As the economic giants of Asia and elsewhere have awakened, Western leaders have increasingly struggled to maintain economic stability. The international financial crisis that began in 2007 is but one result of the emerging nations’ increased gravitational pull. In this vividly written and compellingly argued book, Stephen D. King, the global chief economist at HSBC, one of the largest banking groups in the world, suggests that the decades ahead will see a major redistribution of wealth and power across the globe that will force consumers in the United States and Europe to stop living beyond their means.

The tide of money washing in from emerging nations has already fueled the recent property bubble in the West, while new patterns of trade have left the West increasingly dependent on risky financial services. Unless things change drastically, King argues, the increasing power of emerging markets, when coupled with poor internal regulation and an increasingly anachronistic system of global governance, will result in greater instability and income inequality, accompanied by the risk of a major dollar decline. And as Western populations age and emerging economies develop further, the social and political consequences may be alarming to citizens who have grown accustomed to living in prosperity.

Review

"I’ve not come across another book which so forcefully gives the European or American reader a China-centred view rather than a western-centric one…A disorientating and thought-provoking perspective."— Diane Coyle, *The Enlightened Economist

(Diane C The Enlightened Economist 2010-04-01)

“Mr. King lays out his arguments in accessible and engaging prose. He is a lively writer with a deft eye for catchy historical analogies.” — The Economist

(The Economist)

"This book raises issues of wide significance for the future of the global political economy."—C. J. Talele, Choice

(C. J. Talele Choice)

About the Author

Stephen D. King is HSBC's group chief economist and the bank's global head of economics and asset allocation research. He writes a weekly column for the London Independent and is a member of the European Central Bank Shadow Council and the Financial Times Economists' Forum. He lives in London.