Dr. Doom baby!
In a new long essay at institutional Investor co-authored with Ian Bremmer, Nouriel Roubini argues that America will never be the same, and that at the moment we’re merely in denial.
The solution: Acceptance.
In addition to the permanent end of the uni-polar, Western dominated world, Roubini senses another major shift back towards state power:
Another major reason that international poli-tics won’t return to a pre–financial crisis status quo is the rise of state capitalism. A generation ago, as command economies imploded in Eastern Europe and the Soviet Union, faith that governments could mandate lasting prosperity seemed dead. Western power — fuelled by private wealth, private investment and private enterprise — seemed to have established the final victory of liberal free-market economics. Over the past decade, however, public wealth, public investment and public enterprise have made a stunning comeback. An era of state-driven capitalism has dawned, one in which governments inject political calculation into the performance of markets.
(via Paul Kedrosky)