America: the great economic rule-set exporter
"Global Markets Await Action by U.S. Fed: Other Central Banks Will Face Pressure to Follow Suit on Rates; Borrowing Costs to Feel Impact," by Craig Karmin et. al, Wall Street Journal, 30 June, p. C1.
“Human Rights Abuses Worldwide Are Held to Fall Under U.S. Courts: Foreigners Can File Suits, Justices Rule,” by Linda Greenhouse, New York Times, 30 June, p. A19.
George Magnus, chief economist of the investment division at UBS AG in London:
“In a globalized world economy, U.S. interest rates and the Fed sit at the heart of the system . . . Japanese, Chinese, British and Italian companies and governments raise and use capital in U.S. dollars as well as their own currency.”Why is this? The article’s authors put it succinctly:
“That powerful and continuing response by the world’s securities markets and central planners underscores the role the U.S. plays in the global economy, where the dollar acts as the world’s reserve currency, its capital markets are the widest and deepest, and the American consumer is the prized target across the planet.”That is the power that makes the world go round; that is how the biggest economic rules get set.
But it’s more than that, because not only does our legal system set a serious standard for the planet, it allows that outside world to utilize our own court system against us, thus greatly extending the pool of people who can participate in and experience U.S. justice.
You make think this is some new law made especially to manage globalization. It is not. The law that extends this participation to foreigners is 215 years old.
That is how long we’ve been doing this globalization thing.