Fiscal Crisis and World Order

Fiscal Crisis and World Order

Fiscal Crisis and World Order

Fiscal Crisis and World Order

Synopsis

The crisis facing the United States is both economic and political, and its effects are felt both at home and abroad. the author presents a detailed look at how the present world order is or could be affected by a total global economic collapse. He asks whether a world governance system is feasible and desirable, and explores what forms such a system might take, depending upon whether such players as China, the Russian Federation and the Islamic nations continue to make economic progress or suffer setbacks.

Excerpt

The crisis facing the United States is both economic and political, and its effects are felt both at home and abroad. the following chapters present a detailed look at how the present world order is being or could be affected by a total global economic collapse.

The recession of 2008 and the fiscal crisis that followed brought about a clear recognition of two major themes. First, economic recessions/depressions are not capable of being contained within a single national economy or a small number of national economies. the current state of economic interrelatedness is truly global. Second, as a result of this globalization, economic distress experienced by one or more nation states will rapidly spread throughout the global market. Globalization of economic activities means that international cooperation is imperative to remedy any real problems within the economic structure. Regardless of whether the current fiscal crisis, for example, is the result of mismanagement on the part of national governments or the activities of an unregulated and parasitic financial community, only cooperation on a global scale appears capable of producing a solution.

The current fiscal crisis is being handled by an attempt to return to solutions that were developed when such economic matters could be directly remedied on a national level. the Keynesian approach to stagnant economic growth patterns, high unemployment, etc., pioneered during the Great Depression, was to infuse the economy with massive government spending. Such spending in times past was successful in stimulatx-

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