The US grows its own food and energy supply and only uses its own currency to buy what it needs from the world. It's chief trading partners are on its borders. The reserve currency thesis one hears most often is backwards. The strength and size of the US economy is not because of its reserve currency status. That status is because of the size and strength of the US economy.
@@antiquehealbot6543 We would have to print out 5 times the amounts (probably even more) for this to be in consideration. The Yuan is not exactly a stable currency in the eyes of traders and the EU confiscated insured bank deposits for their 08' bailout. Not exactly contenders for reserve currency status.
@visvamkandadaisrinivasan5190 Of course they aren't. I'm just saying that IF the dollar DOES get out of control. I think Euro will be closest and Yuan is distant 3rd but it's not likely in any means.
have you been sleeping B.R.I.C.S. already made the petrodollar optional soon it will not even be an option anymore and in other ways the dollar will soon be irrelevant just like the petrodollar the world does not need the dollar or US as the coming international finacial collapse because of the US national debt deadbeat mentality
The dollar is the reserved currency and is the basis for international trades. This allows US to print dollar continuously to fund rescues from banking crisis, wars and booming stock markets.
It's slowly shifting through, especially with more and more countries shifting to BRICS and trading with each other in their local currencies instead of USD
@@zarategabeso what if there is an alternative currency? Long term it will force the US to get its spending under control and that’s a good thing. You forget that the USA became an economic powerhouse late 19th century when it was not a reserve currency. The British pound was the reserve currency at the time. As long as the Us is a major energy and food producer I don’t see it being completely ditched in the future- much to the dismay of the America haters around the world and within the USA
The FED lowered its inflation objective to less than 2% in 2012. They changed the target to a long-term average of 2% inflation. Because long-term interest rates are set at inflation plus a profit margin, the implication is lower interest rates. I consider the current rising interest rate to be a very serious issue it will cause more investors to withdraw from the market. But then despite the severe bear market, I am aware of certain investors that continue to earn over $365,000. Wish I could accomplish that.
Very possible! Particularly in this weak market. There are several opportunities to generate excellent returns, but such intricate transactions can only be carried out by seasoned market professionals.The FED lowered its inflation objective to less than 2% in 2012. They changed the target to a long-term average of 2% inflation. Because long-term interest rates are set at inflation plus a profit margin, the implication is lower interest rates. I consider the current rising interest rate to be a very serious issue it will cause more investors to withdraw from the market. But then despite the severe bear market, I am aware of certain investors that continue to earn over $365,000. Wish I could accomplish that.
I totally agree, it's been three years and counting, and I've made over 1.7 million by simply following a coach's advice. I was on the sidelines for a while watching, trying to determine the best time to get in, before I came across a coach, recommended by my wife. I was reluctant at first but I went ahead and contacted the coach. As a small reward for my consistency, I went on a trip to the Bahamas in the late summer.
Why are people so triggered by the US economy doing so well? It is very true in the US if you want a job they are in abundance. No one is starving here.
@@ericseiz3472there are not hundreds of thousands of people starving in the US. The vast majority of homeless are either drug addicts, alcoholics or have some form of mental illness. In the US it’s not easy to force citizens into treatment. They also receive public food benefits so no one is starving.
@@ericseiz3472bro the homeless get $300 in food stamps instantly anywhere in the united states not to mention also have access to free healthcare as well and other benefits this is everywhere in the US. If a homeless person is "starving" that means they're selling their food stamps for cash for drugs. They give food stamps out to anyone homeless
It is a very fine balance where someone will spend pretty much everything they have just to have a place to live and some food. These days it makes more sense to rent your slaves so you don't need to worry about feeding and housing them.
The USA is the most underestimated country in the world by all medias be they american, western or from around the world. Difficult to say why? Maybe because there's too much instant information on the USA economy from that country.
