Love It Or Hate It:

American Supremacy Is Sacrosanct

(Against The Motion)

Presented by:-
1. Benoy Joy Varughese – 14
2. Mansi Pandey – 27
3. Mayank Saxena – 28
4. Neha Soti – 34
5. Prasita Bose - 40
DECOUPLING THEORY OF
EMERGING MARKETS
After the first symptoms of recession of US stock
and other financial markets focus to emerging
markets of Europe and Asia.

Decoupling theory, as the name suggests,

decouple emerging world markets from US
markets.

The strong GDP growth of developing countries

like China and India, their markets remained
bullish even at the time US recession.
DOLLAR FALLS AGAINST OTHER
CURRENCIES

Huge trade deficit of U.S

Low interest rates have turned the dollar into a

"funding currency.
TRADE DEFICIT IN USA
When value of imports are more than value of
exports.
Imports consumer goods from other countries.
Facing fierce competition from India,China and
Japan.
Committed to “free trade”.
Trade deficit in September 2009 increased by
more than 18%.
This Graph shows the U.S. trade deficit / surplus as a percent of GDP
since 1960 through Q3 2008. The trade deficit as a percent of GDP
started declining in 2006, even with the rapid increase in oil prices.
FISCAL DEFICIT OF U.S
US fiscal Deficit is projected at 21% of GDP in
2009.

 US must import $ 1 trillion of foreign capital

 i.e. $ 4 billion every working day

INFLATION
Growth in money supply results in more
substantial increase in domestic
consumer prices.

Affects of inflation- Fall in US real

estate, raise the price of food, housing
and transportation.
CURRENT UNEMPLOYMENT
SCENARIO IN USA

Current unemployment rate: 9.5%

Since the start of 2008, 6.7 million jobs

have been lost, according to the Bureau
of Labor Statistics.
UNEMPLOYMENT RATE
BANKRUPTCY
The number of Americans filing personal
bankruptcies surged 9%

Bankruptcies to exceed 1.4 million in 2009, which

would be the highest since 2005.

Home values lower, interest rates creeping higher

and credit lines reducing, they are being forced to
declare bankruptcy.
POVERTY
Poverty jumped sharply to 13.2% an eleven
year high.

39.8 million residence lived below poverty

line last year.

Recession led to increase economic gap

between rich and poor.
US MILITARY BUDGET-FACTS & FIGURE

The United States spent about $190 billion on

the wars in Iraq and Afghanistan in 2008.
Cost of U.S. Wars Since 2001 :
$932,953,200,000
Cost of War in Iraq : $701,118,005,000
Cost of War in Afghanistan : $231,835,160,000
Still there is no control over the terrorism
spread by a handful of Taliban present in
Afghanistan.
This shows there incapability in controlling
things despite huge budget expenditure.
US MILITARY BUDGET-FACTS &
FIGURE
The Stockholm International Peace Research
Institute produces a list of the top 10 biggest
spenders of military expenditure annually in their
Yearbook publication (for 2009).
U.S. Q3 FORECLOSURES HIGHEST
EVER
Number of filings for foreclosures hit a record high
in the third quarter.

937,840 homes received a foreclosure letter.

One in every 136 U.S. homes were in foreclosure,

which is a 5% increase from the second quarter .

Nevada continued to be the worst-hit state with one

filing for every 23 households.
THE USA VS. THE ENVIRONMENT
The USA drew worldwide criticism for failing to
adopt the Kyoto Protocol which has been accepted
by nearly every other country.
This failure causes hatred not only of the Bush
administration, but of American commercialism in
general.

