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This Global Financial Crisis has taught us one important point.
Any countries that are following the US model will see the unsubstainability of wealth accumulation for the middle-class. What this results in will be decline of the middle class. We will return to the days of Dickenson economic where we have the very rich and the very poor.
Singapore is a good example of a follower of the US model.
1. Countries that depend on a large retail service sector -> Like what RedBull313 suggest - Things in USA are cheap.
2. Countries without social financial security safety net -> US has no universal public healthcare, Singapore has very limited crisis/unemployment financial assistance (Shockshiok called it socialism)
Strangely, both Singapore and US practice a very strong form of socialism - US Taxpayers paying for Wall St mistakes; Singapore's GLCs and nationalised utilities/communications sectors.
Utimately, bills have to be paid for. If Obama do not dare to raise taxes in the US, we will see the confidence in US Treasury Bills eroded and with that, the USD as the world's reserve currency. Should that happens, Americans will find its influence as the only superpower erodes.
Singapore will be in trouble if the US military leaves.
Countries like Australia and NZ need to form an economic bloc and be integrated into the Asian economies of Japan/Korea, China, India and the ASEAN countries.
Any countries that are following the US model will see the unsubstainability of wealth accumulation for the middle-class. What this results in will be decline of the middle class. We will return to the days of Dickenson economic where we have the very rich and the very poor.
Singapore is a good example of a follower of the US model.
1. Countries that depend on a large retail service sector -> Like what RedBull313 suggest - Things in USA are cheap.
2. Countries without social financial security safety net -> US has no universal public healthcare, Singapore has very limited crisis/unemployment financial assistance (Shockshiok called it socialism)
Strangely, both Singapore and US practice a very strong form of socialism - US Taxpayers paying for Wall St mistakes; Singapore's GLCs and nationalised utilities/communications sectors.
Utimately, bills have to be paid for. If Obama do not dare to raise taxes in the US, we will see the confidence in US Treasury Bills eroded and with that, the USD as the world's reserve currency. Should that happens, Americans will find its influence as the only superpower erodes.
Singapore will be in trouble if the US military leaves.
Countries like Australia and NZ need to form an economic bloc and be integrated into the Asian economies of Japan/Korea, China, India and the ASEAN countries.