The irony is European agricultural exports have decimated West African dairy and fresh produce farmers. The EU drove aggressive free trade with West Africa to disastrous effect on African peasant farmers. What's good for the goose is good for the gander 🤷🏿♂️
80% equities 20% cash. I plan to take advantage of the s&p 500 as leading indicators predict above 10% rise by this year, my only issue is how to properly allocate a large stock/bond portfolio for substantial gains at minimum risk.
Knowledgeable Investors know where and how to put money during a crisis in order to reduce risk and maximize returns. See a market strategist with experience if you are unable to manage these market conditions
I agree, having the right plan is invaluable, my portfolio is well-matched for every season of the market and recently hit 100% rise fromm early last year. I and my CFP are working on a 7 figure ballpark goal, tho this could take till Q1 next year
NICOLE DESIREE SIMON is the licensed fiduciary I use. Just research the name. You’d find necessary details to work with a correspondence to set up an appointment.
*Also, the US could be self-sufficient in pretty much everything from food, gas, natural resources, manufacturing, etc (with the exception of maintaining trading partners with our northern/southern neighbors). This also means we've never been at risk of invasion (if you don't count the border crisis) that could lead to war on American soil. Plus the dollar is the world's reserve currency. All in all, this makes us less susceptible to the plights of other countries. If Russia took over all of Ukraine tomorrow, we'd more or less be ok compared to the EU (like what happened with the energy crisis)*
What happenes if you just consistently transfer debt from one place to another while it incurres interest, and then call it asset and income generation.
Because the people participating in the prosperity have accumulated all the wealth so the macro economic numbers which we use to judge the economy look OK The fact that obtaining a living wage from employment is getting more difficult because to prop up the economy and profits and the stock market, they simply don’t pay what is required to maintain workers lifestyles to keep up with rising costs everywhere
The US have the dollar printing machine, whereas almost all other countries have to borrow from the print masters and pay interest on top. How fascinating!!
I mean, if you're complaining about the petro-dollar, you could always try and diversify your energy supplies to renewables and nuclear instead... If you're not reliant on the USD to import the energy needed to run your economy, logic follows that you'd be more resilient to energy price shocks. Same for food imports
I really think, in my laymans language, the reselience of an economy should be measured on how comfortable the lowest are living, i.e, mainly rent and food purchase power.
@@MbisonBalrogthat means you haven’t visited most of the world. I’m telling you that poorest live so much better compare to the rest of the world. It’s rough out here.
It’s resilient because of the strength of the US dollar and the financial infrastructure that only the US has that allows it’s effective and efficient use in international trade. This allows the US to print trillions and trillions of dollars and export much of that inflation outside of the US. This allows the US to continue to prosper at the expense of all other nations (buts it’s only the ultra rich in the US that prosper). Because everyone else depends on the US dollar their monetary policy is effectively dictated by the US central bank. Eventually, very soon, inflation will destroy the world economy, but the US will come out of it in relative terms better than everyone else.
I agree with you, that until very recently immigrants who came to the west prospered and became very wealthy. That’s not the case today because inflation has changed all that. You tell me- if a person comes from India today, and doesn’t bring thousands of dollars with him, and has to rent, and pay insurance, energy costs, food, clothes, and has an average job, how much can he save? I tell you the answer is nothing. Do you know what rents are like in USA? Do the math. That was not the case five years ago when rents where a fraction of what they are now. You may be doing well. But half of America’s population is barely making ends meet. Also, inflation is persistent. All asset prices in USA are heavily inflated when the bubble pops, all those house values are going to drop like they did in 2008. Now imagine a wealth person from immigrates here now. And he buys a house for $800,000 and gives a down payment of $200,000. What happens when house prices drop to realistic levels. He loses his $200,000 Now you will say house prices won’t drop. That’s what they said in 2008. If you want to discuss economics, I can explain to you exactly why they will be dropping after the us election.
