But we are doing it on borrowed money.
The country does not build anything anymore. China owns how much of our money?
Well, far be it from me to not help derail a thread further.
We actually do really good when it comes to exports:
https://www.cia.gov/library/publications/the-world-factbook/rankorder/2078rank.html We're 5th and only a few hundred billion behind China (4th) (ps, I don't know why Germany is called out separate from the EU). So, all is not lost, we're still making and exporting goods.
However, we do import a heck of a lot:
https://www.cia.gov/library/publications/the-world-factbook/rankorder/2087rank.html (as if anyone is surprised by this)
Now, where things start to get dicey is when you look at external debt:
https://www.cia.gov/library/publications/the-world-factbook/rankorder/2079rank.html
And current account balance:
https://www.cia.gov/library/publications/the-world-factbook/rankorder/2187rank.html
Chalmers Johnson states that current account balance "measures the net trade surplus or deficit of a country plus cross-border payments of interest, royalties, dividends, capital gains, foreign aid, and other income. For example, in order for Japan to manufacture anything, it must import all required raw materials. Even after this incredible expense is met, it still has an $88 billion per year trade surplus with the United States and enjoys the world's second highest current account balance. " [1].
Actually, I think Chalmers has some great insights and numbers in the above article. It's the article titled 'Going Bankrupt: Why the Debt Crisis Is Now the Greatest Threat to the American Republic' after the forward in [1].
Without editorializing the article too much, I'll just say that I find the numbers to be simply fascinating once you stop and contemplate them.
Oh, and as far as I remember, China has over 1.3 trillion dollars in reserve. At least, they did in late 2007 [3]. (they were at 1 trillion in 2006 [2]). Again, that's just a number that I find fascinating. It makes me wonder if flooding the currency market in an attempt to cause a dollar collapse would be a viable first strike in war [3] (not that I think that will happen anytime soon).
Anyway, right now, I personally believe that things are not as dire as the pundits predict. However, I think we're going to see some discomfort as housing prices revert to the mean and maybe we will see a recession to cool things off for a while. I'd love it if people took this next year as a time to realize they don't need to live like they are and should start saving more.
[1]
Tomgram: Chalmers Johnson, How to Sink America
[2]
BBC NEWS | Business | China's trillion dollar surplus
[3]
China threatens 'nuclear option' of dollar sales - Telegraph