Trading Currencies At Night

Why does The USA think its so rich ?

When it has the biggest national deficit of any country. Currently standing at 01/30/2007 $8,688,193,398,145.10
At current the U.S. is able to get away with it because the world trades oil in dollars so all the world has to buy dollars to buy oil helping keep the country buoyant. This danger can be seen as just before the second gulf war sadam insinuated he would start trading oil in euros instead and almost over night the currencies that were not close before hit parity (no war or conspiracy answers please). Danger awaits and i think most people dont realise or don’t care. What do you think?
Please note those answering buying power, that your buying power is directly linked to your currencies place in world markets No oil trade in dollars, the dollar crash, dollar crash no buying power.
I must commend everyone so far i love a good debate, but there is no need to mud sling peeps it is a genuine question and not ment to offend if i have i appologise

You are suffering from several common misconceptions. First, yes the national debt is a large-looking number, but that is because the US has a massive economy, and so most economic numbers relating to it are large. Debt by itself means little. Consider debt in context of the national income of 13.5 trillion, which spins off tax revenue of some $2.6 trillion, and the very manageable debt:GDP ratio, which is SHRINKING as the economy grows fast, the fed deficit quickly shrinks, and the budget heads toward likely balancing about the middle of next year. (What, you didn’t know that? Why not?)

Japan has a much smaller economy than the US, but by now has greater total debt, a shrinking population, and a stagnant economy destined to enter a century of decline. THAT’s a country in trouble.

2nd, the idea that the dollar will collapse if it is no longer the international unit of oil trade is a hysterical myth. No mainstream economists believes that, there is no theory to suggest it, it’s simply vapor. There might be some impact on the exchange rate as certain interests unwind dollars, but it would wash out. By the way, there is little reason to expect that the dollar will lose that role anytime soon anyway.

But I’m not sure you understand what “rich” means. Wealth is in the actual real output of goods and services — because that is what people need and value. The US produces by FAR more goods and services than any nation on earth (no other nation produces more than a minor fraction of what the US does.) Divide per person and REAL output per person is much higher in the US than elsewhere. If any country on earth can claim to be rich, the US is first in line, easily.

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