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Why the down fall of US economy affecting the economy of the whole world?
By Rose | August 24, 2008
Sidd S asked:
my dear economists,many says that the down fall of US economy will affect the economy of many nations, the rise in the cost of many commodities is the manifestation of declining economy of US ,But is that true? if yes how it could be so?
Chad
my dear economists,many says that the down fall of US economy will affect the economy of many nations, the rise in the cost of many commodities is the manifestation of declining economy of US ,But is that true? if yes how it could be so?
Chad
Topics: US Economy | 2 Comments »
August 26th, 2008 at 9:23 am
Yes, it is true. This old saying is still true, “if the American economy sneezes, the rest of the worlds economy catches the flu”.
August 26th, 2008 at 2:32 pm
If the MOTHER (of all economies) falls sick,all members are affected adversely,though in varying degrees. However,the rise in cost of many commodities is basically due to supply side problems the world over and not due to or by USA.By the way,inflation has little to do with slowing down of American economy and is right now a global phenomenon and shall hopefully get corrected over a period of time.Note:- it’s old habit of some countries/people to point finger towards America for any serious trouble anywhere in the world ,when they either don’t understand the causes or want an escape goat.