From the direct level, the strong position of the dollar is the only U.S. in today's world can eat four sides of the big mouth. Although the United States is the world's largest trade deficit country, but at the same time the United States under the capital program is the world's largest black-letter country, a large inflow of funds under the capital program to maintain the balance of payments of the United States. For example: 1998 U.S. trade deficit as high as 261.6 billion U.S. dollars, but in the same year under the capital program has 228 billion U.S. dollars under the huge inflow of capital into the United States. A large amount of international capital inflow into the United States so that the dollar exchange rate did not appear big fluctuations, the dollar continues to remain strong.
The strength of the dollar, so that as the international core currency of the dollar has an unparalleled privileged position. At present, the world's oil transactions are almost all trading in dollars as the settlement currency, 60% of international trade is also settled in dollars. Most of the foreign exchange reserves of various countries *** are in dollars. At present, about 60% of the dollar banknotes are outside the United States and do not enter the domestic circulation of the United States. Because of this, the U.S. economy is still strong, even though U.S. trade is not making ends meet, and even though the U.S. is heavily indebted.
What kind of economy supports such a strong country
World War I and World War II were not war zones, which led to the accumulation of a lot of wealth, and a large number of talented people went to the United States in order to take refuge. For example, the Jews. The political system also has something to do with it. I think it's these three that are the main ones.
What is the main support for the US GDP?
To clarify this question, we must understand the industrial structure of the United States, the United States has 86% belonging to the tertiary sector, 6% belonging to industry, 8% belonging to agriculture, and 86% of the tertiary sector and 5 mutual% belonging to the financial sector and its subsidiary industries. And it must be mentioned that GDP is not exactly the best indicator of the country's strength, the country's prosperity and employment rate, CPI, etc.
What does the U.S. economy depend on?
1, the U.S. economy depends on the financial sector, the manufacturing sector and the agricultural sector.
2, the United States has a wide range of economic sources, and has a comparative advantage in many aspects:
(1) the financial industry, the United States financial industry in the world with a pivotal position;
(2) the manufacturing industry, whether high-tech products or primary products, the United States manufacturing industry is leading the world;
(3) the agricultural sector, whether it is the planting industry or animal husbandry, the United States has a strong competitive advantage. The United States has a strong competitive strength; and in recent years, some companies have developed into large enterprises. On the above three aspects, the United States of America's economic support is stronger, because the industry is decentralized, but each industry has a strong competitive power.
3. The U.S. economic system is characterized by both capitalism and a mixed economy. Within this system, businesses and private organizations make the major microeconomic decisions, and the role of *** in domestic economic life is relatively minor; however, the sum of *** at all levels accounts for 36% of GDP, and small businesses still play an important role in the U.S. economy to this day.
What's really holding the U.S. economy together
The tightening of business spending on investment and new equipment, as well as on construction, may be a signal of a deeper slowdown in U.S. economic growth. In June, a survey of corporate economists showed that 60 percent of respondents believed that uncertainty over the November election in the United States had a damaging effect on the outlook for U.S. economic growth. The latest figures show that U.S. corporate tax profits fell 2.4 percent last quarter after growing 8.1 percent in the first quarter. The decline in corporate profitability will lead to a rebound in corporate spending that is not as expected.
U.S. companies agreed to cut inventories, U.S. corporate inventories cut $12.4 billion in the second quarter, inventory cuts led to a slowdown in U.S. GDP growth of 1.3% for the U.S. economy caused by the biggest drag in two years, which is the fifth consecutive quarter of U.S. corporate inventories under pressure.
The tightening of U.S. business inventories may be a sign, at the same time, that U.S. companies are worried about the poor outlook for their sales later this year. But some economists point to a surge in consumer spending in the US, with US consumers apparently in high spending mood. The latest annualized rate of consumer spending in the U.S. came in at 4.4%, recording the biggest growth rate since the fourth quarter of 2014. And that's fully two-thirds of the US GDP growth rate.
The surge in U.S. consumer spending hasn't gone unnoticed by the Federal Reserve, which is closely monitoring the latest economic data as it considers whether to raise interest rates as soon as next month. Despite Yellen's comments, some Fed watchers believe the Fed may hold off on raising rates until U.S. economic growth shows signs of picking up speed again due to the continued low U.S. GDP data.
What underpins America's global economic position today? Tell us in detail.
A strong financial system and military power. The dollar is tied to oil and dollar hegemony. The U.S. controls oil and has oil pricing power. The United States controls the global food body II, is the world's largest food exporter, holds the global food pricing power. Former U.S. Secretary of State Kissinger said: If you control the oil, you control all the countries; if you control the food, you control all the people; if you control the currency, you control the whole world. The United States is the currency, oil, food control.
The United States relies on what to play the world economy
When the United Kingdom became the Sunset Empire, the British said that there are two major tools to support the empire, one is the naval forces that dominate the global oceans, and the other is the Bank of England.
Now the United States is almost the same, in the world now only the U.S. Navy is deployed globally, almost controlling all the marine transportation and trade routes, overseeing the flow of the world's logistics (or wealth), and the other is that after World War II, the U.S. House of Representatives has established the status of the world's virtual currency. The U.S. has taken control of the world's financial hegemony through this.
So, when the maritime hegemony and the status of the pound is the eyes of the United Kingdom, who dares to play this idea, the United Kingdom to fight for his life ***. Now the United States is the same, who seeks maritime hegemony, who attempts to shake the status of the dollar and the world financial order dominated by the United States, who is the United States is not **** day of the enemy.
If any country is considered by it to be a potential threat to hold this idea, it is targeted, then even if you put what do not call hegemony, harmony in the world, or what a new type of big country relations words all day long swearing and swearing in general hanging on the side of the mouth, but also in vain. You are the sky said black, the sky said down, the United States will not let you go.
