Monday, November 29, 2010

Cracks are appearing in the Western economic hegemony

The Western economic hegemony is challenged internally and externally. There in an internal dispute among USA and Europe over economic issues. German finance minister Wolfgang Schaeuble said, “It is not that the Americans have not pumped enough liquidity into the market and now to say let's pump more into the market is not going to solve their problems”. China, Germany and South Africa have also criticized USA’s stimulus package.

British Prime Minister David Cameron also tried to deny differences with USA over economic issues. He said, “I think in the British case, the Americans and others absolutely accept that those of us with the biggest deficits ... have to accelerate the process of dealing with them because the big risk to our economies is actually... not dealing with the deficits. There's no difference between us and the Americans on that.”

Brazilian finance minister Guido Mantega also criticized USA. He said, “We’re in the midst of an international currency war, a general weakening of currency. This threatens us because it takes away our competitiveness”. The US dollar has depreciated by about 25 per cent against the Brazilian currency.


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