Summary: The United States’ current account deficit and foreign debt are not dire threats to its global position, as would-be Cassandras warn. U.S. power is firmly grounded on economic superiority and financial stability that will not end soon.
This is the best “counter argument” I have read, so far. Very insightful, but it does not convince me. The one thing I agree on is that the sooner a global recession happens, the more likely that it would be far more painful for us, and even more so for the Chinese, than for the US.
The authors also write “Only a fundamental transformation in Asia’s growth strategy could undermine this mutually advantageous interdependence”.
First of all, that should have read “mutually convenient for the time being”. Poverty in India is real, and to remove that we need some growth, and growth needs money. But I still believe, long term sustainability of spiritual and economic well-being needs that fundamental transformation, which the authors seem to believe is unlikely. Besides, there are “real crisises” looming out there – Energy, Water, Population, Urban migration & underemployment, Pollution. These are not just minor irritants, mind you. If we don’t get serious about them soon enough, they are going to haunt us big time.
Damn, I wish I had the words and the wisdom to tie all the threads together. Keep at it, boy.