Does this story bother anyone else?

[towjam]

I don't know if many of you have seen this but what the hell has our country come to?
http://finance.yahoo.com/banking-budgeting/article/112616/imf-bombshell-age-america-end-marketwatch
There has to be something that we can do.

[Zundfolge]

its based on two assumptions that I'm not convinced are correct.

1) That China's economy is going to continue to grow and expand. (we're starting to see the Chinese economy turn in the same direction that the Japanese economy turned before their "lost decade" ... simply put you can't build a lasting, thriving economy on a foundation of communism).

2) That the US economy will continue to falter and fail. In the next few years we're likely going to see massive political reversals around the country. This is the key, without the political reversal the article is correct.



Anyway, I'm generally pessimistic about the future of the country, but even I have not given up 100%.

[10x]

Yes, it bothers me. It is continued evidence that this country is eroding financially. Not mentioned is what goes along with it moral erosion. There is nothing being done to stop the erosion even though the answers and actions are obvious. For one the OMB has made suggestion of over 100 action steps to deal with mostly entitlement programs. Congress members won't act for fear of not being re-elected. I don't see this turning around for decades, if ever.

[towjam]

its based on two assumptions that I'm not convinced are correct.

1) That China's economy is going to continue to grow and expand. (we're starting to see the Chinese economy turn in the same direction that the Japanese economy turned before their "lost decade" ... simply put you can't build a lasting, thriving economy on a foundation of communism).

2) That the US economy will continue to falter and fail. In the next few years we're likely going to see massive political reversals around the country. This is the key, without the political reversal the article is correct.



Anyway, I'm generally pessimistic about the future of the country, but even I have not given up 100%.

I have been optimistic but I am losing faith fast.

I'm also not convinced that political reversal will help. They are all the same party. There are a few good ones left but not enough to make a difference.

The future will be interesting.

[TrapperJohn]

I did read this the other day and I think it could go either way. If the current Admin. keeps this up we will crash hard but if we have a change of power and attitude China can never keep up.

Freedom is a powerful thing!!!

[HBARleatherneck]

do you guys mean the spending democrats are worse than the spending republicans? strictly concerning the enconomy. R or D, they both ran the country into the ground. fuck all politicians.

[ChunkyMonkey]

IMF can't forecast sh!t. The last two year they released 6 economic growth forecasts and all 6 of them they were completely off. This is the same loons that predicted that we will be out of oil and the energy war is looming in 20 years, 20 years ago.

Chinese growth in the past 30 years are impressive - but they are far from being up to par. Here is a good reading...
http://www.investors.com/NewsAndAnalysis/Article/570140/201104251858/China-As-No-1-Give-Us-A-Break.htm

There are too many factors in play, rapidly aging population due to the 1 child policy that was implemented couple decades ago, economy bubble (watch Shanghai property market), over deflated yuan and so on. As a one party nation, the modern Chinese history is extremely volatile. They are enjoying great leaderships in the current generation, who knows what's coming. We do know the past 70 years or so, they screwed themselves more often than otherwise.

[2ndChildhood]

+1

do you guys mean the spending democrats are worse than the spending republicans? strictly concerning the enconomy. R or D, they both ran the country into the ground. fuck all politicians.

[Mtn.man]

Somebody must know it. Today (4-21), the U.S. dollar fell to its lowest point since August 2008 against a basket of major currencies, including an all-time low against the Swiss franc.

China knew Treasurys were toast months ago. A Chinese government-backed credit-rating agency downgraded the United States' credit rating last November, when QE2 was announced.

PIMCO – the world's biggest bond-fund manager – knows it, too. It sold all its U.S. Treasurys and is now net short Treasurys.

In 2010, U.S. households paid around $2.2 trillion in taxes… but received $2.3 trillion in unemployment, Social Security, Medicare, Medicaid, stimulus payments, and other goodies. This hasn't happened since the last time the government blew up the economy good and hard – the Great Depression.

[Inconel710]

Theoretically speaking, China's economy SHOULD be greater than the U.S. since they have four times the population! The big question is what will that increasing individual wealth do to the Chinese government and Chinese culture. The government is already over-reacting to any threat of a "Jasmine Revolution" like the Middle East is going through.

[10x]

Too much spending on non productive services creates on going weakness in our economy. I just hope the value of US money lasts through my retirement.

[Byte Stryke]

Huge problem with the whole thing.


According to the latest IMF official forecasts, China's economy will surpass that of America in real terms in 2016 — just five years from now.


Whole thing will end 12-12-2012

so it will never happen.
we go out, but we go out on top :)

[HBARleatherneck]

thankfully budhism is better than islam...for us.

[CrufflerSteve]

I'm not so sure about China's growth. People are suspecting a huge bubble there with ghost cities and factories.

OTOH, the US is screwed. Both parties are hopeless right now. Our only growth industry is fraud. I rather like this guy William Black, who cracked down on S&L fraud under Reagan. He points out that when crime pays, he likes the term control fraud, it drives out the good since the honest can't compete with the criminals.

International rankings mean squat. It's how it works in a country. In the US ideas like restraint, honor, integrity and honesty are seen as quaint. If the US is on top in GDP but policy is to subsidize the super-rich off the backs of everybody else I can't feel much enthusiasm. It's just some damned 3rd world country. The only politician I like now is Ron Paul. He may be a bit of a nut but he is honest and principled. His long term push to audit the Fed has really showed how this country works. Look at the TALF beneficiaries and get sick.

Steve

[ChunkyMonkey]

I'm not so sure about China's growth. People are suspecting a huge bubble there with ghost cities and factories.


Yep, they are very few indicators that the public can see. Yuan is strictly controlled and its volume is a safely guarded secret. Meanwhile the Chicom is holding onto USD, Gold, and Euro in their surplus. There is no knowing how much money they print to finance the mega malls, cities, and so on.