Why is America's crawling economy hitting the world real bad. UK is on the brink of collapse, the pounds sterling is having a free fall. The EU is almost suffocating and let's not talk about Nigeria and South Africa(which are the two biggest African economies). It's now obvious that America will not be going down alone. Shouldn't the world be praying for America to stand on it's both feet again because I sense doom if this continues.

Comments pleez.

Nigeria and South Africa shouldn't have been so dependent on America, and should have made the smart decision and get close to China. Economies in Africa like Angola, Sudan, and DR Congo, who have growing business relations with China, are having their economies boom right now. China is also booming, growing at 8-9% a year, and it's economy shows no sign of slowing, neither do Angola, Sudan, and DR Congo with the before 2 being amongst the worlds fastest growing economies.

America's economic downturn largely effects countries who solely rely on trade/investment with them, more often than not, many others still continue to rise. Iran, India, Brazil, are also examples.

Nigeria and South Africa shouldn't have been so dependent on America, and should have made the smart decision and get close to China. Economies in Africa like Angola, Sudan, and DR Congo, who have growing business relations with China, are having their economies boom right now. China is also booming, growing at 8-9% a year, and it's economy shows no sign of slowing, neither do Angola, Sudan, and DR Congo with the before 2 being amongst the worlds fastest growing economies.

America's economic downturn largely effects countries who solely rely on trade/investment with them, more often than not, many others still continue to rise. Iran, India, Brazil, are also examples.

But we shifted to China some couple of years back?

No we didn't. We export 52.5% of our products to the United States, which is the MAJORITY. Nigeria on the other hand imports 10% of their products from China (which is bad because Chinese products are crap). We could have been in a better situation if the current president wouldn't have slashed all the investment China could have put in Nigeria, for example a $50 Billion dollar investment by China was proposed 2 years ago, but nothing has ever been said about it since.

Countries like Angola, Sudan, and DR Congo have relations with the US, but most of their investment and trade comes from China. Angola is the worlds fastest growing economy, and Sudan is on the top 10 also. Countries like Panama, Columbia, Japan, and countless European nations will feel the fall of the economic downturn of America. Others who know where the future money is going to be, are growing at astronomical rates.

If Nigeria were to get closer to China, I guarantee double-digit economic growth will the ever increasing need for oil there. Angola is their largest supplier of oil, and they actually prefer their oil to others. Now, if Nigeria were to get in with China, can you imagine all the trade/investment when over ONE BILLION people are demanding oil for their cars?

If Nigeria were to get closer to China, I guarantee double-digit economic growth will the ever increasing need for oil there. Angola is their largest supplier of oil, and they actually prefer their oil to others. Now, if Nigeria were to get in with China, can you imagine all the trade/investment when over ONE BILLION people are demanding oil for their cars?

As long as there is a global price for oil set by OPEC, does it really matter whom you sale to? I thought you were suggesting if we exploit our trade agreements with China more than we do with America but Obasanjo did set that pace before the Northerners came in again and scattered the whole thing. That's why Obasanjo fixed Nigeria's economy to a considerable extent but my regret now is that YaraMugu will spoil the whole thing within 3 years.

DeepZone:

As long as there is a global price for oil set by OPEC, does it really matter whom you sale to?

YES! YES! YES! The United States is currently the largest buyer of oil, but when you look at China and look at how fast urbanization is taking place there, the demand for oil to fuel cars is going to EXPLODE! It's all about demand, which China is going to control in the coming years (before 2010)

DeepZone:
I thought you were suggesting if we exploit our trade agreements with China more than we do with America but Obasanjo did set that pace before the Northerners came in again and scattered the whole thing. That's why Obasanjo fixed Nigeria's economy to a considerable extent but my regret now is that YaraMugu will spoil the whole thing within 3 years.

I agree what you're suggesting about Yar'Adua, the future looked very bright especially with Chinese investment. He makes it very difficult for companies who aren't American to trade with Nigeria. There are so many good things that will come out of China-Nigeria trade relations, it's sad Nigeria doesn't take advantage of this VAST opportunity.

