Switzerland Topples the U.S. as Most Competitive Economy: WEF Study

Switzerland has knocked the United States off its position as the No. 1 most competitive country in the world as the U.S. banking system crash left the country more exposed to some long-standing weaknesses. A report released by the World Economic Forum showed economies with a large focus on financial services such as the USA, Britain or Iceland were the big losers of the crisis. The US slipped to second place for the first time since the introduction of the index in its current form in 2004. It is important to note that the study found trust Swiss banks have also declined, but in terms of soundness, it ranked 44th. The U.S. fell to 108, right behind Tanzania. Wow. That's a major fall.

The WEF bases its assessment on a range of factors, key for any country to prosper. The index includes economic data such as growth but also health data or the number of internet users. The study also factors in a survey among business leaders, assessing for example the government's efficiency or the flexibility of the labor market.

The WEF applauded Switzerland for its capacity to innovate, sophisticated business culture, effective public services, excellent infrastructure and well-functioning goods markets. The Swiss economy dipped into recession last year, too and had to bail out its largest bank UBS. But its economy is holding up better than many peers and most banks are relatively unscathed by the crisis, which drove U.S. banks into bankruptcy.

The WEF said the U.S. economy was still extremely productive but a number of escalating weaknesses were taking its toll. Concerns were growing about the government's ability to maintain distance to the private sector and doubts rose about the quality of firms' auditing and reporting standards, it said. Source: Reuters

It is interesting to note that the report showed the leading emerging markets Brazil, India and China improved their competitiveness despite the crisis. Of course, that doesn't come as a surprise, especially where China and India are concerned, since they have been the biggest recipients of outsourcing from the U.S.

China and Russia say NO to U.S. Dollar's domination

Zhou Xiaochuan, governor of the People's Bank of China, has made a proposal that the U.S. dollar no longer be the world's standard currency:

"Moving to a reserve currency that belongs to no individual nation would make it easier for all nations to manage their economies better, he argued, because it would give the reserve-currency nations more freedom to shift monetary policy and exchange rates. It could also be the basis for a more equitable way of financing the IMF, Mr. Zhou added. China is among several nations under pressure to pony up extra cash to help the IMF." Source: Wall Street Journal

This should come as no surprise to the U.S., considering that our avoidable economic crisis has sent shockwaves throughout the world economy. The message is clear:

Dear United States,

We have no intention of continuing to foot the bill for your fiscal irresponsibility. However, we will continue to buy your debt as you scramble to say afloat. And one day when you come knocking for more money, the answer will be NO. At that point we will have no choice but to start the biggest fire sale in history.

Sincerely,

The People's Republic of China

China and Russia say NO to U.S. Dollar's domination

Zhou Xiaochuan, governor of the People's Bank of China, has made a proposal that the U.S. dollar no longer be the world's standard currency:

"Moving to a reserve currency that belongs to no individual nation would make it easier for all nations to manage their economies better, he argued, because it would give the reserve-currency nations more freedom to shift monetary policy and exchange rates. It could also be the basis for a more equitable way of financing the IMF, Mr. Zhou added. China is among several nations under pressure to pony up extra cash to help the IMF." Source: Wall Street Journal

This should come as no surprise to the U.S., considering that our avoidable economic crisis has sent shockwaves throughout the world economy. The message is clear:

Dear United States,

We have no intention of continuing to foot the bill for your fiscal irresponsibility. However, we will continue to buy your debt as you scramble to say afloat. And one day when you come knocking for more money, the answer will be NO. At that point we will have no choice but to start the biggest fire sale in history.

Sincerely,

The People's Republic of China

Is the U.S. Government Going to Buy Chinese Condoms With Stimulus Funds? The Move to End Jobs at Alabama's Alatech

So, it seems that the heparin scare wasn't enough to deter the United States from trusting China with things we hold dear. According to McClatchy's D.C. Bureau, at a time when the federal government is spending billions of stimulus dollars to stem the tide of U.S. layoffs, should that same government put even more Americans out of work by buying cheaper foreign products?

Guess what's next? Chinese condoms. The government is switching to cheaper off-shore condoms, including some made in China. The move will reportedly cost 300 American at the U.S. Agency for International Development, which has distributed an estimated 10 billion U.S.-made AIDS-preventing condoms in poor countries around the world.

The government is close to accepting condoms from two offshore companies: Unidus Corp., which makes condoms in South Korea, and Qingdao Double Butterfly Group, which makes them in China. Funny, we experienced bird Flu from the Chinese, e.Coli, heparin scare, inferior quality of products and we are going to trust them with condoms? Get ready for more problems.

To read the entire article, CLICK HERE.

Is the U.S. Government Going to Buy Chinese Condoms With Stimulus Funds? The Move to End Jobs at Alabama's Alatech

So, it seems that the heparin scare wasn't enough to deter the United States from trusting China with things we hold dear. According to McClatchy's D.C. Bureau, at a time when the federal government is spending billions of stimulus dollars to stem the tide of U.S. layoffs, should that same government put even more Americans out of work by buying cheaper foreign products?

Guess what's next? Chinese condoms. The government is switching to cheaper off-shore condoms, including some made in China. The move will reportedly cost 300 American at the U.S. Agency for International Development, which has distributed an estimated 10 billion U.S.-made AIDS-preventing condoms in poor countries around the world.

The government is close to accepting condoms from two offshore companies: Unidus Corp., which makes condoms in South Korea, and Qingdao Double Butterfly Group, which makes them in China. Funny, we experienced bird Flu from the Chinese, e.Coli, heparin scare, inferior quality of products and we are going to trust them with condoms? Get ready for more problems.

To read the entire article, CLICK HERE.