The Age of Magic Money
Can Endless Spending Prevent Economic Calamity?
The 1990s will demand a redefinition of what constitutes national security. In the 1970s the concept was expanded to include international economics as it became clear that the U.S. economy was no longer the independent force it had once been, but was powerfully affected by economic policies in dozens of other countries. Global developments now suggest the need for another analogous, broadening definition of national security to include resource, environmental and demographic issues.
The assumptions and institutions that have governed international relations in the postwar era are a poor fit with these new realities. Environmental strains that transcend national borders are already beginning to break down the sacred boundaries of national sovereignty, previously rendered porous by the information and communication revolutions and the instantaneous global movement of financial capital. The once sharp dividing line between foreign and domestic policy is blurred, forcing governments to grapple in international forums with