[Zeiter]

I just don't get it.

First, let's set down a few givens:

1. Other countries will still have access to energy resources after a major economic crash.
2. Other countries produce things of value.
3. The U.S. produces mainly "green toilet paper."

If this is the case, then why would the U.S. falling into an economic depression hurt other countries? Most would argue that other countries need the U.S. to buy their stuff. This makes no sense whatsoever. What would happen if countries started selling their stuff to THEIR OWN PEOPLE? Wouldn't that actually make the citizens of those countries materially wealthier? But then you might say, the citizens of those countries don't have the money to buy all of that stuff. Well, why don't they? Surely they've earned it through their labor, no? Perhaps the labourers aren't being paid enough to buy their own goods? Perhaps those countries would just need some liquidity injected into their economies?

Another theoretical question: if those countries went into "gift" economies, and gifted goods within each country freely, with perhaps a small tax exacted from each person in the country to pay for oil and resource purchases from other countries, would that not solve the problem?

I just can't get my head around this. Of course, I'm not an economics professor, either, so maybe some others here could provide some insight.

[RonMN]

it may be slightly "big headed" of us to think that if our economy goes...so goes the world. But for a large portion it is true.
1st of all their people wont buy the crap they sell us...we go into debt for a super-duper-giant-collasal-plasma TV (WOOOOOOOAH)...you think the people making those tv's are that stupid? They will have nobody to sell to and thus loose their jobs. We are also the most charitable nation on the planet so heaven help the next tsunami victims when we're unable to help. Not to mention when the largest currency on the planet deflates like a tire with a hole in it...it will cause a currency crisis of confidence all around the world. Nobody will want to hold paper money of any kind. Basically it'd be like the snowball effect getting larger & larger as it rolls on.
Sorry to sound so drastic...sometimes PO can get to me

[ohanian]

$this->bbcode_second_pass_quote('Zeiter', 'I') just don't get it.

First, let's set down a few givens:

1. Other countries will still have access to energy resources after a major economic crash.
2. Other countries produce things of value.
3. The U.S. produces mainly "green toilet paper."

[smiley]

$this->bbcode_second_pass_quote('', 'I')f you are a country and you produce widgets for sale. To which other country do you sell your widgets to?

Answer: The country which has an insatiable appitite for widgets and willing to pay top dollar for the widget. AMERICA.

If America stop buying your widgets, and other countries do not pay top dollar for your widget, then a lot of your citizen will be out of a job when the widget factories reduce production.

[Kingcoal]

Right now, the US buys and the rest of the world sells. If the US quits buying, then the rest of the world has to figure out what they are going to do to keep their populations busy. It's that simple.

The world economy is the most complicated and fragile thing on this planet. Nations are intertwined through trade. This is something that comes up over and over and over again on this board and it's simple. If your country participates and receives benefit from the world economy, a sick USA might impact your exports. What is so hard to understand about that?

Ok, let's say the USA vanishes. The EU becomes the next most logical place to sell to. The only problem is that the EU is full of exporters and their governments want to support their exporters and curtail their imports. The entire world wants to export - to someone and that someone isn't there anymore.

Yes Virginia, a world without the US is a world full of trade barriers. Don’t believe me? Just look at the latest spat over a US anti-dumping law. The US has a huge trade deficit with everyone in the world. And the world is pissed because some US laws are standing in the way of making that deficit even larger. It’s crazy.

[DriveElectric]

I think the hyperbole is a bit out of control on this topic.
The trade deficit represent about 6% of the US economy. Get rid of Walmart, Toyota, Honda and oil imports and the USA trade deficit is balanced.

Also of those things are likely to happen with Peak Oil.

Japan, Europe and China are all screwed also. There are no winners in Peak Oil.

[PenultimateManStanding]

$this->bbcode_second_pass_quote('Zeiter', ' ')Perhaps the labourers aren't being paid enough to buy their own goods? Perhaps those countries would just need some liquidity injected into their economies?