US economic power 'is declining'

Source: BBC

US economic power is declining as a result of the financial crisis, the head of the World Bank has said.

"One of the legacies of this crisis may be a recognition of changed economic power relations," said World Bank president Robert Zoellick.

The US, the world's biggest economy, has been in recession for almost two years, while emerging economies like China and Brazil have grown.

This may help bring about a long-term rebalancing of the world economy.

Read more: http://news.bbc.co.uk/2/hi/business/8289302.stm

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Nothing like a good long-term re-balancing.

Otherwise we will be similar to the decline of the British Empire at the start of last century.

Our usefulness spent, our resources exhausted, we will now be laid off and allowed to try to figure out how to pay all the debts "we" have incurred this last 50 years or so..

You are absolutely correct

I beginning to believe the MultiNational Corporations figured they would get a better break from the Chinese government. No Environmental Standards, No Labor Laws, Summary Executions for Employees who Steal, whats not to like for the Robber Barons. A little payola here, and few kick backs there, and they can pretty much do as they please.

THERE IS NO OTHER WAY - PERIOD!

If we shut down the Fed and default on our debt....WHICH WE SHOULD.....the US will be the greatest equity investment in history.

THE ONLY WAY TO RETURN THE COUNTRY TO THE PEOPLE IS VIA HR 1207 and shutting down the Fed!

END OF STORY.

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If we make it illegal for corporations to finance and lobby politicians in any way, and pass HR 1207, it would be a start.

The Brits don't seem to be worse off for having done so.

Oct. 4 (Bloomberg) -- The International Monetary Fund would need a “substantial increase” in its resources to implement a global currency insurance that would help reduce worldwide imbalances, Managing Director Dominique Strauss-Kahn said.

The IMF’s steering body, the International Monetary and Financial Committee, “opened the door” to explore the idea of offering pooled currency reserves instead of having countries stockpile them as a form of self insurance, Strauss-Kahn said.

The concept “may take a long time,” and “will imply a substantial increase in the resources of the IMF,” Strauss-Kahn said during a press conference today in Istanbul. “I don’t believe that if we are able to build this insurance, it will mean countries will not have resources anymore.”

Governors on the steering committee in their final statement said that the crisis “has shown that a further reassessment of the Fund’s mandate is in order” and asked for the Washington-based lender to review it.

http://www.bloomberg.com/apps/news?pid=20601087&sid=aAERTWO5b7iQ

The threat of imbalances is just everywhere all of a sudden.

ISTANBUL (Reuters) - The World Bank does not need any extra funding at the moment, French Economy Minister Christine Lagarde said on Sunday.

World Bank members countries are divided over whether or not the bank needs a capital increase and how the funding should be raised. Developing countries are pushing for the move because of credit constraints in global markets and have urged an early agreement on the issue.

World Bank President Robert Zoellick has said the institution could face serious financing constraints by the middle of next year if lending to developing countries continues at its record pace.

He said he would urge member countries at the World Bank's and IMF annual meetings in Istanbul to consider ways to ensure the poverty-fighting institution was well funded.

http://www.reuters.com/article/businessNews/idUSTRE5932NB20091004

we're declining because there isn't much growth left in America, compared to emerging market economies like Brazil, India and China.

And since so many US companies move their operations overseas, it is only going to get worse.

It had nothing to do with the financial crisis. In fact, the housing bubble was just another trick to keep the American economy propped up. Just like the tech bubble. Without all these bubbles, we're probably looking at flat or very little GDP growth.

Debt is a lousy way to fight poverty.

The GWB collapse didn't help but that's not the reason the long term US economy is in the toilet - particularly in comparison to the rest of the world. The global economy, with its 'free' trade sellout, has worked together with sinister forces like the IMF to make everybody all the same. Well, at least those of us unwashed masses of the working class. The wealthy elite, knocking down millions per year in 'earned' income, are always above the fray.

