The question remains: what will the US do to the rest of the world to jolt us into submission? Will it be continued printing of money, bringing on global inflation? Will it be continued destabilization of international commodity markets? Or maybe complete ruination of the world’s financial markets?
Since it’s all of the above, one can only guess what will come next.
I did realize something tonight though: the top 500 (or even 50) companies the control most of the world’s resources are still American-owned companies. What harm is brought to the rest of the world is actually helping most of the largest companies generate record profits.
At what point will the rest of the world say ‘enough’ and cut off the States?
Some countries are already there:
European nations that are big exporters of capital goods – the heavy tools and machinery used in manufacturing – are faring better. Companies in Germany, Switzerland and parts of Italy have so far managed to blunt the effects of the rising euro by diversifying away from the US market. Unlike their consumer goods counterparts, these manufacturers are still able to rely on sales to emerging economies. Machinery sales also depend on quality of engineering, where some European companies may be perceived to have an edge.
It’s time for Canada to follow suit and slowly, but methodically, alter its trading relationship with the US and reduce its dependency on an economy (and policymakers) that are so reckless.