Can The US still be an Economic SuperPower (insurance, creditors, borrowing)

[tallrick]

We have a HUGE government that is strangling innovation. We have a cartel of organized crime that controls our money. WOW we produce nothing but debt to them. That seems like a thriving economy to me!

The only things of worth I have that are American made are more than 30 years old. Scary and sad. Thank you big Government!

[grmike]

depends whether you think nominal gdp is more reflective of a nations economic power than ppp gdp.

in terms of nominal gdp the US dominates every other single nation.
but when compared with the EU the US is about 2.5 trillion dollars smaller.

since the G8, economist.com, imf, and world bank only consider nominal gdp when ranking the world's economies, the US still appears to be number one by a lot.

If you consider the EU a single economy then the US might have already lost its place at the top.

2006 2007 2008
European Union 14,609.836 16,574.443 17,607.657
United States 13194.70 13794.22 14305.70

considering that only a couple years ago the US had a much larger nominal GDP than the EU, and that today's EU/US exchange rate seems here to stay, the US economy has slowed a lot relative to the EU.

[KevK]

Originally Posted by grmike

depends whether you think nominal gdp is more reflective of a nations economic power than ppp gdp.

in terms of nominal gdp the US dominates every other single nation.
but when compared with the EU the US is about 2.5 trillion dollars smaller.

since the G8, economist.com, imf, and world bank only consider nominal gdp when ranking the world's economies, the US still appears to be number one by a lot.

If you consider the EU a single economy then the US might have already lost its place at the top.

2006 2007 2008
European Union 14,609.836 16,574.443 17,607.657
United States 13194.70 13794.22 14305.70

considering that only a couple years ago the US had a much larger nominal GDP than the EU, and that today's EU/US exchange rate seems here to stay, the US economy has slowed a lot relative to the EU.

The EU is not the USA. They are a good and powerful economy but they are many different COUNTRIES under a common currency. And not all of them even use the currency (the Brits still use the pound). No EU country by itself is anywhere near the economic powerhouse we are. The dollar is accepted and desired worldwide. The Euro is not. Ever try to buy oil from OPEC with a Euro?

[Philip T]

Originally Posted by KevK

The dollar is accepted and desired worldwide. The Euro is not. Ever try to buy oil from OPEC with a Euro?

(ring, ring -- your alarm clock )

Serious? Saddam was requesting Euro payments. That might have been his real accident.

Iran now requires Yen over US Dollars for Japanese sales.

The rest of OPEC would love anything but US Dollars, but does not want to tip over the apple cart. First step is the "basket of currencies" approach.

I would love to be able to do business in Euros at this point.

So how long do you think it will be before the IRS accepts them? In the meantime, I will just send them back their own worth less dollars.

[grmike]

Originally Posted by KevK

The EU is not the USA. They are a good and powerful economy but they are many different COUNTRIES under a common currency. And not all of them even use the currency (the Brits still use the pound). No EU country by itself is anywhere near the economic powerhouse we are. The dollar is accepted and desired worldwide. The Euro is not. Ever try to buy oil from OPEC with a Euro?

As long as China remains hostile towards the US Dollar (it still has around 1 trillion US dollars that it threatens to sell if the US does something it doesn't like) the Euro will probably be the stronger currency.
If you took the UK GDP out of the EU GDP I think the EU has at least the same sized economy as the US.

It could be only a couple years before factbooks list China as the worlds largest economy (since they put the focus on ppp gdp), and most economist organizations include the EU in their list of economies (meaning the US isn't at the top of nominal gdp lists anymore).

[Seaharbour]

We are not even on the top ten list anymore, let alone number one...our country is and has fallen apart...nothing to do now but to just send good thoughts and prayers here, mmmm.

[randian]

Originally Posted by crystalblue

Without any manufacturing?

Are we slitting our throat by continuing to move manufacturing offshore?

1) Manufacturing is no more important than buggy whips. Move on. Change or die.
2) The US never stopped being an economic superpower
3) Most manufacturing is low value added. Design is where real value is created.
4) What manufacturing that remains is setting record highs in revenue, profits, and wages.
5) In policy terms, loss of manufacturing jobs is irrelevant and unimportant.

[randian]

Originally Posted by Lethal_Poison

If you call rampant consumerism an engine.

We're the wealthiest country on Earth. Why shouldn't we be buying stuff? Your negative judgments smack of envy, not sound policy.

[randian]

Originally Posted by grmike

in terms of nominal gdp the US dominates every other single nation.
but when compared with the EU the US is about 2.5 trillion dollars smaller.

EU has more people. US per-capita GDP is still a lot higher.

[crystalblue]

Originally Posted by randian

1) Manufacturing is no more important than buggy whips. Move on. Change or die.
2) The US never stopped being an economic superpower
3) Most manufacturing is low value added. Design is where real value is created.
4) What manufacturing that remains is setting record highs in revenue, profits, and wages.
5) In policy terms, loss of manufacturing jobs is irrelevant and unimportant.

so, our trade deficit with the world doesnt matter?

we know import a TRILLION dollars more than we export per yr.

that cant be good. unless your already a rich investor, which most Americans arent.