Is The U.S. Still The Global Financial Leader?

Long led by the U.S. which used to be by far the most powerful nation in the world, the G-20 global conference of the world's most powerful financial nations recently concluded, with the U.S. as little more than an afterthought. Aside from the European financial crisis, China and Germany were the focus of attention. Before the G-20 conference, my son Kyle made his own comments and shared with us a New York Times article anticipating the U.S. playing a minor role but it turned out the U.S. played an even smaller role than the Times thought would be.

http://www.nytimes.com/2011/11/02/us/americas-waning-influence-has-a-silver-lining.html?_r=1

Sadly we are becoming a paper tiger.  We are the guy living in the biggest house on the block and in foreclosure, yelling at all of the others in foreclosure to get their houses in order.  And yes, we just bought another new car (or billion dollar airplane) on credit. Meanwhile the guy who has been saving big time for years and has a growing stack of money is also going to the others on the block.  Guess what, they are taking him far more seriously than Big Deadbeat! 

Our power has fallen financially and morally.  While we certainly still wield a massive military, our days are numbered before that goes away since economics won’t allow it to continue forever (see every other fallen empire in history).  Also, when it comes right down to it and pensioners (don’t touch my money), social security recipients (don’t touch my money), medicare recipients (don’t touch my money) will go bananas (see Greece) when all of the interests are fighting for the future budget which will be 25% of what it is today.  UGLY times coming as our train wreck steams ahead full steam!

Kyle