My point is very simple. Let’s use your example of New Delhi. In past years, a person emigrating to America, could have worked hard, saved money, and lived a decent life. That is not the case today. Inflation has destroyed that scenario. Any immigrant coming here today will be working multiple jobs to make ends meet. All of his income will go into rent, insurance, food, energy etc. He will not be able to save any money at all. He will never be able to buy a house in his lifetime, from income he earns in America. He will be working at least 60 hours a week, and hardly able take feed his family, living pay cheque to pay cheque. Any average person living in Dubai, Kuwait, UAE, would be a fool to immigrate to America. He would be leaving behind Paradise for a “rotten life”. Even the middle class of India, would now be foolish to immigrate to America in the present time. That was not true before. In fact Indians prospered in Western Countries. That’s not the situation now. In fact, If you are young in America, and don’t have your parents money to rely on, you face hardships. You will never be able to buy a house or live the life you parents and grandparents lived. That’s the current reality. I’m not saying the American Middle class is poor. I’m saying it’s not what it was in past generations. Things have changed for the worse.
Your absolutely right tough beans. So what if the next generation pays for the debt created by previous generation. I’m pointing out that the comment “US economy is resilient is inaccurate.” It applies to the ultra rich Americans. But half of Americans only have enough savings to last two pay cheques - that resilient economy doesn’t apply to them.
I agree with you, that until very recently immigrants who came to the west prospered and became very wealthy. That’s not the case today because inflation has changed all that. You tell me- if a person comes from India today, and doesn’t bring thousands of dollars with him, and has to rent, and pay insurance, energy costs, food, clothes, and has an average job, how much can he save? I tell you the answer is nothing. Do you know what rents are like in USA? Do the math. That was not the case five years ago when rents where a fraction of what they are now. You may be doing well. But half of America’s population is barely making ends meet. Also, inflation is persistent. All asset prices in USA are heavily inflated when the bubble pops, all those house values are going to drop like they did in 2008. Now imagine a wealth person from immigrates here now. And he buys a house for $800,000 and gives a down payment of $200,000. What happens when house prices drop to realistic levels. He loses his $200,000 Now you will say house prices won’t drop. That’s what they said in 2008. If you want to discuss economics, I can explain to you exactly why they will be dropping after the us election.
Haha. Who said they will ever pay back their debt? They literally make it up out of thin air. They control IMF, the world bank. Their biggest weapon isn't their military. It's that the vast majority of the world's money has to flow through them😊
@@siyathembangcanga2331 All of them are surviving on supplemental income, EBT, disability income, unemployment, retirement income, pensions, free health insurance, housing subsidies, and so on, yet the poverty level is skyrocketing.
Its resilient because it has oil and also exploiting Europe with high prices on LPG. All oil producing countries are doing well and USA is one of them. Other explanations are just non sense.
I am a small business owner . I own a plumbing company . It’s a corp . Last year I made about 180k. I am constantly buying tools and materials . I only buy American or European ( German or Austrian ) . Zero Chinese . I don’t care I pay more . China builds garbage and the are a communist nation. All my union brothers think the same . Zero China . The USA WILL ALWAYS BE NUMBER 1 because we consume even if we don’t need it now . We will eventually need it . We buy the best tools and are very best . We believe it
Well reality will catch up with u coz USA is not going to be the largest market 40yrs from nw. T will be Africa Asia and South America where china has put all its efforts and trust me t is taking over those markets. So bro keep isolating yourself. China is communist but according to the way u talk USA is not a free market anymore it’s a protectionist market nw
Economic sentiment is also attached to class and the working class and poor have not seen gains. The inflation hit food and fuel most significantly and rent has gone higher. This means the under $60 000 annual income earner is not making ends meet in bigger cities
40-60% of that is NOT inflation. Corporations have been price gouging on top of inflation because they know the average consumer won’t realize they’re doing it. It’s well known because the 2023 fiscal reports came out with record profits and documented strategy that got them there.
When companies start to lose even if its because of their own greed or mismanagement they get bailed out with the peoples money and the people have no say in the matter.
