Why Is America’s Economic Crisis Affecting So Many Other Countries?
Posted by China Sourcing CommentatorDec 2
Can you give examples of other countries that need United States for a source of imports (Visible or invisible)
(an example of what i mean) I know Bahamas is affected because it’s main industry is tourism and most of the tourists are from the US. Therefore, since the US citizens are encouraged to save money by not taking vacations, we are in trouble.
Can you give any other countries that similarily require US. (China, European COuntries, Japan, etc, etc?
Popularity: 3% [?]
Stumble Upon
Del.icio.us
Buzz
Every other world economy or world currentcy and monetary system of government or banking or trade is either wholy or partially dependant upon the progression and capital wealth of the United States.
The likely reduction of capital flows into developing countries is generally perceived as bad news. Since the earlier capital inflows were not used for productive investment by the countries that received them.
Instead, the external reserve build-up (which reflected attempts of developing countries to prevent their exchange rates from appreciating and to build a cushion against potential crises) proved quite costly for the developing world, in terms of interest rate differentials and unused resources.
This particular financial crisis has so many ramifications mainly because it is occurring in the very core of capitalism, and originated in the US, the country that had the global power and influence to impose its own economic model on almost all of the rest of the world. And the depth and severity of the crisis are likely to signal global political economy changes that will shape the world for the next few decades. Geopolitical shifts are likely to result from such glaring exposure of economic vulnerability in the global hegemon.
Globalism and a New World Order .
Who is encouraging Americans not to take vacations? People do what they can afford to do. Where did you get this idea?
We buy loads of stuff from overseas, stuff produced overseas. Most clothing is made overseas, as well as shoes. When people buy less in the U.S. because they cannot afford to spend what they were spending, it hurts people overseas. Factories can get shut down, people laid off, profits slashed. We travel less overseas and in this country, go out to eat less, buy less in general. We may end up producing less also and sending less overseas to retailers there. GM sells more cars overseas than they do here, so if their production is hurt, their overseas dealers are hurt, that represents people who work in sales and maintenance overseas getting less business. We are the world’s economic power, when we hurt, everyone hurts.
The UK was the first to use derivatives to bundle the housing loans. All the first world countries have central banks using a fraction reserve system and they all were artificially running up the housing markets, it wasn’t just the USA. A common problem with central banks is they allow the countries to run deficits and as they say “you’ve got to pay the piper sometime”.
Fractional reserve systems only work as long as people have “faith” in the fiat currency being used. When inflation kicks in people look for safer investments. When we saw some of that inflation last year (food & gas) investors saw the writing on the wall, loans were called in and banks weren’t able to keep up.
Socialist countries use a much higher percentage of their GDP to fund government services and with less tax revenues coming in they are going broke faster. The UK & Ireland may go bankrupt!
Take China for example. The United States in an effort to boost its own economy, has cut back on foreign imports. This means, that the number of imports we are getting from China is decreasing. The whole world right now is in a recession. The United States is not alone in this current situation.
we import the crap we buy from other countries, most of it, and we export our jobs such as telephone jobs and manufacturing, and some Americans spend money as tourists in other countries and some Americans are investing in real estate and businesses in other countries as well.
America is the economic heart of the world, so, if America gets screwed up, all the body (the other countries) also get screwed up :p
because america is a power house…literally
we have everything and are basically the most well rounded successful country
honestly..people dont always appreciate this place as much as we should!
because the bad loans the US banks gave to poor people in the US were traded globally.
I guess cause America likes to borrow from so many other countries.
Cause Clinton signed NAFTA
Who do you makes all the crap that we buy?
Because many banks are owned by American business men, America is to blame for screwing up the economy…which should have been expected as the Americans in general aren’t the cleverest of people.