The Shift of Power

When this crisis first started the immediate analysis by main investors was that there will be a shift in global power to China, other parts of Asia and certain other emerging markets at the cost of the US. As I look at this 4 years later I believe the emerging market rise has started to become true. However it has not necessarily been at the expense of US but Europe. European politicians handling of the debt crisis has managed to create such global stress due to their inability to make firm decisions that other regions view of Europe leadership has declined. China in particular has changed their view from Europe being the most important western global partner to a much lesser standing. In fact China has recently indicated that they have become much comfortable with an economic relationship with the US rather than Europe. China's way of showing this has not been by words but by actions. Rather than continue to increasingly buy European debt that have started to increase their percentage of buying US debt at the expense of Europe. This could well be a response to European politicians playing a hard line with China over special conditions for buying their debt. These conditions were ultimately aimed at China requesting more power at the international economic stage, especially within organizations like the IMF.  Europe have decided not to bow down to China. Lets hope they do need to renegotiate for China will be even more demanding next time.