by Patrick Boniface

Created on: May 26, 2010   Last Updated: May 27, 2010

In the last century the United States provided ‘products’ across the world which brought the United States money, power and prestige. The emergence of the Asiatic Nations into a worldwide economic force of equal and sometimes superior import caused the US economy to be on the receiving end of a proverbial ‘curve ball’.

The principle US economic factors demanding a fundamental overhaul include a divergence from traditional government practice of spending heavily on the US military with its consequential ‘Imperial Overstretch’.

This has caused the United States to divert “economic resources away from civilian purposes and left the US economy weak.”(1)  

Whilst not wanting to sacrifice their defences the US as a nation would like to see more funds directed towards social welfare and a social building program. In the post cold war environment, the United States are looking for a new role in the new world order.

After the second world war and until 1989 America acted as the world’s policeman and supported the worlds economies in part to defend the free world from the threat of communism. With the erosion of the threat of the Eastern Block, America has had to re-evaluate its position.

“American leadership was based on the existence of an ordered system of international relations; as that order has collapsed so America’s role as one of its main pillars must [also] change. The USA has sought a new role in the 1990’s and it remains unclear whether it will be as dominant as before.

Whether American leadership continues will be determined less by international upheaval than by the capacity of its domestic economy to adapt to the pressures of globalisation.” (1)  

Globalisation saw the world combining economically until  “The distinction between the domestic and international now makes little difference to the markets.” (1) This process caused calls for de-regulation of the US markets so that they could compete more effectively on the foreign arena.

Once the de-regulation programs, such as the GARN-ST GERMAIN DEPOSITORY INSTITUTIONS ACT OF 1982 and the DEPOSITORY INSTITUTIONS DEREGULATION AND MONETARY CONTROL ACT OF 1980 (DIDMCA) were enacted these allowed the money centres to control much of the US economy. It also allowed them far greater freedoms away from the influence of governmental and political considerations.

“The dynamic of change was further accelerated

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