What does the U.S. economy rely on?

From a direct perspective, the strong position of the U.S. dollar is the reason why the United States is the only one in the world that can dominate the world. Although the United States has the largest trade deficit in the world, it is also the world's largest black country under the capital account. A large amount of capital inflows under the capital account have maintained the balance of the United States' international balance of payments. For example: In 1998, the U.S. trade deficit was as high as 261.6 billion U.S. dollars, but in the same year, a huge amount of 228 billion U.S. dollars flowed into the United States under the capital account. The large inflow of international capital into the United States prevented major fluctuations in the U.S. dollar exchange rate, and the U.S. dollar continued to remain strong.

The strength of the US dollar has given the US dollar, as the core international currency, an unparalleled privileged position. At present, almost all world oil transactions are conducted in US dollars as the settlement currency, and 60% of international trade is also settled in US dollars. Most of the foreign exchange reserves of various countries are also in US dollars. Currently, about 60% of U.S. dollar banknotes are outside the United States and have not entered domestic circulation in the United States. Because of this, although the U.S. trade cannot make ends meet and although the U.S. is heavily in debt, the U.S. economy is still strong.

What kind of economy supports such a strong country in the United States?

World War I and World War II were not war zones, so a large amount of wealth was accumulated, and a large number of talents went to the United States for refuge. For example, the Jews. Political systems also matter. I think these three are the main ones.

What is the main support for the GDP of the United States?

To understand this problem, we must understand the industrial structure of the United States. 86% of the United States belongs to the tertiary industry, 6% belongs to industry, 8% belongs to agriculture, and 86% of the tertiary industry has 5 Mutual % belongs to the financial industry and its ancillary industries. And it must be mentioned that GDP is not entirely the best indicator of a country’s national strength. The country’s prosperity is related to employment rate, CPI, etc.

What does the U.S. economy rely on

1. The U.S. economy mainly relies on the financial industry, manufacturing and agriculture.

2. The U.S. economy has a wide range of sources and has comparative advantages in many aspects:

(1) Financial industry. The U.S. financial industry plays a decisive role in the world;

(2) Manufacturing, whether it is high-tech products or primary products, the U.S. manufacturing industry leads the world;

(3) In terms of agriculture, whether it is planting or animal husbandry, the United States has strong capabilities Competitive strength; and in recent years, some companies have developed into large enterprises. From the above three aspects, the United States has strong economic support because the industries are fragmented, but each industry has strong competitiveness.

3. The American economic system has the characteristics of both capitalism and mixed economy. Within this system, enterprises and private institutions make the main microeconomic decisions, and banks play a minor role in domestic economic life; however, the sum of banks at all levels accounts for 36% of GDP. To this day, small banks play a minor role in domestic economic life. Businesses still play an important role in the U.S. economy.

What exactly is supporting the U.S. economy

A retrenchment in business spending on investment and new equipment and construction could be a sign of a deeper slowdown in U.S. economic growth. In June this year, a survey of business economists showed that 60% of respondents believed that uncertainty about the U.S. election in November would have a damaging effect on U.S. economic growth prospects. The latest data shows that U.S. corporate tax profits fell 2.4% last quarter after rising 8.1% in the first quarter. Declining corporate profit margins will prevent corporate spending from rebounding as expected.

U.S. companies agreed to also reduce inventories. U.S. corporate inventories fell by $12.4 billion in the second quarter. The reduction in inventories caused U.S. GDP growth to slow down by 1.3%, causing the biggest drag on the U.S. economy in two years. , this is also the fifth consecutive quarter that U.S. corporate inventories have been under pressure.

The tightening of inventory by U.S. companies may also show that U.S. companies are worried about poor sales prospects later this year. However, some economists pointed out that consumer spending in the United States has surged, and American consumers are clearly in high spending mood. The latest annual rate of consumer spending in the United States was 4.4%, recording the largest growth rate since the fourth quarter of 2014. This accounts for two-thirds of U.S. GDP growth.

