News and Politics | October 12, 2008 | 6 comments

Global financial pecking order being turned on it's head

source: http://www.washingtontimes.com/news/2008/oct/12/financial-crisis-reshapes-world-order/

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pissedoffinarkansas
As shell-shocked central bankers and finance ministers gather in Washington to confront the world's financial meltdown this weekend, that grinding noise in the background is the sound of the global balance of power shifting.

In sharp contrast to past crises — from the Latin American debt problems of the 1980s to the Asian and Russian currency collapses of the 1990s — the emerging markets of the developing world boast the strong balance sheets and deep financial pockets while the United States and Western Europe lurch from crisis to crises.

"In a very bizarre way, roles have been reversed in the global economy," said Alex Patelis, head of international economics at Merrill Lynch. "The typical troublemakers of the global economy, the emerging markets, are actually now the world's creditors.

"We do need a new world financial order, and we will probably get one as a side effect of this crisis," he said.

Treasury Secretary Henry M. Paulson Jr. gave a clear signal of the new pecking order last week on the sidelines of the annual Washington meetings of the World Bank and the International Monetary Fund (IMF).

With world financial markets reeling, Mr. Paulson said, he was following up an emergency meeting Friday of finance ministers from the traditional Group of Seven industrial powers — Britain, France, Canada, Germany, Japan, Italy and the United States — with a larger gathering Saturday of the so-called Group of 20, which includes China, India, Russia and Brazil.



Now we've gone and done it! We have allowed countries that are not exactly friendly to us,and countries we have a habit of pissing off on a regular basis,to emerge as financial powers with our poor political and financial policies and corporate and , to a certain extent personal, greed. The problem is it might be too late to correct the problem! I sure hope not for our sakes! I for one have no real interest in learning to speak Chinese.(nothing against the Chinese people!)
  1. groups:
    News and Politics
  2. tags:
    News and Politics,  Credit Crunch,  Global Financial Crisis
  3. recommended by:
    Vierotchka
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6 comments // Global financial pecking order being turned on it's head

  • AveryMoore
    • 0
      AveryMoore  

    • Odd isn't it?

      Eight years ago It was New World Order Time!

      Ready or not, like it or not - it's here!

      But now it is the wake and the members with heads bowed take turns reading the eulogies..

      So young, so proud, so strong, so right for the times - so dead.

    • 3 years ago
  • Vierotchka
  • dkincheloe
    • 0
      dkincheloe  

    • This has been coming since China and Brazil began growing at a far faster rate than we, and later Russia. More than 20 years now. And, both China and Brazil (I don't know about Russia) take a far longer view than we. So, it's a fait accompli. Done. The question is "What will we do in response?"

    • 3 years ago
  • shun21
  • pissedoffinarkansas
    • 0
      pissedoffinarkansas  

    • Exactly right! That is the point I have been trying to get across to everyone I know,personally and on Current. I'm not having a lot of success though, unfortunately.

    • 3 years ago
  • limitsnone
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