Niall Ferguson, Professor of History at Harvard University advised that Australia needs to prepare for the post era of Pax Americana, Latin for American Peace.
Ferguson invited as one of main speakers for the 11th World Knowledge Forum (WKF) in October in Seoul delivered a big address at the Four Seasons Hotel in Sydney, Australia on August 28th, local time. A heated debate between Ferguson and Paul Krugman, professor of economics at Princeton University is planned at the 2010 WKF.
He argued no matter how magnificent, all empires experienced sudden collapses throughout history, but the fate of those that prepared for collapse was different from those did not have any preparations. He continued saying the decline of U.S. hegemony has similarity with the British Empire.
By the mid 1920s, debt charges were absorbing 44.5% of total government expenditure. Britain`s real problems came after 1945, when a substantial proportion of its immense debt burden - equivalent to about a third of gross domestic product - was in foreign hands," Ferguson addressed.
The U.S. federal debt in public hands has doubled as a share of GDP from 32% to a projected 66% next year. It is projected that debt could reach 344% by 2050," he predicted.
Ferguson gave a piece of advice that Australia and other major countries would have to respond to the shift of global hegemony proactively, but they currently fall short of contemplations or preparations in response to the shift of the economic power from the U.S. to Asia.
[Written by Hyun-gyu Shin - Su-hyun Song / edited by Soyoung Chung]
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