America Loses Its Dominant Economic Role

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Submitted by SD Transplant on October 1, 2008 - 8:31am

Unfortunately/Fortunately, the MM over the pond sees things clearly and accurately. We're too distracted by political campaing here, and only a big bailout mess turns American's attentions (piggs not included) to what's important. The overly used pharase "it's the economy stupid" hasn't been more important.

"The banking crisis is upending American dominance of the financial markets and world politics. The industrialized countries are sliding into recession, the era of turbo-capitalism is coming to an end and US military might is ebbing. Still, this is no time to gloat.

There are days when all it takes is a single speech to illustrate the decline of a world power. A face can speak volumes, as can the speaker's tone of voice, the speech itself or the audience's reaction. Kings and queens have clung to the past before and humiliated themselves in public, but this time it was merely a United States president.

Or what is left of him.

George W. Bush has grown old, erratic and rosy in the eight years of his presidency. Little remains of his combativeness or his enthusiasm for physical fitness. On this sunny Tuesday morning in New York, even his hair seemed messy and unkempt, his blue suit a little baggy around the shoulders, as Bush stepped onto the stage, for the eighth time, at the United Nations General Assembly......

"Well," Brazilian President Luiz Inacio "Lula" da Silva began, standing outside the General Assembly Hall. Then he looked out the window and said: "He decided to talk about terrorism, but the issue that has the world concerned is the economic crisis." Cristina Fernández de Kirchner, the president of Argentina, said that the schoolmasters from Washington had dubbed the 1994 Mexican crisis the "tequila effect" and Brazil's 1999 crisis the "Caipirinha effect."

Is it only President George W. Bush, the lame duck president, whom the rest of the world is no longer taking seriously, or are the remaining 191 UN member states already setting their sights on the United States, the giant brought to its knees? UN Secretary General Ban Ki Moon referred to a "new reality" and "new centers of power and leadership in Asia, Latin America and across the newly developed world." Are they surprised, in these new centers, at the fall of America, of the system of the Western-style market economy?

"The partnership with the United States," the chancellor insisted again and again, "has a very special meaning for us Germans."

There was no mention of loyalty and friendship last Monday. Merkel stood in the glass-roofed entrance hall of one of the German parliament's office buildings in Berlin and prepared her audience of roughly 1,000 businesspeople from all across Germany for the foreseeable consequences of the financial crisis. It was a speech filled with concealed accusations and dark warnings.

Merkel talked about a "distribution of risk at everyone's expense" and the consequences for the "economic situation in the coming months and possibly even years." Most of all, she made it clear who she considers the true culprit behind the current plight. "The German government pointed out the problems early on," said the chancellor, whose proposals to impose tighter international market controls failed repeatedly because of US opposition. "Some things can be done at the national level," she said, "but most things have to be handled internationally."

Merkel had never publicly criticized the United States this harshly and unapologetically. In this regard, she enjoys the wholehearted support of her coalition government partner, the center-left Social Democrats (SPD). In a speech before Germany's parliament, the Bundestag, Finance Minister Peer Steinbrück of the SPD spoke of the end of the United States as a "superpower of the global financial system."

The banking crisis in the United States has shaken many things in recent days, not just the chancellor's affection for America and the respect the rest of the world once had for the US as an economic and political superpower. Since the US investment bank Lehman Brothers plummeted into bankruptcy two weeks ago, the financial crisis has developed a destructive force of almost unimaginable strength. The proud US investment banks with globally recognized names like Merrill Lynch and Goldman Sachs have all gone bankrupt, been bought up or restructured. The American real estate market has essentially been nationalized. And the country's biggest savings and loan, Washington Mutual, has failed and been sold at a loss.

**** more to read at the link below

http://www.spiegel.de/international/worl...

Submitted by Blogstar on October 1, 2008 - 10:02am.

Paybacks are a bitch...

Submitted by patientlywaiting on October 1, 2008 - 10:59am.

We are focused on Iraq, while the rest of the world moved on long ago and is focusing on economics and productivity.

Like Tom Friedman said, the war on terror is making us stupid.

Submitted by kewp on October 1, 2008 - 11:05am.

Can someone tell me who is new super power then?

China? Japan? India?

England? Germany?

Last I checked they are all having the same; if not worse problems than we are.

Submitted by SD Transplant on October 1, 2008 - 12:19pm.

Kewp,

I see you're looking for a specific country to replace ours immediately, yet I don't think one could give you the answer. However, I believe the main point of this is bigger. A vacuum left in leadership or respect in the financial international market/system, which the US use to command, will yield a smaller piece of the existing financial pie. Also, pressures from China, Russia, and other OPEC members or countries to find a better international valuation currency could shift things even faster in our fall from grace. Our country has less leverage in negotiations since we're full of debt, credit rating agencies are worthless, banks are in the situation we know, recession is immenent, and the system as a whole is questionable.

I guess the PERCEPTION and the FREE MARKET concept that is founded on TRUST or the lack thereof is the bigger point here.

Submitted by goldfish on October 1, 2008 - 4:45pm.

I don't feel perception has that much power. The decline in finance industry is a good thing in the long run because any leading country that became too reliant on the finance will decline rather rapids after the peak. More talent moving to diversified domains will help slow down the decline.

