by OSCAR UGARTECHE
The previously existing world power structure is all but over. The world resulting from the Pax Americana of 1944 and expressed in the G7 group of countries now has to confront the fact that it no longer controls most of world GDP and that by 2016 it will be in a minority position in terms of total GDP. This means Europe as a whole will have to redefine its global role and that the United States will no longer be able to act unilaterally in the economic front.
In face of this, Asia has a new role to play in helping to ensure international economic and financial stability in the face of mature economies that need to devalue in order to import less and export more. The beggar thy neighbour policy again deployed these days was what led the 1930’s crisis to a depression with deflation.
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