the opinionist

Recent stock market declines, an ever-weaker Dollar, and an increasingly loud chest beating by nations beyond the U.S.’s rapidly shrinking sphere of influence suggests one disheartening but rapidly apparent reality. We are witnessing the rapid decline in global dominance - the unipolar / hyper-power world - of the United States of America and the emergence of true economic and political globalization kicked into high gear by the new economic superpowers: China, Europe, India, Brazil, the Middle East and Russia.

Will the U.S. face the same demoralizing economic and political malaise suffered by Great Britain at the end of the Second World War through to the late Seventies? The unwinding of a global power. The instability of second-guessing, political introspection and economic lethargy? It appears the U.S. economy can survive thanks entirely to the stunning success of globalization and the explosion in growth of the new economic powerhouses - Brazil, Russia, India and China. This quarter’s earnings announcements by U.S. corporations almost entirely reflect massive profits in these overseas markets buffering the less than appetizing decline in the performance of the U.S. economy. The U.S. economy - however - is going to the crapper at a fast and furious pace.

The U.S. Dollar used to enjoy status of safe haven during bouts of global insecurity but no longer. The U.S. Dollar is trading at record lows against the European powerhouse Euro, the Japanese Yen and, embarrassingly, even against the bloody Canadian Dollar! What gives?

Politically - the U.S. is extremely weak, thanks to the decline in its global stature and the criminally incompetent policies and actions of the Bush administration. The domestic political bickering, presidential posturing and introspective navel-examining self-criticisms of political leaders within the mechanisms of U.S. politics are keenly watched and enjoyed by the growing list of nations sharing common grudge against decades of U.S. bravado, meddling and general buffoonery. Russia, Iran, Syria, Venezuela, China, Cuba, France but to name a few nations enjoying the spectacle of U.S. political despair.
It seems our political statesmen are hanging their dirty laundry in full view of the neighbors and it is further unhinging a global reputation already in crisis mode.

Economically - the U.S.’s decades old policy of bankrolling disgusting amounts of money on the backs of foreign governments happy to enjoy the benefits of the world’s strongest economy has finally come to an end. The U.S. economy is barely growing and soon lose the status of ‘world’s biggest economy’ to the Chinese and then the Republic of India much sooner than anticipated. Those nations that used to purchase U.S. debt (U.S. assets including treasury bonds) are now rather keen to place their money in better performing markets with higher growth rates and faster returns. As a result, the credit boom is coming to a sticky end, the U.S. debt is being dumped on the open markets and the U.S. Dollar’s luster is starting to tarnish.
The media is reporting that New York City is no longer the world’s financial market place. It appears London is now the place to reside for the global financial institutions - thanks in no small part to less red tape, a healthier tax rate and, most importantly, better access to the new economic dynamo markets in the Middle East and Asia. Not good at all!

Perhaps the end of a unipolar world dominated by an increasingly unwanted and disliked United States might not be a bad thing - for the United States! Screw the ambitions of the world community anyway!. From a purely selfish perspective - the U.S. can stop bankrupting itself with the global policeman act. It can better focus on what it is the very best at!. A beacon for freedom, innovation and righteousness. I don’t mean this to sound quite as corny is it appears. Why not level the playing field for all those nations so eager to grab the limelight on the world stage. Let’s ponder an effort to rebuild the United Nations to fix those many disturbing problems we all face. One shared effort and, more importantly, one shared cost!.

Perhaps when our beloved political shmoes in D.C. realize that the U.S. lost in terms of global prestige - they might fix our broken Government, restore its credibility in the eyes of the common citizen, and replace the world’s vision of the U.S. from unilateral opportunist wielding a big stick and a cage in ‘Gitmo’ to that ’shining city upon a hill’ that embodied everything great about this nation in the eyes of those seeking freedom and possibilities.

Posted on July 26th, 2007 under BRIC, Bush, China, Chávez, Global Policeman, India, London, Middle East, Multipolar, New York City, Putin, Russia, UN, US Dollar, Unipolar, Venezuela •  Email This Post • RSS 2.0 feed • Leave a response, or trackback