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I do agree with your earlier statement that the credit crisis is a large contributing factor in the economic downturn. I do disagree, however, with your statement that economic booms will cause world war three. This is, again, a bit of a reactionary statement. China might, as you or someone else stated earlier, hold a lot of oour bonds and currency in their banks. They are doing this to, in part, covertly deflate the value of their own currecy, as they have built up large reserves of american dollars through exports. not really relevant, moving on. They will not call in the values of these bonds or hold us economically hostage because we are their biggest buyer of goods. China is an export economy, tehy cannot sustain their fantastic amounts of growth without our market. To go to war or to encourage protectionism would only harm the quality of life of their own citizens. evidence: Shanghai just built a port that will handle the traffic of 24 billion containers. The LA and San Diego ports combined shipping ports combined can only handle about 14 billion. Ask Grubb and Ellis's supply chain management wing.
Moving to WW3 comment. IF you look at the production possibilites curve, you will know (as an econ studier like myself) that they only way to sustainably grow the economy is through an increase in technology. Now, why is this relevant? Growth in capital or labor can only do so much, due to diminishing returns. The most abundant resource on this planet is human ingenuity. GE is already researching extensively into desalination plants and making them economically viable for governments to combat water shortage in 1st world countries, and working wtih other subsidiaries to make water purification in lesser developed countries a bountiful resource. I saw it myself at their research center in Beijing. Water will be our most scarce resource in the next 50 years, al GE's 4000 person research center. Panasonic has built a prototype house that combines ambient lighting with LED lighting and smart grid technology to reduce household emissions by 65%, and the remaining 35 percent were taken care of by a fuel cell, solar panels, and lithium batteries. Viable now? no. in the future? possibly. The idea here is the BLENDING of natural life (simplicity from natural lighting, etc.) with high end technology (human ingenuity, powered by investment and global cooperation.) the age of protectionism and border shouting has passed. In order to make life simple, and more enjoyable, we MUST cooperate. Panasonic's slogan is "ideas for life," does that not embody simplicity? And its working. The per capita GDP of the chinese and south koreans has skyrocketed in the last 15 years. Why? economic development and global trade.
Communism, on paper and in small communities works. But in a complex global environment, realistically, we have to work with the current systems in place, and that demands global cooperation, ingenuity, and the sharing of our stongest asset, knowledge. Agqain, not china. Deng Xiaopeng (i think, leader after mao, correct me if im wrong.) opened the doors of china a crack in 1978, and the doors are mostly wide open in the big cities now. Look what has happened. Imagine if North Korea sobered up a bit and did the same thing... imagine the lives that would be so mcuh better off.
Last point: to comment on the demand pull inflation, an increase in the aggregate DEMAND curve (shift to the right) is countered with a wage push, shifting the aggregate supply curve leftward. If this happens repeatedly, it causes inflation. HOWEVER, if the aggregate demand curve is pushed by an increase in investment and consumer spending (fed by a growth in wealth, which is usually driven by an increase in GDP from an increase in technology) increases the quality of life and negates the growth in currency. But again, I'm only a student. correct me if I'm wrong. Sorry for the rant, and this is meant to be productive, not a shouting match, so my bad, just got a little heated a bit before. do work, fuck bitches get money.
well said
As soon as the DPRK launches another one of those BIG missiles, toward Hawaii especially, America will get super angry. Something pivotal will happen and I doubt it will be peaceful.
On the other hand, NK might just settle down for a while because they know SURE they have a huge army but Amercia has TECHNOLOGY that is faaar superior.