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Recession Geopolitics

FLORENCE – The news that China has overtaken Japan as the world’s second largest economy did not come as a surprise. This is the major geo-political outcome of the Great Recession of the early twenty-first century – one that carries both economic hope and political fear.

First, the good news: the economic side of the case.China’s response of to the world economic crisis is the central reason why the financial turbulence that emanated from the US sub-prime debacle did not completely destroy the world economy and lead to a repeat of the 1930’s Great Depression.