What are the intrinsic reasons for the strong recovery of the U.S. economy
According to the U.S. Department of Commerce, the increase in personal consumption in the third quarter, which accounts for about 70% of the U.S. economy, was revised upward from the previous estimate of 2.2% to 3.2%, showing that the U.S. consumer recovery is strong after the improvement in the employment situation. Personal consumption contributed 2.2 percentage points to economic growth, up from the previous estimate of 1.5 percentage points.
This shows that among the major factors supporting GDP growth, personal consumption was the most important driver of the high economic growth in the third quarter.
In fact, consumption has been the main driver of this round of U.S. economic rebound. The White House Council of Economic Advisers said in a statement on the 23rd that with the real wage level increasing for two consecutive years, the U.S. consumer confidence index hit a new high since 2007. In addition, household leverage has fallen sharply, but also to promote the growth of consumption continues to be high.
The report jointly released by the University of Michigan and Reuters on the 23rd shows that consumers agree that the improvement in the employment situation and wage expectations, as well as persistently low oil prices, is an important factor driving the continued improvement in U.S. economic expectations.
Review of the U.S. economy over the past year, the first quarter of the cold weather led to an unexpected contraction of the economy, the second quarter of a strong rebound to 4.6%, the third quarter climbed again to 5%. At the same time, this year, the number of new jobs in the non-farm sector has hit a record high since the financial crisis, and the unemployment rate has fallen to 5.8% in November.
In view of the good economic situation, the Federal Reserve at the end of October ended the six-year quantitative easing policy, several Fed officials and most market participants expect the first interest rate hike will occur in the middle of next year. Fed Chairman Yellen recently said that the Fed will not raise interest rates before March next year, the point of interest rate hikes will depend on the U.S. economic development.
Another data released by the Commerce Department on the same day also showed that inflation expectations continue to remain stable. the core personal consumption price index excluding food and energy prices rose 1.4% year-on-year in November, below the 2% inflation target set by the Federal Reserve.
The Fed recently said that falling energy prices have kept inflation below the Fed's long-term goal, but expects U.S. inflation to move toward its 2% target as the labor market improves further and temporary factors such as lower energy prices subside.
The latest research report from international credit rating agency Moody's shows that although weak external demand and a stronger dollar will drag down U.S. export growth to a certain extent, the current contribution of exports to U.S. economic growth is limited. Moody's believes that domestic demand is still the main driver of U.S. economic growth. Declining household debt levels, persistently low unemployment and gradually accelerating wage growth are factors that will drive steady growth in consumer demand. Moody's expects the U.S. economy to grow by 3% next year.
IMF Managing Director Christine Lagarde [microblogging] recently said in a media interview that if the recent drop in oil prices is taken into account, the U.S. economic growth rate will reach 3.5% next year, higher than the IMF's October forecast of 3.1%.
However, analysts also noted that in the global economic downturn, the U.S. economy can continue to maintain strong growth is still in doubt. In the case of a gradual tightening of monetary policy in the future, whether the U.S. economic growth has a long power also needs to be further observed - from fx678 financial channel.
You can ask me again if you don't understand.
What is the economic policy of the U.S. **** and party?
The *** and the Party emphasize the importance of private enterprise and individual decision-making in promoting economic prosperity, and they support a business-friendly free market policy, economic liberalism, and limits on *** size and *** regulation. In recent years, however, some have also pointed to the high U.S. budget deficit in 2006 and criticized the *** and Party for no longer being fiscally conservative. The current economic theory embraced by most *** and party members is Reaganomics, developed by Ronald Wilson Reagan. This theory asserts that a reduction in income tax rates will increase GDP growth, and that this additional growth will therefore result in more additional revenue for the ****. This theory is also reflected in the ****Party's longstanding support for tax cuts, which have been a major political plank of the ****Party since the 1920s. The *** and the party believe that the string of tax cuts since 2001 has boosted the U.S. economy. Many ****anders also believe that the income tax is doomed to inefficiency, and oppose the bracketed tax system, which they see as a system that robs the rich and gives to the poor, unfairly penalizing those who create more jobs and wealth. ****Partisans agree that there should be a "safety net" to assist those who are poorer; however, the policies they support are generally less expensive, rely more on private fundraising, and have more restrictive eligibility requirements. ***The Peace Party strongly supported the 1996 welfare reforms that raised the eligibility threshold for welfare benefits and succeeded in getting many of the previously welfare-dependent population to seek work. The *** and Party opposes a universal health care system dominated only by *** - such as those in Canada and most of Europe - and favors a health care system based on current individual or employer choices, with Medicare only for the elderly and Medicaid for the poor. *** and the party have not historically been consistent in their attitudes toward welfare systems, Medicare, and the Medicaid program, all of which programs *** and the party have either opposed or supported at one time or another. The *** and Bush *** in Congress supported cuts in the growth rate of Medicaid, while on the other hand, the *** and Bush *** in Congress supported the expansion of Medicare and a new Medicaid program for seniors beginning in 2006. The *** and Party is generally anti-union and has supported the enactment of many regulations at the local state and federal levels that are detrimental to union organizing. The *** and party generally opposes increases in the minimum wage, arguing that the minimum wage system only increases unemployment and reduces business profits.
Why does the U.S. rely on the U.S. dollar and the national debt to keep its economy going? What can China learn from this
Because the US dollar is the global reserve currency, and it is backed by US technology and military power, without which the US would not be able to use it to buy things around the world. The inspiration China gets from this is that the internationalization of the RMB, and the RMB becoming a global reserve currency, is an important means of enhancing the international influence of China's economy, and it can strengthen the status and role of China in the national financial market.