Without economic recovery there is no political consensus; without political consensus there is no economic recovery. If Washington fails to overcome its current stalemate, a long period of monetary stagnation and moral decline will set in.
Europe’s problems go far beyond deflating currency and rising debt. It suffers from a lack of will, a crisis of confidence—and a serious identity problem. The once-great superpower has already fallen. Centuries of predominance slip away.
China must choose between kowtowing to domestic nationalism and submitting to a peaceful rise. Lately, nationalist belligerence has ruled the day. Washington is overreacting, encircling China. A latent rivalry ratchets up to dangerous levels.
