aug 29th, 2007
this is a huge turnaround almost on the lines of that june day in 1975 and the ignominious, headlong withdrawal from saigon -- after decades of atlanticists pontificating to others about how wonderful their financial instruments and investment banks are, and pushing things like GAAP and Sarbanes-Oxley down everybody's throats, the worms are turning and now demanding that the yanks abide by others' edicts! what a comedown for the yanks and their poodles, the limeys!
this is another symbol of america's waning importance. foreigners own more and more of america, and they will demand their pound of flesh. such are the wages of profligacy, compounded with the hubris of adventurism in foreign lands, including all those billions they have given to musharraf.
basically, america is going bankrupt after years of living beyond its means.
this is yet another reason to not hitch india's star to america's diminishing fortunes. india has to treat america as an equal, rather than act as a supplicant minor feudal chief kowtowing to the emperor. we need chanakya's clear-eyed vision of comparative advantage now more than ever.
having said this, i emphasize that i am pro-america, but pro an america that is only first among equals, not one prone to the hyperpower hysteria -- as i have pointed out before, hubris before nemesis -- that has afflicted americans for some years. but they are still far better, even with their moralizing, than the chinese, the arabs, or the vatican in the race for being top dog. in any case, the rapid rise of russia is showing that every dog has his day -- unthinkable just a few years ago as the soviet union fell apart. the atlanticists are terrified of putin and his petro-euros.
the economist is fond of implying that india is about to fall apart like the soviet union. is the US liable to fall apart? will california go its own way ditching those idiot states of the east coast? similarly, when, not if, will china disintegrate?