In a World Economy, One Currency to Rule Them All, Could the World be in Trouble?
The biggest expanding country in the world could be the biggest threat to the world economy. China has a growing list of superiority, including a fifth of the world’s population, one of the largest countries in land mass, and the largest standing army just to mention a few. Its current government is only a little over a half of a century old, but has already been climbing to the top of the food chain; in terms of its economy. The state of its economy has been growing at an incredible rate over the years, landing at the second largest exporter and third largest importer of goods. China has always been one of those countries that are always in the news, both being presented as a positive and negative state in the world economy. Living in a tough time and a declining economy, who will come out on top?
We are living in a world economy and what happens in other parts of the world directly and/or indirectly affect the rest of us, whether we like it or not. With other countries’ economies falling apart, eventually something will have to happen that will stabilize this event. The U.S. Dollar has been stable during this decline so far, even gaining strength against other currencies but so has the Chinese Yuan. In terms of money and the exchange of money, most countries have an amount of U.S. Dollars in some form; it’s on its way to being a world currency. The only thing that is in its way is the Chinese Yuan.
If the Chinese economy is compared to historic events, it does resemble the United States’ economy during the Industrial Revolution. If they stay on this track, that would lead them to become the most powerful country on the map. The difference now is technology. During the 18th century, there was the introduction of steam energy, today we have nuclear power. An economy growing at the rate of China’s, people and businesses look forward to doing business there instead of other places. The costs of labor is cheaper and let’s face it, they have the labor force to complete the job. This is great for China, but hurts other countries; jobs are outsourced and so is manufacturing. More money is being invested in their country, leaving room for expansion while other countries are at a standstill. The technology aspect can makes them a force to be reckoned with.
All this growth makes the Yuan more appealing. If other currencies decline in value, we can see a future with a world currency. The obvious choice for this currency is the U.S. Dollar; it’s already being used in this way just not official. So what’s the problem? The U.S. economy is not so great right now and the government is spending money like there’s no tomorrow, but there is a tomorrow. The Dollar could also implode in the next few years and the Yuan is gaining in value against it. So what’s the big deal? We do live in a world economy, not everything has to be in favor of the free world. The Chinese government, socialist republic ruled by Communist, and most of the world is against this form of government. If we can learn anything from history, Communist don’t usually get along with most other forms of government. If they control the world currency, are expanding beyond everyone else, advancing in technology, ruled by Communist, and oh yea have the largest standing army in the world sounds like a formula for disaster.
China is a great place for expanding a business or getting cheaper labor, but at what cost in the end. Leaders have been known to get power hungry and run government in a way that is great for them and not the people they are ruling. When failing governments look for help, China can help in big ways, but China’s history is a little all over the place with change of power. An unstable government in control of the world’s assets smells like trouble.
Not saying this will happen, just making sure everyone is looking at all the possibilities. The world is changing; let’s make sure it goes in the right direction. If we look back at history, we can see it has a habit of repeating itself. Great nations rise and fall, times of war and peace, but when the dust settles a leader rises up; hopefully for the world it is the right person for the position. Investing in China and reaching for their hand in help, is looking better more than ever and it is helping those struggling through this tough time. But we should make sure not all of the help and investments are in one area. Just like investing on Wall Street, if you put everything you have in one stock and that company folds up your portfolio is worth nothing. Let’s be smart about where our future is going.
Question about economy
How does domestic economy and international trade affect strength of the economy?Working on a final. I need to assess the economy in quest to purchase a home. How does domestic economy and international trade factor in?
In what way does domestic and international trade help the economy?
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18 Responses
Gee wonder why Health Care still has’nt been solved.
