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This analysis examines recent figures on world defense spending, highlighting the U.S.'s position relative to EU countries and its high GDP percentage allocated to defense. It raises critical questions regarding the sustainability of defense expenditures, especially among oil states, and the implications of rising national debt. As globalization shifts, the paper explores the U.S. economy's potential decline and the demographic challenges faced by nations. Key insights on consumer behavior, international debt holdings, and future defense priorities are discussed to understand the evolving landscape.
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How are we Doing? A look at some figures.
What Proportion of the Budget? The US is about 1% point above the countries of EU. However,, 3% of the US GDP is a huge figure. Oil States
Mirror Mirror on the WallWho’s the Richest of Them All? The EU is not Shown as a state here
Globally, who are the leaders? In the last week of March 2008, Exxon-Mobile displaced Petro-China
The Demographic Dilemma Russia Finland Strong Negative growth
Plus, to the 0% Savings rate, we Need to remember That >73% of the US Economy is consumer Spending, and much Of that is financed by debt The weak links. And the world has been Buying this debt: The Chinese Through Treasury Bonds, the Rest by buying bundled US Debt- over $200b of which is Now worthless.
One Main Force of Globalization Unemployed as % of Labor Force
What’s It All Mean? Average Life-Expectancy: Men Average Life Expectancy: Women 1996 Relative Tax Burden Total Health Spending Per Capita Infant Mortality Below 1 • Is the US “Declining?” • Is the US being overtaken by other countries? • Are we disappearing in uncontrollable debt? • Is the US Economy being “Hollowed Out?” • What Does the US do best?
The “collapsing” $ The exchange rate between the US $ and the Euro, 2007 Is this really “bad?”
Swings and Roundabouts Boeing versus Airbus • Imports become more expensive, which should slow down consumption—e.g. China. • But goods are “made in China” for US firms. • But our exports are “cheaper” now and should sell better. • The US is less reliant on exports as part of its GDP than other countries.