[center]The Worlds fastest growing economies:

[/center]

African nations dominate the list of the fastest growing economies. Sadly, I think Equatorial Guinea will soon fall out of that list, because American oil demand is what fuels the growth of their economy, and their leader made many horrible decisions in the past. American oil companies make the vast majority of their oil profits because EQ never set up a proper National oil company, but the situation now isn't anywhere close to it was in the ninety's, when American companies took 95% of Equatorial Guinea's oil profits.

I wouldn't doubt Sudan has the largest oil deposits on Earth. That countries oil is vastly unexplored, and their climate gives many hints that the country is tremendously rich in oil. I just hope they set up a national oil company, and model their system after Angola. China and Sudan have a huge trade partnership also, and in the coming years, don't be surprised if you see Sudan turn into the next Dubai. Chinese oil demands are not even close to starting.

Angola is just an African success story so far. This country just came out of a civil war, and all the stuf coming out of that country is just amazing. The government is investing billions into rebuilding the country, providing social housing for all who need it (250,000 units/year), investing heavily in schools, health, police, military, and rebuilding the capital (Luanda). They have their own Nationalized oil company (Sonangol) who reaps the majority of oil benefits, and they set up a law to where any foreign oil company who wants to do business there, has to sign a contract through Sonangol.

Angola is the largest supplier of oil to China, and their relationship grows more and more everyday. China gave Angola a $10 Billion dollar line of credit to help restore infrastructure, and invest in a farming program that's so far helped over 8 million families. China International Fund, which is a specific company that works in Angola, is investing Billions of dollars to rebuild their capital Luanda, and it's just amazing.

Here's the website link: http://www.chinainternationalfund.com/

Even though Angola is relatively young in their road to become a prosperous nation, I know for a fact Nigeria can learn MANY lessons from Angolan leaders, and how they appropriate funds.

The reason I wrote all of this, is to give people examples of all the positives that comes with trading with China, the future world power, and the country that spreads its wealth without trying to control your country. Countries like Nigeria, and others who have large deposits of oil should really get closer to China, because like I've said before, their oil demands are nowhere near close to getting started.

DeepZone:



That's why Obasanjo fixed Nigeria's economy to a considerable extent but my regret now is that YaraMugu will spoil the whole thing within 3 years.

This probably explains why:

Obasanjo policies unfavourable to North - Tahir

Dipo Laleye, Minna - 14.08.2008

FORMER minister of Communication during the Alhaji Shehu Shagari administration, Alhaji Ibrahim Tahir, has said the economic policies implemented by the admnistration of former President Olusegun Obasanjo assisted in the under-development of the North.

Tahir, who said this in Minna, Niger State, on Wednesday when he delivered a lecture entitled “The Renewal of Hope” at the presentation of award of excellence to the state governor, Dr. Babangida Aliyu, by the Gamji Association of Nigeria, added that the economic policies were put in place by the government allegedly in concert with the Central Bank Governor, Professor Charles Soludo.

Alhaji Tahir said it was regrettable that some “inexperienced, callous, immoral, corrupt and odious young Northerners were roped into the scheme and they played their part in a most noxious manner.”

He submitted that if the policy packages of the Obasanjo government in the last eight years were critically examined and the allocation of resources sector by sector x-rayed, it would not be difficult to conclude that the implementation of the policies were designed for the underdevelop of the North.

http://www.tribune.com.ng/14082008/news/news22.html

Sorry for the long response people, but I had to emphasize the economic uplift China alone does to African nations. Nigeria needs to act fast, and repair the mistakes of Yar'Adua, and get some contracts going with China!

When America sneezes, the world catches a cold. Is there any truth to the saying?

Slightly, but vastly exaggerated. As I stated above, economies who don't rely on America solely don't get effected as hard as others. Countries like Saudi Arabia who depend almost exclusively on America to grow their economy will be greatly effected. America doesn't have as much influence as it once had a couple of years ago, there's a new giant emerging, and it's called. . . . . CHINA.

a huge giant that itself relies greatly on america?

a huge giant that itself relies greatly on america?

they(China) and USA rely on each other.

When America sneezes, the world catches a cold. Is there any truth to the saying?

You are seeing it now. Canada will be the worst hit because the American cold is really catching them with enormous speed now. Canadians better start praying for the US to hang on or

America remains china's biggest client just like America is saudi arabia's biggest client. Hence the reason why the problem in america is affecting the economy in china.