Carbon Dioxide Emissions of the three biggest polluters:

The USA EU Countries China total

Population of world: 4.6% 6.3% 21% 31.9%

World economy: 30% 23% 3.2% 56.2%
CO2 Emissions: 24% 14% 13% 51%
Source: BBC
THE DEMISE OF THE DOLLAR
In recent Middle East history, Gulf Arabs are
planning – along with China, Russia, Japan and
France to end dollar dealings for oil.
The decline of American economic power linked to
the current global recession was implicitly
acknowledged by the World Bank president Robert
Zoellick.
Brazil has shown interest in collaborating in non-
dollar oil payments, along with India.
The current deadline for the currency transition is
2018.
Iran announced late last month that its foreign
currency reserves would henceforth be held in euros
rather than dollars.
OIL IMPORTS SWELL USA TRADE
DEFICIT
Gap between what the United States imports and what it
exports is widening.
In July, rising oil imports pushed the trade deficit to its
highest point since January.
The trade deficit swelled by a greater-than-expected $4.5
billion to a seasonally adjusted $32 billion in July, as
imports grew at a faster clip than exports.
Trade between the United States and the rest of the
world slowed sharply last year as the recession gained
force.
Higher rates of savings and more cautious spending by
American consumers would limit the demand for foreign
goods.
AFGHANISTAN
•The Taliban now holds a permanent presence in 72% of Afghanistan

82.5
MILITARY VERSUS DEVELOPMENT AID

7.3

Military Development

Figures in U.S.$ billions

THE DOWNFALL OF
AMERICAN
SUPREMACY AND
THE RISE OF BRIC
POWER
BRIC-The stand out economies in an uncertain world

•Prepared for global economic crisis.

•In combination held 41% of global foreign exchange.

•Expected a 4.5 aggregate growth rate.

Brazil- agricultural power
house

• Agriculture sector is one of the most competitive in

world.

• Largest exporter of beef and poultry.

Brazil- GOLDMAN SACHS REPORT

• FOREX RESERVS 105$ BILLON

• AVG GDP 1999-2007 6.9%
• 25% SAVINGS OF GDP
• AVG 4% GDP GROWTH RATE PROJECTION FROM
2006-2050
 RUSSIA

• High resources of oil.

•Managed to modernize key section of

economy.

•Better prepared to withstand global

recession.
RUSSIA GOLDMAN SACHS REPORT

• GDP RISE AVG 6.8% 1999-2007

• FOREX RESERVES 434$ BILLION
• 10% SURPLUS OF GDP
• PROJECTION OF ANNUAL GDP
2006-2050 AVG 4%
 INDIA

• Increasing serviceS, exports and foreign

investment.

• Focus on education and literacy.

•Good financial system.

 INDIA GOLDMAN SACHS REPORT

GDP GROWTH RATE FROM 2003 AND 2007 -8%

RISE OF FINANCIAL SECTOR
BACKUP OFFICE OF THE WORLD
THE GOLDEN QUAD
LAND FACTOR
35% SAVING OF GDP
271$ BILLION OF FOREX RESERVE
AVG INCREASE GDP 2006-2050 AVG 6%
CHINA

Comprehensive reforms in the

financial and corporate sectors.

Focus on industrial exports.

Monetary transparency.

$586 to be spend on housing, roads,

railways, and airports.
CHINA GOLDMAN SACHS REPORT

• AVG GDP GROWTH RATE 1978

-2007 9.6%
• TRADE SURPLUS
• HUGE FOREX RESERVES
585$ BILLION STIMULUS IN
RECESSION
• AVG GDP FORCAST 2006-2050 -
4.5%
• WILL SURPASS US ECONOMY 2027
 BRIC-The stand out economies in an uncertain world

SOME OF THE FACTS ABOUT BRIC

• INDIA ACCOUNTING 15% OF WORLD GOLD DEMAND
• 43% OF WORLD TOTAL POPULATION
• CHINA 40% OF WORLD CONSUMER OF COTTON
• WILL TAKE OVER G7 COUNTRIES IN THE NEXT DECADE
• BIGGEST AUTOMOBILE INDUSTRY IN CHINA
• TOP GLOBAL PRODUCER OF ETHANOL
 CONCLUSION
 CHINA’S CURRENT G.D.P STANDS
OUT AT $6 TRILLION.
 UNIFICATION OF EUROPE.
 RUSSIAN ECONOMY STANDS AT
$1.5TRILLION.
 INDIAN ECONOMY STANDS AT
$1.3TRILLION
INCREASING DEBT OF AMERICA
AND HUGE TRADE DEFICIT