The Purported Demise of the US Economy are GreatlyExaggerated
The calls started last year around March, after a difficult2022 for the financial markets. Callsfor gold. Concerns that the US Dollarwas on its way to no longer being the world’s reserve currency. That China was going to overtake the USEconomy to become the most dominant economy in the world. That the glory days of the post-WW II UnitedStates booming economy were over, giving way to the BRICS nations (Brazil,Russia, India, China, South Africa, Egypt, Ethiopia, Iran, and the United ArabEmirates), poised to assume a leadership role as the world’s pre-eminenteconomic bloc.
Fast forward to today – China has gone from nearly 20% ofworld GDP in 2015 to 10%; domestic personal consumption is slowing; two oftheir largest property developers are in bankruptcy with more debt than all theDow companies combined; 18% of the population of China is over 60 years old;median household disposable income is just over $5,000 USD. China is confronted with all of these issuesalong with slowing population growth – in fact, last year a decliningpopulation (see chart below), all, a result of their “one child policy” whichwas implemented by the Chinese government in 1980 until rescinded in 2016.
Nonetheless, China remains and will remain a global economicforce as it is still the second largest economy in the world per GDP with apopulation of 1.4 billion people. Whatwe are reminding readers is that the reports of the death of the United Statesare greatly exaggerated, indeed sensationalized for whatever reason – at timeswith good intentions and at times not so good. Unequivocally, the United States remains the most transparent,capitalistic, and innovative country in the world, which will in turn, for theforeseeable future, make it the premiere place for investors to place theirmoney.
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