America remains china's biggest client just like America is saudi arabia's biggest client. Hence the reason why the problem in america is affecting the economy in china.

The EU is another big client they can contend with. I think the USA is more dependent on China more than China is dependent on them. So, a downturn in Americas economy will be a bad business for China but will not crash their economy.

The United States owes China almost a Trillion dollars. China's gross domestic product is growing at a rapid rate, and China doesn't depend on the US. as much as people think. China is a worldwide trader, and doesn't "Blacklist" countries, and as long as they go on like that, they will always have an economic upper hand over America.

The plurality of Chinas exports do go to America (21%), but that is only a small percentage compared to all the countries they also ship to. I can see America's economic downturn slightly effecting China, just because exports may slightly decline from America, and other countries who're dependent on them, but at the same time, there's still that debt hanging over America that will need to be paid somehow.

To put it bluntly, China is growing at too much of a massive rate for America's economic downturn to effect them. China branches our EVERYWHERE, there's trillions of more dollars of trade opportunities for China, besides America and it's dependents.

To put it bluntly, China is growing at too much of a massive rate for America's economic downturn to effect them. China branches our EVERYWHERE, there's trillions of more dollars of trade opportunities for China, besides America and it's dependents.

Your statement defies the number one business rule: every customer is important. If china lose businesses coming from the US, they will feel it immensely besides, majority of these companies in China are US owned. India is another economy that may come to a halt if the US goes down.

True, but the US. depends heavily on Chinese imports, so in reality you won't see that effected by that much of a margin. Almost everything here in America is made in China, and if the U.S. were to stop importing Chinese made products, there economy would collapse even more.

DeepZone:

The EU is another big client they can contend with. I think the USA is more dependent on China more than China is dependent on them. So, a downturn in Americas economy will be a bad business for China but will not crash their economy.

China would be hugely affected by a downturn in the american economy. contrary to popular opinion, most of the chinese economic boom are concentrated in the cities of shanghai, beijing, hong kong etc while the countryside peasants and non-han minorities remain poor.  where do you think the chinese goods are going to go too.  China doesn't have a strong service industry compared to other developed countries.  

if the US. were to stop importing Chinese made products, there economy would collapse even more.

the US could always find a cheaper labor source u know. that's the point of globalization

bawomolo:
the US could always find a cheaper labor source You know. that's the point of globalization

How will they find somewhere cheaper if China is already a well established manufacturing center for American products? That's more money America doesn't have to set up another huge manufacturing country.

bawomolo:
China would be hugely affected by a downturn in the american economy. contrary to popular opinion, most of the chinese economic boom are concentrated in the cities of shanghai, beijing, hong kong etc while the countryside peasants and non-han minorities remain poor. where do you think the chinese goods are going to go too. China doesn't have a strong service industry compared to other developed countries.

Chinese products don't just go to America, they go worldwide. There's more fish in the sea to ship to, not to mention their neighbor Russia who is also going to be among the worlds top 10 largest economies in 2050.

China also has the largest "Current account balance" in the world, which means they have a surplus of nearly a trillion dollars, whereas America is broke, and in tremendous debt with not only China, but the world.

How will they find somewhere cheaper if China is already a well established manufacturing center for American products? That's more money America doesn't have to set up another huge manufacturing country.

India, Indonesia and Singapore are very hot contenders.

True, but the US. depends heavily on Chinese imports, so in reality you won't see that effected by that much of a margin. Almost everything here in America is made in China, and if the US. were to stop importing Chinese made products, there economy would collapse even more.

I think the war in Iraq is a big guzzler. @$10-12BN per month? Even the Chinese economy will not survive that huge expenditure for two years.

American billionaires are coming together to put in their stake to save America. Watch Bush tonight @8pm ET.

How will they find somewhere cheaper if China is already a well established manufacturing center for American products? That's more money America doesn't have to set up another huge manufacturing country.

as deepzone said, countries like vietnam, bangladesh, pakistan, india are good sources of labor though.  china would cease been a cheap source of labor when it's becomes more of a developed economy with increased educational attainment.  

