Fundamental Political and Economic Mistakes are Speeding Up America's Decline
By Pepe Escobar, Tomdispatch.com
Posted on September 25, 2011, Printed on September 26, 2011
More than 10 years ago, before 9/11, Goldman Sachs was predicting
that the BRIC countries (Brazil, Russia, India, China) would make the
world economy’s top ten -- but not until 2040. Skip a decade and the
Chinese economy already has the number two spot all to itself, Brazil is
number seven, India 10, and even Russia is creeping closer. In
purchasing power parity, or PPP, things look
even better. There, China is in second place, India is now fourth, Russia sixth, and Brazil seventh.
No wonder Jim O’Neill, who coined the neologism BRIC and is now chairman of Goldman Sachs Asset Management, has been
stressing that
“the world is no longer dependent on the leadership of the U.S. and
Europe.” After all, since 2007, China’s economy has grown by 45%, the
American economy by less than 1% -- figures startling enough to make
anyone take back their predictions. American anxiety and puzzlement
reached new heights when the latest International Monetary Fund
projections indicated
that, at least by certain measurements, the Chinese economy would
overtake the U.S. by 2016. (Until recently, Goldman Sachs was pointing
towards 2050 for that first-place exchange.)