No doubt that the US is the largest economy, but, it is facing severe challenges and may not sustain this status forever. It is a natural cycle, nations work hard and rose to the peak and rule the other nations, sustain the status quo for various duration, and then for one or another reason starts declining and paving way for other nation to climb the peak and become number one. It is a historic fact, which cannot be denied. One cannot win against nature.
The US has been ruling the world since World War II, and enjoyed supremacy, especially, after the disintegration of the former USSR in 1991, the US enjoyed hegemony as a single superpower in the unipolar world for a few decades.
However, geopolitics has changed, and the US may not have realized, it or is not willing to accept it. But, the ground realities are evident and the US economy is falling sharply and losing its status of unique superpower and supremacy.
Below is the record of bankruptcy in the US:-
1. Victoria’s Secret declared bankruptcy.
2. Zara closed 1,200 stores.
3. La Chapelle withdrew 4391 stores.
4. Chanel is discontinued.
5. Hermes is discontinued.
6. Patek Philippe discontinued production.
7. Rolex discontinued production.
8. The world’s luxury industry has crumbled.
9. Nike has a total of $23 billion US dollars preparing for the second stage of layoffs.
10. Gold’s gym filed for bankruptcy
11. The founder of Airbnb said that because of the pandemic, 12 years of effort were destroyed in 6 weeks.
12. Even Starbucks also announced to permanently close their 400 stores.
13. WeWork isn’t in a great spot either
14. Nissan Motor Co. may close down in the USA
15. Biggest Car Rental Company (Hertz) filed for bankruptcy – they also own Thrifty and Dollar
16. The biggest Trucking company (Comcar) filed for bankruptcy – they have 4000 trucks
17. Oldest retail company (JC Penny) filed for bankruptcy – to be acquired by Amazon for pennies
18. The biggest investor in the world (Warren Buffet) lost $50B in the last 2 months
19. The biggest investment company in the world (BlackRock) is signaling disaster in the world economy – they manage over $7 Trillion
20. Biggest mall in America (Mall of America) stopped paying mortgage payments
21. Most reputable airline in the world (Emirates) laying off 30% of its employees
22. US Treasury is printing trillions to try to keep the economy on life support
23. Estimated no. of retail stores closing in 2020 – 12,000 to 15,000. The following are big retailers that have announced closing: – J. Crew, – Gap, – Victoria’s Secret, – Bath & Body Works, – Forever 21, – Sears, – Walgreens, – GameStop, – Pier 1 Imports, – Nordstrom, – Papyrus, – Chico’s, – Destination Maternity, – Modell’s, – A.C. Moore, – Macy’s, – Bose, – Art Van Furniture, – Olympia Sports, – K Mart, – Specialty Cafe & Bakery, and many more.
Unemployment claims reached an all-time high of 38+ million – unemployment is over 25% (out of 160 million in the workforce, close to 40 million are jobless). With no income, consumer demand is falling drastically and the economy will go into a free fall.
Of course, COVID-19 has adversely impacted the global economy including the US, but, more importantly. The US military operations, misadventures, overseas military bases, unnecessary confrontations, and war craze has cost heavily and harmed its economy severely. Only the miracles can save the US, otherwise, its downfall is under process and declining accelerated.
On the other hand, China is making positive developments, despite COVID-19, and slight deterioration, yet the economic indicators are encouraging. China’s foreign exchange reserves totaled 3.0549 trillion U.S. dollars at the end of August, down 49.2 billion U.S. dollars from July, data from the State Administration of Foreign Exchange showed Wednesday.
“Cross-border capital flows were rational and orderly, and supply and demand in the domestic foreign exchange market remained generally balanced,” said Wang Chunying, deputy director and spokesperson of the administration.
Wang attributed the decrease in foreign exchange reserves to factors including exchange rate conversion and asset price changes. On the global financial market, the U.S. dollar index rises, and the price of global financial assets declines under the influence of monetary policy expectations and the macroeconomic data of major countries.
Deeming the external situation complex and grim at present, Wang said the global financial market registers strong fluctuations amid increasing pressure on the global economy.
China has kept its economy operating in an appropriate range by effectively coordinating epidemic prevention and control with economic and social development while implementing a raft of policies on stabilizing the economy. This helps keep its forex reserves generally stable, Wang added. Its domestic market is huge and can compensate for any loss from the international market. The pace of development within China is huge, which keeps the economy moving on. More companies are appearing in the top 500 fortunes, against the US companies are decreasing gradually.
China is emerging as a role model for many developing nations and is being followed by a few countries. The Chinese model is based on win-win cooperation, no aggression, no war, no occupation, no colonialization, and no interference in other’s domestic affairs. It is a perfect peaceful development model and precedence for the civilized world.
Reference Link:- https://moderndiplomacy.eu/2022/09/22/comparison-of-the-us-and-chinese-economy/