No. of Recommendations: 3
I read sometime last year that various entities are looking to switch to Euros. ... But for many other things the US has become unreliable, and leadership inept. Hence the talk about switching to Euros for a lot of international activities.
It is a mistake to let politics -- or the current news cycle, or emotion -- drive your investing. Or "talk".
In terms of GDP, #1 is USA at $30.6T, China is #2 at $19.4T, and #3 is $5T. So it's US, China, and a couple hundred also-rans.
It won't stay this way forever, but it likely will stay this way far past our grandchildren's granchildren's lifetimes.
Interestingly, the top GDP per Capita is Monaco. Hats off to Jim.
Here's what google AI coughed up:
"The U.S. share of the global GDP is around 24% to 26% by nominal value, making it the world's largest economy"
"The U.S. share of global trade fluctuates but remains significant, ranking as a top global importer and exporter of goods,
In recent years (e.g., 2022/2023), the U.S. was the world's leading goods importer and second-largest goods exporter (after China)
Goods Trade: The U.S. is a dominant force, often ranking #1 in imports and #2 in exports of goods globally.
Services Trade: The U.S. is a leading exporter and importer of services, running a surplus in this sector.
Trade-to-GDP Ratio: The U.S. has a lower trade-to-GDP ratio (around 27% in 2022) compared to the global average (around 63%), indicating less reliance on trade relative to its economy's size than some peers.
Overall Position
Despite its massive trade volume, the U.S.'s share of total world trade has slightly declined over decades due to rapid growth in developing economies, but it remains a pivotal player.
In Summary: The United States is a major global trader, holding leading positions in importing and exporting goods, and leading in services,"
Read that bit again: "The U.S. is a dominant force [in international trade], often ranking #1 in imports and #2 in exports of goods globally."
Buyers dominate trade, sellers can't sell unless buyers buy. EVERYBODY sells to the US, if the US stopped or cut down buying it would decimate many countries' economies.
On the flip side, evidently everybody wants to buy what the US is selling.
I saw a bit of surprising (to me) news yesterday.
"Southwestern Arkansas has emerged as a premier U.S. lithium hub, estimating 5 to 19 million tons of lithium in brine within the Smackover Formation.
The 5–19 million tons of lithium reserves could position the region as a leading global supplier"
Go Razorbacks!
Also:
"Foreign countries own roughly 25-30% of the total U.S. government debt"
"Why Foreigners Buy Treasuries:
Safety: Backed by the U.S. government's promise ("full faith and credit").
Liquidity: The U.S. Treasury market is massive and easy to buy/sell.
Reserve Currency: Used by central banks for their foreign exchange reserves.
"
