“While the global economy may grow rapidly the developed world’s share is likely to come under tremendous pressure and as its bargaining power wanes it will be confronted by a simple choice: should it grow old gracefully, accepting that the baton of economic progress is being passed to other parts of the world or should it resist, threatening to throw the world as a whole into a new age of protectionism and mutual suspicion?” writes HSBC’s chief economist Stephen King.
The political philosophies espoused by former leaders Ronald Reagan and Margaret Thatcher will wither and die as the West watches its financial and political power ebb away to the East, according to his new book Losing Control, The Emerging Threats to Western Prosperity.
The new reality of the Western world is years of austerity with enhanced financial-market volatility, King writes.
Watch the interview below.
Source: CNBC, April 20, 2010.
