An Analysis of US Foreign Policy

The current economic crisis has quickly become a global crisis. Banks around the world are teetering on the edge of failure and governments and central banks are stepping in with as much financial ammunition as they can to bolster the world economy. Despite these actions, and calls for a financial summit by France's President, the world still is looking to the United States Government as the only actor capable of stemming the growing credit crunch and financial panic.

The Washington Post gives a survey of the reaction from bankers and officials around the world. The lede, says it all:

Central bankers and elected leaders around the world acknowledged Tuesday that they lacked a comprehensive strategy to protect their countries from the global financial crisis and were as dependent as ever on Washington to come up with a solution.

Even the EU is sidelined in the current crisis. While the economy of the EU rivals the US and its central bank is strong, it lacks the fiscal tools and policy coordination mechanisms among member states to convincingly act to shore up financial markets. An EU spokesperson said:

"The United States must take its responsibility in this situation, must show statesmanship for the sake of their own country and for the sake of the world," Johannes Laitenberger, a spokesman for the European Commission, told reporters.

Labels: economic crisis, EU, hegemony