RealityBites wrote:You know you can just look at the world economy to see if the world needs America or not. Since 2009 and the Economic Recession in America, it became a global epidemic with markets weakened across the board. The world NEEDS America. America's the economic center of the world and has been since it became a superpower. If America defaulted, it would kill just about every other economic system in the world.
Your statements above don't prove that the world NEEDS America. It demonstrates that when the USA flooded the world's highly-globalized banking system with fraudulent derivatives (which received AAA ratings from US credit-rating agencies like Standard-and-Poors and Moody's), it did indeed severely weaken markets worldwide and has pushed some countries into slow-motion financial collapse. The US banks and financial markets (ie Wall Street) would have also collapsed, had it not been for around $16 trillion worth of bailouts (which are now on the back of US taxpayers).
RealityBites wrote:The euro is already failing because south Europe depends on tourism. Where from? That's right America!
You think that's why the Euro is collapsing - because not enough American tourists are visiting Greece and Spain? That isn't even close to reality. Aside from the fact that the vast majority of tourists who visit southern Europe are northern Europeans (and these days, many Asian tourists as well), the Euro's slow-motion collapse is happening because the Europeans played their own Ponzi scheme (mostly in the City of London, Europe's Wall Street). The first domino in the Euro zone to fall, Greece, had considerable help from US based hedge fund Goldman-Sachs. In a rational world, the corporate execs at Goldman-Sachs would be in jail (see the People vs Goldman-Sachs).
Right now the eurozone is solely dependent on how long Germany can hold out and keep bailing out the failing economies of Greece, Spain, Portugal, Italy, et. Britain had those riots not too long ago. Even in the east, Japan depends a helluva lot on the US and so does South Korea. Even fricking China would be screwed. Its economy slowed down alot since 2009 because everything about its economy revolves around the USD.
I can mostly agree with this part of your post. The huge damage to the US economy from the 2008 market scandals reduced the USA's ability to buy imports, which negatively affected exporters (notably Japan, South Korea and China). Thanks to "globalization," collapse in any large economy will affect the others. The term used to describe this is "financial contagion."
Bottom line the world loses America, the world is screwed.
I feel confident in stating that sooner or later, the USA will default on its debts, because they are unpayable. Despite the much-ballyhooed "recovery," all that has been accomplished since 2009 is more clever papering over to hide the problem. The approximately $600 trillion of fraudulent derivatives are still floating around, moved from one balance sheet to another. I must say though that I am impressed at how long this game of musical chairs has been played, but as in all Ponzi schemes, sooner or later the music stops.
Yes, when the USA defaults, it will hurt the whole world, Taiwan included. Those countries that will be hurt the least will be those that have gotten rid of all US Treasuries and stocked up on hard commodities and built their own manufacturing industries serving their domestic markets. In other words, far from needing America, the world would be wise to detach itself from the US financial Ponzi games as soon as possible.
If you want to get a clue about what actually happened in the 2008 financial collapse, I recommend that you view this video, it's a good primer:
Meltdown, the Men Who Crashed the World