We live in realism so far as the World economy is concerned because the World economy has all the components co-existing in different countries: mercantalism economy nationalism, or economy libersalism, or marxism/ historical structure
But the US economy is largely one of economy/ economic liberalism or as close as it cam be because the US citizens have the maximum extent of freedom in choosing what to consume and where to buy from around the World, capital and goods and services move within and cross border with the least restriction, largest proportion of immigration population, free choice of occupation to US citizens, free exit and entry in most industries. Marxim historical structure is now only in history books. Economic nationalism is considered foolishness by consumers across the advanced world.
companies are getting a bailout to avoid going bankrupt after investing in dangerous securities. They were promised huge payoffs from thier investments. This expected increase in revenue lead them to increase their own investments. When the securities failed, it left them without enough money to cover their investments. The bailout is supposed to be used to help them get out of the red
This effects regular people because it is a lot of money that they have to pay out of their pockets. It also reduces confidence in the market. If investors see that their companies need government help to get out of a tough spot it may come off as a bed thing for future investments.
I hope this helps.
Same reason they let other spooks into all other jobs….EOE and so that Puppet can take the HEAT while the Presidents of past enjoy easy living and golf and other protected life styles –while we as US citizens suffer…
Big brother is doing everything he can to prop up a country built on a house of cards. Everyone knows that the US gov bought 1 trillion in mortgage backed securities…..RIGHT? How much of that paper is very very stinky? I would bet a lot. Also the funny money programs to prop up the stock market and put an artificial bottom on the housing market will have to end. Or maybe we can raise the debt limit to 20 trillion and kick the can down the road. This country has truly lost its mind. bleechhhy!
Please watch my video. It’s about climate change, earth catastrophe and? our planet as we lives in.
Does climate change can affect economy growth?
watch?v=j7I_eFoIk64
why do u dumb asses think they let a person of colour in after all those years of whitey running the country. zTo be the fall guy coz if he doesnt fall they country will be taken over by either latios or negroids
Like I said USA will be owned by Foreign banks and then foreign Governments..trust me..Saudi Arabia alone owns our Fuel and second…China
decides to pull it’s wanted funds..It’s all over.
BILLIONAIRE investment guru Warren Buffett has declared that the US recession has begun."We are in a recession," Mr Buffett said in a TV interview.
"Across the board I am seeing a significant slowdown."
Mr Buffett's analysis is supported by a string of data pointing to a contracting economy.
The latest figures show US manufacturing shrank at its fastest pace in almost five years while construction spending fell the most since 1994.
Scott Anderson, a senior economist at Wells Fargo, said: "The evidence is piling up that the economy is slipping into at least a mild recession.
"With the much higher food and energy prices and restricted credit, there are not a lot of avenues for consumers to continue to spend."
US home-building is in its third year of decline, and the collapse in housing is rippling through the economy as consumers pare spending and factories cut production.
The markets are betting the Federal Reserve will cut its benchmark interest rate by 0.75 percentage point at its March 18 meeting.
Fed chairman Ben Bernanke said last week the central bank, which has lowered the key rate by 2.25 percentage points since September, was ready to continue cutting borrowing costs if needed to stimulate growth.
He warned that risks to the outlook included "the possibilities that the housing market or the labour market may deteriorate more than is currently anticipated and that credit conditions may tighten substantially further".
Shares in Mr Buffett's main listed company, Berkshire Hathaway, rose 29 per cent in 2007 and about 4700 per cent over the past 20 years, six times the rise in the Standard & Poor's 500 Index.
Along with insurance operations and a stock portfolio valued at $75 billion, Berkshire owns businesses ranging from confectionery and residential property to utilities and corporate jet leasing, giving Mr Buffett an insider's perspective on the economy and finance.
In last year's annual letter to shareholders, he said his method was to "be fearful when others are greedy, and be greedy when others are fearful".
Source:
http://www.news.com.au/heraldsun/story/0,21985,23320376-664,00.html
It has made some Russian "entrepreneurs" very wealthy, while the general population is continues to struggle. No "trickle down" economics over there.
Sounds familiar?
1. The bill is needed to stimulate consumption, and the one of the right object to spend the government money is fundamental fields.
2. Emphasis on strong fundamentals of the economy is encouraging investors and consumers to invest and consume more.
This is a very hard question to answer for me because I'm not sure if I should write additional explanations in economics. And, If yes, on how degree. For example, government spending can off-set economic leakages.
