Is America the former super-power? The answer thankfully is “Not yet! “ So far the USA have always covered their financial responsibilities and never defaulted on the papers they have issued. This is the reason investors all over the world keep their money on the US stock exchange – no matter how much they hate the country, so far they always got back what their contracts with US promised. No matter how tall and shiny is the new Dubai Khalifa tower is – the country is in default on their debt payments and suckers who invested there now bite their nails in fear.

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Will America become the former super-power? It is possible. It definitely doesn’t help the US image if everybody knows America is broke.

The problem is that US is running wild deficits and covers the debt they issued with borrowed money. The fancy credit rating America has lets the country borrow at sweet interest rates. However these ratings may be changed soon if the Obama administration continues the course of unsustainable government spending. America already got the warning from Moody’s as the US credit rating are now classified as ’resilient,’ rather than ’resistant’. US resiliency will be tested in the next couple of years, but for now the USA have a high degree of finance ability and debt affordability.

So the country is in probation, but there is a cure. A spending freeze will do it. No more bailouts, no stimulus/spendulus packages , 10% cuts of the budgets of all government bureaucracies would be a nice touch, shrinking the deficit, repaying the debt. Fiscal responsibility is what will save the US. It is the same grandma’s remedy that lifts the credit card addicted junky out of bankruptcy.

The planned government spending for 2010 may put the country in risk of inflation. America is a super-power, but not a divine power. If the inflation goes out of control and wild into hyperinflation America’s good name will be in the mud for centuries to come. US politicians thought it is clever to put the majority of the stimulus money to be spent in an election year but it is a risky thing to do. To pour billions of dollars into the market at a short period of time may trigger hyperinflation.

America doesn’t need a worldwide conspiracy against the dollar to hurt the US currency. All it needs is bunch of incompetent politicians who spend the tax-payer’s money like there is no tomorrow.

Four of the biggest and most strategically important democracies in the developing world – Brazil, India, South Africa and Turkey – are increasingly at odds with American foreign policy. Turkey is developing economic relations with Iran despite the entire buzz for sanctions against the regime in Teheran. Turkey is the world fifth largest economy and it is very troubling that the country is turning its back on the European Union in favor of a strong politics of interest in the Middle East. Turkey seems to bypass America negotiating the policies in the region with Japan.

But all this “showing off” behavior from the third world powers wouldn’t matter if America stands strong economically. This is why the Obama administration’s first goal should be the economy. You don’t have to be smart to grasp that. Even the stupid does.

America will become a former super-power if US transforms its currency and government papers from a sure thing into a defaulted trash. Make no mistake, with Obama in office or without him, the world hates America. It is a campaign based on the same principal like the current administration’s “If we suck – blame Bush” game. All over the world corrupt and mediocre politicians blame their failures on America. Nobody ever takes the blame. The world just unloads its anger on the USA.

As long as the USA keeps the freedom and exercise common sense in their fiscal and other economy related decisions – America will not be a former super-power. Because freedom is power and money is power.