the US in no longer the industrial dominator.. those days are gone.. the US can lead in other regards though.. it could see great days ahead if it europe-izes. Europe leads the world in many regards, but not in economic dominance, purely. the US could find its new niche.
China buys dollars and sells yuan to control the yuan exchange rate to the dollar. They have allowed the yuan to appreciate versus the dollar since 2005, but it still does not float freely. The yuan is tied to the dollar. Also, you do understand that there are multiple reserve currencies? I'm guessing you fell for this story on zero hedge http://www.zerohedge.com/contribute...t-become-global-reserve-currency-gold-backing and thought China was getting ready to become a global reserve currency. They will likely need to let their currency free float before they become a reserve currency.
it means we're toast....it means your avg american worker is spoiled and needs benefits like health insurance and a retirement plan while workers abroad do the same task at an as good or better production rate while not need a minimum $50k/year salary with another 20k+ in benefits. Our growth is behind us....companies will do more with less for the foreseeable future and unless you start your own business your job will probably always be at risk to going away thanks to technology making your job less of a need for whatever company your with. Look at those robots amazon is installing those remove the need for many many workers I love my country, but i also see the future and Im a bear on the outlook for the average person.
That's fine and all, but it doesn't have much to do with reserve currency. At the end of the day, when the world is imploding, everyone wants US dollars, as we saw in 2008. China has too much instability and uncertainty with how it will cope with a billion people, most of whom live in poverty, trying to transition into a first world economy. As it is now, it's still an agricultural, developing economy that has a long, long way to go on the world stage. What makes them "big" right now is simply a huge volume of people.
huge number of ppl who have the drive to shame Americans in work ethic.. they are willing to do everything we aren't as a society. the same attitude america had during its industrial revolution. the US has and will have stability no doubt for ppl who know how they make money are are good at it. China is growth for everyone involved in it. The growth story in America is very selective now.
it means the US has to mature.. I like to analogize it to a great player relying on his raw physical ability more at younger age... then adjusting around the inevitable physical decline in his 30s. a la Kobe. america needs to kobe.. haha
to clarify, meaning you pretty much need to have money to make money for upward mobility. everyone with not enough to invest is stuck, stagnant. until they save enough but that could potentially never be an option bc of the rising costs.
Sure - and the reason for that is that China is going through their own industrial revolution. Every country that goes through that has a huge growth spurt. That doesn't tell us anything about what they will be able to do when pass that stage. The majority of China is rural and dirt poor and has not participated in their industrial revolution. Their middle class is substantially smaller than that of the US as of now. They have major issues to deal with it in that regard - hopefully they can continue managing their transition and figure out how to narrow their gigantic class division, but its nowhere near a certainty.
This is comparative to the 1980's, when Japan was going to take over the world because their people were so hard working and they were buying up real estate everywhere, etc, etc. The reality is when you get to a certain point, you face new challenges and the path forward is not as simple. The US and Western Europe got there first, and thus slowed first. Then Japan. China's currently in that high growth phase, but they will inevitably hit bumps in the road when growth gets more difficult, and we have no clue how they will deal with it.
yeah you're right about that.. maybe im just not getting the right words for it. china just has more opportunity for upward mobility bc its people have had so little to begin with. much like America a long time ago more ppl will go from lower to middle class in China, Brazil, and other growing countries than ppl will go from lower to middle class in the USA. the USA is also contending with losing a large percent of its middle class.
You shouldn't be so quick to discount American work ethic, drive, and creativity. America is responsible for the development of the information age and this has pushed humanity to the edge of revolutionary technoglical advances on many fronts. China is just responsible for trying to pirate intellectual property.
There is no catalyst to send them down, all the bad news in the economy is GREAT for stocks it means more printing and maybe even ramping up QE under yellen. Bad news is good news right now....if you hold stocks The debt ceiling is a joke, it will be kicked down the road again...just more opportunity for the media to sell pricey ad slots....remember all the taper fear a few weeks ago? So much for that, all that talk went right out the window. Look is the stock you're looking at priced well? Is the future bright? Buy some now and if the market corrects for some unknown reason buy more. I followed HIMX from where i heard it was in google glass, google bought a 6% stake.....stock went from $5.25 to $8 in 1 day in june i said id wait for a better entry and nc they missed earnings by a fraction of a penny the stock fell 30% and I got in and just enjoyed a 90% runup this month bc i knew all along google glass was the catalyst short term trends are for the traders.
You are starting to sound like a broken record, or worse yet, a television pundit. Could you explain what bad news is and why it is good?
