Is the West Drifting Away from the USA?

                The era of Western domination of human history is over. The world is in a transitional phase. The West no longer drives prosperity. It is Asia that is the key mover for global economic growth.

In the series Percy Jackson and the Olympians, it was mentioned that Mt. Olympus (home of the gods) can be found in the City of Olympus (JJJ). But Olympus has steadily moved west, following the center of power of “Western Civilization” over the centuries and is now in the USA. In the series, Olympus is currently located far above the Empire State Building (600^th floor) while the original mountain remains in Greece. USA is still one of the most powerful countries in the world.

But what is the West? It roughly refers to the United States of America and Europe. Before, when we speak of the Occident (or the West as opposed to the Orient [the East]), we do so on high terms. And actually, we still hold a high regard for the Occident. The West has been very powerful and wealthy. Up to now, the countries comprising it still wield great power and influence. But something has happened that has never happened in the past in one of the countries that comprise it. And this is the first downgrade of the U.S. credit rating from AAA to AA+. A downgrade from Standard and Poors (S&P), one of the Big Three really means a lot especially for the world’s largest economy. This cut of the credit rating by one notch is due to the fact that the budget deficit reduction plan passed by U.S. Congress was not able to stabilize the situation there. Before, people believe that they can invest their money safely in US treasuries but now they think that countries like Japan and Switzerland are safer when it comes to investment opportunities.

The world’s largest economy is in trouble. The measure which raises the debt ceiling until 2013 will result to $2.4 trillion reduction in government spending. The US government will do this for the next ten years so as to ensure that its long-run fiscal trajectory is compatible with the AAA rating of the other two major credit rating agencies (Moody’s and Fitch). This involves a lot of work for the government. Further measures should be taken to maintain this course of action.

The dollars reign is coming to an end. For decades, the dollar has served as the world’s main reserve currency. But soon, it will have to share that role. The dollar is about to have rivals for the first time in 50 years – euro and China’s yuan. Fire is catching and China is getting more powerful.

USA has a lot of troops all over the world. We are wondering why the USA always intervenes in every eventuality that is happening across the globe. Maybe because it has a stake in everything that may happen. For instance, Secretary of State Hilary Clinton said in a statement that the USA will support Philippines, its ally, in the campaign for a peaceful settlement with the ongoing dispute over claims of the Spratly Islands. It also sends troops to places where there is unrest like in Libya, on the demilitarized zone between North and South Korea, in Mindanao and in many other places. Thinking of the money it spends to keep its influence in the world, that must be really big. The effort may have strained the country.

Some say that the United States of America is not really united. Before the Republicans and the Democrats agreed to raise the country’s debt ceiling, President Barack Obama called for unity between the two political parties. “What’s clear now is that any solution to avoid default must be bipartisan. It must have the support of both parties that were sent here to represent the American people – not just one faction,” he said. Good thing, they were able to beat the August 2 deadline.

Perhaps the West is moving to China and to other Asian nations. Last February, China overtook Japan’s position of being the second world’s largest economy. This speaks of something – that finally, Asia is starting to rise and come up to match with America and Europe. And India is in rank #4 (EconomyWatch, 2011). The power is starting to get distributed to other nations. After being a superpower for so long, America is starting to slow down. It may not be too late but we can’t be so sure of anything in this world.