US economy in negative growth

[Mao1949]

why would I worry about India, I am american, living here. US is way better than you...



reserves ...reserves you choose to put into US bonds vs yours



every developed nation has stock markets as a barometer, an indicator of where the economy is heading or at least at a minimum the strenght of it...besides china .

China's foreign exchange reserves are in foreign currency (mainly US dollars) due to the sterilisation of domestic currency from the exchange rate peg. Therefore PBOC buys assets denominated in that foreign currency, mainly US bonds.

Actually its well known the Chinese stock market is decoupled from the real economy as the Chinese stock market is highly regulated and underdeveloped. Most of the wealth creating private companies are not listed on the stock market. Chinese stocks are not used as investing but gambling because most of the investors are retail investors whereas in the developed markets it is institutional investors. Now 50% of the stocks in the Hong Kong stock exchange is mainland companies so the Hang Seng is used by investors to play the China story due to the ease of access to the Hong Kong stock market.

 

[ephone]

Well, if you call economy contraction an indicator of "better", I have nothing to say.

why would I worry about India, I am american, living here. US is way better than you...



reserves ...reserves you choose to put into US bonds vs yours



every developed nation has stock markets as a barometer, an indicator of where the economy is heading or at least at a minimum the strenght of it...besides china .

 

[mike2000]

well, the U.S is already a developed country. In fac its still among/if not the fastest Growing developed major economy in the world. You should never understimate the capacity of the U.S to adapt/turn things up. They are still by farrrrrrrrrrrrrr, the most advance country in the world technologically, scientifically etc. Afterall, this negative growth was just for a quarter, not full year growth, im sure the full year growth will be positive. Given its large/huge economy, even if it grows by just 1 percent the increase to its GDP is still huge in dollars term. Its same as china now growing at a lower rate than it did a decade ago, but the amount china increases to its economy is actually the same or even larger than what it did growing at over 10% before. So it all depends on how you look at things.
Anyway being a developed country, its more difficult to sustain a high growth rate than developing countries like India, China, Brazil, Russia, Mexico, Indonesia etc. These country are relatively poor and still have a huge room for growth, when you start from the bottom, the only direction is/should be up. so normally developing country should grow faster than developed ones.

 

[Jlaw]

every developed nation has stock markets as a barometer, an indicator of where the economy is heading or at least at a minimum the strenght of it...besides china .

Not true. The Dow Jones is over 16k, but unemployment rate is still high.

 

[senheiser]

well, the U.S is already a developed country. In fac its still among/if not the fastest Growing developed major economy in the world. You should never understimate the capacity of the U.S to adapt/turn things up. They are still by farrrrrrrrrrrrrr, the most advance country in the world technologically, scientifically etc. Afterall, this negative growth was just for a quarter, not full year growth, im sure the full year growth will be positive. Given its large/huge economy, even if it grows by just 1 percent the increase to its GDP is still huge in dollars term. Its same as china now growing at a lower rate than it did a decade ago, but the amount china increases to its economy is actually the same or even larger than what it did growing at over 10% before. So it all depends on how you look at things.
Anyway being a developed country, its more difficult to sustain a high growth rate than developing countries like India, China, Brazil, Russia, Mexico, Indonesia etc. These country are relatively poor and still have a huge room for growth, when you start from the bottom, the only direction is/should be up. so normally developing country should grow faster than developed ones.

this is because america can print money as much as it can. You cant compare it with other economies. But one day in my life i hope i will see their economy at their true value where they belong: spain italy level.

largest PUBLIC banks.. you dont know the difference between public and private

China stocks enter bear market, here’s what it means for you
China stocks enter bear market, here’s what it means for you | Breakout - Yahoo Finance

and how much money is china printing? china has one of the highest interest rates in the world to their inflation rate. Its 6% to 1.8% inflation, so you get 4.2% interest for your money saving it in the bank instead wasting money on the stock market. America has 2% inflation right now and 0.25% interest rates.

 

[senheiser]

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for all the american folks who still blame it on bad weather, how is it that canada performed in q1 better, despite being hit worse?

 

[Mao1949]

0% interest rates for 6 years.
$1 trillion in QE per year.

Result: NEGATIVE GROWTH.

 

[VCheng]

OMG! Negative growth for a quarter?! The sky must be falling! Oh the horror!

Actually, no. The US economy is the engine that pulls the world along. No worries.

 

[Mao1949]

OMG! Negative growth for a quarter?! The sky must be falling! Oh the horror!

Actually, no. The US economy is the engine that pulls the world along. No worries.

Nope. China took over the role of global growth engine since the 2008 financial crisis. US has been a disaster since 2008 and the world has relied on selling to the vast and fast growing Chinese market. China is the largest consumer of agriculture, raw materials, energy, 2nd largest consumer of manufactured goods (will be largest by 2016).

China is now the largest trading nation and the largest trading partner for 126 countries. Many countries consider China their largest export market and many of the largest corporations consider China their largest market. China will remain the global growth engine for a very very long time.

It is the Chinese economy that has pulled the rest of the world along.

 

[Chinese-Dragon]

0% interest rates for 6 years.
$1 trillion in QE per year.

Result: NEGATIVE GROWTH.

That is pretty ridiculous. With 0% interest rates and QE, how much further to they want to push it?

It's lucky that only $1 out our $4 trillion in currency reserves are in US bonds, that will limit the damage at least.

But we need to find a way to reduce that number even further.

 

[VCheng]

Nope. China took over the role of global growth engine since the 2008 financial crisis. US has been a disaster since 2008 and the world has relied on selling to the vast and fast growing Chinese market. China is the largest consumer of agriculture, raw materials, energy, 2nd largest consumer of manufactured goods (will be largest by 2016).

China is now the largest trading nation and the largest trading partner for 126 countries. Many countries consider China their largest export market and many of the largest corporations consider China their largest market. China will remain the global growth engine for a very very long time.

It is the Chinese economy that has pulled the rest of the world along.

Chinese claims are based on projections, not realized yet. Let's talk when it is actually, larger, not claimed.

 

[Beast]

Chinese claims are based on projections, not realized yet. Let's talk when it is actually, larger, not claimed.

It is already happening. We are not India.

 

[SrNair]

It is already happening. We are not India.

Why did you drag India in to this?If you have problem with Americans the deal with them.Dont drag India in to your mess.
We know how to handle our economy.Take your BS to somewhere else

 

[faisal6309]

Which country with oil is left that needs democracy

Saudi

 

[Star Wars]

===
for all the american folks who still blame it on bad weather, how is it that canada performed in q1 better, despite being hit worse?

Bad weather in US economy