“The US is an empire in decline, according to Niall Ferguson, Harvard professor and author of The Ascent of Money,” reported Aaron Task of Yahoo Finance – Tech Ticker.
“People have predicted the end of America in the past and been wrong,” Ferguson concedes. “But let’s face it: If you’re trying to borrow $9 trillion to save your financial system …and already half your public debt held by foreigners, it’s not really the conduct of rising empires, is it? Excessive debt is usually a predictor of subsequent trouble.”
The report highlights Ferguson as saying America today is comparable to Britain circa 1900: a dominant empire underestimating the rise of a new power. In Britain’s case back then it was Germany; in America’s case today, it’s China.
“When China’s economy is equal in size to that of the U.S., which could come as early as 2027 … it means China becomes not only a major economic competitor – it’s that already, it then becomes a diplomatic competitor and a military competitor,” Ferguson said.
Source: Aaron Task, Yahoo Finance – Tech Ticker, October 20, 2009.