This that can be erased in one second. US treasury will release a bond of $35 trillion dollars which US feds will buy and then $35 trillion will be bought by various different banks and in masters from feds. As long as USA has power to print money, it’s no big deal.
$36 Trillion dollar debt owed mainly to itself and its own citizens. Also, American Household wealth is $156 trillion, EU household wealth is $33 trillion. So the US can afford to pay its own debt.
Honestly, this concerns me and has left me uneasy. Especially the potential recession. I'm unsure about my $800k account strategy, considering the uncertainty of a recession mostly.
How can anyone suggest an economy is "resilient" when it added $2 trillion new national debt last year? That's not even counting state and local debt. If any other national economy was slowly growing using debt-fuelled stimulus, it would be considered a joke.
@jordie4423 Nice, rosy picture you've painted there. How about 63% of Americans live paycheck-to-paycheck, 1/7 Americans are on food stamps (they cannot afford food on their own), the average American has $10,000 in credit card debt, there is a student debt bubble, a sub-prime auto bubble, and apparently the rest of the world is coming to hate America because they support genocide.
Your financial analyst just said that Americans are spending money do impart to checks from 2021….. checks comprising of 1,400 dollars…. That money was gone in a couple months. What hack job is this?
Because of the unique position of USD, and the willingness of europe, japan, and south korea to be taken advantage of, and the helplessness of developing countries in being taken advantage of.
@@doodguy12 if North Korea could trade as freely with all other nations on ALL goods including with the US, do you really believe it would be in the same situation it is now? Also you act like the US didn't act duplicitously towards its' allies like Japan with the Plaza Accords, even today there's a maximum quota of cars that Japan is allowed to export to the US annually.
Europe, SK, Taiwan, and Japan all face severe demographic challanges and significant geopolitical headwind in their region (i.e. Russian aggression and growing Chinese threat). The US has no regional rival in North America, and enjoy much better demographic outlook, plus the ongoing trade war against China managed to bring back (reshoring) some of its industry previously lost to China. And ofc, as you mention, the status of USD as _de facto_ global reserve currency helps too.
@@giansideros Japan is called a US ally in a nicer way, but in actual fact they are just an American colony post WWII. When US says jump, Japan says how high. I don't think Japan was ignorant of the expected outcome of the Plaza accord. They had no choice. They knew they had to obey. USA brilliantly manufactured the perceived threats from Russia and China. Same in the middle east. Divide and rule. Very well played.
It is possible that accidentally this time pumping trillions into economy made the impact. No one really expected it. But John Maynard Keynes maybe was up to something after all. Some say Keynes thought that demand of the labour is the engine of the economy. That makes sense because the labour don't go anywhere no matter what. It is like the roots collecting the water in the tree of economy. (Tree analogy breaks miserably but maybe it is worth of quick consideration)
That’s because stupid countries like Argentina, China, Egypt, turkey, Pakistani, Lebanon, Venezuela keep doing idiotic things with their own economies so people buy even more dollars to protect themselves from their stupid leaders, so the US dollar becomes even more powerful.
The USA will no longer be able to print money in the trillions like they used to because inflation is “sticky”. Quantitative Easing ie. money printing doesn’t work during inflation because no one will buy us treasuries except for the federal reserve because the value of treasuries drop as inflation goes up. So we are now in an era where if the USA tries to bail out banks or the economy by printing money they will actually create inflation. The can kicking is over. The stock market will go up for the remainder of the year, but that’s for a different reason which I will not discuss.
Who is this dude? I don’t know a single American that still had money from there stimulus checks in 2023. Most stimulus checks were spent within a few months of getting them. That went into credit card debt or paying for rent
It’s not a fake post. I work in the USA and have travelled throughout the states. I am British, but have spent the last 8 years in America. Why does that make this post fake? Where is it fake?
