NationStates Jolt Archive

What would happen if all nations stopped trading with America and America stopped receiving imports of any kind? How would that effect them? Would it help them, harm them or both?

DISCUSS!

Uhm, all of America's suppliers would be out of work.

That would probably include me, since I live in GM Town:Canada, and anything that affects the sales of autos to the US, will affect the entire economy up here.

So, keep consuming America. We rely on your gluttony!

A massive economic depression unrivaled in human history.

If you include oil imports, America would tap into its reserves, which could probably last for all 2 weeks at current consumption levels.

Shortly afterwards, assuming that America doesn't decide to annex oil holding lands like Canada, it would collapse into complete anarchy.

Who knows, maybe a better America would come out of it.

Probably a lot of starvation, because the US imports a lot of the fertilizers and stuff that is used to grow food.

So the Americans won't stop being lazy and start supplying themselves and let themselves fall into starvation? :eek: Geez. Another sad fact is all the most'American' things like TV, cars and hot dogs are almost all imported these days. :( Yup the things that symbolize our culture are made across foreign soil.

First, a time of exorbitant prices and unimagined (by people in the US) scarcity...

Then the entrepreneurs, along with established companies, would realize that "Hey, there's a giant opportunity in manufacturing now!!" and start opening plants all over the place.

It wouldn't take too long before it'd be back to business as usual.

As for the oil, that'd probably be pretty much screwed, but when the alternative is walking, watch how fast those alt fuels would get out of the drawing-board stage!

Everyone in the city would start cannibalising one another.

Everyone in the city would start canabalising one another.

You're just making me hungry.

So the Americans won't stop being lazy and start supplying themselves and let themselves fall into starvation? :eek: Geez. Another sad fact is all the most'American' things like TV, cars and hot dogs are almost all imported these days. :( Yup the things that symbolize our culture are made across foreign soil.

I think I find it far sadder that TV cars and hot dogs are considered symbols of our culture.

Some nations have the Louvre, others Westminster, others the Taj Mahal.

We have oscar freaking meyers.

You're just making me hungry.

Well, of course that wouldn't happen until all the twinkies, slushies and dingdongs were consumed first...but then you'd have a bunch of hungry cannibals hopped up on sugar and transfats. A combination worse than crack....because even crackheads don't gnaw on your ankles.

Well, of course that wouldn't happen until all the twinkies, slushies and dingdongs were consumed first...but then you'd have a bunch of hungry cannibals hopped up on sugar and transfats. A combination worse than crack....because even crackheads don't gnaw on your ankles.

Well, the crackheads that I know do. Sick bastards.

So the Americans won't stop being lazy and start supplying themselves and let themselves fall into starvation? :eek: Geez. Another sad fact is all the most'American' things like TV, cars and hot dogs are almost all imported these days. :( Yup the things that symbolize our culture are made across foreign soil.

It's not a question of being lazy, but a question of how things are set up. Sure, the US could be completely food independent based solely upon its internal markets probably, but to switch over to producing all the stuff needed (agrochemicals and such) as well as the the right food production mix would take probably more time than there are food reserves.

At the very least there would be food shortages.

Hopefully the world would even itself out while America got its shit together.

Hopefully the world would even itself out while America got its shit together.

Nope, they'd collapse just as hard. If anything, they'd be hurt even more since the US imports more from the rest of the world than it exports.

Nope, they'd collapse just as hard. If anything, they'd be hurt even more since the US imports more from the rest of the world than it exports.

Acutally, that's sort of the sixty four billion dollar question of the moment isn't it? (To a lesser extent).

Acutally, that's sort of the sixty four billion dollar question of the moment isn't it? (To a lesser extent).

To a degree. However, there's a lot higher risk to the US and (relatively) less risk to the rest of the world in our real-world economic situation.

If anything, they'd be hurt even more since the US imports more from the rest of the world than it exports.

Yeah, but their total GDP is higher, and they have better access to natural resources.

The US would be fucked over... but the rest of the world might pull through. Eventually.

Yeah, but their total GDP is higher, and they have better access to natural resources.

The US would be fucked over... but the rest of the world might pull through. Eventually.

In the longer term, yes, but given the kind of shock that a sudden 22% dip in world GDP would have, it would take a very long time to recover. And also, much of that GDP is concentrated in a few areas dependent on each other and the US for their trade, so it would have a disproportionate effect on that other 78% of the world economy.

To a degree. However, there's a lot higher risk to the US and (relatively) less risk to the rest of the world in our real-world economic situation.

