The Bull and the Bear

Generali

kabayiri wrote: »

Is it possible to separate the health of nation states and the health of global corporations ?

Google, Amazon, Apple, to name but a few. Why should their continued success hinge on the problems of the US? Their focus is replacing ailing revenue streams and customer base with new ones isn't it? They don't care if the new aspiration class comes from the Far East or other BRIC economies.

The trouble is that the US is such a huge part of the global economy, almost a quarter of world GDP, and is full of comparatively rich people who are happy to spend on consumer goods.

There are places with richer people or more profligate people but nowhere with the same concentration of rich people who want to consume.

By way of comparison, US GDP per head is about $50,000 whereas China's is less than $10,000 and India's less than $4,000. China's and India's economies are big in absolute terms and are good places to sell cheap commodities but not such good places to shift large volumes of electronics or other fripperies.

People were going on about Apple selling 2,000,000 iPhone 5s in China. AT&T sold well over double that and they're barely a third of the US mobile phone market and there are about 13 times as many Chinese people as AT&T subscribers!

grizzly1911

chucknorris wrote: »

I had to google FUBAR'd although in reality the context more or less gave it way.

You were not alone.

grizzly1911

Carl31 wrote: »

Theoretically, if the deficeit is going down, then things are on the up. Once its paid off, we can then receive the benefit of the repayments in the economy, instead of servicing the debt, its just a timing thing

of course, this is theoretically

Public sector net debt was £1,111.4 billion at the end of December 2012,

Even if we didn't have a deficitwe would still have to pay the interest on the debt.

In 2011 Debt interest payments will be £48 billion a year (est 3% of GDP). Public sector debt interest payments will be the 4th highest department after social security, health and education. Debt interest payments could rise close to £70bn given the forecast rise in national debt

http://www.economicshelp.org/blog/334/uk-economy/uk-national-debt/

purch

Joeskeppi wrote: »

Sounds like you had a conversation witb Hamish and Graham

Nah, he said they were both successful,and both have jobs,and thus do something useful with their lives, rather than posting drivel on an internet forum all day :eek:

Conrad

We're entering an unprescendented era of prosperity, a third industrial revolution, following a period of rationalisation.

Folk just do not appreciate the technological revolution underway and the chnages it will wreak.

Can't be aa3sed to list them again.

purch

They are probably both right, in parts.

The Worlds economy is doing just fine, and has been so throughout. Certain regions are lagging, and will do so probably for a further decade.

Thrugelmir

Generali wrote: »

they both reckon Europe is FUBAR'd because of excessive welfare spending.

And the USA? At current rates of spending Medicare will consume 60% of all taxation revenue by 2020. An unaffordable committment.

grizzly1911

Thrugelmir wrote: »

And the USA? At current rates of spending Medicare will consume 60% of all taxation revenue by 2020. An unaffordable committment.

Even with their monthly dump of money into the system.

When you own the presses and a military arsenal does it matter?;)

ILW

Conrad wrote: »

We're entering an unprescendented era of prosperity, a third industrial revolution, following a period of rationalisation.

Folk just do not appreciate the technological revolution underway and the chnages it will wreak.

Can't be aa3sed to list them again.

Could it be that much of the technology actually results in much less requirement for labour though?

Conrad

ILW wrote: »

Could it be that much of the technology actually results in much less requirement for labour though?

New tech also leads to new opportunities which generates employment.