Quote:
Originally Posted by popeye
To all the non-US posters that are gleeful at the current state of economic problems in America: If the US goes down, so will your country!
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Only if said country is entirely reliant on US trade and can find no other buyers for their export goods, nor sources of import for major US exports.
Whilst there will be a dip in the markets of pretty much every first world economy,
most of those economies are likely to forge new trade links elsewhere in the newly growing economies of India and China.
From my own observations of local market movements, our FTA with the US is already showing signs of being nearly useless, and our new federal government is getting cosy with China as our new major trade partner.
As it is, they've already surpassed the US in their agricultural, mineral and informational imports from Australia. Energy is looking to skyrocket as well, now that we're opening more radioactive metals & coal to the market.
If our production capacity manages to increase with their demand (although linear growth is unlikely considering how long it takes to get new mines approved, and that our agricultural practice has to change due to current climate changes), any drop in US imports will be swiftly taken up by China & India.
It
will have massive affects on the financial markets, but those should correct when people realise that there's still a lot of actual assets that grossly exceed the devalued "paper worth" caused by panicked markets.
As terrible as it may seem, if the American economy crashes in a worst-case-scenario kind of way, it will simply become a 3rd world country with good infrastructure. Citizens will have to work at the sort of slave wages seen in India & China, and the growing middle classes in those countries will start to live in semi-affluence.