America drops to #2 Largest Economy.

[Atheist God]

Reuters

PARIS (Reuters) - The U.S. economy lost the title of "world's biggest" to the euro zone this week as the value of the dollar slumped in currency markets.

Taking the gross domestic product of both economies in 2007, the combined GDP of the 15 countries which use the euro overtook that of the United States when the European currency surged to a record high of more than $1.56 per euro.

"The curious outcome of breaching this latest milestone is that the size of the euro zone's annual output has now exceeded that of the U.S.," the economics department of Goldman Sachs, the Wall Street investment bank, said in a note to clients.

This what happens when you spend to much money.

[Ins0mniac]

How much of this is because of the war in Iraq?

I know some people think spending billions on a war is actually good for the economy. But I don't buy that. I'd think it's good for certain companies but bad for a country's economy as a whole.

[InHuman]

So where does this leave me on the list?

I'm assuming at the top. All of my recent plundering must have some good effect.

Oh, and I'm having a hard time believing they ONLY went down to 2, whast all the complaining about?

[bathory]

wait what? what is the US GDP compared to the EUs?

and why are we comparing a single nations economy to that of 20 something european nations?

How much of this is because of the war in Iraq?

you do realise that total spending in Iraq accounts for a tiny percentage of government expenditure per year?

Edited March 15, 2008 by bathory

[War Eagle]

Heard about this on ABC (Australian Broadcasting Commission) Radio late last night. The Euro (€) was predicted a few yrs back to become the next 'super currency'. As for the American Dollar ($) the warning signs were there all along, unfortunately in the end it's the lower & middle class that are gonna suffer most...as usual. Cut up them credit cards ppl...

Good find AG...

[Ins0mniac]

wait what? what is the US GDP compared to the EUs?

and why are we comparing a single nations economy to that of 20 something european nations?

Because they're both a single economic block? They're both geographical areas that share the exact same currency?

They also act as one as far as labour sharing because of open borders etc. Also share tarrifs etc. Almost like it's economically just one big country. Makes sense to compare them economically to another country doesn't it?

you do realise that total spending in Iraq accounts for a tiny percentage of government expenditure per year?

I hear around 1 trillion dollars has been spent in Iraq. And that some economists estimate that it would be closer to 2 trillion considering the extra stimulus that such money would have provided if it had been in the economy.

From what I understand, that's a pretty substantial amount. And it doesn't take a lot to tip the balance with these things.

Here's a New York Times article explaining how this much money could be spent.

For starters, $1.2 trillion would pay for an unprecedented public health campaign — a doubling of cancer research funding, treatment for every American whose diabetes or heart disease is now going unmanaged and a global immunization campaign to save millions of children’s lives.

Combined, the cost of running those programs for a decade wouldn’t use up even half our money pot. So we could then turn to poverty and education, starting with universal preschool for every 3- and 4-year-old child across the country. The city of New Orleans could also receive a huge increase in reconstruction funds.

The final big chunk of the money could go to national security. The recommendations of the 9/11 Commission that have not been put in place — better baggage and cargo screening, stronger measures against nuclear proliferation — could be enacted. Financing for the war in Afghanistan could be increased to beat back the Taliban’s recent gains, and a peacekeeping force could put a stop to the genocide in Darfur.

All that would be one way to spend $1.2 trillion. Here would be another:

The war in Iraq.

http://www.nytimes.com/2007/01/17/business/17leonhardt.html

Edited March 15, 2008 by Ins0mniac

[stevewinn]

Taking the gross domestic product of both economies in 2007, the combined GDP of the 15 countries which use the euro overtook that of the United States when the European currency surged to a record high of more than $1.56 per euro.

It sounds bad but is it? i mean you have the euro in 15 countries, and it takes all 15 countries to even try and rival the US economy it shows how strong the US is when it takes that many countries to knock it off the top of the table.

i honestly believe everything will be fine in the US come novermber december time you guys will be on the up and up.............

