The Change Mariner

Europe Left Behind As U.S. Focuses on China

Guardian Unlimited (UK):

The reason for the masterly inactivity has nothing to do with the increased strength of the financial markets vis-àvis central banks since the mid-1980s, and everything to do with the changing balance of power within the G7. A couple of decades ago, America was weak and needed the help of Germany and Japan. Now that the US is the global hegemon, it goes its own way. To the extent that the weakness of the dollar is hurting the European economy, the view from Washington is that the Euro-'ECB's benign-neglect communications style appears to invite another one-way bet for the europeans should remedy the problem by boosting growth at home.

The Bush administration cares far more about China, which it sees as a potential longterm threat to American supremacy, than it does about Europe, which it sees as a waning force. As far as the Americans are concerned, east Asia is the future, Europe the past. If this analysis is correct, it would represent a seismic shift in global economics and politics, so it is worth studying in some depth.