American Economics Thread

[9dashline]

It also exclusively produces world's highest-tech products that no one else can make.

The US economy being heavily on consumption is natural and how it's intended to work. The US dollar is the world's reserve currency. To serve as the reserve currency, the dollar needs to flow out of the US by consumption of imported goods so that the rest of the world can earn the dollar to use. It doesn't matter to the US because the US can create the money as much as it wants, and the inflation is passed on to the rest of the world which cannot create money. The ruler doesn't produce generic products, he consumes what his subjects produce. The reserve currency status of the USD is guaranteed as long as the US military is physically controlling most parts of the world.

Until China says NO to Plaza Accord 2.0; does BRI and DUAL CIRC to cut out the fat useless eater middle man and deal directly with other nations bilaterally and using digital Yuan and/or some Chinese gov blockchain to facilitate the conducting of trade, the world collectively DE-dollarizes and DE-Americanizes itself supply chain after enough vassals get their crown jewels all stolen and robbed by the US, and then suddenly one day the ruler finds the rug pulled out from underneath his own feet now that he has completely de-industrialized and can no longer make what it needs, much less what the rest of the world needs.

In all of history this has never ended well for such a ruler, and such rulers could never hold on to that unbalanced situation forever...
The US printed nearly 50% of all US dollars in its ENTIRE ~250+ years some odd history of its Empire in just the last year or two and now the GDP still went negative in Q3 of 2021 and the supposed "transitory" inflation is only getting started... The structure is already cracking, the whole world, even if all willing to be US slaves, can no longer support and sustain the American Empire.

 

[Sleepyjam]

It also exclusively produces world's highest-tech products that no one else can make.

The US economy being heavily on consumption is natural and how it's intended to work. The US dollar is the world's reserve currency. To serve as the reserve currency, the dollar needs to flow out of the US by consumption of imported goods so that the rest of the world can earn the dollar to use. It doesn't matter to the US because the US can create the money as much as it wants, and the inflation is passed on to the rest of the world which cannot create money. The ruler doesn't produce generic products, he consumes what his subjects produce. The reserve currency status of the USD is guaranteed as long as the US military is physically controlling most parts of the world.

The inflation isn’t really passed, it merely spreads. The inflated prices eventually comes back and causes stagflation. Americans are already unhappy about the inflated prices on their everyday product and services.

 

[FairAndUnbiased]

It also exclusively produces world's highest-tech products that no one else can make.

The US economy being heavily on consumption is natural and how it's intended to work. The US dollar is the world's reserve currency. To serve as the reserve currency, the dollar needs to flow out of the US by consumption of imported goods so that the rest of the world can earn the dollar to use. It doesn't matter to the US because the US can create the money as much as it wants, and the inflation is passed on to the rest of the world which cannot create money. The ruler doesn't produce generic products, he consumes what his subjects produce. The reserve currency status of the USD is guaranteed as long as the US military is physically controlling most parts of the world.

Not really, most of the US "exclusive manufacturing" isn't all that exclusive. Even in semiconductor equipment.

Here's Chinese held US bonds btw.

 

[horse]

It also exclusively produces world's highest-tech products that no one else can make.

China is better than America when it comes to manufacturing high tech goods.

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[Tam]

It also exclusively produces world's highest-tech products that no one else can make.

The US economy being heavily on consumption is natural and how it's intended to work. The US dollar is the world's reserve currency. To serve as the reserve currency, the dollar needs to flow out of the US by consumption of imported goods so that the rest of the world can earn the dollar to use. It doesn't matter to the US because the US can create the money as much as it wants, and the inflation is passed on to the rest of the world which cannot create money. The ruler doesn't produce generic products, he consumes what his subjects produce. The reserve currency status of the USD is guaranteed as long as the US military is physically controlling most parts of the world.

Not really.

Highest tech products are not made in the US. They are only produced elsewhere, branded, shipped to the US or shipped elsewhere from centers owned by US corporations. Every Apple product is distributed out from warehouses in Shenzhen. HP and Dell products are marked Made in China. Ford and GM cars in the US have plenty of Chinese parts in them.

The reserve currency of the US dollar is only guaranteed as long as the Arabs and the Chinese use the US dollar for transactions and its gone when they see another currency they can use. Flooding the world with US dollars only makes the US dollar less valuable and creates global inflation. This is when people that are flooded with US dollars start buying up more resources and causing prices to go up. These people also prefer to change US dollars to some other object such as equity or real estate, that preserves its long term value as the currency value goes down. This creates a hyperinflation on these assets. When people get a lot of US dollars, they will go everything to get rid of it in exchange by buying something else.

As US dollars buy less and less, with less options for assets and commodities, there will be another movement to exchange the US dollar to another medium that isn't as inflatable.

 

[Tyler]

Don't forget to deduct 15% for imputed rent, now that more folks are staying at home with their mom and pop.... maybe -20%

The US is fudging numbers, the GDP for Q3 is negative

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How come China does not include imputed rent in calculating its gdp numbers?

 

[FairAndUnbiased]

How come China does not include imputed rent in calculating its gdp numbers?

because it is nonsensical. nobody pays rent to themselves in reality. China cares about accurate measurement of data, not puffing itself up to look big. In fact China usually underestimates its own GDP as opposed to certain countries and neighbors.

 

[antiterror13]

How come China does not include imputed rent in calculating its gdp numbers?

If China did that, I'd imagine another $1-3T would be added to the GDP. Many Chinese family have no mortgage, definitely higher than in the US or EU

 

[Tyler]

If China did that, I'd imagine another $1-3T would be added to the GDP. Many Chinese family have no mortgage, definitely higher than in the US or EU

If they include imputed rent in the gdp, that would shock the Yankees.

 

[Franklin]

It also exclusively produces world's highest-tech products that no one else can make.

The US economy being heavily on consumption is natural and how it's intended to work. The US dollar is the world's reserve currency. To serve as the reserve currency, the dollar needs to flow out of the US by consumption of imported goods so that the rest of the world can earn the dollar to use. It doesn't matter to the US because the US can create the money as much as it wants, and the inflation is passed on to the rest of the world which cannot create money. The ruler doesn't produce generic products, he consumes what his subjects produce. The reserve currency status of the USD is guaranteed as long as the US military is physically controlling most parts of the world.

The Americans can print as many dollars as they want but they can't print value or prosperity.

The USD is issued by the Federal Reserve a private central bank as a interest bearing debt instrument. What the FED prints is not "money" but currency/reserve notes that can only be circulated in the banking system. For that "currency" to be come "money" it has to go through the US goverment by buying US treasury bills. And the US government spend that "money" into the economy. The more money the US creates the bigger the debt gets. And the debt is also creating massive asset bubble's in the bond, stock and real estate markets. It also helps to create inequality and forment public discontent.

The US still have some key technologies that few others have but America's technological superiority is shrinking fast. Because the economy is increasingly dependent upon asset price inflation and consumption rather than production and investments. Its like a elite athlete getting fat and out of shape by having a unhealthy lifestyle.