[wunarmdscissor]

steve its not if you think about it logically , at the moment the EU (the currency sharing eurozone) is econimcally one state

its one vrs one not many vrs one , you could argue that the united states is many countries within on zone as well states have theyre own laws and powers but the federal system is centralised and it uses one currency like the eurozone

[questionmark]

steve its not if you think about it logically , at the moment the EU (the currency sharing eurozone) is econimcally one state

its one vrs one not many vrs one , you could argue that the united states is many countries within on zone as well states have theyre own laws and powers but the federal system is centralised and it uses one currency like the eurozone

The point is that Steve rejects that idea (which is his right).

[questionmark]

So where does this leave me on the list?

I'm assuming at the top. All of my recent plundering must have some good effect.

Oh, and I'm having a hard time believing they ONLY went down to 2, whast all the complaining about?

China is on its way to surpass it too...

[greenboy]

Two major factors are killing us.

1. abortion. This is killing millions of American the population is getting old and older and we DONT HAVE REPLACEMENTS.

2. Morals values Our work ethics if going to ... and when people have very few children usually they are spoil they stay longer and longer in the adolescent stage, and just looking for pleasure, they dont have commitments because they are just having fun, they don't have commitments to create a family, so they are getting married older so this becomes a vicious cycle..

3. The poor class is growing and the blue collars are growing too. The Middle class is not growing and the Rich class stop doing that years ago. So we are becoming a nation of poor-depending of the government people or Wal-mart service people.

On lees we don't reshape, we get our moral high, and young people start studding significant careers we are going to disappear as a nation, remember other races and believes are reporducing out of bounds they could have 4 wives and as many children they want. is just a matter of number. Do you know we have about 300 millions of people in this country and China have 300 million of unemployed people only. How about that?

THink.

[Grandpa Greenman]

I don't think it is the personal morals that are taking us down, it is the morals of those in high office that is bring us down. Fighting two wars the way we are is destroying our economy. I think that was the terrorist planned all a long. Goat us in to a world wide battle with terrorism and drain our economy down to nothing. That is how we won the cold war. We got Russian to spend great amounts of money trying to keep up with us until it bankrupted them. The terrorist are doing the same thing, but they don't have to spend large amounts of cash, they hit fast and cheap, then just run and hide and we spend billions trying to get them. Europe didn't buy into it and now their economy is on top.

[stevewinn]

steve its not if you think about it logically , at the moment the EU (the currency sharing eurozone) is econimcally one state

its one vrs one not many vrs one , you could argue that the united states is many countries within on zone as well states have theyre own laws and powers but the federal system is centralised and it uses one currency like the eurozone

i see your point, but this is the EU. i dont know the answer, but if all 15 countries all put their eggs in the same basket which they have done, and i dunno,.say a few of the lesser countries in the EU end up going belly up, economy wise what happens, then?

according to the EU News, the EU is going to be 28 members soon with Croatia joining fully in couple a of years, yet the EU plan is to include more backward countries, including North Africa, the bigger the EU gets the bigger the problems will be, at the end of the day the EU will end up its own worst enemy,

[questionmark]

i see your point, but this is the EU. i dont know the answer, but if all 15 countries all put their eggs in the same basket which they have done, and i dunno,.say a few of the lesser countries in the EU end up going belly up, economy wise what happens, then?

according to the EU News, the EU is going to be 28 members soon with Croatia joining fully in couple a of years, yet the EU plan is to include more backward countries, including North Africa, the bigger the EU gets the bigger the problems will be, at the end of the day the EU will end up its own worst enemy,

For one, the EU was more prosperous, for all countries who participate 100%, the more "backwards" countries they integrated. Not all will be a success story as Spain, and some regions will always be in need of the LEADER programs...like southern Italy or the Alenteijo in Portugal or even MecklenBurg Vorpommen in Germany. What we have to see is what is put in and what comes out on the long run. And just keeping the people of that region in that region is already a significant gain.

