Are we ready for this?

iVillage Member
Registered: 05-05-2008
Are we ready for this?
9
Fri, 10-10-2008 - 9:41pm





The Beginning of the End
Peter Schiff, President and Chief Global Strategist




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iVillage Member
Registered: 08-05-2004
Fri, 10-10-2008 - 9:49pm
Wow!
iVillage Member
Registered: 04-02-2008
Fri, 10-10-2008 - 10:07pm

I agree to the author on many points and I knew this would happen some day.

iVillage Member
Registered: 05-05-2008
Fri, 10-10-2008 - 10:51pm

Yes, China might be hurt temporarily, as will the rest of the world, but China has a population of 1.3 billion people - their population can absorb what they've been exporting to the US. Incomes in China are rising, and they have a savings rate of 50% as opposed to the negative savings rate of Americans.


72% of the US's GDP is consumption and roughly 90% of the goods in the US are imports. Every country that has been exporting goods to the US will find other markets (Russia, China, India, Brazil, etc.), but without exports the US economy will struggle to recover.

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iVillage Member
Registered: 04-02-2008
Fri, 10-10-2008 - 11:01pm

except China is on the same plan as the US consume consume on credit, in 10 years will they fail?

iVillage Member
Registered: 05-05-2008
Fri, 10-10-2008 - 11:16pm

"except China is on the same plan as the US consume consume on credit, in 10 years will they fail?"


Actually, this isn't true - China's credit consumption is virtually non-existant. If that doesn't change there is no reason to predict they will fail in 10 years. As an emerging consumer economy, China is growing at an incredible pace, GDP growth is 10% per year.


"They can't export something their people don't buy"


Sure they can.


"they don't buy toys"


I'd find that pretty hard to believe, they have money and children, why wouldn't they buy toys?


"What market will replace America's consumerism?

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iVillage Member
Registered: 04-02-2008
Fri, 10-10-2008 - 11:21pm

No I kid you not on the toy thing, American purchases about 70% of the world output on toys.

iVillage Member
Registered: 04-02-2008
Fri, 10-10-2008 - 11:31pm
also stellar economy, What about all the milk problems?
iVillage Member
Registered: 05-05-2008
Sat, 10-11-2008 - 8:03am

There are certainly production and quality control issues,

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iVillage Member
Registered: 09-17-2007
Sat, 10-11-2008 - 9:00am

I've been saying these things since 2001.

I look at it very simply. Good parents let their children learn by their mistakes. It's called natural consequence. The same should be done in this situation.

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Siggie by Beth (sweet.dreams.mommy)


Trolls often have personal issues that lead them to try to control others

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