Does Financial Crisis Threaten America's Central Role in Global Economy?

The financial meltdown on Wall Street and elsewhere is not simply endangering investments, payrolls, consumer purchases, and business transactions in America. It is also triggering predictions—especially from overseas—that the era of American financial primacy is coming to a dramatic end. The unique role of the U.S. dollar as the world's broadly chosen reserve currency, along with the globe-straddling role of the U.S. financial sector, have long been a key source of power, prestige, and financing opportunities for American companies and the U.S. government. Eroding that stellar status endangers a central pillar of the mostly U.S.-inspired system that has basically defined the contours of international affairs since World War II. The American status in matters financial, not surprisingly, has inspired both respect and... [read full story]