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While Britain stagnates, America is roaring back
Five years after the start of the Great Recession, America is fast recovering its might
51 CommentsDaniel W. Drezner 29 June 2013
Predicting the decline of the United States has been in vogue since the birth of American hegemony. Sputnik, Vietnam, stagflation, budget deficits, trade deficits and even the end of the Cold War all triggered predictions of the end of America. With the 2008 financial crisis, however, there seemed to be a sense that this time was different. Tomes with titles like The Post-American Worldand The End of Influence began to appear on bookshelves. Germany’s finance minister confidently predicted that the United States was entering its last days as a financial superpower. Serious commentators spoke about how a ‘Beijing consensus’ would supplant the ‘Washington consensus’. America looked as if it would disappear in a vortex of debt.
Fast forward to this year, and a funny thing has happened to American influence — it’s unbowed. The very suggestion that America may be strong enough not to need quantitative easing sent global financial markets into spasm last week. If America was coming off life support, then the subsidies for all kinds of financial packages would end. As one financial strategist told theNew York Times, ‘The Fed isn’t just the US’s central bank. It’s the world’s central bank.’ This point was not lost in Britain, where government borrowing costs surged. It’s said that when America sneezes, Britain catches a cold. But even as America gets better, Britain can remain ill.
What is your point, mazHur Butt?
