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Nismo · Joined: 27 Jul 2004 Posts: 520

The U.S. economy is the current strongest, Japan is currently 2nd in the world. China is on the rise - where it is going now is exactly where they thought Japan was headed back in the late 80's: #1. The raw material sales between Japan and China is certainly boosting Japan's economy as well.

PAULH · Joined: 28 Jan 2003 Posts: 4672 Location: Western Japan

Nismo · Joined: 27 Jul 2004 Posts: 520

Gordon · Joined: 28 Jan 2003 Posts: 5309 Location: Japan

The reason you see the US dollar going down the tank right now is because the gov't is letting it. They're doing it because it will shrink their foreign debt. The US dollars the gov'ts owe won't be worth as much and countries let the US debt get bigger because if all the countries asked for their money back at once, the world's financial markets would collapse.

guest of Japan · Joined: 28 Feb 2003 Posts: 1601 Location: Japan

There seems to be a little misunderstanding or maybe just not full comprehension of the US economy and the dollar.

Right now the dollar is being deflated in an effort to boost US exports and limit imports. China and Japan have both been buying huge amounts of US dollars in the last few years in order to unnaturally inflate it to keep their exports going in that direction. Under the Clinton administration and the first few years of the Bush administration this was acceptable because it was pumping the US economy with additional dollars which could be used for investment. This was a fine scenario as long as the trade balance was near equitable.

The US government tends to ignore money already tied up in dept and interest. Many economists feel that the huge debt of the US is actually important for a stable world economy and for political purposes as well. Unfortunately the US has found itself with a problem. It has begun to look like a bad investment since its economy is no longer growing at a speed outpacing its debt accumulation. The high unemployment and trade deficit mean that the US is looking to keep the revenue coming in. It is making an effort to stabalize itself in order to start a rapid growth again. Certainly the debt reduction Gordon mentioned will have the additional bonus of reducing interest payments (something the US always pays).

Even with it's seemingly staggering debt the actual debt is only about 10% or the GDP. Japan's is nearly 50%.

For those wondering of the comparison between the US, Japan and China, the US economy is 8 times the size of Japan's, and Japan's is 20 times the size of China's. At current growth rates it will take nearly 50 years for China to equal Japan. Both economies are heavily dependent on the US which consumes over 50 percent of the global trade market, which makes passing the US next to impossible without something absolutely catostrophic happening.

worldwidealive · Joined: 03 Mar 2004 Posts: 84

Mike L. · Joined: 28 Feb 2003 Posts: 519

read below

Mike L. · Joined: 28 Feb 2003 Posts: 519

read below

Mike L. · Joined: 28 Feb 2003 Posts: 519

JimDunlop2 · Joined: 31 Jan 2003 Posts: 2286 Location: Japan

I suppose that depends on whether or not you believe G.W. Bush. In the newspaper today he was quoted as stating that he wanted a strong dollar, and that the current downward trend since the election was primarily due to his inability to balance a budget and the increased deficit since he became president. However, apparently he was supposed to be working on it to bring the dollar back up.

(Tuesday's Daily Yomiuri)

/sorry to contribute to the economics threadjacking. should be in a new thread. Smile

denise · Joined: 23 Apr 2003 Posts: 3419 Location: finally home-ish

Longing for Nippon · Joined: 14 Jun 2004 Posts: 49

I read on the BBC that George W Bush has recently passed a bill where the USA can borrow a further 800 Billion/Trillion Dollars! Sorry cant remember which. It doesnt look like he is going to balance the books. With US industry closing and heading off to India/China and Bush's continued spending the US is heading for a crisis. Those crazy Republicans remind me of Turkeys voting for Christmas.

Does it not irritate the Americans having no independant Media? CNN, FOX etc have no perspective and fail in telling the truth. There is no hope for the "Land of the Free" when the media are allowed to broadcast pure propaganda.

guest of Japan · Joined: 28 Feb 2003 Posts: 1601 Location: Japan

Jimdunlop, either Bush lied or he is truly an idiot with economics. The US does not want a strong dollar right now. Bush may be influenced by the terms "weak" and "strong", but I'm sure that as soon as someone explains to him what the mean in regards to the dollar he will about face (if he didn't lie, which I think he did).

Denise, sorry. I'm not very funny.

Longing for Nippon, that would be 800 billion dollars at most. I haven't read the article, but 800 trillion is about the US GDP for 50 years. As far as independent media goes, I read the BBC for my daily News. If I need in depth US news coverage I'll go to CNN. MSNBC and especially Fox should be avoided like the plague. I read recently that the election fell equally proportional to those who watch fox news to those who would likely read the New York times (the place where I get my really in depth US news).

nawlinsgurl · Posted: Tue Nov 23, 2004 3:29 pm Post subject:

Boy am I glad to be out of the States and in Japan...but I do feel bad for all of my family and friends stuck over there.

Ok how about this one: I went to an ice cream shop and asked for the soft serve in a cup and no waffle cone. The girl at the register looked stunned and called a mangaer. They both proceeded to think about my request for about 10 mins. til I said "fine, I'll have the cone." To which I think relieved them very much.