Global financial turmoil and the United States
Owing to the financial turmoil that has unsettled global markets and put a squeeze on credit, a valid question arises: who will be the winners and the losers?
I do not believe that we are going to head for a 1930-type depression. However, I cannot fail to recognize a parallel with what happened with the demise of the Soviet Union in the early 1990s and the United States today. Certainly both are two different cases but they share something in common: their fall from grace as the strongest economic (USA) and military power (USA/USSR) in the world.
You do not have to be an economist to understand that a debt of $10 trillion is untenable to keep financing costly war efforts abroad. Iraq alone is costing the US taxpayers close to $1 trillion.
So what does this all mean? It means that the economic power of the US will shift to Asia (China) and to Europe at the cost of the former. So, President George W. Bush is not only responsible for plundering the country into a war in Iraq, but causing the demise of the Untied States as the strongest economic power on Earth.
The November 4 presidential elections will be a watershed for the future of the United States. It can chose the same path (McCain) or a new one (Obama). Probably one of the scariest things about the new path is that we do not know what it is.