Zakaria: The World Bails Us Out | Newsweek Voices - Fareed Zakaria

Posted By: SunnyOutLook?? @ 01/30/2008 11:29:03 PM

Comment: We need to clear up our mess at home before we move to others backyards and judge their activities. The world has changed alot since 1990s. America used to be loved and respected by many nations and they cannot deny that America has done more good for the world and to to the world than any other nation we have seen. But this was in the past. Now emerging nations are growing richer and they no longer need America for their daily needs. So why dont we recognize this fact? Why cant we tend (more) to our own matters? The world is always there for us. Once we get our house in order, we can come back. Dont be spooked by politicians or even foreign statesmen (from Japan to Singapore) who say they need us and want to continue to 'engage' in Asia or Middle-east. On one hand they are saying these words to shore up our pride, on the other hand they are demonizing us as being a rouge nation. We have to recognize at best these nations only wany us to be the world's security guard to fend off their ugly neigbours and provide a big market for them to dump their goods so they can continue to pile up their reserves and buy up our banks. Why dont we just take a back seat and let them sort out their own problems? 20 years back, i would have agreed that we must be active and to play a big global leadership role. Today i no longer hold this view: the world doesnt want us (need us or not is another issue) to be the global leader. So why cant we recognize this and focus our attention on other things : tend to our domestic situation; rebuild our education standard and maintaining strong delevelopment in science and technology? Once we are strong enough (and once we are being missed sufficiently by the world), you will notice the world will come knocking at the door.

Posted By: rmabbott09 @ 01/30/2008 10:15:26 PM

Comment: The oceans of surplus cash circulating the world is the most important argument against the Republican delusion known as "supply side" economics. We need to give the super rich lots of tax breaks so that they will invest in productive enterprise, so the story goes. Or, put another way, we have deficient growth because the rich have suffered under tax rates, at about 35% at the upper end, and they haven't beeen able to invest in business. Moreover, Republicans don't risk the likelihood that "supply side" won't work, because Reagan and the two Bushes have added approximately $9 trillion to our national debt, $3 trillion of which has been loaned to us by other nations, $2 trillion of which has been borrowed from the Social Security Trust Fund. They've been "priming the pump," that old Keynesian saw that they hate so much, to beat the band.
Robert Abbott, Gilbert, AZ

Posted By: barry@shamrockthread.com @ 01/30/2008 9:54:18 PM

Comment: Barry O'Flanagan - St. Paul, Minnesoa
I tend to agree with this article. The US is still a major player in the world economy, but the balance of power is beginning to shift for the reasons stated. In addition to this, the current administration and congress are further weakening our economy and world position by spending money we do not have on a war most people believe we should not be in. If we attend to our economy and our citizens needs first, we will be in a better postion to deal with the changing world order and implement an appropriate (intelligent?) foriegn policy.

Posted By: dunno much @ 01/30/2008 8:43:38 PM

Comment: How does one infer the decrease in US trade deficits from how much profits multi-nationals make inside and outside US ? Do multinationals determine the direction of US trade flows ? The cause of the decline in the US dollar is that people are less willing than before to invest in the US ( although as the article says, they are still willing ). If US exports increase as a result of the fall in the dollar, how can the effect of a cause exceed the cause which in the first place led investors to be less enthusiastic about the US ? I mean, this sub-prime mess, which has had this dual effect of a declining dollar, and a bad domestic economy. It is a concidence that the two happened together. US deficits could well have decreased gradually wihout there being a domestic economic crisis. The fact that the decline of the American dollar and the domestic crisis happened at the same time is specific to this mechanism. Weaker US dollar can help US exports, but can exports really rescue America from a crisis ? Also, how can an effect have a stronger impact than the cause ? I don't buy Zakaria's argument that the US is now hopelessly dependent on the global economy. It is still a behemoth, with excellent worker productivity. Barring these occasional crises, the US can go it alone if it wants to, and optimize the interests of different demographics within the country. The Democrats may have something here. Since we are in a global framework, US will need some foreign resuscitation to weather this partcicular crisis, but if it really wants to, it can take the glorious high road of isolationism, and still come out the winner.

