| The winds of recession and financial woes are | | | | have achieved a better lot through trade. If these |
| blowing and America's strategic position is in peril. A | | | | opportunities are choked a return to the traditional |
| period of relative peace the world enjoyed from | | | | ways of conquest such as by war becomes more |
| World War 2 up to the 90's wasn't due to America's | | | | attractive. Protectionism and dwindling trade means |
| military might. Squabbles over markets, expansion of | | | | less growth for the developing countries. National |
| empires to build markets, prowling for resources and | | | | debts will pile up, defaults will become common with |
| raw materials had plunged the world into world wars. | | | | heavy consequences for the international banking |
| Following the last war America began to stand up for | | | | system. Developing countries may abandon |
| and encouraged a world that respected sovereignty, | | | | democratic freedoms and severe and repressive |
| a culture which rewarded work and fair exchange of | | | | governments may ride in. America has been the |
| goods and services. The Europeans were pressured | | | | anchor of the of the world's free-market economies. |
| to de-colonise and GATT was established alongside a | | | | It is incumbent upon America as the pre-eminent |
| stable system of currency exchange. These actions | | | | powerhouse to rein the rules for progress and |
| led to huge growth in world trade, finance and | | | | growth and not to put up tariff and other walls as |
| banking. Through the 50's and 60's the US was the | | | | these would then cause others to retaliate similarly |
| dynamo that hastened economic development and | | | | and thus force a replay of past depressions and |
| many countries bloomed from US investments. | | | | even a return to wars to settle things. |
| By the early 1970's South East Asia became seething | | | | Commercially an inward looking approach can cause |
| with it's own economic engines and the word 'tigers' | | | | the US billions of dollars per annum particularly as the |
| was coined. These economic waves changed the | | | | countries of South East Asia which have come to be |
| views of other nations. China which used to be a | | | | called the Asian Tigers embrace every sphere of |
| spoiler slowly realised that closed doors for her would | | | | activity that used to be the domain of the US only. |
| only lead to stagnation and financial backwaters. Much | | | | Asian governments hold up to 40% of the world's |
| of the Third World began to rethink their policies. | | | | total foreign exchange reserves with the bulk of |
| Once infatuated with socialism more and more Third | | | | them in U. S. -dollar assets. But with the emergence |
| World nations began to open their doors to trade | | | | of the euro things can change dramatically. Some |
| and investment. Thus the US became a catalyst for | | | | nations, especially China have begun to switch their |
| these countries to slowly move towards modern | | | | reserves from the US dollar to the euro. Estimates |
| societies with technological and other skills. | | | | have it that up to 1 trillion could migrate from the |
| But concerned voices out of Washington have been | | | | dollar to the euro. Consider Europe's ambitions to a |
| decrying trade imbalance, job losses, budget deficits | | | | global role commensurate with it's economic clout it |
| and a clamour to put up barriers to America's | | | | wouldn't be long when a huge chunk of the world's |
| markets. This would be fatal and halt the | | | | reserves will be in euro. This European single currency |
| advancement of the free-market oriented developing | | | | is creating a huge new capital market of great |
| nations. It would signal that the model provided | | | | significance for Asia. Fund raising, mergers, acquisitions |
| through the 50's and 60's that made for peace and | | | | and corporate refocussing doors have suddenly come |
| growth is no longer an available option and trigger a | | | | flung open and which Asia feels would be foolish to |
| downward spiral of the world economy. Is America | | | | ignore. |
| to abandon the contest between free market | | | | For the man in the street in America one door of |
| democracies versus controlled and alternate | | | | abundance and prosperity is to look to Asia instead |
| ideologies? This will have disquieting consequences for | | | | of wrapping oneself up with the bandages of every |
| the rest of the world. For sixty years peace and | | | | financial prescription back home. |
| political boundaries were possible because peoples | | | | |