Chinese products don't just go to America, they go worldwide. There's more fish in the sea to ship to, not to mention their neighbor Russia who is also going to be among the worlds top 10 largest economies in 2050.

the US is china's main trade partner as evidenced by huge trade deficits, american companies are the biggest investors in china.  china wouldn't haven't experienced it's economic boom without the easing of relations with the US. soviet aid was never this beneficial .

China also has the largest "Current account balance" in the world, which means they have a surplus of nearly a trillion dollars, whereas America is broke, and in tremendous debt with not only China, but the world.

i don't argue about that but the last time i checked, one country still remains the largest economy in the world and what's the population of china by the way. china is a large country with huge economic inequality.

the US is china's main trade partner as evidenced by huge trade deficits, [b]american companies are the biggest investors in chin[/b]a. china wouldn't haven't experienced it's economic boom without the easing of relations with the US. soviet aid was never this beneficial .

So true.

That still doesn't mean China will be greatly effected by the U.S. economic downturn like you're suggesting. China is rapidly starting to become more dependent from American investments. As I said before, as long as America owes China money, you won't see China falling down the economic ladder with America.

wrong posting

yeah because yoruba muslims are now arewa, You are obviously delusional along with southern tribalists

When did that happen?

bawomolo:

yeah because yoruba muslims are now arewa, You are obviously delusional along with southern tribalists

So, just because you can't come up with a logical explanation for your flat out wrong assertion, you have to insult me and my Igbo ethnicity?

I don't have time for immature imbeciles who don't know how to have a civilized conversation. "bawomolo", I think you have the wrong sub-forum, this area seems like it may be too "complex" for your mind to handle. I suggest you do your future posts in the Jokes sub-forum for now on.

oops my bad, i posted in the wrong thread  . i was adressing aruwa88

blackspade:

That still doesn't mean China will be greatly effected by the US. economic downturn like you're suggesting. China is rapidly starting to become more dependent from American investments. As I said before, as long as America owes China money, you won't see China falling down the economic ladder with America.

actually i disagree, the chinese economy would go down if it can't recover it's debt from the US. china needs the US to continue to run smoothly along with the world

I never said China would be immune to the economic downturn of America, I'm just saying it won't make such a big dent in the Chinese economy like some are trying to suggest. China and America have a unique relationship, and they both depend on each other. But, with this American economic downturn, China does have the upper-hand.

[center]Big Risk: Surging Debt Makes US. More Dependent on China, Russia, Gulf States[/center]

Posted Sep 15, 2008 12:07pm EDT by Aaron Task in Investing, Recession, Banking

The demise of Lehman Brothers, Merrill Lynch, and Bear Stearns this year has investors contemplating the long-term outlook for other once-venerable institutions, including Dow members Citigroup, AIG and Bank of America.

But there's an even bigger financial institution with greater debt and an increasing level of bad loans on its books: The US. government.

Given the actions already taken, from the Housing Bill to the nationalization of Fannie Mae and Freddie Mac, the US. deficit could double to $800 billion in two years, says Nouriel Roubini, of NYU's Stern School and RGE Monitor. (Even worse, the official government deficit figures exclude the costs of the wars in Iraq and Afghanistan, as well as the unfunded liabilities of Social Security and Medicare.)

The big risk is that foreign holders of Treasuries will no longer accept low interest rates to help fund US. debt spending, says Roubini, noting countries like China, Russia and oil-producing nations in the Middle East have becoming increasingly important holders of Treasuries. Should they demand higher rates to hold US. debt or, worse, dump their holdings, it could have profound ramifications on the US. economy and the value of the dollar.

Roubini further notes the Federal Reserve has put its balance sheet -- and independence -- at risk via its intimate involvement in thus-far failed attempts to stem the crisis.

It's tempting to dismiss the notion of a "run" on the US. government as unthinkable and some bears have been warning for years, even decades, about such a worst-case scenario. But after the events of this weekend, much less the past six months, it's clear that (almost) anything is possible and no scenario too "outrageous" to seriously contemplate.

[url=http://finance.yahoo.com/tech-ticker/article/56918/Big-Risk-Surging-Debt-Makes-US.-More-Dependent-on-China-Russia-Gulf-States?tickers=BAC,MER,LEH,AIG,C,XLF,%5EDJI"]Yahoo News[/url]