Fascinating read by Michael Pettis on the international financial system, and why China’s new multilateral bank and currency are not likely to challenge America’s economic role in the world, which I’ve been arguing as the America haters try to drive the talking point that China’s AIIB is the beginning of the decline of America.
What does it all really mean?
After the Cold War ended, America’s GDP growth dramatically accelerated leaving most other nations in the dust, and in many situations, decades or more economically, and militarily behind the U.S.
China has seen spectacular growth over the last 25 years, but it’s currency is still weak, and it really doesn’t have the infrastructure or financial fundamentals to challenge, or even dominate the international global system of capital trades and international trade that America earned and dominates.
The imminent decline of the American empire is vastly overhyped.
Welcome to the American Century 2.0.
Photo: Business Standard