Ad Here  
The lions roar to growth... No longer a shining star Of diversity and inclusion Modi in Washington Forget USA and UK for higher education Trump and Netanyahu rule the headlines A mixed shopping bag Let’s copy paste In US he was excellent... Pakistan – the siege within China's might - India's Weakness Auto component exports to UK brighten Maggie melts Worldwatch Institute’s Vital Signs East Asian and Indian Trump cards 2016 Year in review When Americans help yuan to emerge a reserve currency... The mid-air scare The Japanese will rise again... A sense of oneness in a foreign land... National Security @ the cost of Privacy When German consumers were paid for power consumed! London Bridge is falling down BBC stars in a vain vitriolic campaign All talk and hopefully, all action French elections and more Nuclear sabre-rattling takes centre stage Two weeks of Trump Doklam, for the home theatre? And the Nobel goes to… May on back foot, advantage India? 2015 Year in review Modi sharpens the look - east policy Media’s Modi phobia... Trade prospects promising Big O’s win Bitten by the South American bug… A success? A failure? Or a fraud? The new state of terror End of an extravaganza Move forward in fast forward mode A person will win. What the country might lose... Relentless hunt for trade deals... Siemens-Mitsubishi rival GE’s bid For Alstom takeover The story of the diminishing value of the pound Promise of 9 billion pounds in FDI Trump unconcerned and immune to scandals Happy birthday, Sharief Why the hell are we refusing to learn?
When Americans help yuan to emerge a reserve currency...
The economic and political crisis facing the US has been unprecedented.

American legislators were left grappling with an almost 16 day shutdown of the US government and the prospect of a debt default if the debt ceiling was not removed. Even though a deal was struck at the last second to avoid a debt default, it left many questions un answered.

This crisis of America was largely of its own making with amateur activism from both ends of the political spectrum. While Barack Obama did not come out as a great leader, the Republicans were strangled by the right extreme. Tea party activists thought Obama care was more dangerous than the country running into default. While these were domestic issues, the ripple effect was felt world over since the global economies were afraid because of their over reliance on the American economy. The nature of the globalised world is such that America’s policies and issues have effect across the world. A prime example would be the free spin of the Indian rupee after indications by the Fed that they would begin tapering it off last August. All of these uncertainties have led to the second largest economy in the world, China, asking should we de-Americanise ourselves?


Chinese onslaught...

Xinhua, China’s main newspaper, had a very strong editorial that echoed this opinion and there are a number of leaders who are asking this question. At the core of these questions, is the irresponsibility that American lawmakers have been exhibiting. The impact on the global markets has been erratic and has caused a lot of instability in emerging markets such as the BRIC countries. In addition, countries such as China and Japan have almost 1/3 of the total US treasury reserves and are highly dependent on the stability of the dollar. As such, the antics of the Americans over recent years have left many to wonder if America could indeed play the leadership role that once it espoused as its birthright.

Considering that the financial crisis triggered by Lehmann Brothers was America’s own mess and that nothing has been done to set it right, it has further dented the reliability of the dollar. The increase in investments by China across the world, mostly in Africa, in road and railway projects has led to an increase in their economic and social presence world over. As such, there is a possibility, even though it is a faint one, where the Yuan could set up a reserve currency with Hong Kong as the epicenter of the global financial markets. Besides the economic irresponsibility, there is also the NSA angle that is causing uncertainty for America.

The NSA leaks by Snowden has put America in a spot across the world with world leaders questioning the surveillance especially on world leaders. Though India has not voiced any significant protest, the EU has passed a strong resolution condemning these activities without prior knowledge of anyone concerned. It rattled the Brazilian President so much that she cancelled an impending visit to

Washington as a protest against spying on her office through NSA. As such, there is an increasing feeling that America’s superpower status is falling apart. The world is becoming more courageous to take on the Americans and is getting frustrated at the intrusions that America is making in their own lives. It has also set a thought process of trying to socially de-Americanise from the oversight of America.


Is it practical...

While this is interesting in theory, in practice it is much harder. For all its shortcomings, America is still one of the most transparent democracies in the world. It has a robust innovative society that is hard to match. Adding to that handicap, countries like China lack democracy and social openness that America so ardently possesses. As such, overthrowing the American identity and the economic currency would require a significant push from China and others over a sustained period of time. However, the alarm bells are ringing. The fact that the world is even thinking about de-Americanising themselves tells about the mess that the US has created for itself.

Author :
Reported On :
Sector :
Shoulder :
IE, the business magazine from south was launched in 1968 and pioneered business journalism in south. Through the 45 years IE has been focusing on well-presented and well-researched articles. When giants in the industry stumbled to keep pace with the digital revolution, IE stayed affixed embracing technology.
Read more
Economist Communications Ltd is committed to ensuring that your privacy is protected.
Read more
You agree that your use of this Website and the purchase of the magazine will be governed by these terms and conditions.
Read more
S-15, Industrial Estate,
Chennai - 600 032.
PHONE: +91 44 22501236