You may have heard the line “too big to fail” when talking about banks, industrial companies, insurance companies, even recently about sports teams.

But let’s go really big.

If organizations grow large enough and interdependent enough, it is theorized that it may be in everyone’s interest to support them even through bad times.  That was the argument that supported General Motors, insurance giant AIG and Wall Street’s Goldman Sachs.

With the US dollar sinking fast and concerns about exceeding the debt ceilings in their national deficit, is the United States too big to fail too?

The old saying “What’s good for General Motors is good for the United States” might be better rephrased to be “What happens to General Motors happens to the United States.”

Greece is teetering near the brink.  But they have been there many times.  Their main creditor, the EU, will likely work to remove some of their obligations to Greece, perhaps kicking them off the Euro and back onto the drachma.

Greece, and maybe Portugal and Spain, might find themselves in the same boat.  But they are small time compared to the United States.  Can the world handle seeing the US dollar slide more and more?

China now has a vested interest in the US.  Can China, as the prime US creditor, take the role that the European Union has taken with Greece, and insist that the local squabbling and impasses in the US be worked out.

Imagine the irony of China dictating social changes in the United States?

Part of the success of the rebirth of “too big to fail” General Motors was the success they have and hope to have in China.  China, are they too big to fail?

  • Share/Bookmark

Leave a Reply

Powered by WordPress.
Calotropis theme by itx