Wednesday, January 30, 2008

The shift of power and influence away from the USA

The USA is trying to stop the shifting of power to developing world by delaying its economic collapse by excessive borrowing and over consumption. The USA is becoming a failed state due to its flawed policies. Current economic crises are a clear evidence of these policies. Trade and budget deficit are very high which are making it almost impossible for the USA to recover from an economic disaster.

Over consumption is the main reason behind the economic collapse of the USA. If it tries to reduce the rate of consumption then it will immediately end up in a prolonged recession and lose its power. However, delaying the eventual economic downfall of the USA will amplify its economic problems.

The billionaire investor George Soros said, “I'm looking for a significant shift of power and influence away from the US in particular and a shift in favour of the developing world, particularly China … You do have to rescue markets otherwise you would go into a depression, as you did in the 1930s.”

The USA is living beyond its means. The only way out of the current crises is to adopt a sustainable way of living. The USA is clinging on to over consumption and excessive borrowing to retain its economic hegemony. This policy will lead it to a disaster.