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This is a fascinating illustration of how big the US economy is. China is left out, for reasons Lenny keeps telling us – booming eco growth, but would still only take a couple of states. All that big oil money that Saudi Arabia is known for? Tennessee my friends, Tennessee.
h/t Ace of Spades
[link edited]
FEDSAWDAVE wrote
Tom, I’m completely missing it, whatever “IT” is.
Al got it, but I fixed the link to a page that has the map and the explanation. It’s a cool page, because it also links to other GDP stats world-wide.
That’s the one I should have put up first.
For penance, you may sell me a crap load of mixing tips, at an embarassingly low price, or did you just do that recently and no one told me we got them?
It also covers China, India, and the few other large economies. China is doing as Lenny says, but we’re still the winner by a long shot.
Because Belgium and Boston begin with B. Do I have to explain everything to you Chowds?
Tom, so you have like multiple 50-60lb boxes sitting around the shop that nobody opens?
Hi Tom,
Interesting post. Ive been meaning to add to it for some time, but so much to do, so little time! Even with the less than sanguine economic reports out as of late regarding the US economy..the US economy is very strong, even in a dull quarter. I have a theory about this. The greatest US export is the US dollar. For example there is a 224 billion trade deficit with China, but China has an excess of US dollars, what to do with those? They routinely reinvest in US T bills (a modest amount) maybe 10-20 billion USD that helps buy down the US debt. (after all we are the greatest debtor nation in the world , with average debt of 25K on credit cards)..BTW since coming to China Ive paid off all credit cards, and pay balances monthly) They also purchase things in the US, hotels, land, etc, which gives China a vested interest in keeping the US economy booming. Many US banking corps have bought a 20% interest in Chinese banks with Citicorp being one of the leaders.
In China the average saving rate is 35%. (Mine is 50%- I never to learned to save money until I came to China).. But the Chinese govt has taken recent moves to cool the the Chinese stock market investment (which people are investing in heavily) fearing a down turn could wipe out savings and the backbone of the reserves.
The most depressing thing to me about the US economy was to see the number of foreclosures due to the housing market bubble breaking and the down turn in new home starts in the US, as well as other indicators. (yes I actually watch this stuff, along with oil prces etc.). I think in this interim period maybe a concerted effort on the remodelling segment is warranted.
What are your thoughts?
B Rgds,
Lenny
Lenny,
It seems like the National Debt is geared to be a self-perpetuating entity. Not just China, but India is making huge investments as well. Hotel chains are very popular to foreign companies, for some reason. The more they invest, the greater the stakes for the economy to stay strong, so they need to do (as China is doing now) things to their own economies to avoid a massive value-off, so to speak, on their investments.
Trading on the dollar is an interesting study that I have yet to learn much about. There seems to be a built-in balancing act. When your dollar is strong, the other guy’s is weaker, so you invest over there, which strengthens their (dollar, or euro, or yen, etc.). I like the beauty in the balance.
Tom ,
I really like talking to you because youre very astute. While I do a bit of currency trading myself,, Im certainly not an expert or completely understand it. There is a bill in congress to impose tarriffs on Chinese goods, due to the percieved artificial manipulation to the undervalued end of the Yuan by China. Now that bill has been introduced every year and been swatted down every year. The US Treasury said there is no need to press China on this due to recent movement of the Yuan (RMB)., however all gloves are off because this in an election pre year and the candidates are posturing for votes. For example the ice queen..Hillary …just came out against the new trade deal with Korea..which was maybe a mere 13-17 billion dollar deficit.. If those tarriffs are imposed business will move out of China overnight (Ive seen it happen before in other countrys), but it wont come back to the US, it will go to VietNam, India , the Stans etc. So whats to be gained for the deficit?
The real wild card in all this is the artificial manipulation of currencys (US). For example the artificial manipulation of US currency crashed the Venezulean Economy some years back, and Im expecting that to happen again soon due to good old poli-tricks. What are your thoughts?
Lenny.
Lenny,
Being a noob on world trade, all I can tell you is that, judging by history, the more we screw with something, the more we get screwed. If the market is somewhat self-correcting, and we can learn to keep our grubby mitts off, it might just keep on keepin’ on.
Yeah Im a noob too on the world monetary market also but I find it fascinating. Ive been watching several bills in Congress to try and mtigate the embargo against Cuba by increasing the US exports of wheat to Cuba, to benefit the US farmer they say (actually I think its more for big agri biz) and to keep the exports as US exports instead letting all that biz go to Canada.
Ive always wanted to go Cuba (for strictly non political reasons), Ive heard some really nice things about the beaches. However if you venture into Cuba or N Korea (I have NO desire to go to N Korea…heh heh) you generally are met with hmmm, less than an enthusiastic welcome from the authorities upon return to the US. Since Im already one of those guys whose luggage always gets searched and passport gets examined with the magnifying glass, country stamp by country stamp, along with a ton of questions resulting in my always being the last guy to get thru immigration and customs, I think I will have to pass on swimming at the beaches in Cuba, heh heh.
As one of the last Marxist States left, I think if trade and capitalism can be encouraged in Cuba, they would actually develop more, it would be better for the Cuban people and for the US economy and Cuba most likely would become more democratic and less abrasive policy wise.
I dont think you will ever see that happen while Fidel is still alive, but in the coming years I think that could occur. Ive seen stranger things happen.
B Rgds,
Lenny
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