What happens to the rest of the world if the US economy crashes?

[Lancer]

Lets say the dollar drops like a rock, everyone starts calling in loans to the US and not giving any more. So what happens then?

[Ted Striker]

We're all screwed

[KrazyHorse]

nothning. ****, off, *****.

[Japher]

Magna takes off

German cars become "over priced"

French wine becomes know as "freedom" wine

and Canada takes out a loan

[Geronimo]

economist will tell people it's a bad thing for the world economy as they have when any large country has poor economic performance be it Japan or the US or a bloc like the EU. That's about it. Nothing spectacular beyond the usual economic ripples.

[Riesstiu IV]

I shall emerge from the devastated ruins of Washington DC, start a propaganda blaming Amish Mongolians for all of America's woes and become the next Hitler.

[Skanky Burns]

The price of primary resources drops due to lower demand, which means Australia gets shafted.

[Japher]

Amish Mongolians?

Come on. you are going to need a catagory that fits more than 2 people

how about we persecute CFCers?

or

Gay ppl, much easier, we all hate them any way.

[Riesstiu IV]

That's the whole point you see! While the people are busily looking for Amish Mongolians to persecute, I shall gain more and more power until I become president for life. Also, we’ll need to invade Canada or Mexico for some Lebensraum.

Gay people are ok in my book but they will be forced to dress like pirates and say "Ar, Matey" once a day.

[Japher]

Aren't they already?

[Whoha]

Re: What happens to the rest of the world if the US economy crashes?

Originally posted by Lancer
Lets say the dollar drops like a rock, everyone starts calling in loans to the US and not giving any more. So what happens then?

all of our creditor's debt instantly becomes worthless, so they can no longer rely on it to pull them out of trouble as Japan did.

Any number of countries have set themselves up on the export to America model of economic growth, they are all thusly boned.

theres probably some other bad effects as well.

[Zkribbler]

Somebody wake Imran up! He's our resident econ. major.

[Verres]

Originally posted by Comrade Tassadar
The world converts to communism.

[Agathon]

Not as much as people think. Canada will be screwed. People will just find other countries to swap stuff with.

[Shi Huangdi]

The USA is a major source of demand for the entire world, and so a complete crash of the US Dollar would sent demand for foreign good plummeting, which would be a pretty huge hit for the world economy. On the other hand, US exports would become much cheaper abroad and so they would be able to import comparative disadvantage good from the USA at a much cheaper price.