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What makes the US to work is too: 1)That USA is enormously resource rich, like natural gas,helium, oil, coal, enormous extensions with wood,cotton, cattle... w
by forgottenpaswrd 15y ago
What makes the US to work is too:
1)That USA is enormously resource rich, like natural gas,helium, oil, coal, enormous extensions with wood,cotton, cattle... while Japan has no resources at all.
2)That USA has an enormous population that is mobile(could move from west coast to east coast) speaking only one language while places like Europe or India has every country(or subcountry state) speaking its language and making not so easy the people to move(protectionism).
3) That USA got the world hegemony since WWII and everybody in the world needs dollars to buy oil, so USA can live from other countries work, just printing dollars.
While 1,and 2 will continue, 3 could end soon, because USA had abused so much it and is abusing it that things could change.
- bzbarsky 15y agoYou may have #3 backwards (and also have the reason people want dollars backwards; it has very little to do with nominal oil pricing). I suggest reading http://mpettis.com/2011/05/is-it-time-for-the-us-to-disengage-the-world-from-the-dollar/ http://mpettis.com/2011/05/is-it-time-for-the-us-to-disengag... for the former and any competent explanation of international trade mechanisms for the latter.