Rising debt has become a point of contention both for the United States and much of Europe, but such is not the case of Asian economies that continue to thrive despite an otherwise global crisis. The changes are indicative of something larger than just the immediate present, something many have suspected for years, that economics are moving from west to east.
China owns a large majority of the tremendous U.S. debt and while we struggle to stand beneath the weight of record deficits, Asia is beginning to pay off what minimal amounts it owes. The dichotomy between the record budget deficits in the U.S. and European nations like Greece with the strength in Asian nations has many wondering whether the U.S. will emerge from the crisis with the same status it entered in.
The answer is remains to be seen, but the scales appear tipped against Westernized nations. Unlike the US and Europe, Asian nations, in reaction to a crisis of their own in the late 90’s, have been less flagrant with their borrowing in recent years. Until the US and Europe come to terms with how this difference has shaped economic health and make amends with it, this divergence will continue to widen and aid in Asia’s ascent.
Asian markets suffered last week, but nowhere near the amount endured by Greece of the United States. Even those nation’s hit by the recession, Malaysia and Cambodia for instance, have experienced more of a dent than a true crash.
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