The surge in U.S. consumer spending has not gone unnoticed by the Federal Reserve, which is paying close attention to the latest economic data as it considers whether to raise interest rates as soon as next month. Although Yellen said that as U.S. GDP data continues to be sluggish, some Fed watchers believe that the Fed may hold off on raising interest rates until U.S. economic growth shows signs of picking up again.

What is supporting the United States’ global economic status today? Let’s talk about it in detail.

Strong financial system and military strength. The U.S. dollar is linked to oil and the U.S. dollar is hegemonic. The United States controls oil and has the power to price oil. The United States controls the global food system, is the world's largest food exporter, and has global food pricing power. Former US Secretary of State Kissinger said: If you control oil, you control all countries; if you control food, you control all people; if you control currency, you control the world. The United States controls currency, oil, and food.

What does the United States rely on to play with the world economy?

When Britain became an empire on which the sun never sets, the British said that there were two major weapons that supported the empire. One was the navy that dominated the world's oceans; It's the Bank of England.

The United States is almost like this now. In the world today, only the U.S. Navy is deployed globally, controlling almost all ocean transportation and trade routes, and supervising the flow of world logistics (or wealth). One is the de facto status of the world currency established by the Academy of Fine Arts after World War II. The United States thus controls the world's financial hegemony.

Therefore, at that time, maritime hegemony and the status of the pound were the eyes of the United Kingdom. Anyone who dared to take this idea would be killed by the British at their own risk. The same is true for the United States today. Whoever seeks maritime hegemony or attempts to shake the status of the dollar and the U.S.-led world financial order is the United States' sworn enemy.

If any country is considered by it to be a potential threat that harbors this idea and is targeted by it, then even if you talk about non-hegemony, a harmonious world, or some bullshit new type of major power relations, you will curse it all day long. Swearing is always in vain. Even if you make the sky dark and talk the sky down, the United States will not let you go.

What are the underlying reasons for the strong recovery of the U.S. economy?

According to data from the U.S. Department of Commerce, the growth rate of personal consumption, which accounted for about 70% of the U.S. economy in the third quarter, increased from the previously estimated 2.2%. % was revised up to 3.2%, showing that after the employment situation improved, U.S. consumption recovered strongly. Personal consumption contributed 2.2 percentage points to economic growth, higher than the previous estimate of 1.5 percentage points.

It can be seen that among the major factors supporting GDP growth, personal consumption is the most important driving force for the economy to achieve high growth in the third quarter.

In fact, consumption has been the main driving force of this round of U.S. economic rebound. The White House Council of Economic Advisers issued a statement on the 23rd saying that with real wages increasing for two consecutive years, the U.S. consumer confidence index hit a new high since 2007. In addition, the sharp decline in household leverage ratio has also driven consumption growth to continue to rise.

A report jointly released by the University of Michigan and Reuters on the 23rd showed that consumers unanimously believe that improvements in the employment situation and wage expectations, as well as continued low oil prices, are important factors driving the continued improvement in U.S. economic expectations.

Looking back at the trend of the U.S. economy over the past year, severe cold weather caused an unexpected contraction of the economy in the first quarter, rebounded strongly to 4.6% in the second quarter, and climbed again to 5% in the third quarter. At the same time, the number of new jobs in the non-agricultural sector this year has also hit a new high since the financial crisis, and the unemployment rate has dropped to 5.8% in November.

In view of the good economic situation, the Federal Reserve ended its six-year quantitative easing policy at the end of October. Several Federal Reserve officials and most market participants expect the first interest rate increase to occur in the middle of next year. Federal Reserve Chairman Yellen recently stated that the Fed will not raise interest rates before March next year, and the timing of the rate hike will depend on the development of the U.S. economy.

