World Economic News and Discussion

Pacense wrote:

Isos wrote:

I dont understand your point regarding the West block vs Russia or China. What I am stating is that the West economy dwarfs any other economy. Let it be in talent, capital access, or whatever variable we choose, it dwarfs any other economy. Its a fact not an opinion.

West economy is good only because they have neocolinazed rest of the world which is getting an end.

Now most countries have their own faculties to form people and can produce their own stuff, specially thanks to china that provides analogue stuff to western ones. And most of them are trying to get ride of western tech. Sure they don't have the tech to go in space but they can replace everyday life stuff like smartphones, computers, energy, cars...

China has changed the rules like it or not that's a fact.

And western are in deepshit. They can't send back those factories from China/India because it cost too much and they have mo more trained people to work in them. And they can't live without chinese goods.

India will follow similar path as China by copying what it produces for western companies in indian based factories and will flood the market.

Russia controls the energies.

If they both impose sanction on EU europeans will feel it much more than russians when they imposed sanctions on Russia.

You seem to bring a lot of wishfull thinking into the discussion.

US, Japan, Germany, UK, France, Italy and Canada, all have bigger economies than Russia. The US alone has an economy which is almost 15X bigger. New York state alone has a bigger economy than Russia. Really close to Russia, you have Australia, Spain, South Korea or the Netherlands. After that you will still have like 30's other countries with a developed economy index to add up. Hopping that they will suffer the same amount of pain by reciprocal sanctions, its just delusional.

Sure Russia has the energy card, sure Asia is growing and will surprass the West in the next century. Sure Brasil and Africa will have a saying in the world affairs in the future. But either we like or not, right now, the west is the economic powerhouse of the world.

Isos wrote:Russia uses rubles. All your fictional data are useless. They don't depend on dollars like japan, australia or spain.

Any respectable economist will tell you Russia is on par with Germany rather than Spain.

Also they are self sufficient contrary to all those dogs.

I live in France. Pretty much all the companies rely on US. Get something wrong with them and you collapse. Russia is hit by sanction for almost a decade and it only got better. They just took over algeria as a client for their wheat and france got kicked off of there loosing their main client. 1 farmer killed itself every day in France before that, now it's gonna be just worse.

Big economy doesn't mean good life. Most people coming from "poor"  countries are surprised when they come in "rich" countries when they find out that their bigger salary isn't enough for half a month there.

flamming_python wrote:

Pacense wrote:

Isos wrote:

I dont understand your point regarding the West block vs Russia or China. What I am stating is that the West economy dwarfs any other economy. Let it be in talent, capital access, or whatever variable we choose, it dwarfs any other economy. Its a fact not an opinion.

West economy is good only because they have neocolinazed rest of the world which is getting an end.

Now most countries have their own faculties to form people and can produce their own stuff, specially thanks to china that provides analogue stuff to western ones. And most of them are trying to get ride of western tech. Sure they don't have the tech to go in space but they can replace everyday life stuff like smartphones, computers, energy, cars...

China has changed the rules like it or not that's a fact.

And western are in deepshit. They can't send back those factories from China/India because it cost too much and they have mo more trained people to work in them. And they can't live without chinese goods.

India will follow similar path as China by copying what it produces for western companies in indian based factories and will flood the market.

Russia controls the energies.

If they both impose sanction on EU europeans will feel it much more than russians when they imposed sanctions on Russia.

You seem to bring a lot of wishfull thinking into the discussion.

US, Japan, Germany, UK, France, Italy and Canada, all have bigger economies than Russia. The US alone has an economy which is almost 15X bigger. New York state alone has a bigger economy than Russia. Really close to Russia, you have Australia, Spain, South Korea or the Netherlands. After that you will still have like 30's other countries with a developed economy index to add up. Hopping that they will suffer the same amount of pain by reciprocal sanctions, its just delusional.

Sure Russia has the energy card, sure Asia is growing and will surprass the West in the next century. Sure Brasil and Africa will have a saying in the world affairs in the future. But either we like or not, right now, the west is the economic powerhouse of the world.

The US and EU account presently for nearly 1/3rd of the world's economy, but are losing 1-1.5% of that every year on average. And that's nominal figures, not PPP which would give the real picture. If you add the UK, Canada, Australia the outlook will brighten a little.
But when you have Apple and Amazon having absurd capitalization rates that don't reflect the real amount of economic activity, and the dominance of the US Dollar, it's obvious that even this outlook is skewed.

And that's enough said on the matter. The rest of the world is growing faster than the US and Europe is.

Pacense wrote:

US, Japan, Germany, UK, France, Italy and Canada, all have bigger economies than Russia. The US alone has an economy which is almost 15X bigger. New York state alone has a bigger economy than Russia. Really close to Russia, you have Australia, Spain, South Korea or the Netherlands. After that you will still have like 30's other countries with a developed economy index to add up. Hopping that they will suffer the same amount of pain by reciprocal sanctions, its just delusional.

Sure Russia has the energy card, sure Asia is growing and will surprass the West in the next century. Sure Brasil and Africa will have a saying in the world affairs in the future. But either we like or not, right now, the west is the economic powerhouse of the world.

