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The G-20 summit in Argentina took place at a moment when the U.S. still stands at the center of the world. The U.S. economy is booming, the dollar is almighty, American tech firms continue to dominate the new digital economy, and the U.S. military remains the unrivaled master of land, sky and sea.As Morgan Stanley's Ruchir Sharma has pointed out, the global economy looks like it's at "peak America".While the United States continues to outperform other advanced economies, the "rise of the rest" also continues, with China, the world's second-largest economy, growing at three times the pace of America.A quarter-century ago, China accounted for less than 2 percent of the global economy. Anywhere one goes in the world these days, leaders talk about America's retreat from the world stage.Foreign leaders also note that the U.S. is likely to be increasingly constrained by its mounting budget woes.American retreat will not produce a better world.
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