Submitted by hipmatt on October 1, 2008 - 7:25pm.

I agree that we have lost our lead in the financial world, but it hasn't sunk in yet... the world still looks up to us, and thinks we can pull this off. We are last years New England Patriots... virtually unstoppable. We are Rome before the fall.

Once everyone figures things out, the dollar will fall drastically. In my amazement, the dollar has rallied lately. Expect a huge dollar decline when its common knowledge.

Submitted by stockstradr on October 1, 2008 - 8:38pm.

Well, Jim Cramer just said on CNBC the following:

"A big BOO-yaaah back to you. The dollar? Oh, well, the dollar has bottomed now. You should buy dollars. you HEARD it HERE: buy dollars!"

Well, now I feel so relieved. Cramer has spoken.

Submitted by 5yearwaiter on October 1, 2008 - 9:26pm.

kewp wrote:
Can someone tell me who is new super power then?

China? Japan? India?

England? Germany?

Last I checked they are all having the same; if not worse problems than we are.

As per some great author's(don't know the real name but wrote some book name called The Executive Order something like that)Prediction is China + IraQ and India would emerge as biggest front. I was surprised when I read this about 5 years back. Now seems to me that book predictions are getting clear!! - well in that book the countries names couldn't described well except the culture and the geographical interpretions done.

Submitted by DWCAP on October 1, 2008 - 9:51pm.

5yearwaiter wrote:
kewp wrote:
Can someone tell me who is new super power then?

China? Japan? India?

England? Germany?

Last I checked they are all having the same; if not worse problems than we are.

As per some great author's(don't know the real name but wrote some book name called The Executive Order something like that)Prediction is China + IraQ and India would emerge as biggest front. I was surprised when I read this about 5 years back. Now seems to me that book predictions are getting clear!! - well in that book the countries names couldn't described well except the culture and the geographical interpretions done.

The book is Executive orders, the follow up to debt of honor, which predicts a version of 9/11 in 1994. (not really a prediction, just an interesting idea. A Kamakasi jet attack by a Japanese on the capital.

BTW, it is by TOM CLANCY.

Submitted by tangouniform on October 2, 2008 - 7:14pm.

Who's going to come out as the new Empire? I think that the answer will not be a country but rather a culture.

Thinking outside the box, the reason the ole USofA has been so powerful is not that we're a country so much as an engine (or culture) of change. We've exhausted our energies with abstracts lately and are now sputtering. Do you think that a mere country is going to move into the vacuum that we've created? Not likely! Too many countries hitched their wagons to our star and are now as bad off (if not worse) than we, the USofA are.

The survivor in this collapse will be the people who recognize that their labor, not pieces of paper nor bits in an clearinghouse computer, comprise their worth. We're now discovering that we've conned billions of people out of their lives' breath for promises never to be kept. Money is trust and the trust has been breached by the continual dilution of said trust.

Submitted by bsrsharma on October 2, 2008 - 8:30pm.

Parents Give Up Youths Under Law Meant for Babies

OMAHA — The abandonments began on Sept. 1, when a mother left her 14-year-old son in a police station here. By Sept. 23, two more boys and one girl, ages 11 to 14, had been abandoned in hospitals in Omaha and Lincoln. Then a 15-year-old boy and an 11-year-old girl were left.

The biggest shock to public officials came last week, when a single father walked into an Omaha hospital and surrendered nine of his 10 children, ages 1 to 17, saying that his wife had died and he could no longer cope with the burden of raising them.

In total last month, 15 older children in Nebraska were dropped off by a beleaguered parent or custodial aunt or grandmother who said the children were unmanageable.

Officials have called the abandonments a misuse of a new law that was mainly intended to prevent so-called Dumpster babies — the abandonment of newborns by young, terrified mothers — but instead has been used to hand off out-of-control teenagers or, in the case of the father of 10, to escape financial and personal despair.

The spate of abandonments has prompted an outcry about parental irresponsibility and pledges to change the state law, which allows care givers to drop off children without fear of prosecution. But it has also cast a spotlight on the hidden extent of family turmoil in the country and what many experts say is a shortage of respite care, counseling and especially psychiatric services to help parents in dire need.

Some who work with troubled children add that economic conditions, like stagnant low-end wages and the epidemic of foreclosures, may make the situation worse, adding layers of worry and conflict.....

http://www.nytimes.com/2008/10/03/us/03o...

Submitted by Aecetia on June 11, 2012 - 1:56pm.

"The idea that the 2012 election in the United States will be decided by the actions of a handful of leaders in Europe is gaining traction. Fast.

http://www.washingtonpost.com/blogs/ezra...

Submitted by flu on June 11, 2012 - 2:00pm.

Aecetia wrote:
"The idea that the 2012 election in the United States will be decided by the actions of a handful of leaders in Europe is gaining traction. Fast.

http://www.washingtonpost.com/blogs/ezra-klein/post/its-the-economy-dummkopf-wonkbook/2012/06/11/gJQA0SESUV_blog.html

Or the 2012 election in the United States will be decided by the acdtions of China is gaining even more traction...

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