Has America Reached its Apex?

haha604 said:
Ultra_Kool_Dude said:
^ I believed that too, but I suggest you read the book I mentioned because it debunks a lot of the myth about China.

Growth can come from things that aren't productivity increases. For example, a country can cause growth by increasing the workforce participation rate, or increasing the hours of each worker per week. This sort of thing has very finite limits. Investment also increases demand as money flows into an economy, but it doesn't neccessarily improve productivity.

Things like cement are made in China still using 100 year old inefficent technology.
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Long-term growth comes only from productivity increases, and investments (such as building schools, highways, factories) generally increase economic efficiency.
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I know, that's why I don't think Chinese growth can continue.

On top of that, the state run banking system is nearly insolvent, because the government loans the peoples' savings to lost-cause state run businesses that throw away money.

The export industry in the southern provinces is thriving, but most of that wealth goes the the Taiwan and Hong Kong investors/owners.
 
im just going to say australia for the sake of it
 
i think the next big power struggle will be between the EU and china..
just think about it .. USA had a good 50 or so years but just look ..
more and more nations are turning to the Euro and dumping the Dollar (for forgine trading stuff)
and china is like.. woo! :p
 
The Chinese government bought many bad loans from the country's big banks a few years ago in an attempt to prop up the country's banking system, and has succeeded until recently when the banks start granting many home mortgages without assesing the borrower's ability to repay. A shaky banking system is not good, but it is not a serious enough problem to hold bank China's economic growth. Japan, South Korea, and Taiwan all had very messy banking systems until very recently, but that didn't stop their economies from growing sustainably and rapidly.

And find a company in the world where most of its profits do not go to its owner/shareholders.

Apart from a small group of Chinese entrepreneurs, a Chinese middle class is emerging. You can observe that by looking at the consumption patterns of people on the streets, the booming property markets in the cities, and the red hot car market.

The biggest threats to China's economic expansion are a potentially bumpy transition to democracy, and its skewed demographics caused by the one-child policy, which may mean China will grow old before it grows rich. Still, the country's long term potential is ace.


Ultra_Kool_Dude said:
I know, that's why I don't think Chinese growth can continue.

On top of that, the state run banking system is nearly insolvent, because the government loans the peoples' savings to lost-cause state run businesses that throw away money.

The export industry in the southern provinces is thriving, but most of that wealth goes the the Taiwan and Hong Kong investors/owners.
Click to expand...
 
Hi everybody

Interesting topic!

America (and western countries) have be said to be decadent for years!
In 1905, when Boxers attacked the western people in Peking, they made it because they thought they were decadent
In 1941, Japan attacked US and UK saying they were decadent
To me, there is no sign of apex for USA.
Asia is going up, but not by they way.
I have been to Korea last year and what amazed me is that they are copying the US way of life. Asia is needing to much Europe and America.
Occident will suffer from them, but it still controls almost everything on the planet...

USA are very similar to the Roman empire (behaviour, political and economical power), and I think that they will "fall" very slowly
The Roman empire has had several apex in its history

I am French, and it is also interesting to understand France political behavior by considering that in Middle Age and in modern period (XVIII, XIX century) and beginning of XXth century, France was one of the biggest political power in the world.
French people have never accept to have lost some power
 
Very weak economically compared to the ? and the euro.
Oh and the phrase is reached its's peak not it's apex.
 
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