Posted By: eddiewhere @ 01/30/2008 5:12:28 AM

Comment: Fareed Zakariak what do you think of
Gupta's generosity to the Clintons. IT led to a revolt among some stockholders in his company. They are suing InfoUSA, alleging Gupta wasted $900,000 in company funds flying the Clintons around the world and paying the former president huge fees for little work. Neither Gupta nor InfoUSA responded to requests for comment. But last June, Gupta praised Clinton's work for the company. "He helps us meet some of the right people," he told the Omaha World-Herald. "In many speeches, he has mentioned InfoUSA by name." Gupta said that his payments to Clinton weren't wasted. "We get back many times over what is spent on Bill. I would say over the last seven years, easily over $40 million." Hosenball, Isikoff 2008
INFoUSA is a modern sweat shop. They pay desperate telemarketers minimum wage while they make Billions. THIS is how INDIANS do BUSINESS CHEAp LABOUR. THIS IS WHY OBAMA MUST WIN. THE CLINTON's ARE OWNED BY DUBAI, CHINA, AND INDIA. WE NEED A CHANGE.

Posted By: Annuit @ 01/30/2008 4:46:54 AM

Comment: Someday, when the U.S President signs surrender papers on the deck of a foreign warship anchored in San Francisco Bay, I'm going to say, "Isn't it wonderful how globalization lifted millions out of poverty?"

Posted By: Annuit @ 01/30/2008 4:44:43 AM

Comment: Someday, when the U.S President signs surrender papers on the deck of a foreign warship anchored in San Francisco Bay, I'm going to say, "Isn't it wonderful how globalization lifted millions out of poverty?"

Posted By: eddiewhere @ 01/29/2008 10:33:44 PM

Comment: Zack what do you think of
Gupta's generosity to the Clintons led to a revolt among some stockholders in his company. They are suing InfoUSA, alleging Gupta wasted $900,000 in company funds flying the Clintons around the world and paying the former president huge fees for little work. Neither Gupta nor InfoUSA responded to requests for comment. But last June, Gupta praised Clinton's work for the company. "He helps us meet some of the right people," he told the Omaha World-Herald. "In many speeches, he has mentioned InfoUSA by name." Gupta said that his payments to Clinton weren't wasted. "We get back many times over what is spent on Bill. I would say over the last seven years, easily over $40 million." Hosenball, Isikoff 2008
INFoUSA is a modern sweat shop. They pay desperate telemarketers minimum wage while they make Billions. THIS is how INDIANS do BUSINESS CHEAp LABOUR. THIS IS WHY OBAMA MUST WIN. THE CLINTON's ARE OWNED BY DUBAI, CHINA, AND INDIA. WE NEED A CHANGE.

Posted By: bigbrewhaha @ 01/29/2008 10:15:41 PM

Comment: We got overextended everywhere, we need to start worrying about our infrastructure, and forget iraq and afghanistan

Posted By: asantiago72 @ 01/29/2008 12:02:38 PM

Comment: A few years back, there was a book by Paul Kennedy, "The rise and fall of the great powers". It argues that temporary events can allow a nation to punch above its weight, but that sooner or later, demographics, the economy, technology and geopolitics catch up. It has happende to all the great powers the world has ever seen, and it will happen to the US someday. The only question is when.

Posted By: asantiago72 @ 01/29/2008 11:53:52 AM

Comment: Some years ago, there was a book by Paul Kennedy, "The rise and fall of the great powers". It argues that history has shown that temporary events can allow a nation to punch above its weight, but that sooner or late, demographics, the economy, technological spread and geopolitics always catch up. The US has 300 million of highly educated people, vast natural resources, and a powerful army, so it will always be a mayor player. But it is naive to believe that it will hold the title as the world's sole superpower permanently.

Posted By: Laila @ 01/29/2008 6:28:25 AM

Comment: The key drivers are demographics and trade with less barries underpinned by economic reforms in the emerging markets. It has little to do with losing jobs or outsourcing. The biggest drivers of growth in China India are domestic consumption and capital investment. The high growth economies will also attract more capital... thank God, their debt needs have gone down otherwise it would have been a bit more challenging to finance the US deficit.

Posted By: eddiewhere @ 01/28/2008 12:28:06 AM

Comment: Outsourcing is the main cause of this economic situation. American money is leaving our economy and being injected into other countries economies. It is common sense that deficits are caused because more money going out of the economy than is coming in . Our banks are increasingly financed by foreign entities. As a result we are in debt and cannot even bail ourselves out. American products cannot compete with imports because of cheap labor. We cannot change this.
SO, what we need to do is get the money FLOWING back into the American ECONOMY. We have to start selling our products especially our technological services to CHINA and INDIA, Saudi Arabia, United Emirates so we can get our money back into the U.S ECONOMY.

Posted By: eddiewhere @ 01/28/2008 12:27:26 AM

Comment: Who will emerge stronger after this Recession. THE ANSWER IS OBVIOUS, CHINA, SAUDI ARABIA, United Arab Emirates and the E.U. America will find itself in a situation where global governance will have to be shared with the countries above. Inotherwards, Arab money would be funneled through the IMF and WB to advance their agenda's. That means that these entities could threaten global governance and encourage capitalism without social justice. If we can fuel alternative energy programs which promote a massive expansion of our economy by creating millions of jobs we might be able to prevent a long term recession.

