Economic Shift: U.S. vs China

Let China sleep, Napoleon famously said, for when she awakes she will shake the world. If the recent economic jitters have left you a little shaken, our guest believes it's another sign China is rolling out of bed. Historian Niall Ferguson explains why he believes the U.S. is losing dominance to Beijing.

Part Two of The Current

Economic Shift: U.S. vs China

For Communists, there sure was a lot of capitalist advice coming out of China this week. Beijing's State Council called on world governments to practice more responsible monetary policies, reduce fiscal deficits, improve investment security and provide stable operation of the markets to retain the trust of global investors. Beijing's judgments can hardly be ignored since it is the world's second largest economy and holds 1.2 trillion dollars of U.S. Treasury debt.

The events of the past week reinforce the views of my next guest who believes China may soon be the world's dominant economy. Niall Ferguson is a historian at Harvard University who specializes in financial and economic history . He's the author of many books, most recently, Civilization. We reached Niall Ferguson in Baishan, China.

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Tune in tomorrow for another take on the ramifications of the debt downgrade in the US. Former Canadian Prime Minister and Finance Minister, Paul Martin will our guest.

Last Word - Love & the Markets

The economic shake up of the last week once again highlighted our love-hate relationship with the markets. This, of course, is a relationship as old as money. But there may be something in the markets that intensifies our emotions. For instance, here's a song from the 1920's about a man comparing his love for his girl with his love for the markets. This is before the 1929 crash, so his heart may have broken in many, many ways.

We ended the program with I'm in the Market for You from George Olsen and His Music.

Other segment from today's show:

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