Is American Economic Influence Declining Globally?
Posted on August 12, 2011 - Filed Under Business | Leave a Comment
In this decade of the 21st century, we live in a global economy, in which human capital, natural resources, and trade expands, despite a recession in Europe, and the United States. This trend creates the same question, Is American economic influence declining Globally?
In 2011, most expanding economies are based in resource rich countries, and where the goods needed in a global economy are produced. Australia, Brunei, Brazil, China, Germany (& its central European partners), India, Indonesia, Malaysia, Norway and Russia, are the main benefactors of this trade.
Economic
Aside from China, Germany (& Central Europe), and India, most of these countries are rich in natural resources, and can provide the energy to fuel their own economies. These nations are benefiting from a shortage in traditional energies such as oil, natural gas, as well as the resources needed to produce the goods for our global economy.
In the past the United States greatly influenced much of the world's economy. The nations wealth was based on the resources it extracted, and the national manufacturing industries that produced much of the globes consumer goods. But that was back in the 1970's, and most of these nations that traded with the United States, have changed from agricultural to industrial economies.
Another major factor in our new economy, is debt. The Worlds largest debtors are Japan, most of Europe, and the USA, when only 20 years ago they were the lenders. Growing debts simply means that a nation cannot invest in its own economy, and is tied to whoever provides this line of credit.
We can mention figures, add quotes by current political and economic leaders, but one simple fact remains-, A nation self-sufficient in its energy needs is always one step ahead of the rest. The reason, half a century ago, both Europe and North America were leaders in economic terms.
So does our new global economy really need the USA?
It is a difficult question considering the role the greenback has in international trade, and the fact many of these exporting countries, still in part depend on the United States, as part of their export market.
However both European and American debts are resulting in the decreasing value of their currencies, - this is reflected in increasing oil, and other resource prices, which many neutral experts believe could result in these commodities being priced in another currency.
There is also a question of global security, despite the fact that the USA still remains in Afghanistan, and Iraq, after almost a decade of war. The United States militarily remains a superpower, and has strategic partnerships around the world, based on protecting the resources it imports.
The continued decline of the greenback, and the quagmire of Afghanistan, may result in a decline of this supremacy, as wars need to be funded. Some analysis see an ending to this conflict, and evidence of a concise economic recovery plan, reversing the declining influence of the United States. But in order to stem this decline, debts need to be trimmed, whilst new energy sources used to fuel an economy dependent on costly imports of oil and other resources.
The USA has to produce something other countries need, just as it once did a few decades ago, because the cars, computers, luxury goods and television sets sold in American stores, are either Asian made, or are made outside the country.
Despite positive news from the official media, and the banking sector. The USA today does face a harsh reality, that it trades less, owes more and fights wars in more countries than two decades ago. Three negatives that are adding to the economic woes of the country, and making more and more people question if the USA remains an economic superpower.
Is American Economic Influence Declining Globally?
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