ÂThe world is investing too little, according to one prominent economist. ÂThe current situation has its roots in a series of crises over the last decade that were caused by excessive investment, such as the Japanese asset bubble, the crises in Emerging Asia and Latin America, and most recently, the IT bubble. Investment has fallen off sharply since, with only very cautious recovery.Â
The image of China in the Western press is less the dragon of the Celestial Kingdom than J.R.R Tolkien’s Smaug, a beast of enormous strength and cunning, ravaging oil markets in Africa, copper ore in South America, and uranium deposits in Australia. “The world begins to feel the dragon’s breath on its back,” intones the Financial Times.
Ostensibly, the growing threat of international terrorism is responsible for the Bush administration’s proposed 2007 military budget, of $439 billion: a 7-percent increase from last year’s record tally. Higher spending, Defense Secretary Donald Rumsfeld has indicated, would ensure U.S. success “in the long war against terrorist extremism.”
It is customary early in the New Year to recommend good books to read. And the Tao Te Ching should be at the top of President Bush’s list. Careening from crisis to crisis with approval ratings drooping, the president should consider the opening lines of chapter 80. “If a country is governed wisely, its inhabitants will be content.”
Key Points
Key Points
Key Points