The End of American Polarization

With only three more days to go, 2008 will become history. Undoubtedly, 2008 was an unforgettable year in human history, not only because of the unprecedented events like the financial tsunami, the Sichuan earthquake and the election of U.S. President Obama, but also a series of events which has changed the international situation since 1945 – the subprime mortgage crisis triggered by the financial tsunami set the initiator America’s leading position in the global economy at risk; the grandiose and arrogant style of the American financial sector has turned the world from respecting the U.S. into despising it, which has led to the fundamental change in the polarizing pattern dominated by the U.S over the years.

2008 was a memorable year. The Sichuan earthquake resulted in nearly 90,000 people dead and missing in the rubble in China, the Beijing Olympics attracted global attention and Obama, as the first black president in American history, accepted the acclamation from voters who look forward to his reforms. People were moved by these events; however, the outbreak of the financial tsunami in September should be the event which has most deeply and widely influenced the world.

After World War II, the U.S. and the Soviet Union confronted a few decades of Cold War, both sides had invested a lot of resources, yet the status of the U.S has not at all diminished, while the Soviet Union has ultimately tumbled. As the Cold War ended in the early 90s, the U.S. dominated the rest solely and rampaged everywhere. Unilateralism and expansionist policies have been the symbols of the U.S. for the past eight years. Nevertheless, at the moment where the polarization pattern was gradually forming, the global financial tsunami triggered by the subprime mortgage crisis took place this year, causing the American economy to shrink dramatically, also dooming the solid U.S. banking and automobile manufacturing industries which had been economically admired in recent times. With the rapid evaporation of its wealth, the U.S.’s national power fell to the lowest point in the past 3 months; all these became the driving force of the rapid change with the international situation.

Chief Criminal of the Financial Tsunami Considered a Rat Across the Street

After World War II, America worked to earacquired a powerful status. The American GDP is now worth $13.84 trillion, (USD, same below) which is more than the total sum of Japan (4.38 trillion), Germany (3.32 trillion) and China (3.25 trillion); the U.S. is the world’s largest single consumer market, the U.S. dollar is the world’s most powerful monetary settlement currency, the U.S. is in a superpower position not only limited in its military and political strength, but its economic impact is also everywhere. However, these superpower positions disintegrate along with the financial tsunami one by one. Wall Street, a source of envy for many people, was actually the source of the economic tsunami, causing the U.S. to be hated by everyone in just three months. The situation is completely different compared to the liberation of Western Europe 64 years ago where people celebrated the U.S. victory against Tokyo, not to mention the post-war Marshall Plan which helped Western Europe to revive its economy. Today, the U.S. spits out all capital with profits it has swallowed in the past few decades. That is indeed very ironic in our history.

As the greed of some people in the U.S. has committed a mortal calamity which has caused a total loss after several decades of work, Washington could absolutely not expect that America was still fully emboldened in the beginning of 2008, yet it came to a slump at the end of the year. On the other hand, from a positive point of view, even if this lesion from the U.S. did not explode this year, there was no guarantee that it would not have exploded next year or the year after that. The sooner the outbreak happens, the better it could be repaired; it is not yet annihilated. After Obama had been elected, he did not flinch from the huge crisis facing this exist-or-perish American economy, claiming that he would improve economy boldly and decisively, and he even vowed that the regulations on economy and finance would be reinforced. Although Obama will officially assume office three weeks later, this early positive news brought hopes to American society, with polls showing Obama as the most widely supported elected president in the past 30 years.

However, even if Obama ultimately saves the American economy, the tremendous shock in 2008 will change the balance of international power forever. While the U.S. was unable to propose a set of programs in response to the financial tsunami, the EU countries, in particular the United Kingdom, have shown extraordinary wisdom. Prime Minister Gordon Brown has demonstrated his heroic qualities against the closure of the banks and received global appreciation during this economic turmoil. The European Union will certainly grow to be a huge political and economic force which cannot be ignored after the financial tsunami years; in the Middle East, Northeast Asia, South Asia, countries with developing momentum are unfolding. After the financial tsunami is over, the U.S. is believed to remain the world’s most powerful economy, but unlikely to reproduce the uni-polar or multi-polarization international pattern as in the past decade or so, none of the countries affected by the financial tsunami would agree to go back to the U.S.’s “I am the world” formula.

Unrests Will Continue Inevitably in 2009-Solutions Would Rely On Healthy Consultation Systems

In 2009, the financial tsunami’s aftereffects will haunt people in the world like a ghost. All countries are faced with a difficult year. However, if we could sum up our experiences and learn to explore a path for self-reliance, and all countries create a healthy system through sufficient consultations and financial system reforms, the global economy is expected to see the dawn at the deep end of the financial tsunami.