All About the Benjamins

Is the current global financial crisis a threat to our security?

 

The failure of America’s large financial institutions has caused disturbance in foreign markets as well. A recession in the US economy will limit American ability to respond quickly and effectively to other threats, whether economic, political, or social. Looking at this issue on a global level, the practice of interdependence becomes important. The US economy is interconnected to the markets of much of Europe and the other developed nations of the world. Nonpolarity has increased the size and activity of the global economy, as non state actors have begun to consume more resources or share in their production. Such interdependence leaves states vulnerable in the event that a close trading partner collapses, making a situation such as the current crisis a problem with international repercussions.

 

Economic instability throughout much of the developed world would be a grave threat to security. In addition to decreasing the economic stability in all involved nations, economic recession would severely limit the ability of the US and its allies to look after their interests. Markets that were not as close to that of the US would be in a much stronger position, as their currency would increase in value relative to the dollar. Such a state would not be an ally of the US, as the US is generally allied with states with similar economic interests. Countries such as Iran or North Korea would be less affected by the US economy in recession, as their separation from the US market would eliminate any of the ripple effect of economic collapse. As stated Bovice:

 

Random Congolese farmer #3,407 won't be worried about his heavily divested stock portfolio. Rather, his concern will be whether or not he can eat regularly. As a result, these conflict zones are not hurting from the global crisis.

 

 

With both the US’s capabilities becoming smaller and non allies becoming stronger, the global financial crisis is certainly a threat to security of both domestic and international markets. Additionally, the loss of faith in US currency could make the rejuvenation of the economy more difficult. The US, being an economy build on service rather than manufacturing, would not be able to revive its economy by waging another war, as was the solution to the Great Depression. The US presence in Afghanistan and Iraq prove the extent to which American forces have been constrained. Two costly wars have contributed substantially to this crisis. To open a third would be economically suicidal.

 

Lastly, capitalism in America, being all about the benjamins, would not exude an inspiring image if labeled a failure. In such a scenario, it would appear that the free market would not be the best system of economics, thus giving support to economic theories such as communism or socialism, terms that typically are associated with US enemies.

 

I disagree with my colleague Bubb Rubb when he argues against the alleged security risks posed by such a scenario. He later points out that such a crisis would in fact lead to multinational instability, which could potentially compel a Darwinist free for all, possibly at the mercy of extreme fanatic organizations.

 

The threats posed by the current crisis are inclusive of ability and competition. The US has enjoyed being the superpower for two decades-it may be this crisis that ends this shortsighted honeymoon. Though not a risk to US interests in the same way that is a terrorist organization with a dirty bomb in a highly urbanized geographical area, economic instability can ruin a nation, leaving it for the most aggressive suitor to take the government’s place.