Will the US debt and economic decline affect boxing financially?
US is dealing with a huge bankruptcy! Foreign investments is an all time high. Japanese cars have now outsold American cars in US alone and owns 23% of the US treasury. US owes China trillions of dollars and the US deficit has reached passed $10 Trillion, the highest in the world. Russia and Germany (Volkswagen,BASF,BOSCH, BMW etc) are doing better than the US financially and Korea recently became one of the top producers of technology (samsung, toshiba,LG, Hyundai,Etc).
I'm from the US but I can't deny China is freaking scary. I have a degree in computers but i invest heavility in micro chips and other technological innovations here in themSilicon Valley. China own 60% of the world's largest corporations in the top 10. Their surplus of $3 plus trillion is enough to buy the entire economy of Britiain. Plus they almost owe no money to anyone except the world owes them. The US is officially in a recession. How would our economic woes affect boxing's future?
- Anonymous9 years agoFavorite Answer
I agree China is scary. Most products in the US is owned by China. China have a huge financial investment in the US. I saw it in the news that China has the largest financial investment in the US larger than all European nations combined. Now that's saying something! Plus US is in a debt crisis and lost of it is owed to China.
US decline was expected. No country can stay on top. Even the Persians, Mongols, Assyrians, Aztecs, British,Spanish Armada, Germans, Japanese, Romans, and others had to decline to be replaced by US and Russia then China comes in to dominate in the 21st century.
Every country or empire will never stay on top. That's part of life. As far as boxing of course the consumers will be affected by the decline of US economy so maybe payperview buys will be down and purchase of boxing products may also decline. I know everlast and Reyes products have declined due to the low amount of purchases. So we are all affected by this economic decline!
- Cali dLv 69 years ago
It won't effect boxing at all. Look at other American sports. Athlete's are making record amount of money in their salaries.
It's a little overblown about the economy, IMO. It's not a great thing, but it's not as bad as they make ti seem.
China depends on America. They need us. Without us, their economy wouldn't be this big. Their economy may be on the rise and are turning into the world's new superpower, but their citizens are still 70% poverty stricken.
- 9 years ago
I admit, China owns our a5535... as does Saudi Arabia.... as does a slew of other countries.
I guess that's what happens when my government illegal engages itself in two needless wars, starts trouble with a third (Libya, but how can we be sure? Who knows how many covert operations this country REALLY has?) And politicians who decided they'd rather grandstand than do what they were elected for, and that's to serve the people who voted them in. 14.3 TRILLION in debt is nothing to sneeze at, folks! The idea that cutting taxes on the top and further taxing the poor and middle class has also been a factor as to why things are the way they are. You don't have enough revenue coming in, you can't pay for your obligations, and have to resort to raising the debt ceiling.
I blame everybody in Washington for this mess. Everybody (save for Bernie Sanders, who's an independent) and the wars, and the housing crunch, AND the Bush-era tax cuts for millionaires and billionaires. Oh well, we're f[_]kt as a country.
- odlanyerLv 69 years ago
There will be an effect no matter what. This will be global. I can't believed that in a few years it turns this way, from having a surplus to losing its credit status. China is the economic force to reckon with in the future if they haven't got it yet.
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- 9 years ago
China aiint scary at all
USA told China in China that owning a Carrier is one thing
but being effective using it in war is another
China say USA dont interfere with Spratley issue
USA say we would support philippine defense on spratley issue
China say stop the military exercise
USA say full speed ahead
.... i think USA is using its military influence for leverage for a deal in that debt
- Anonymous9 years ago
China needs America! We buy their stuff so they get rich off us. Boxing is just fine even with the recession.
- 9 years ago
Easy there buddy don’t let reporters that couldn’t spell macroeconomics gloom and doom you. For one thing Federal governments don’t go into bankruptcy, they go into default and we are not in jeopardy of doing that at all. This is a political issue that has absolutely nothing to do with current market realities as nation states, sovereign funds, institutional investors, corporations and large individual investors world-wide still have a high demand for U.S. Treasury Securities (TS). Here are a few notes to help add clarity to this situation:
1.Japan doesn’t own the U.S. Treasury!- The Dept. of the Treasury is part of the U.S. government (Executive Branch) and is not for sale. As of May Japan owned $912.4B in Treasury securities (TS) which accounts for a little over 20% of FOREIGN HOLDERS of TS with China holding about 27%. The total foreign holding was $4,514B at the end of that period out of a total issuance of around $14T. Of that $14T China (Mainland) and Japan held 8% and 6% respectively. Hey the Philippines held $23.6B
2. The $ is the world currency and TS represents a Riskless asset in financial models around the world- Whether it’s crude, soy beans, cotton, sugar or palladium every single last commodity is based on the U.S. Dollar. To function in markets governments need to hold U.S. Treasury Securities and Currencies. In addition to normal trade, nation states also use TS as investment vehicles and run to them (like ants to sugar) when the world economic picture starts to get shaky. Hence, the U.S. Treasury could sell a whole lot more securities over time than the expected $2T raise in the debt limit.
3. The U.S.A. IS NOT IN RECESSION- Whether it’s the NBER, Federal Reserve, BEA or any other group of economists none will state that the U.S. is in recession. Our gdp growth has been lethargic, but it is still GROWTH.
4. Russia and Germany are not in better shape than the U.S. - Russia is sitting on crude & natural gas reserves that they don’t have the technological ability to efficiently extract so guess who’s over their providing that skill! Russia has had a good run, but their economy is at the mercy of the price of crude and natural gas. Germany (with France) is crapping in their pants as they are attempting to prevent debt contagion and keep the EU together.
5. U.S. corporations started to exit low end technology products (TV, radios, cd players etc.) over thirty years ago. This is why you haven’t been able to find an American made tv’s in about twenty years.
6. China has major issues- Despite their outright theft of world intellectual property they still have major manufacturing and creativity problems to the point of having major industrial “accidents” every other week. It’s easy to grow at 9% gdp when you have an endless supply of cheap labor, don’t float your currency and a U.S. Government that has encouraged (by policy) the movement of manufacturing jobs to China (I’ll leave India out to keep it simple). Why? Because with a population of 1.5B U.S. corporations are licking their chops at potential customers and will do whatever it takes to gain access to their market. A prime example of this is Wal-Mart and their back room deal with China’s gov. forcing most of their product suppliers to manufacture in China for the ability to open stores there. Currently inflation is rearing its ugly head in China so companies are slowly starting to shift their manufacturing to other countries.
- Anonymous9 years ago
if anything, it will meen more fights on basic cable
remember a couple years ago, at the height of the recesasion, there were only like two fights on PPV , everything else was on regulsar cable