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“ is on stable ground, even as we see the rise and growth of the BRICs.

Sean Balkissoon

Past challengers laid to waste : • Soviet Union • Japan • European Union .

US economic hegemony consolidated by: • US Dollar Role as world reserve currency Dominance of US Markets and Institutions in Global Finance • • US economy role and significance in global trade Political Stability – confidence US Energy Security supported by • • Military Superiority and determination to protect it’s economic interests • • Globalization – “Americanization” .

Euro is 25%. • . backed by gold reserve was new world reserve currency • 1971 Gold backing abandoned – This gave US hegemon enormous economic powers • Effectively now debt.Previously Britian Sterling backed by Gold Standard – eventually collapsed • Post WWII US dollars. even though China have proposed this since 2009. No alternative to US dollar for Global currency on horizon. In uncertain times people seek confidence in USD. rather than credit had become the new monetary power. • 60% global currency reserves is USD.

• By contrast China markets underdeveloped and not transparent – less attractive to investors. China is only 5%. • Markets are liquid. and liberalized allowing free flow of mobile global wealth . • . • Significance of US Financial markets underscored by the global contagion of the 2008 US Sub-Prime financial crisis. presents unlimited opportunities for investors.Highly developed & sophisticated. range of financial products & services • 40% of global capitalization.

US economy is the engine for global economy . • . • Low domestic demand of China .American consumerism. • The world and China needs a strong US with strong demand. like China.cannot surpass central importance of US to global economy. • US consumer economy vital to export driven emerging economies.

and civil liberty attracts people and wealth to US.Political Stability & Liberty – Confidence in US Democracy (> 200yrs). the rest have either new or tenuous democracy • Rapid development poses socio-political challenges. it remains to be seen what shape it will take. By contrast BRIC – Communist China. China has bound to undergo a revolution. • .

US Growth and Dominance in the world economy has been fueled by an insatiable appetite for energy .

US understands this better than any other nation Threat is reliance on foreign oil Risk factors: • Peak Oil • Political Instability • Nationalization • Terrorist attacks .

• Policy deterrents – Carter Doctrine et al • Military defense of economic interests • Key Gulf Allies – Saudi. Kuwait .US foreign policy seeks to minimize energy security threat.

consumer of oil ~70% • Improve transportation energy efficiency – major • Increased use of natural gas and coal as an alternative to petroleum • Develop Shale Gas production • Nuclear power • Bio-Fuels – Grain Ethanol and Bio-Diesel • Hydro-Electric. Solar.• Boost domestic oil production – Gulf of Mexico • Develop Shale Oil production – currently at 1 mill bpd. Wind. Geo-thermal . 20% of total output.


yet militarily inferior will conform to a US led world order.US Military Superiority – continue to be a stabilizing force for world security for vulnerable resource rich nations Defense of US economic interests to enforce US hegemony • Industry of war and rebuild efforts will fuel economic activity for American corporations. • . • BRIC nations as a powerful economic power.

• Consumer markets in BRIC open up for American near saturated.based on American tastes and brands. • Rise of large powerful middle class in BRIC presents a new market. • More affluent consumers demand more consumer goods .US consumer expansion limited . • US innovation & technology protected by adoption of intellectual property rights law • .

which will be a new market for American consumer brands. BRICs need strong US with strong demand for their continued growth.•The US is on stable ground: The current status quo is in the best interest of everyone. • The US needs the rise of the BRICs and the emergence of a large powerful middle class. among westernized domestic youth. • .