Can U.S. Remain an Island of Stability in the Global Economy?

Discussion in 'The Economy' started by AMDR, Jan 7, 2016.

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  1. AMDR

    AMDR Captain Staff Member Administrator

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    The Chinese stock market is plummeting so fast that authorities there keep shutting it down. North Korea set off a bomb in a nuclear test. Two of the Middle East’s great powers, Saudi Arabia and Iran, are eyeing each other menacingly. In the European Union, political extremists are on the rise, migrants are pouring in and Britain may drop out (three phenomena that are not unrelated).

    And in the United States, the number of people filing unemployment claims is hovering near the lowest levels in four decades, the jobless rate may well fall below 5 percent for the first time since 2007, and whatever the noise on the presidential campaign trail, Congress recently passed bipartisan legislation to keep the government running comfortably into next year.

    Seven days in, 2016 is shaping up to be a chaotic year in global economics and geopolitics, with profound challenges nearly everywhere. Except, for now at least, in the world’s largest economy. The American economy is acting as a steadying force in a volatile world.

    A giant question for 2016 — not just for Americans but for people across the globe who benefit from having one of the world’s major economic engines revving while others sputter — is how resilient the United States will prove to be.

    The rest of the article can be found here: http://www.nytimes.com/2016/01/08/u...land-of-stability-in-the-global-economy.html?
     
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  2. Technofox

    Technofox That Norwegian girl Staff Member Ret. Military Developer

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    Well, maybe. US markets and its economy are still impacted by what goes on overseas. China's performance has been proving that - especially its current weakness which leaves investors fleeing to the US, but also US markets taking a big hit. Manufacturing and US markets haven't started off the year all to well either, both can impact earnings and consumption too, which is the driver of the US economy. Even if manufacturing accounts for only around 15% and contributes to around 30% of US economic performance, any downturn sees the manufacturing and support workers hit too. Any hit to peoples pocketbook leaves US consumption weakened.

    However, as with China's recently molded two-track economy, as manufacturing declines, services outpace their expectations, so at least one key driver is contributing greatly to US stability:

    http://www.bloomberg.com/news/artic...-outpace-manufacturers-sustaining-u-s-economy

    There are headwinds, but the Fed is holding course with interest rates, so it's still confident. I'll be confident too, until something jolts me otherwise. I've learned to never underestimate the stubbornness of the American people; their economy is just as hardheaded. Expect it to continue to be a bright spot in a rocky economic world.

    ...

    I'm looking for Russia to get back on track too. Better economics leads to less bone-headed nationalism - which the Russian's resort to when back into a corner. You can't really count on economic hardship to break their spirits. They've endured enough of that to be relatively adapted, it also gives them a convenient scapegoat, the US. Plus having another strong performing economy is good for the US as even in the most vehemently anti-US nations, US goods and services are still in demand.
     
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  3. Pathfinder

    Pathfinder Lieutenant Colonel

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    Many of the worlds economies are either down, not growing or not growing fast enough for their current level of economic development.

    Dow-Jones-2010-to-present-1940x1131.png

    China is definitely in a bad position. They are artificially staving off a full blown crisis,
     
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  4. Atilla

    Atilla Major

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    I thought maybe this is relevant, I saw that #ResistCapitalism was trending worldwide on twitter. Look at free market economies vs socialist or communist economies today.
     
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  5. Falcon

    Falcon Major Staff Member Social Media Team

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  6. LoveFiend

    LoveFiend Officer Candidate

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    well the US economy is on its all time low and for 2016 and beyond, all official U.S. economic forecasts call for stronger growth ahead. But, economic output is not the only variable on the rise. Inflation, debt levels, interest rates, and market valuations are also increasing. What does this mean for investors?????????????????????

    And the economic outlook for 2016 has cleared all the doubts regarding the flatten economy that has created a huge loophole in the system and if the situation continues to be the same unemployment will surely be on the cards.The Federal Reserve is more optimistic. Current forecasts call for unemployment to be in the range of 4.8% to a high of 5.1% by the end of 2017. Therefore, the headline unemployment number is expected to decrease slightly
     
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