Global Economy: US sinks, Asia unable to swim

By Walter T Molano
(Asia Times)

The US economy is down by the bow, and the prognosis does not look good. The final outcome is inevitable, and no one (outside the United States) is really surprised. However, how does Asia avoid contagion?

At the current moment, the US represents almost half of global demand – which is disproportionate with its percentage of the global population. Unwilling and unable to help itself, the US is beyond repair. Asia tried to help out as much as it could, mainly by providing ample financing. However, Asia now has to live with the grim realities that lie ahead.

From a non-Asian perspective, this is a perfect opportunity for the region to catapult ahead. Young, well educated and vibrant, Asia is poised to take the poll position of the global economy. The easiest way to do so would be for China to allow full convertibility of its currency, the yuan. With the stroke of a pen, the US dollar would collapse and the United States would become completely irrelevant

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