Another day...a new world.

Kieron

I've been away for three days and the world order has changed.

OK, so the Guardian claiming that 'the era of American Global leadership...is over!' is hardly the final nail in the coffin. But, I think it's fair to say that we can expect many economies to be run differently from now on.

America has allowed itself to deregulate in to oblivion, and the 'maverick' actions of those Senators desperate to keep their jobs by rejecting the bail-out, won't hide the fact that they all played their part in this fiasco.

This article is a pretty good look at how the world is viewing the situation at the moment, and when France is leading the way in calling for economic reform you know things have gone a bit mental.

The economy in tatters, engaged in two expensive wars that it can no longer afford and a President that no-one cares about; it's hardly what you'd call the American Dream. And, to make things worse, the Presidential candidates have backed the whole bail-out proposal making them look a little lost as well.

So far, so horribly wrong. But, there is hope...there's always hope. No, I'm not about to put on an Obama t-shirt like all the 'cool' kids (though I really want this one,) I'm just pointing out that there's a silver-lining.

1. Bush has been dying on his arse for months: The fact that no-one wants to play ball with him is because he keeps dropping it and kicking it to Dick Cheyney, who shoots it and sends it back in tatters. So, it's no surprise the bail-out is taking time. Much of the crisis is being blamed on him, and no-one hangs around with the class moron.
   
   
2. Whilst the economic free-fall has been swift it isn't surprising: I'm an economic ignoramus but remember being told it was going to happen when I worked at a Bank called, 'of England'*. On my first day, during the induction, I was told by an intelligent looking economist that the US was borrowing far too much and that it simply couldn't carry on...or words to that effect. His had more syllables and pomposity. That was in 2003.
   
   
3. There's an election coming up soon: And elections always carry a disproportionate sense of optimism for the future. But, with the world watching ever so closely, whoever takes charge will have to make some 'change'. The American people want it and so do the rest of the world.
   
   
4. Times are a changin': China, India and any other country with a billion people or more has the capacity to expand it's economy substantially. But this might lead to a more flexible US, taking decisions multilaterally. The new guy in charge can't afford to do it alone - no, they literally can't afford to. And, that isn't a bad thing in my view.
   

In conclusion, things look bleak for a while yet, but if any country can adapt to such catastrophe I'd say it is an America with a new President, a sense of vulnerability and humility and a renewed hope in change.

As for Britain...well we'll just sit and watch as stuff crumbles around us I'd imagine.


*DISCLAIMER: Quick note to anyone who is now saying to themselves...'Oooh hark at him with his job in the Bank of England, thinking he's all that!' I don't, I lasted 9 months in the job before I realised I still didn't know what I was doing and had been caught, more than once, playing computer games instead of working. I wasn't pushed but they made sure I knew where the exit was. Like I say, ignoramus!