The Coming Global Crisis

Abstract

The final chapter will discuss the consequences of inaction and provide a series of prescriptions. The liberalization of the financial system has led to a protracted economic crisis in America and the Eurozone, and even China’s economic system shows signs of troubles. Despite some stability in the global economy, the recovery remains fragile and any number of issues could lead to another crisis. Political polarization in the USA could lead to series of bank failures, or America could simply default on its debt, leading to a global economic catastrophe. With the election of Donald Trump, America’s position as hegemon has become even more uncertain. However, there is room for hope. The American system has gone through periods of polarization, but internal factions can united when it is necessary. America is in a contradictory position: it is the source of global instability, but similarly it has the capacity to forge a new, more stable and just, international economic order, should it have the political will.