate enough to live close to the trailheads.

my opinion says that one day America like all the world will fall under one world leader and one world government, one world economy in the name of a false and insecure peace ~ in time perhaps maybe once I leave this planet..........who knows

E hopeful my comments were not a ramble ....

[Twitch]

They been perpetuating that on world government stuff since Star Trek went on the air in the 60s!

[R988]

What no mention of the fiat dollar yet and how it's not backed up by gold?