Reply With QuoteUNITED STATES?Germany, South Korea, Turkey, and the United States...
Oh, yeah...I forgot about GM opening shop in China.
Meet the GUTS
The West is not in decline, at least not in its entirety. Rather, the financial crisis has created a two-speed West. Four large countries --
More: http://www.foreignpolicy.com/article.../meet_the_guts
UNITED STATES?Germany, South Korea, Turkey, and the United States...
Oh, yeah...I forgot about GM opening shop in China.
with bailout money for chinese investment.Originally Posted by Mein Teil
Those GM plants will make automobiles for the Chinese consumers.
No? I thought they were building cars for the European market...
Are they growing here? No? The grass must be greener in China then, huh? The US is only a growing global force for war.
I don't like it either, but for average vehicles we cannot compete building them here and then shipping them to China. Since there upper class is growing, we should concentrate on high end items. Like Buick luxury models are in demand over there so they pay extra, like people here pay extra for Accura's vs Honda's.No? I thought they were building cars for the European market...
Are they growing here? No? The grass must be greener in China then, huh? The US is only a growing global force for war.
Running 10% deficits per year, keeping interest rates at 0% and pumping trillions of dollars of liquidity in to the economy only to keep your GDP/Capita more or less stagnant doesn't seem like outperforming to me, at all.Significant challenges lie ahead, but it is worth noting that the United States has significantly outperformed the eurozone and has better prospects for growth than most other Western states.
This is of course possible due to the unique position the dollar enjoys today, without it the same policies would lead to serious trouble. Once there will be some sort of closure with Greece, one way or the other, the world will continue it's multi-polarization and eventually Americans will have to work for their growth like the rest of the world.
I think there's a couple things that give the EU better prospectives for growth than The US.
We're in the process of matching expenses with income now; The US hasn't even started and if the day should come when The US can no longer run prolific monetary policy in tandem with massive deficits you're in for a serious drag on your economy.
The EU has extensive negotiations for FTA's with large tracts of the world (India, Most of South East Asia and South America, Canada, Russia and Brazil among many). We should be able to squeeze out a considerable amount of additional productivity out of these arrangements. Meanwhile The US has problems passing a FTA with South-Korea.
Europe is better equipped to cope with a world where high oil prices are the norm, we use about half as much of it per capita compared to The US. When The Chinese really start to crave that stuff, it's going to be an expensive luxury.
It's not a sprint, it's a marathon.
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Half of those four countries aren't even western.
The article is somewhat optimistic if not downright misleading. (Although I must say that I like the "GUTS" acronym). I wouldn't call Turkey a "Western" Power for instance: it's an increasingly islamic nation, which has also been strengthening its ties with Russia over the last years. South Korea is a thoroughly Asian nation, although admittedly an staunch ally (actually downright a military protectorate) of the USA. As for Germany, I wouldn't get carried away with the economic superpower status which is presently ascribed to it. In ten years things can look quite differently already. And the US? Well, the last remaining superpower is still in its deepest crisis of recent times, possibly since the Civil War. So, don't write off people who are writing off the West, yet.
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