The crisis presents many challenges for the United States. It started in the United States, quickly spread to other industrial economies and then, more recently, to emerging markets. The widely held perception that excesses in US financial markets and inadequate regulation were responsible has increased criticism about free market policies, which may make it difficult to achieve long-time US objectives, such as the opening of national capital markets and increasing domestic demand in Asia. It already has increased questioning of US stewardship of the global economy and the international financial structure.In other words, the world may "revolt" against hegemonic capitalism. Since the United States has been the "steward" of this transformation into an uncontrolled, profit first and last environment, it is not surprising that global public anger may be directed at the U.S. All of these points are no-brainers. The U.S. promoted and drove hegemonic capitalism - frequently at the end of a gun. Iraq for example, is a case study in the forced implementation of an unfettered market. The U.S. facilitated what is now called the "Shadow Market" (see video below) that is swallowing every "stimulus' that the nations of the world are throwing at it. And yet, there is no global effort (at least that is being shared with us) to address the monster under the bed - the global nature of a crisis based on "exotic" and unregulated investment instruments. Unless we join with the world in either getting a new bucket, or radically "patching" the existing one, national strategies are only going to have limited (if any) success in addressing the economic crisis. This train wreck is still happening. Banks and investment firms are still paying out on the credit default swap "insurance" claims which exceed the entire GDP of the planet. More mortgages in the U.S. (and elsewhere) are resetting to higher interest rates over the next two years - which will continue to drag down recovery at the very least. Job reductions and losses are adding to further mortgage collapse. We have not seen bottom of this crisis, and if something is not done to address the global components, then that "bottom" will indeed be "catastrophic" for much of the population of the planet.
Previous articles by Rowan Wolf on the global nature of the economic collapse. Economic "Stimulus" Considerations. 1/25/09. Under Our Noses - The Great Heist of 2008. 1/03/09. Economic Globalization and Speculation Coming Home to Roost. 10/07/08. It's the Derivatives Stupid. 9/26/09. From 'Mortgage Crisis' to 'Economic Meltdown'. 9/19/08.