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>Yes, when you look at mere international exchange rates, the U.S. economy remains bigger than that of China, allegedly by almost 70%. The irony is that the US
by yarou 12y ago
>Yes, when you look at mere international exchange rates, the U.S. economy remains bigger than that of China, allegedly by almost 70%.
The irony is that the US has been running up debt for decades upon decades. The US economy is equivalent to someone that has an unlimited credit line, who pays absolutely nothing while continuing to spend lavishly.
This article does not bring any new information or shed any light on the truth about our global economy, such as the creation of externalities that deprive human beings of basic rights. All this article does is present an old narrative (the financial news equivalent of race baiting). Grab the datasets yourself, do your own analysis, and don't listen to yellow journalist rags like this which are clearly promoting an agenda.
GDP, PPP, etc are metrics which have a low signal-to-noise ratio, because the speed with which capital moves renders any units to measure economic output meaningless. USD is still the reserve currency for most of the world (at least for the countries who account for the lion's share global economic output). Even if that were to change to RMB or [insert fiat currency], the current corrupted system will continue to exist and exploit. Do yourself a favor and become educated about cryptocurrency. Learn why this current global economic system is corrupt and a new form of enslavement. Then you'll realize that we don't need central banks. You will realize that you are not a child that needs to be constantly monitored by a nanny state. And so your enlightenment begins.
- jsprogrammer 12y agoJust curious how you think the US economy could expand without increasing debt. My understanding is that the amount of transactions occurring is dependent on the amount of money in circulation. The amount of money in circulation is directly dependent on debt through the fractional reserve banking system. Under the current system, the only way to 'grow the economy' is to increase the volume of transactions or use money creating transactions (bank loan).
- NoPiece 12y agoMoney is created via debt, but the economy expands when people create things of value.
- crdoconnor 12y agoFalse. The economy expands when the volume of transactions increases. The GDP hero is a chain-smoking terminal cancer patient going through an expensive divorce whose car is totaled in a 20-car pileup, while munching on fast-take-out-food and chatting on a cell phone. All add to GDP growth. The GDP villain is non-smoking, eats home-cooked wholesome meals and cycles to work.
- jsprogrammer 12y agoWell, this really depends on what it means for an economy to expand. The metric that most people seem to use is the sum of all transactions occurring in that economy, denominated in a currency. In the philosophical sense of economy, where transactions are not necessarily tied to physical units of currency, expanding can mean pretty much anything, from more participants and transactions to goodwill gained through personal relationships. In the physical reality of the US economy, expanding economy really only means more money or more transaction volume.
- crdoconnor 12y ago>The irony is that the US has been running up debt for decades upon decades. The US economy is equivalent to someone that has an unlimited credit line, who pays absolutely nothing while continuing to spend lavishly. There is no sensible equivalence or even comparison to be made at all since insolvency is impossible for the US government. Government debt is simply a different thing to consumer debt. Period. >GDP, PPP, etc are metrics which have a high signal-to-noise ratio Ironic that you should say this since GDP, PPP, inflation and the rate of government spending are all far more relevant than the overall level of government debt.
- vorg 12y ago> insolvency is impossible for the US government But the exchange rate for the US dollar crashing by 50% against the pound, euro, rmb, and yen in a single day is possible for the US government's federal reserve.
- crdoconnor 12y agoYes it is. The exchange rate gradually falling is possible too. Or staying the same. Also the exchange rate may rise, as actually happened last time US government spending spiked (post crisis).