Economic crisis in East Asia: the clash of capitalisms

Abstract

Since mid 1997, Americans have been told that the Asian economic model is obsolete and that the meltdown in East Asia will not affect them, their jobs, or the American stockmarket. Even the continuing US trade deficits with Asia of well over $100 billion are considered good news because cheap imports will keep down inflation. But what was and still is at risk in East Asia is the real possibility of a global collapse of demand and another Great Depression. Even if that does not happen, America’s system of rich satellites serving as hosts to an expeditionary force of some 100,000 US troops is virtually certain to come to an end.