If you were in China living in a mud hut with pigs and ducks you were lifted up. If you were part of the demolished US middle class you were dragged down. And with a shitload of poor people in the world to be equalized with, you have lost quite a bit so far with no end in sight.

The service based economy was a con-job the MultiNational Corporate Free Traders spoon fed congress. There was economist at the time that fore told of the financial devastation decades before it happened because you can not survive on "Self Consumption"

These people are stupid, evil, or both.

Zoellick's main point should not be lost; a more stable world economy is someting to be desired. It's a mistake to get caught up in the "decline" meme.

..but there is no desire or will in our leadership. They are going to pursue "business as usual", until the economy gasps it's last dying breath.

We should have let the "Too big to Fail".. fail. We should have never shoveled cash to AIG and Wall Street.

We should have canceled NAFTA and brought our troops home.. and used the money to re-build the USA infrastructure. Instead, American youth die as we fling our remaining dollars onto a piss-hole of a country called Afghanistan.

Should of.. could of.. would of.... instead the corporations rule and the MIC (military industrial complex) continues to rule the country.

What could have ended as a severe economic downturn, is now going to morph into a world-wide economic crash with severe repercussions. If only the progressives controlled the Executive and the Congress... it could have been different?

nobody has the political will to do what is needed to fix the situation. The solutions are easy, but we have people who live and breathe bribery running the show.

"Our usefulness spent, our resources exhausted, we will now be laid off and allowed to try to figure out how to pay all the debts "we" have incurred this last 50 years or so..."

"we're declining because there isn't much growth left in America, compared to emerging market economies like Brazil, India and China.

And since so many US companies move their operations overseas, it is only going to get worse."

"Debt is a lousy way to fight poverty."

"A "service-based" economy is BS. We have to start making stuff again."

This was inevitable when Wall St. was allowed to run amok and U.S. industry forced into oblivion"

I agree with all of these prudent observations.

There also seems to have been some economic chicanery occurring right before the melt down. It may have been simply brilliant market observation and planning, but the fact that they covered their tracks makes it look like the market didn't simply fall, but was given a few hard pushes.

We were once the world's largest creditor nation, having come out of WWII as one of two dominant forces on the planet.

Currently we are the world's largest debtor nation, and I hope myself that we can change our militaristic approach to the rest of the world before its one war too many.

Let's see, two unsustainable, mostly off-the-books wars.
Hiring mercenaries to fight those wars at a cost of 5 - 10x that of a voluntary military.
Decades of outsourcing valuable jobs that actually produce products, which in turn create wealth.
Complete ignorance at the national level regarding new technologies and research, especially considering energy production and climate change.
Oh, and 30+ years of demonizing and lowering the quality and availability of education at all ages.
And ah yes, the decades long failed War on Drugs, that has caused an explosion in the prison population, which continues to devastate minority and inner-city families, and thus lead to the deterioration of life in our major cities.
As well as the continuing Ponzi scheme known as The Fed.

All of these factors and more that I haven't thought of are to cause for our economic decline.

:puke:

The ICBM's are ready.

because since 1973, Middle Class earnings have been on a steady decline. We've been going downhill since that first oil embargo in October 1973.

raygun had a different vision.

Growing middle classes in China and India are providing a new market for goods. While US consumers have cut back, the largest Asian economies are learning to buy things on credit - for better and for worse. European and Japanese economies have also been hit hard, but the existing safety nets in those countries have allowed their people to not feel the same nasty impact we have here.

The US consumer market is by far the largest, but with few new jobs being produced this will not be the case in a few years. But our government is more interested in doing the bidding of insurance companies and military contracters than getting manufacturing back on track and getting real sustainable jobs produced.

leaving them in the greedy hands of Russia and China
linking their chops

commit to true amrican economic diversity -- i'e' you don't reward ANY company to search overseas for cheaper labour -- then yes -- we are lost.

He says things like "drill down" and "stovepipe" when he means distort and manipulate and "fix".