The author has done a good job in making his point clear. Although my feeling is that the scenarios are too far fetched and the risks that have been highlighted can easily be addressed. 1. The London investment route of petro dollars can be easily curbed if UK and US agree on this. 2 Investments from countries like Russia and China would be harmless (as the author himself agrees) as these countries would be more interested in their own progress rather than disturbing US. 3. If anything goes wrong US can always flex its muscles...
RE:This is like flagging up the dooms day scenario
by Indian on Dec 18, 2007 07:27 PM Permalink
Your view is right.. But in past... but not anymore. just look at US deficit and spending on iraq and Afghan war budget as such ..close to 1.7 Trillion USD...almost double to Indian economy...as a result each American currently at 29 to 32,000 USD debit...still US govt have no clue how to come out of the war and still need to spend around 1 trillion...so each American will have another 6K USD burden total to 37,000 Debit on each and every American...more ever US can never ever compete with China any more...china is beyond control in all aspects and if china stops toilet paper export to US ...Imagine US situation...this is the kind of dependency USS is having currently and Bush made Americans life bit negative trend and this will continue as oil prices and other economies raising... USD will come down further...the only factor currently saving USD right now is Gulf currencies pegged with USD...this year it self NRI lost more than 20% of their income ....just imagine how much impact globally...if at all Gulf gets out of USD peg to local currencies means dead end for USD...so whatever the valuation of US assets in US and other places will be 30 to 40% less....this year Indian companies generated much higher wealth than US big giants all together....what about China...even right now china can strip US anywhere.
RE:This is like flagging up the dooms day scenario
by Ram on Dec 18, 2007 08:41 PM Permalink
I agree Mr.Indian the deficit is 1.7 trillion, but the US economy is a staggering 12 trillion (GDP). and that for any country is the lowest ratio of GDP to deficit. I do agree the US economy is very shaky at the moment but it would be easy to topple them that easily.
RE:This is like flagging up the dooms day scenario
by Jay on Dec 18, 2007 08:15 PM Permalink
This spending really fuels new technology development in US. In my view what US is doing is getting rid of 1960 to 1970 war machines at a relatively low cost and at the same time keep the pressure. Obviously the people in US are not fools as written by these articles and they know all about business. Its a nice read for us in India to feel assured about success. Hope this continues forever.