Posted By: obared4444 @ 01/27/2008 11:07:14 PM

Comment: The author almost makes sound like charity which is not something the countries he mentioned are noted
for. Yes the world's economy is multi-polar now and as for "bread slices" getting smaller for the western world will depend on whether countries such as China and India will pursue energy in the framework of the world market or cut their own deals with suppliers as China has been doing in Africa and what both have done with Myanmar. The USA is capable of pursing their own interests in this fashion it comes to this. The
result would be ugly more for the emerging economies than for the USA. The stability of those countries are
predicated upon 7 to 10 percent growth, the USA and western countries are not. This begs the question of,
are the emerging countries going to act in a manner consistent with 21 century dynamics or decide to try and
resurrect a dynamic that is 19th century in outlook? Don't worry Fareed "The Kids are Alright".

Posted By: tc125231 @ 01/27/2008 10:22:54 PM

Comment: They do not "keep the U.S, economy afloat:. They are buying our assets at bargain sale prices, to the benefit of the Baby Boomer economic elite, but virtually no one else.

For further analysis of this situation, refer to the Warren Buffet parable published in Fortune several years ago: --"Squanderville".

Posted By: eddiewhere @ 01/27/2008 9:03:21 PM

Comment: Kuwait, the United Arab Emirates, Saudi Arabia, and China these are the countries we are in debt too..We are in one world economy with global governance in the hands of a few. These interests fund the IMF and WB and have close ties with the countries mentioned above. They own the Brazilian economy and injected billions into Argentina. Countries like China do not play by the rules, so we cannot compete with their prices. The world's economies are all integrated and what happens on one side of the world will affect the other. THIS IS A UNIVERSAL LAW. Do you remember the ASIAN CRiSIS. The root cause of that problem was corruption. Saudi Arabia, United Emirates and CHINA are not democracies. We are doing business with countries that corrupt global governance.

Tweleve families own eighty per cent ot the world's capital. The Arabs and the Chinese have bought their way in. Inotherwords they collude with the owners of the world's capital to bail themselves at any time or any place. THEY ARE WORKING TOGETHER SO THEY CAN Consolidate their power over the world's economy and set the protocol for a "NEW GLOBAL GOVERNANCE". THEY HAVE THE CLINTONS IN THEIR pocket this is why OBAMA has to put and end to OUTSOURCING and force refine American Laws to prevent America from signing into desperate borrowing which have catastrotphic long term affect. DEBT FINANCING should never be considered as an option. We have to learn to go through some "economic pain" in order to have a prosperous economy. WE HAVE TO BE STRONG AND STOp taking the lazy way out. NEVER MAKE A DEAL WITH THE DEVIL TO BAIL YOURSELF OUT. IT WILL COST YOU IN THE LONG RUN. THIS IS ALSO A UNIVERSAL LAW.

Posted By: cyberfizzle @ 01/27/2008 2:58:49 PM

Comment: Can you install an edit/preview function for the comments section?

Posted By: lostworld @ 01/27/2008 1:29:43 PM

Comment: excellent article, American Lifestyle goes with Strong dollar,and if is is weak dollar,you would't be able to go for that kind of lifestyle " little knowledge is a very dangerous thing" check this web site and you will understand http://www.economyincrisis.org/

Posted By: hellbreaksloose @ 01/27/2008 10:16:59 AM

Comment: Very narrow article. Does not discuss the faltering American lifestyle due to free trade.We do not need more foreign countries opening plants here. is that a good thing? We eed more American owned plants competing against one another so that their products are second to none. These products would stay in America and be bought by Americans.
We started free trade when we were in no position to compete, duh.

Posted By: cyberfizzle @ 01/27/2008 10:15:19 AM

Comment: To nawawinohamad,

Yes, but my fellow Americans aren't the bright batch (meaning the bluecollar peeps), considering that they voted for Bush a second time. The people and the press are lazy and willing to buy anything a prez tells them.

Posted By: cyberfizzle @ 01/27/2008 10:12:58 AM

Comment: To Nawawinmaohamad,

Yes, but my fellow Americans are dumb. If the president xeroxed the papers that he used for the build-up to the war with Iraq, and submitted those to the American people, we would buy his new war as well.

Posted By: nawawimohamad @ 01/27/2008 4:19:59 AM

Comment: The US need not be at the mercy of others if it had not spend all the money on war and destruction. There need not be a recession, followed by another recession and another recession all within our lifetime!

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