Arrow wrote:Russia is the world's 5th economy in PPP.  Comparable to Germany.  Lowest debt of major economies.  US GDP is a counterfeit based on debt and financial scams.  Russia has real GDP not based on debt and pseudo financial operations.

kvs wrote:

Indeed, over 50% of the US GDP is the "financial industry".  

AlfaT8 wrote:

kvs wrote:

Indeed, over 50% of the US GDP is the "financial industry".  

Say what?
The hell does that mean.

Isos wrote:Russia uses rubles. All your fictional data are useless. They don't depend on dollars like japan, australia or spain.

Any respectable economist will tell you Russia is on par with Germany rather than Spain.

Also they are self sufficient contrary to all those dogs.

I live in France. Pretty much all the companies rely on US. Get something wrong with them and you collapse. Russia is hit by sanction for almost a decade and it only got better. They just took over algeria as a client for their wheat and france got kicked off of there loosing their main client. 1 farmer killed itself every day in France before that, now it's gonna be just worse.

Big economy doesn't mean good life. Most people coming from "poor"  countries are surprised when they come in "rich" countries when they find out that their bigger salary isn't enough for half a month there.

Russia doesn't have a GDP on par with Germany wrote:

Arrow wrote:

Russia's PPP GDP is at the level of Germany.  Soon it will be even higher and higher.

SeigSoloyvov wrote:

Arrow wrote:

Russia's PPP GDP is at the level of Germany.  Soon it will be even higher and higher.

That is accurate but PPP alone doesn't determine wealth.

caveat emptor wrote:

SeigSoloyvov wrote:

Arrow wrote:

Russia's PPP GDP is at the level of Germany.  Soon it will be even higher and higher.

That is accurate but PPP alone doesn't determine wealth.

PPP paints better picture of the economy size. For example, men's haircut in US will contribute $20 to the GDP ( price of the said haircut), while in Russia that number will be $4. It is a very crude and simple example, but it explains better difference btw nominal and PPP GDP.
Due to geopolitical situation, rubble is deeply undervalued against USD and that translates into nominally low GDP number in dollars ( nominal GDP).
By weaponizing dollar, US put its viability as reserve world currency in question.
It is a very important instrument in US geopolitical reach, as it is "exporting" internal inflation and "irons out" huge US fiscal and trade deficits, as well as, providing population with a higher purchasing power. Sam Zell quotes a decrease of 25% in purchasing power, if USD loses reserve currency status.

P.S. I agree with John, that Garry should purge this thread.

I dont understand your point regarding the West block vs Russia or China. What I am stating is that the West economy dwarfs any other economy. Let it be in talent, capital access, or whatever variable we choose, it dwarfs any other economy. Its a fact not an opinion.

In times of turbulence, and I can't think any bigger one than war, people will try to save as much as they can, and capital flight out of Russia is expected.

That is why there must be implemented capital flight safeguards, otherwise it can be a downhill ball, with major effect on currency exchange for example.

If they both impose sanction on EU europeans will feel it much more than russians when they imposed sanctions on Russia.

US, Japan, Germany, UK, France, Italy and Canada, all have bigger economies than Russia.

The US alone has an economy which is almost 15X bigger. New York state alone has a bigger economy than Russia. Really close to Russia, you have Australia, Spain, South Korea or the Netherlands.

After that you will still have like 30's other countries with a developed economy index to add up. Hopping that they will suffer the same amount of pain by reciprocal sanctions, its just delusional.

Sure Russia has the energy card, sure Asia is growing and will surprass the West in the next century. Sure Brasil and Africa will have a saying in the world affairs in the future. But either we like or not, right now, the west is the economic powerhouse of the world.

It's true that Asia will grow to catch the west, but sure as hell, it will take time.

Especially because of talent and capital attraction that the West has. The USD its not by itself a mean of domination. Its just a mirror of the economic powerhouse that the US is.

US indexes have been on the rise for more than a century now. I tend to agree that some companies are way overvalued. A healty corretion is already due.

Russia doesn't have a GDP on par with Germany.

Pacense wrote:
It's true that Asia will grow to catch the west, but sure as hell, it will take time. Especially because of talent and capital attraction that the West has. The USD its not by itself a mean of domination. Its just a mirror of the economic powerhouse that the US is.

US indexes have been on the rise for more than a century now. I tend to agree that some companies are way overvalued. A healty corretion is already due.

SeigSoloyvov wrote:

caveat emptor wrote:
Within your country yes but that's restricted to within your country, once you go outside of that PPP isn't a reliable means to determine wealth.

What does "determining wealth" even means in economical terms?
If you talk about wealth of a country usual metrics economists pay attention to are trade and fiscal deficits, current account, foreign reserves and public debt.

All leading economists agree that PPP is a much better measure of the size of economy then measuring nominally in dollars.

kvs wrote:Chomsky is a scumbag with his hysterical stance on covid-19 vaccination.   He is worried about dying because some "dirty unvaxxed"
will give him the disease.   Nothing he says today has any weight.   It is all his dementia talking.