WHAT THE CIA knows about us EH....
Proculation @ Tue Nov 07, 2006 11:30 am
themasta themasta:
Proculation Proculation:
Clogeroo Clogeroo:
Nothing wrong with trade but total dependence? I don't think having all our eggs in one basket would be a good idea. For then one country has utter control over your economy. It would be like investing all your money into one stock, if that stock fails you lose all your money. But if you spread your money into a few stocks the impact of one failing will not be as great or you will still have your other stocks to count on.
That's free trading. And I prefer to invest my money in one of the strongest economy on earth than in multiple countries with less stable economies.
Anyway, if the economy of the states fails, that's all the world's economy that will fail. And it's going to be much more bad in the other countries.
Ay, there's the rub. The American economy is unsustainable at the moment. They have amassed so much debt that they are near a critical junction wherein if something doesn't change soon, they will probably have to default on their payments. This would be...a bad thing...if you're trading in the American dollar, get out while you can. It's going to be nasty.
Humm it's not really that scary. The debt by % of the GDP is less than France and Germany. Half of the payment balance debt is due to selling to foreign american companies (ford canada, boeing china).
They will need to stabilize the debt ina near future but it's not that critical.
dog77_1999 @ Tue Nov 07, 2006 2:32 pm
Clogeroo Clogeroo:
$1:
Exports - partners:
US 84.2%, Japan 2.1%, UK 1.8% (2005)
Imports - partners:
US 56.7%, China 7.8%, Mexico 3.8% (2005)
US 84.2%, Japan 2.1%, UK 1.8% (2005)
Imports - partners:
US 56.7%, China 7.8%, Mexico 3.8% (2005)
Are we a country or a colony?
The reason why the trade is so disportionally high is because the US and Canadian colonies are integrated. For instance, pieces of a car are manufactured in Canada, which are then exported to America for completion. Then, some of those cars are then sent back to Canada to be sold. In both cases the trade has increased between the 2 countries. This is repeated hundreds of times across the border. Yes, the company could of put all of the factories in the US and not have to worry about the trade issue.
However, does it really matter? Can you think of any place where it really doesn't matter if you put your factory in country A or country B(bearing they are right next to each other). I know that Mexico can't even do this with the US. I personally think it is a testiment on how close we are too each other. Not many countries can claim to have the largest unfortified border in the world.
