Thursday, February 26, 2009

USA: The End of Empire

Americans are running around the world like beggars to collect money to salvage their debt stricken economy. However, they don’t realize that beggars can’t be choosers. The new world economic order is looming but this time the conditions will be laid down by Asian economic powers such as China. The end of American empire is in sight.

But US President Barack Obama, as usual with the power of his oratory, is trying to fool people. In his address to the congress he said, “Tonight I want every American to know this: We will rebuild, we will recover, and the United States of America will emerge stronger than before … It is time for America to lead again.” Obama should know that the country which owes trillions of dollars cannot and should not lead the world. It should listen to lenders which are helping USA to avoid bankruptcy.

Investment analyst and entrepreneur Marc Faber said, “If I look at government debt in the US and debt in general, I think the only way they will not default physically on their debt is to inflate.”

Professor of economics at the Stern School of Business, New York University Nouriel Roubini said, “The banking system in the United States overall is insolvent; because the amount of losses they're going to accumulate are bigger than the capital that the banks have. I think you have to eventually nationalize US banks. I think even the biggest ones are insolvent and this kind of approach of guarantees, providing money, good-bad assets, is not going to work.”

American allies are calling for a new world economic order and urgent reforms of the international financial system. Italy's Finance Minister Giulio Tremonti said, “A new world economic order might seem rhetorical … But it is a true goal we should be aiming towards”. In a joint declaration, the G7 called for “urgent reforms” of the international financial system. These reforms will effectively end the American economic hegemony and empire.