Another data released by the Ministry of Commerce that day also showed that inflation expectations continue to remain stable. The core personal consumer price index, which excludes food and energy prices, rose 1.4% year-on-year in November, below the 2% inflation target set by the Federal Reserve.

The Federal Reserve recently stated that falling energy prices have kept inflation below the Fed’s long-term goal, but it expects that as the labor market further improves and temporary factors such as lower energy prices subside, U.S. inflation will move towards 2% progress towards the goal.

The latest research report from Moody's, an international credit rating agency, shows that although weak external demand and a strong 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 remains the main driver of U.S. economic growth. Falling household debt levels, continued low unemployment and gradually accelerating wage growth will drive steady growth in consumer demand. Moody's expects the U.S. economy to grow by 3% next year.

International Monetary Fund President Lagarde [Weibo] recently said in an interview with the media that if the recent decline in oil prices is taken into account, the U.S. economic growth will reach 3.5% next year, higher than The IMF’s forecast for October was 3.1%.

However, analysts have also noted that there are doubts about whether the U.S. economy can continue to maintain strong growth amid the global economic downturn. With monetary policy gradually tightening in the future, whether the U.S. economic growth has long-term momentum remains to be further observed - Reprinted from fx678 Financial Channel.

If you don’t understand anything, you can ask me again.

What is the economic policy of the US Communist Party and the Party?

*** and the Party emphasize the importance of private enterprise and individual decision-making in promoting economic prosperity. They support a business-friendly free market policy, economic liberalism, and restrictions on the size and scope of *** * Control. However, in recent years, some people have also pointed out the high budget deficit in the United States in 2006 and criticized the Democratic Party for no longer being a fiscally conservative party. The current economic theory held by most Republicans is Reaganomics proposed by Ronald Wilson Reagan.

This theory asserts that reducing income tax rates will increase GDP growth, and additional growth will therefore bring more additional revenue to the government. This theory is also reflected in Mao Zedong's and the Party's long-term support for tax cuts, which have been a major political issue of Mao Zedong and the Party since the 1920s. Republicans believe that a series of tax cuts since 2001 have boosted the U.S. economy. Many Communist Party members also believe that income tax is destined to be inefficient. They also oppose the graded tax system, believing that it is a system that robs the rich and gives to the poor and unfairly punishes those who create more job opportunities and wealth. Democrats and Republicans agree that there should be a "safety net" to assist poorer populations; however, the policies they support are generally less expensive, rely more on private fundraising, and have stricter restrictions on participation. . The Communist Party strongly supported the 1996 welfare system reform, which raised the eligibility threshold for welfare system subsidies and successfully enabled many people who had previously relied on welfare subsidies to start looking for work. *** and the Party oppose a universal health care system dominated only by *** - such as those in Canada and most countries in Europe - and advocate a health care system that is based on current individual or employer selection and only for the elderly. Provide medical insurance (Medicare) and provide Medicaid (Medicaid) to the poor. The Communist Party and the Party have historically disagreed on the welfare state, Medicare, and Medicaid, all of which the Communist Party and the Party have either opposed or supported. Republicans in Congress and President Bush supported cutting Medicaid growth rates, while Republicans in Congress also supported expansion of Medicare starting in 2006. A new batch of drug subsidy programs are available for seniors. The Communist Party generally opposes unions and supports the enactment of many regulations at the local, state and federal levels that are detrimental to unionization. The Communist Party and the Communist Party of China generally oppose increases in the minimum wage, arguing that a minimum wage system will only increase unemployment and reduce business profits.

Why can the United States maintain its economy by relying on the U.S. dollar and national debt? What can China get from this

Because the US dollar is the global reserve currency, this status of the US dollar is supported by the technological level and military strength of the United States. Without such support, the United States cannot use the US dollar in the world. Buy things from various countries. What China has learned from this is that the internationalization of the RMB and the RMB becoming a global reserve currency are important means to enhance the international influence of the Chinese economy and can enhance my country's status and role in the national financial market.