Cosmetic global economy

The indirect complementary role of China was also analysed at the global level; and the fast growth rate inside China (around 10 per cent per annum) raised some misgiving amongst analysts about its continued stability in the immediate near future. The writer expected that something had to give, to expose the false prosperity now enjoyed by the USD, as the artificial and virtual reality is in unstable equilibrium.

Once the US economy and/or the dollar slides (it escaped in 1989-90 or thereabout), that might be the end of the West, that is, the affluence, power, and hold of the industrialised 'first' world over the third world of DCs and LDCs. Neither the EU nor Japan can come to the rescue, as both are now in the slow lane, after exploiting the economic dominoes for over a century. The economic failure of 'liberated' Russia is a counterpoise to the rapid march of mighty China on the world scene. The US is now facing several maladies: China, Russia, terrorism, and the future of the global dollar, (not to speak of grabbing the energy reserves all over the world).

Now oil prices have ranged beyond $50, and the economics of exit from Iraq has to be recalculated. New demographic studies have become sensitive in the industrialised, materialistic world, with waning population growth rates, smaller families, and high cost of living (importing cheaper goods and services from the third world). The new problems of the rich are multi-layered and diversified, twinkling like dying stars from one issue to another.

The world is waiting to see whether the coming November presidential election in the US is going to be a turning point .