I don't think that any of the northern African countries will ever be members of the EU, but letting them have part of our prosperity will force them to protect that prosperity. We only tend to gain from that.

[Siara]

I have no problem with being the second biggest economy. Actually, I'm surprised China isn't 1st, Europe 2nd, and USA 3rd. America needs to get out of the "super power" mentality and join the international community. The numbers that bother me are our declining ranks in education and medicine.

[stevewinn]

For one, the EU was more prosperous, for all countries who participate 100%, the more "backwards" countries they integrated. Not all will be a success story as Spain, and some regions will always be in need of the LEADER programs...like southern Italy or the Alenteijo in Portugal or even MecklenBurg Vorpommen in Germany. What we have to see is what is put in and what comes out on the long run. And just keeping the people of that region in that region is already a significant gain.

I don't think that any of the northern African countries will ever be members of the EU, but letting them have part of our prosperity will force them to protect that prosperity. We only tend to gain from that.

cheers Q,

[AROCES]

Good! Now the Europeans can do much of the dirty work, and let's see how the world would be with the Europeans now the #1!!!!!!!!!!!!!

Edited March 15, 2008 by AROCES

[questionmark]

Good! Now the Europeans can do much of the dirty work, and let's see how the world would be with the Europeans now the #1!!!!!!!!!!!!!

Nah, the Europeans did not get to be the number one for playing the World Police.

[AROCES]

Nah, the Europeans did not get to be the number one for playing the World Police.

Whatever, they are number one now. Go Europeans show us how a number one should behave!!!

[questionmark]

Whatever, they are number one now. Go Europeans show us how a number one should behave!!!

It is not like it is the first time Europeans are #1, it was just the individual states... and yes..there is something the world could learn: You pay your debts without incurring in new ones if you want to be on top.

[Pinky Floyd]

The only thing that it is a statistical standing. The weak dollar has made Europe #1 on a spreadsheet.

I still look forward to the day we cut ties with them all. For good.

Edited March 15, 2008 by Pinky Floyd

[AROCES]

It is not like it is the first time Europeans are #1, it was just the individual states... and yes..there is something the world could learn: You pay your debts without incurring in new ones if you want to be on top.

YES! We will now see how it should be and learn. The Europeans will now show us how to handle a region in the world that explodes and do it without going to war or overspending.

They'll probably just keep taxing everyone.

[AROCES]

The only thing that is a statistical one. The weak dollar has made Europe #1 on a spreadsheet.

I still look forward to the day we cut ties with them all. For good.

No we can't cut ties with the Europeans, they will always be our friends on the other side of the Atlantic. But I am really eager to see how the noisy Socialist Liberals there deals with international situation, this will be good!!!!

Edited March 15, 2008 by AROCES

[questionmark]

YES! We will now see how it should be and learn. The Europeans will now show us how to handle a region in the world that explodes and do it without going to war or overspending.

They'll probably just keep taxing everyone.

There is nothing wrong with taxes, as long as you get something back... but reactionaries like you prefer to make debts to have the government fulfill its obligations.

[Pinky Floyd]

No we can't cut ties with the Europeans, they will always be our friends on the other side of the Atlantic.

And why not? All they do is hate us now. They are not our friends. And fortunately, this reality is slowing sinking into average Americans psyche. We might be chummy here on UM together, but don't let that fool you. Let our economy stumble and they are the first to laugh. I say let it fall and rebuild it with this side of the world in mind exclusively...

I say we pull out of ties with them (and most everyone else too) ASAP and let Amadinezad get a nuke and hold them hostage with it. They don't have the guts to do anything about him..Especially once he gets one (or ten).

They used to be our friends when we were helping them beat the Nazis..But those times are long gone. We need to cut our losses and come home. And stay here. Forever.

(And keep all of our food over here too..)

Edited March 15, 2008 by Pinky Floyd