US superpower status is shaken

by Sanjay Jha | October 2, 2008 at 11:35 pm | 178 views | 7 comments | 11 recommendations

After the end of the Cold War and demise of Russian empire America remained the only big superpower but it seems latest development in the financial world and on the other fronts have shaken its position.

The trend of losing hegemony on the political front started in its own backyard Venezuelan President Hugo Chávez taunting and ridiculing the superpower with impunity. America was the role model of the many of the emerging and developing economy for free enterprise and big private corporation. But now with American financial giants falling flat has shaken the people all over the world and the American free-market creed has been pushed back to the backyard. Many counturies are now going to further tighten overall control of markets.

Successive American administrations have lectured other countries on the necessity of sound finance. Many southeast Asian countries had to open up their closed economy and had to cut their budget to get aid from international funding agency.

USA has always admonished China for its human rights abuse and loophole in financial system. China was constantly reprimanded for the weakness of its banking system. But Today it is Soverign Wealth Fund from China which is bailing out the American institutions.

The financial crisis is likely to diminish the status of the United States as the world's only superpower.
On the practical level, the US is already stretched militarily, in Afghanistan and Iraq, and is now stretched financially.

On the philosophical level, it will be harder for it to argue in favour of its free market ideas, if its own markets have collapsed.

Sanjay Jha, I like this story. It's good stuff.

Sanjay, who do you suggest should take the lead? Do you (personally) think the Chinese or even India could do a better job of leading? If, your answer is "Yes" then we'd like to sell you a couple of fleets, starting with the 5th and 6th, i.e., Atlantic and Pacific, and we'll throw in the ships captains to boot (nukes not included)!

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Sanjay Jha, I like this story. It's good stuff.

Thanks for your e-mail, will answer in your posted storyline, in hopes that it will gain wider debate.

<?xml:namespace prefix = st1 />India is faced with a population paradox... how to coup with 1.3 billion people? Developing the infrastructure for economic stability and growth while coping with the far more pressing problem of feeding the masses. As, stated in the "Wealth and Poverty of Nations," by David S. Landes, "the world is divided into three classes of people; (a) those that spend billions yearly on losing weight; (b) those that eat to live; and (c) those that don't know where their next meal is coming from!” Fortunately, Indians have a thirst for learning and believe in stable government bureaucracy, which is probably more responsible for the dysfunctional aspects you’ve mentioned with India’s young democracy. The problem all democracy's face is NOT to become complacent in relying on government to resolve ALL the people’s problems... somewhere along America's path to lead we've lost our way... and the world is now pointing fingers at us being at fault. Such is the price paid for taking on the mantel of leadership. After the finger-pointing is finished, and the reeling for balance has stabilized, and the cobwebs of over indulgence of both, the people and the politicians have cleared their muddled minds. We will, hopefully, find a more correct direction necessary for the 21st century. The problem “IS” one of leadership! And am personally beginning to realize that an undeclared war is presently being fought, between the USA/Europe, Russia, and China for that leadership role. This “troika” is no more capable of leading, than when it was applied to pulling Russian sleighs, if they had been paying attention to the Romans they would have realized it centuries past.

“And the search for civilization goes on!

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Everybody takes aim at the one on the top. Whoever made the stupid decisions to re-package mortgages up to 50 times and sell them and buy them and 'bailing' with their profits off the top, should be the ones doing the bailing out. and that includes every country's financial institutions who took part.

Sanjay Jha, I like this story. It's good stuff.

Yes... And it is interesting to note that Arnold J Toynbee has observed:

"Of the twenty-two civilizations that have appeared in history, nineteen of them collapsed when they reached the moral state the United States is in now. "

Rolling around Lady Liberty on a boat at sun set just days before the anniversary of September 11. It was a powerful moment, and hopefully a powerful picture.

evolvingblue has contributed a photo to this story.