US superpower status is shaken
After the end of the Cold War and demise of Russian empire America remained the only big superpower but it seems latest development in the financial world and on the other fronts have shaken its position.
The trend of losing hegemony on the political front started in its own backyard Venezuelan President Hugo Chávez taunting and ridiculing the superpower with impunity. America was the role model of the many of the emerging and developing economy for free enterprise and big private corporation. But now with American financial giants falling flat has shaken the people all over the world and the American free-market creed has been pushed back to the backyard. Many counturies are now going to further tighten overall control of markets.
Successive American administrations have lectured other countries on the necessity of sound finance. Many southeast Asian countries had to open up their closed economy and had to cut their budget to get aid from international funding agency.
USA has always admonished China for its human rights abuse and loophole in financial system. China was constantly reprimanded for the weakness of its banking system. But Today it is Soverign Wealth Fund from China which is bailing out the American institutions.
The financial crisis is likely to diminish the status of the United States as the world's only superpower.
On the practical level, the US is already stretched militarily, in Afghanistan and Iraq, and is now stretched financially.
On the philosophical level, it will be harder for it to argue in favour of its free market ideas, if its own markets have collapsed.