@@seanthe100Not necessarily... But, printing 4 Trillion debt for Economy stimulus is BRUTE force 😂 No other country can print 4 trillion dollars in 2 years.
I dont know what you've been smoking but the US economy is trash. It is far worse now than its ever been. Prices of everything are sky high. Infrastructure is crumbling. Healthcare the worst in the world. The quality of everything is low.
Have you ever live in a third wold country? When you do then you can make a good comparison. until then cut the BS. I used to live in a country where you could be dying in front of the emergency front desk and they would not admit you unless you show them cash or swipe your credit card first before being given life saving medication.
@@MbisonBalrogculture plays a part you can be homeless but not in my residential area or parque familiar. We do have poor neighborhoods with drug use but we don’t tolerate people like them in public like in the us. The police will rough them up as well because people are ok with the purpose.
It’s very simple answer, the power of printing dollars called seigniorage which other countries don’t enjoy! That’s why we need unipolar world, the day world doesn’t need USD for trade and storage assets, we fall badly because we will not be able to work with fiscal and trade deficits without undermining USD by printing more! All great empires did this and fell with it!
The us dollar not being a reserve currency would be a net positive for the us economy. The excess demand cause by foreign trade increases the value of the dollar and kills domestic production, and exports. If the rmb became the world currency chinas economy would collapse in days.
How many people are living in the streets ? Based on the latest survey 60% of homeless people are addicted to drugs, how is this government’s fault? People choose to take drugs.
Please guys vote for Joe again, I am sure he will do much more great job and if he is not running for next election, please elect someone from Democratic party
The U.S. is a net energy exporter. Most major economies need energy from somewhere. The U.S. is the 2nd largest manufacturing economy in the world. It has the most advanced technology sector in the world. Its currency is the world reserve currency. The banking sector in the USA went through a bubble in 2008 and came out of it healthier now. The U.S. defense sector is the strongest in the world. American farmers feed much of the world. American inventors are constantly creating new technologies. RU-vid and the Internet are both American inventions. All of these things are a perpetual motion machine that help the economy move forward if the federal reserve takes appropriate actions with interest rates.
Why is the US economy so resilient? Confidence - the world keeps buying US bonds The world believes in the strength and stability of the US China suffers from capital flight (leaving the country) - folk fear China collapse The US has the support & confidence of the world - hence a $33 trillion debt and that debt can go much higher, it can comfortably double
The USA is not one of the most indebted countries in the world in terms of gdp/debt ratio. China detains only 890 billion dollars in USA treasury bonds. Less than the stock market value of Facebook.
It said that if you put a frog in boiling water, it jumps out of the water immediately but if you put it in cold water and gradually raise the temperature it does not respond and eventually boils to death. Something similar can happen to economies.🤷
The US is the strongest economy in the world. It definitely has problems with wealth disparity, but that has been a long trend. Reagan and his trickle down policies that continue in the GOP can be blamed for that
So why didn’t Obama or Biden fix it..? Or Clinton? We’ve had many more years of Democrat presidents than republicans since Reagan… How come your boy Obama didn’t fix it?
Your doing great. Hats off to you. Half of Americans have only enough savings to last two pay cheques. I don’t think you know much about economics and have no knowledge of money supply, inflation, and it’s effects on interest rates.
I don't care what the numbers say, Americans are HURTING right now. Those "jobs added" are low wage, no benefits jobs. Those "stock market gains " are bc corporations are price gouging consumers on products we NEED, like groceries, gas, housing, etc.. People are going into massive debt just to feed and shelter ourselves. We're spending more NOT bc we feel confident about the economy, but bc everything costs so much MORE.
Is there a U.S. base in Qatar? US quietly reaches agreement with Qatar to keep operating ... The Al Udeid Air Base, located in the desert southwest of Doha, is the biggest US military installation in the Middle East and can house more than 10,000 American troops. France Macron: You are only vassal state if someone else allows to establish military bases in your territory.