Yah, that's what people are saying. The rest of the world is growing strongly and can increase consumption to make up for anticipated US shortfalls without too much discomfort &c.

What I'm trying to get a handle on is how true that is. In dollar figures it's probably true. But how much of that production capacity is geared solely/principally for the US market and can't easily be diverted other markets (BRICs)?

I mean, sure, india, china et al. are growing at huge rates, but I don't think they are going to soak up all those extra flat panel TVs, laptops, ipods, that would be floating around if there was a big drop in consumer spending in the US. Their economies just don't generate the GDP per capita yet.

(I'm figuring flat modest growth in the EU).

What I'm trying to get a handle on is how true that is. In dollar figures it's probably true. But how much of that production capacity is geared solely/principally for the US market and can't easily be diverted other markets (BRICs)?

Well, one of the important trends with India and Brazil is that they are developing domestic consumer markets pretty effectively, and that is absorbing a larger share of their production than the export market.

For example, the US runs a trade surplus with Brazil and fairly small deficits India. India also has a strong domestic market that has been growing pretty rapidly in recent years, and the strong growth in the domestic IT field is reducing some of their dependence on foreign offshoring, albeit still only a very small amount.

Now, China and Russia are a completely different story. Russia is dependent on China and the US for buying most of its energy exports, and China's energy demand hinges on US demand for its products. If the US goes, China will suffer a severe recession and Russia will have a similar economic crisis, especially since its economy is very dependent on energy and would be badly hurt by a drop in prices or demand.

I mean, sure, india, china et al. are growing at huge rates, but I don't think they are going to soak up all those extra flat panel TVs, laptops, ipods, that would be floating around if there was a big drop in consumer spending in the US. Their economies just don't generate the GDP per capita yet.

(I'm figuring flat modest growth in the EU).

The EU and Japan as well as the other developed Asian economies will be able to pick up some of the slack, considering they have higher savings rates and by and large far less consumer debt, but they will not be able to pick it up enough to prevent a major slowdown in consumer-related industries worldwide if US spending declines.

Now, in a decade or so I believe the situation will change, especially in India where the domestic market is making huge contributions to their economic performance, but at present the BRIC economies are nowhere near strong enough to survive a drop in US demand for their exports.

The cows will take over.

What would happen if all nations stopped trading with America and America stopped receiving imports of any kind? How would that effect them? Would it help them, harm them or both?

DISCUSS!

Just out of curiousity, what would be the reason that the world would hypothetically stop trading with the US? Cooties?

Just out of curiousity, what would be the reason that the world would hypothetically stop trading with the US? Cooties?Not just Cooties... geneticly altered super Cooties!

You would all start trying to get into Mexico to get jobs as cleaners.

People would have to do real work.

Its hard to say, because I dont live in the US. But considering what happened in New Orleans, one can predict a wave of chaos and looting once basic products like food and water become scarce.

How the population, cops and military would react to it, that is a whole debate I have no information about. If it happens like in New Orleans, the rich would evacuate to places with more avaiable food and ressources, while the poor would stay behind and try to survive on their own.

What would happen if all nations stopped trading with America and America stopped receiving imports of any kind? How would that effect them? Would it help them, harm them or both?

DISCUSS!

A large portion of the food produced in the world comes from America.

I would bet that someone outside of America would starve.

It would also probably trigger a worldwide depression.

Today, major nations are too interconnected by trade and multinational corporations to even think of embargos against each other.

Just a ripple in China's market a few weeks ago triggered a massive sell-off worldwide.

It would be like putting a shotgun to your head and firing a shot, just because you didn't like the way your shoes looked.

An embargo on America? The world would be thrown into chaos. Welcome to WWIII.

I think I find it far sadder that TV cars and hot dogs are considered symbols of our culture.

Some nations have the Louvre, others Westminster, others the Taj Mahal.

We have oscar freaking meyers.

One nation has the Louvre. One has Westminster. One has the Taj Mahal. We've got the Corn Palace. And Carhenge. :)

Even in countries where the US has placed an embargo, those nations still seem to want US goods.

Take North Korea for example - the Dear Leader wants his liquor, porn, smokes...

The economy would crumble, but soon enough we'd rebuild factories and such, take the oil we need, and drill anywhere needed. You mean isolationism, sanctions, blockades, etc.?

The economy would crumble, but soon enough we'd rebuild factories and such, take the oil we need, and drill anywhere needed. You mean isolationism, sanctions, blockades, etc.?

Probably not "soon enough". It would be the kind of economic destruction that causes civil wars and revolutions.