“U.S. Economy Up Against A BRIC Wall?” By James Gorrie Was Recently Published In The Absolute Wealth Newsletter

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The Gorrie Details column in the Absolute Wealth newsletter published the “U.S. Economy Up Against A BRIC Wall?” article by James Gorrie to explain about the “BRIC” countries.

The Absolute Wealth Newsletter

The Absolute Wealth Newsletter

The economic center of gravity of the world is shifting toward these rising “BRIC” countries.

The “U.S. Economy Up Against A BRIC Wall?” article by James Gorrie explains that with the rise of emerging markets in recent years, as well as the decline in the U.S. and Eurozone economies in the same time period, some believe that the economic center of gravity of the world is shifting toward these rising “BRIC” countries. It’s no secret that the BRIC countries, (Brazil, Russia, India, and China), are coming into their own, the newsletter reports, but not without some having to overcome serious obstacles along the way.

The Absolute Wealth newsletter advises that risks they all face include the difficulty in evolving their economic models as their economies grow, economic imbalance is one of the largest threats to continued growth among all the BRIC countries, because they are either too dependent upon foreign investment or too one dimensional. Even though many want to see the cumulative consumer markets of the BRICs as a replacement for the huge U.S. consumer market to drive global economic growth, the Absolute Wealth newsletter explains, that each of the BRIC nations are finding that as their economies grow, these new challenges must be met before any of them can claim to be the substitute for the U.S. economy.

China is strongest the newsletter says, and has the 2nd largest economy in the world, where [China’s rising economic and military power will someday rival the U.S. In fact, the newsletter adds, many see the 21st century as the China century. Indeed the newsletter reveals, Eurozone nations are looking to China as a potential financial white knight as the Eurozone economy deteriorates. Even though China’s economy has grown by over 8% for the past decade, it still lacks a large enough consumer market to replace American consumer demand, the newsletter explains.

Brazil faces difficulties the newsletter reveals, and has declared a currency war against the U.S. due to the Federal Reserve’s stimulus policy which has greatly devalued the dollar against the Brazilian real. India the newsletter explains, has the world’s largest democracy and an English-speaking one at that, is the one BRIC nation that has the most in common with the U.S. and the West, plus a population that rivals China’s. The Absolute Wealth newsletter article reports that even though India has a more balanced economy than the other BRICs, with a 55% consumer market as a percentage of GDP, their economy has some deep problems as well. Three main ones are a low GDP, low per capita income rate, and a low savings rate, the newsletter adds.

Russia may be a big nuclear arms player the newsletter explains, but its economy is probably the weakest of the BRICs. This is not just because of their declining and aging population, the newsletter states, which draws capital resources away from growth and investment. Also because the Russian economy is greatly imbalanced toward oil, the newsletter goes on to state, the Russian economy is really an oil-based economy which leads toward unsteady growth and continued volatility in their economy.

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