Econ 101

If China Is Recovering, How Will We Fare?

Bjarne Jensen -

While I think your conclusions are spot on, your historical time line is off. The real tranistion date from England to US Dominance was during the crisis of the 1870s. At that time the real under pinings of the US economy was the railroad expansion and over speculation. Much like the tech bubble in 2001. The US had little debt while the English had a bunch. To understand our current situation read about the 1870s but substitute the names.


On Apr 18 11:26 AM Bjarne Jensen wrote:

>
> I found this article very interesting. I will attempt to answer the
> implied question: I do not believe our economny will ever return.
> A look at world economic history suggests that we are in the process
> of losing the economic high ground to China and our economy is not
> likely to improve any more than England’s' economy improved 250 years
> ago when they lost the high ground to us or Spain’s' economy 250
> years before that when they lost the high ground to England.
>
> I believe that in 2-4 years the US economy will look like Mexico's
> and Mexico's will look like central Africa.
>
> Can't happen here? The three previously mentioned world economic
> transitions were caused by the same two conditions: The losing country
> had accumulated more debt than their economy could support and the
> losing country had such incredible hubris they were unable to see
> it. The debt funded spending spree is over and we're going to pay
> the price!