How can you say that, with the US being the centre of the economic failure???
What country in the world has more debt than the US?
How will that fact play out with the crisis going on?
PLEASE NOTE, this is NOT gloating ,as my country's and pretty much every western country's economy is wholly in sync with the US.
I honestly believe though, that the US era as a super-economy now will come to an end, and with it, most of the european big powers.
Both China and India have long been on the rise, and they're less affected by the crisis than 'we' are.
Now, and I'm thinking global here, is that such a bad thing? Think about it.
That is true, the US is the center of economic failure. But the U.S. has successfully dragged down every single major economy in the world with it. And in many cases (europe), the extent of their (i.e. the other major economies) purchases of financial instruments underwritten, created, sold, guaranteed, and funded by U.S. corporations and individuals is so significant that they have propped up entire sections of their domestic economies with these American-made financial instruments. Now, these instruments are worthless. Because these economies were so integrated into purchasing those instruments, their road to recovery is no shorter, and indeed may be longer, than that of the U.S. itself.
Now, regarding debt.
The U.S, owns the most debt by far, that is true. That is only 1 side of the coin.
The largest economy in the world does not belong to any 1 country. In fact it belongs to several countries that are united with 1 currency, the euro. The European Union has the world's largest economy...followed closely by the United States.
In fact, in 2007 the European Union produced $14,712,369 MILLION (that's $14,712,369,000,000.00) worth of goods and services. The US follows with $13,807,550 Million of goods and services. The next largest economy is China. But they lag far behind at $7,034,838 million. That means the US is almost twice as large economically as the next largest economy in the world, a HUGE disparity (these data are country GDP, scaled by using purchasing power parity. You can find them on the IMF's website).
In the same year, the entire worth of goods and services produced by the whole world was $64,903,314 million.
Some more facts....the U.S. is on the top of list in terms of owing the most debt, as you pointed out. The next on the list, believe it or not, is our good friends in the United Kingdom. Surprisingly, they are not far behind.
In 2007 the U.S. owed $12,250 billion (that's 12.25 Trillion dollars).
However, the U.K. owed $10,450 billion! After the UK, Germany owes more. After Germany, France; after France, Italy; after Italy, the Netherlands...do you see a trend?
The trend is that all the countries that owe the most money, are the same countries with the highest GDP. In fact, The U.S. and the E.U. alone
contribute 45% of the GDP of the entire world. In other words, the United States and the European Union, together, comprise almost half of the entire world's economy!
It is no wonder then that foreign governments and countries continue pouring in money into the U.S. The U.S. does not owe money to foreign countries because they ask to borrow money...the U.S. owes money to foreign countries because those same foreign countries see the U.S. as a better place to invest their government's-and by extension, their population's-money than their own country. Now that says a lot.
Now here is where China is partially dependent on the U.S. for their economic growth....the biggest consumer of goods and services from China is (not surprisingly) the United States. Now we all joke about ubiquitous items "made in China." But who is going to buy all those excess goods f the U.S. goes under?