High Masculine Tones

I see a parallel between the Bush administration's pursuit of American supremacy and a boom-bust process or bubble in the stock market. Bubbles do not grow out of thin air. They have a solid basis in reality but reality is distorted by misconception. In this case, the dominant position of the US is the reality, the pursuit of supremacy the misconception. Reality can reinforce the misconception but eventually the gap between reality and its false interpretation becomes unsustainable. During the self-reinforcing phase, the misconception may be tested and reinforced. This widens the gap leading to an eventual reversal. The later it comes, the more devastating the consequences.

... A rapid victory in Iraq with little loss of life could cause a dramatic reversal. The price of oil could fall; the stock market could celebrate; consumers could overcome their anxieties and resume spending; and business could respond by stepping up capital expenditure. America would end its dependency on Saudi Arabian oil, the Israeli-Palestinian conflict could become more tractable and negotiations with North Korea could be started without a loss of face. This is what Mr Bush is counting on.

Military victory in Iraq would be the easy part. It is what follows that should give us pause. In a boom-bust process, passing an early test tends to reinforce the misconception that has given rise to it. That could happen here.