It's over 11 pm. It's time for me to go to sleep.
it was interrupted by the great EVIL of socialism… look at the other copies of this question you have already posted
I have been involved with international trade for over 16 years and study world economics as a hobby so please allow me to share some insight:
The U.S. dollar, still the benchmark for world currency, has been declining in value the past several years. A detriment to U.S. consumers and U.S. companies that import products, the weakening dollar benefits some players in the global marketplace.
Current economic factors that may be signaling recessionary conditions in the U.S. economy and could undermine confidence of U.S. dollar-based assets include the downturn in housing, turbulence in the equity markets and job woes. Additional interest rate cuts by the U.S. Federal Reserve could further erode the return of investors as lower interest rates may produce additional inflationary pressures, lowering the dollar’s value. Also, continued budget and trade deficits tend to weaken the U.S. dollar.
The weak dollar is encouraging foreign manufacturers to set up factories in the U.S., bringing jobs and other economic benefits.
The U.S. has the biggest impact on the global economy and its monetary unit value, and fluctuation has the greatest effect relative to other currencies. The value affects company profits, budgeting and manufacturing costs. It has ramifications on capital investment, plant openings and closings. For example, some companies that have outsourced customer service and call centers to India have returned these centers to the U.S., since the weak dollar has eroded the cost benefits of operating overseas.
As you can see, International trade is detrimental to our domestic economy as it decreases the power of the dollar which in turn affects your ability to afford things at reasonable prices.
When factoring all this in to your dream of owning a home, Im sure you can see that asset purchases like a home can become out of reach for many.
The solution is for Americans to start consuming less and producing or rather innovating more.
Instead of spending $500 billion on developing an apocalyptic defense systems, money should be spend on providing access to education so we can 'create' value that others will have to depend on for sustenance thus creating jobs, strong industry, and a strong dollar.
Im sure you've been told what your grandfathers quarter could buy at the time…something to think about.
Good luck on your paper!
(-: I think they should really mess things up, and give every American a half a million dollars (doesn't even have to be tax free). It'd give people a chance to vote with their dollars about what industries they want saved. And the gov't would get a bunch back in taxes.
Your plan doesn't cost 1.3 trillion, as far as I can figure. Yours would be 1,300,000,000,000, which is only 1.3 billion dollars. You'd need three more zeroes to get it up to a trillion. Three more zeroes would give every American 10 million dollars, and THEN your plan would cost 1.3 trillion (-:.
Hey, I'll take 10 million dollars, too!
Edit: Hmmm. "Oviously" you are one of those poor children who had to learn their mathematics via the New Math system. And your spelling through the New English system, maybe?
Let me give you a brief refresher course:
100 equals one hundred
1,000 equals one thousand
1,000,000 equals one million
1,000,000,000 equals one billion (in the US way of counting)
1,000,000,000,000 equals one trillion (in the US way of counting)
Now, stick THAT in your calculator and see what you get.
1,300,000,000,000 divided by
130,000,000
leaves you 10,000,000.
Poor baby; get a job. You'll need it. I hear McDonald's is still hiring, but with your math skills, I wouldn't be so ambitious.
it is hard to say whether an economy is overheated or not. If everything is under control or under manageable growing situation, then that is not in an overheating regardless how fast it grows. the economy of nation is always under adjustment constantly for pursuing the best balanced growth. financial liberalization is only a kind of economic adjustment which depends on the economic situation and economic strategy of a nation's further development. it may generate more growth, but does not have to cause overheating…overheat is actually a bubble blowing process, on the other hand financial liberalization may be a part of regulatory reinforcement and openness…
If obama pussy ass nigger see Dalai lama these days,China will invite Bin laden for working together.USA’s army is worldwide.Only china and Russian can stop its power growing.Pussy ass nigger borrow money from china and doing gay shit to china..This pussy nigger wanna beef with China when he find hem some.China has 99 problems,USA aint one.China will fuck all Americans Life up with the Art of War by sun tze.China fucks USA back to the Middle age.
you are clearly retarded & should be banned from the interweb
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