Cyprus-Forum.com

[Get Real!]

..compare the above advantages of the usa, to that of the eu. The Eu facing harsh economic realities cannot even solve political problems within its own borders i.e....the Cyprus problem either militarily or politically. The weakness of the Eu will linger for a long time to come..

You forgot to complete your so called "comparison"... the US owes around 16.5 trillion dollars and can no longer maintain the compounding interest let alone pay the debt off!

[Oceanside50]

..compare the above advantages of the usa, to that of the eu. The Eu facing harsh economic realities cannot even solve political problems within its own borders i.e....the Cyprus problem either militarily or politically. The weakness of the Eu will linger for a long time to come..

You forgot to complete your so called "comparison"... the US owes around 16.5 trillion dollars and can no longer maintain the compounding interest let alone pay the debt off!

the bottom line is, is that the US dollar has maintained itself as the numero uno currency of the world despite its debts...ask yourself why?

[GreekIslandGirl]

the bottom line is, is that the US dollar has maintained itself as the numero uno currency of the world despite its debts...ask yourself why?

Perhaps by its meddling in Europe, enticing the UK to NOT join the Eurozone? Destroying Oil producers (Saddam) that would have opted for the Euro and given up the petrodollar? Despite all that engineering, you have to ask yourself why the US Dollar is still in such a mess!

Former U.S. Federal Reserve Chairman Alan Greenspan said in September 2007 that the Euro could replace the U.S. dollar as the world's primary reserve currency. It is "absolutely conceivable that the euro will replace the US dollar as reserve currency, or will be traded as an equally important reserve currency." Econometric analysis by Jeffery Frankel and Menzie Chinn in 2006 suggests the euro may replace the U.S. dollar as the major reserve currency by 2020 if (1) the remaining EU members, including the UK and Denmark, adopt the euro by 2020 or (2) the recent depreciation trend of the dollar persists into the future.

wiki

[Oceanside50]

Hussein threatening to switch to the Euro would only have enticed him to shoot himself in the foot earlier.. If the currency used to buy oil on the open market would change it would only increase the cost of oil by 500/600%...its in no ones interest to have 50euro per litre gasoline. Next ,with the usa's economy booming while the rest of the world is stagnating or deflating the demand for usa dollars will only increase(making the dollar stronger) while the eGyro's demand will decrease...

[Get Real!]

..compare the above advantages of the usa, to that of the eu. The Eu facing harsh economic realities cannot even solve political problems within its own borders i.e....the Cyprus problem either militarily or politically. The weakness of the Eu will linger for a long time to come..

You forgot to complete your so called "comparison"... the US owes around 16.5 trillion dollars and can no longer maintain the compounding interest let alone pay the debt off!

the bottom line is, is that the US dollar has maintained itself as the numero uno currency of the world despite its debts...ask yourself why?

I don't have the time and/or rather I can't be bothered to explain how the US does that.

[Paphitis]

..compare the above advantages of the usa, to that of the eu. The Eu facing harsh economic realities cannot even solve political problems within its own borders i.e....the Cyprus problem either militarily or politically. The weakness of the Eu will linger for a long time to come..

You forgot to complete your so called "comparison"... the US owes around 16.5 trillion dollars and can no longer maintain the compounding interest let alone pay the debt off!

The important thing is that they are paying less than 1% in interest because of their AAA rating.

Also, their GDP is rising meaning that their actual debt is declining as a percentage against GDP. Problems begin when that is not the case like it was a couple of years ago.

Also, if you add all the debts of the EU member states, then compare to the US, you might find that EU debt is higher.

Try it! Add the UK, German, French, Spanish, Italian debts and you are well on your way!

Furthermore, if the US declines, then the entire globe is in the shit. The EU would pretty much collapse because Italy and Spain will be tipped off the edge for starters. You can say bye bye Germany!

[Get Real!]

..compare the above advantages of the usa, to that of the eu. The Eu facing harsh economic realities cannot even solve political problems within its own borders i.e....the Cyprus problem either militarily or politically. The weakness of the Eu will linger for a long time to come..

You forgot to complete your so called "comparison"... the US owes around 16.5 trillion dollars and can no longer maintain the compounding interest let alone pay the debt off!

The important thing is that they are paying less than 1% in interest because of theur AAA rating.

Also, their GDP is rising meaning that their actual debt is declining as a oercentage against GDP. Problems begin when that is not the case like it was a couple of years ago.

Also, if you add all the debts of the EU member states, then compare to the US.

Try it! Add the UK, German, French, Spanish, Italian debts and you are well on your way!

They owe money to multiple creditors one of which is China (around 1.6 trillion), so I can't imagine them having a single set of rules for all their debts.

[Paphitis]

The US probably owes money to Cyprus if you dig deep enough.

Finance is a complex thing. Very difficult to make comparisons. The way countries borrow is by issueing bonds onto the market.

Triple AAA countries issue those bonds at 1% yield, and sometimes less.

Those bonds are purchased because they are considered to be a safe haven investment.

Greece on the other hand is borrowing at 10%. It is important to improve the credit rating because borrowing costs will reduce and then Greece and Cyprus can breathe a bit.

[dinos]

The important thing is that they are paying less than 1% in interest because of their AAA rating.

Also, their GDP is rising meaning that their actual debt is declining as a percentage against GDP. Problems begin when that is not the case like it was a couple of years ago.

Also, if you add all the debts of the EU member states, then compare to the US, you might find that EU debt is higher.

Try it! Add the UK, German, French, Spanish, Italian debts and you are well on your way!

Furthermore, if the US declines, then the entire globe is in the shit. The EU would pretty much collapse because Italy and Spain will be tipped off the edge for starters. You can say bye bye Germany!

This is true, but don't forget that the US recently changed the way it calculates its GDP, skewing it to the upside (surprise, surprise). The gross investment portion of the calc now includes R&D spending, art, music, film royalties, books and theater. This will raise GDP by about 3% and no other countries include these factors in their GDP calcs. This effectively adds slack to debt-to-gdp measurements, and will shortly justify additional debt.

This is in addition to imputations (i.e. if you own your house, you are assumed to pay yourself rent and this is added to GDP) and hedonic adjustments (if a TV is cheaper than it was last year, the difference in price is added to GDP) that are already included in the calc.

Probably 15-20% of US GDP measurement is not transaction-based at all.

[Oceanside50]

..compare the above advantages of the usa, to that of the eu. The Eu facing harsh economic realities cannot even solve political problems within its own borders i.e....the Cyprus problem either militarily or politically. The weakness of the Eu will linger for a long time to come..

You forgot to complete your so called "comparison"... the US owes around 16.5 trillion dollars and can no longer maintain the compounding interest let alone pay the debt off!

the bottom line is, is that the US dollar has maintained itself as the numero uno currency of the world despite its debts...ask yourself why?

I don't have the time and/or rather I can't be bothered to explain how the US does that.

..because the USA 's economy is unbelievably strong and always expanding in one sector or another. Companies, individuals and countries are willing to loan the USA Regardless of past debts. Nowadays the interest payments made on the debt are being reinvested back into the USA economy. If your theory of American demise because of debt were true, then where is the hyperinflation and famine in the streets..the theory doesn't fit into the American model