All Real World Politics Are Global

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by Philip Mangor
Monday, 06 October 2008

Philip MangorThomas "Tip" O'Neil, a longtime Speaker of the House in the U.S. Congress, came up with the notion that, "All politics is local." That was then. This is now, a time of unprecedented interconnectedness among world markets, complexly intertwined global investments, and highly interdependent financial systems.

We will more fully realize the global nature of today's money markets and credit freezes as we begin to receive debt threats from countries America is heavily mortgaged to, including China.

Face it! America mistakenly, and brazenly, took its eye off the ball while having a ball indulging in one of the most notorious sprees of market deregulation in modern times. It was, of course, Phil Gramm ('Mr. Deregulator') who labored especially hard during his Senate tenure to prevent oversight of financial derivatives, which has a lot to do with the current and painful crises in credit markets. (Did I mention that Mr. Gramm is an ideological sidekick of Mr. McCain, and a likely choice to be his Treasury Secretary? Treasure the thought!)

Enter now . . . Webster's Unabridged Dictionary to somewhere, where the word oversight is variously defined as: 1. an omission or error due to carelessness, as in "our background credit checks were full of oversights." 2. unintentional failure to notice or consider; lack of proper attention, as in "owing to our oversight, we let the free market forces run completely wild." 3. supervision; watchful care, as in "there was no one minding the store, overseeing matters economic and financial."

The world has been on the edge of its seat while America's financial system hovers on the edge of collapse. Our global partners have been watching to see if we will do what is required to move successfully and expeditiously (see above) away from situation 1 ("mistake," "blunder," "slip"), and situation 2 ("lapse," "neglect," "inattention") towards situation 3 ("management," "direction," "control," "surveillance"). Indeed, if the United States of America manages to instigate the kinds of long-term changes needed to bring back adult oversight to the financial markets, the Wall Street meltdown may in actuality turn out to be a Godsend.

As our neighbors across the Pond are apt to say, "Good luck, and Godspeed!"

Furl it!