Financial Times: the rapidly weakening US economy

Discussion in 'Current Affairs, News and Analysis' started by KGB_resident, Aug 11, 2008.

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    Maybe it would be right for the USA to refocus its activity from military adventures, from expensive support of dictatorships and failed regimes to economic development?
  2. China wasn't already the largest manufacturer?

    The article should read "as a result of cheap Chinese workers".

    Also, the US isn't spending nearly as much as it used to in the days of the Cold War as a percentage of GDP.

    Recessions are part of capitalism, the housing crisis/sub prime mortgages/credit problems would have happened with or without the wars in Iraq and Afghanistan.
  3. Would they? Can't help feeling the umpteen Billion pissed up the wall in Iraq, and the market speculation that followed misguided adventures in T W A T could have been better spent elsewhere.

    Like in job creation, investment in industry and infrastructure and all that boring stuff.
  4. Maybe it would be right for the USA to refocus its activity from military adventures, from expensive support of dictatorships and failed regimes to economic development?[/quote]

    Maybe Russia should also refocus its energy (no pun) away from Georgia, Sakhalin, TNK etc? May be better for you to join the global economy as a partner rather export your centrist / dictatorial domestic approach to world markets.
  5. I can't beleive Sergey is so obsessed with the USA that he's STILL, at this time, trawling the internet looking for stories putting it in a bad light!

    I mean, you'd think there'd be something else happening at the minute he could focus his attention on? Maybe the Olympics?
  6. My bold* Well its not exactly difficult is it :roll:
  7. There is another place where competitions in shooting and throwing balls are under way. The runners for long distances are especially active.

    On a serious note, Finanicial Times is well respected edition, thoughtfull and opinions expressed on its pages are worth to be regarded with attention.
  8. The end is always near Sergey. Always.

    If the US needs to look after its economic house what about the Russians, whose standard of living is about 1/6 that of Americans? It's all relative.

    Manufacturing has long been relegated to areas where low-skilled and low-paid workers are located, with a few exceptions. More important are areas where technology, software, telecom, etc. are being developed.

    You need to put this in some context.

    A financially 'weaking' US economy means it's only growing by 1-2% as opposed to contraction. It's the nature of capitalism to have slow patches.

    I think I'd be far more worried about dependency on oil prices as my sole economic support than I would a slow patch in the world's most diverse economy.

    And yes FT is respected; but it also needs to fill space every day and sell papers.

    Don't hold your breath awaiting the fall of the American economy, I'd worry more about propping up the price of oil.


    Here is a size-adjusted view of the world economy [The world's countries shaped with area in proportion to the gross domestic product per capita of people adjusted for purchasing power parity]

    The tiny greenish sliver on the top right is Russia, population 142 million. The small dark blue patch on the top left (above the US) the same size as Russia's is Canada, population 33 million. Perhaps Georgia is less a good idea than even Iraq? :twisted:

  9. Sergey,

    Given what a respected paper the FT is would you be highlighting some of the other stories? For example, in this morning's edition there is a commentary article called "Russia is forfeiting its standing in the world". The article goes on to suggest that Russia will not get where it wants to be in the 21st century by behaving like a 19th century power. I am sure that you will support me in saying that it is an excellent piece of neutral journalism by a well respected newspaper. There may be many in Russia who hanker after the good old days, where everyone in the world was concerned about how unstable or irrational the Russians, because it made you feel important, but it will end in tears in the long run. Being a "great" nation brings responsibility.
  10. I wonder how long it will take the giant bright green blob on the right to swallow up the thin light green sliver above it?
  11. Vigil, the map is very interesting. However, our World is so fast changing. Any static map doesn't reflect dynamics. And Russian economy is very dynamic. This year it will be bigger than British one and all experts predict that it will be bigger than German economy in the near future. Russia has huge potential for growth. Of course Russian economy will not compete (or even be comparable) with American one anytime soon.

    The basis of American might - economical basis (at least relatively) is diminishing.

    I fancy, you would say something like - no problem, no changes are needed.

    Well, it is you country, it is up to you to decide.

    So Russia is behaving like 19th century power. And what about the USA? Say what special Russia actually has done (what our American friends never did)?

    First of all it is true toward the USA.

    Btw, do you think that Russia is a "great" nation. If yes then why?
  12. Sure it'll pass the UK as long as one commodity, oil, stays at a high price. Lower demand or lower prices and your scenario changes dramatically.

    Let's not forget until just five years ago Russia's greatest export was people; specifically prostitutes and mail order brides.

    Ten years ago when beggars lined the streets of Moscow our economy was growing far faster than the EU. It still growing, on five year average, faster than almost all of the biggest EU economies.

    And 'dynamic' is a code word for 'it will collapse as fast as it rose'.

    Not a very stable foundation for economic growth. Neither is a collapsing population and labor force with males whose life expectancy is 60 years old.

    One would be advised to look at economic history and see the disadvantages of a single-source economy.

    My comment was not nothing is changing and everything is ok. It's that there is more to the story and patting yourself on the back isn't very constructive if you're own house has problems.

    If you understood capitalism--and Russians are to be blunt, not very good at it yet--and the US economy change and adaptation is essential to the growth process. It's what many MBA courses take pains to teach.

    We've been doing this for 200 years, you've been doing it, successfully, for barely 5 or so. You can't run around like the sky is falling every time you hit a tough economic patch.

    Give us some credit.
  13. Interesting question. Here is an estimate from 2006 from the University of Michigan and U of Sheffield on what the world will look like economically in twenty years:

  14. in_the_cheapseats

    in_the_cheapseats LE Moderator

    It has the potential but no I don't think you are. Your national mentality is too much like an adolescent bully at the moment to be called great.

    I give you your current actions in Georgia, your use of gas as an economic weapon against other erring ex USSR states and your nonsensical U turn to spite moves against Zimbabwe in the wider international stage, all in the near past, as evidence.

    Russia has huge potential but your population needs to get away from its strange liking of serfdom. If it doesn't? Putin will be back in a few years having screwed your democratic system to do so. Not saying he himself is a good or bad thing but it does suggest your nation moving back to a dictatorial system and that always means someone has too much power.

    I second Virgils comments about the need for change and the ability to move with the economic times. Agile, you ain't.
  15. I think the colors (note proper spelling) are only to make continents and countries more distinct.

    Here is the average rate of alcohol consumption per nation (edit). Yea Russia!: