Post by robeiae on Dec 3, 2018 8:53:35 GMT -5
Interesting piece by Fareed Zakaria (I assume he actually wrote this) on decreasing US influence: www.wvgazettemail.com/opinion/gazette_opinion/op_ed_commentaries/fareed-zakaria-are-we-at-peak-america-gazette-opinion/article_2def2d7d-2de7-566f-a719-1bf1f36a484a.html
From it:
My observations:
1) The term "peak America" is probably too clever by half, since it seems like declaring "peak anything" always comes back to bite one in the ass (translation: I don't think this piece will age well)
2) Like many others, Zakaria trumpets China's rise and more or less takes it for granted that this will continue. Such people forget about the costs to China (this same sort of thing happened with Japan in the past, as well as the "Asian Tigers").
From it:
As Morgan Stanley’s Ruchir Sharma has pointed out, the global economy looks like it’s at “peak America.” U.S. stocks have outperformed the rest of the world this decade, and that sort of trend rarely lasts. The current recovery is now the second-longest in history, and it is due for a downturn. Interest rates are rising, corporate profit growth is slowing, and budget deficits are surging. Even President Trump seems aware of the likelihood of a dip, which is why he has been preparing the ground for it, blaming the Federal Reserve for raising interest rates.
But there are broader structural realities at work as well. While the United States continues to outperform other advanced economies, the “rise of the rest” also continues, with China, the world’s second-largest economy, growing at three times the pace of America. A quarter-century ago, China accounted for less than 2 percent of the global economy. Today it is 15 percent and rising. China boasts nine of the world’s 20 most valuable tech companies.
But there are broader structural realities at work as well. While the United States continues to outperform other advanced economies, the “rise of the rest” also continues, with China, the world’s second-largest economy, growing at three times the pace of America. A quarter-century ago, China accounted for less than 2 percent of the global economy. Today it is 15 percent and rising. China boasts nine of the world’s 20 most valuable tech companies.
1) The term "peak America" is probably too clever by half, since it seems like declaring "peak anything" always comes back to bite one in the ass (translation: I don't think this piece will age well)
2) Like many others, Zakaria trumpets China's rise and more or less takes it for granted that this will continue. Such people forget about the costs to China (this same sort of thing happened with Japan in the past, as well as the "Asian Tigers").
