Since the earliest days of human civilization, the Middle East has been an important center of trade and commerce for the world. Today it is home to perhaps the most important development of our lifetimes yet eludes our positive focus. The drive and reforms of the new Middle East are so vast and staggering that they seem surpassed only by how little we hear of them.
Less than 20 years ago, the U.S. made up 70 percent of the global market capitalization of all publicly traded companies based on MSCI indexes. Today global share of publicly traded companies by market cap for the U.S. accounts for less than 30 percent and is falling. From 70 percent to 30 percent in less than two decades—it does not take a mathematician to know that returning to America’s peak levels is nearly impossible. The country’s economy would have to more than double and the whole world would have to stop growing just for the U.S. to reach where it once was. Sadly, like the plunging dollar and many other issues of vital global economic importance, little news coverage is given to the magnitude of the situation.
Rookie investment analysts, financial advisors and stockbrokers are taught that cries of “this time it’s different” are purely alarmist. After all, the U.S. has recovered from every major market correction and its economy has continued to grow. Through Nixon’s, Reagan’s and Clinton’s good and bad times, war and Enron, America has driven forward. But one day it will be different, will it not? Surely no one argues that the U.S. will be the undisputed economic superpower until the end of time. When does U.S. economic dominance end? Fifty years? Ten? One?
Some say America has already fought an economic battle and lost. Baby boomers remember grade-school teachings of how time will show that the Western way will win over communism. Well, Chinese students learned the same thing only in reverse, and today they cheer, “China won.” Comparing America’s $9 trillion debt with their surplus and lack of product creation, exports and manufacturing in the U.S. with their dominance, one can see the reason for Chinese pride.
Take Off The Blinders
Yale Global reports that less than 20 percent of Americans have a passport, a statistic that is astounding to virtually anyone else in the world. The days of not needing to understand the world are gone. Today globalization is not a buzzword or abstract concept; it’s the economic force affecting everything from the clothes on our backs to the food we eat, and it’s here to stay.
The good news is that massive positive change is afoot. The world is evolving for the better in many ways, and Americans can participate. In order to continue to thrive, they must do what the Chinese have done so well—engage the world and reach...