Paul Volcker on China and U.S. Global Leadership

Last night, on the 'Charlie Rose' show, host Charlie Rose interviewed former Federal Reserve Chairman Paul Volcker.

He said the rise of China and other emerging economies has underscored a decline in the comparative economic and intellectual leadership of the U.S. The growth of emerging economies is “symbolic of the relative, less dominant position the United States has, not just in the economy but in leadership, intellectual and otherwise,” Volcker said.

Volcker talked about the rise of China: “I don’t know how we (the U.S.) accommodate ourselves to it. You cannot be dependent upon these countries for three to four trillion dollars of your debt and think that they’re going to be passive observers of whatever you do.”

And on the future leadership role of the U.S. in the global economy : “I would like to think that given the history, the past, given the strength -- actual and potential -- of the American economy, we can and still provide a kind of indispensable element of leadership here. But it's not going to be dictatorial, I'll tell you that. And it's very hard to herd these cats together.”

The Volcker interview will be aired again tonight on Bloomber Television at 8PM and 10PM ET, and simulcast on Bloomberg Radio. Bloomberg Radio is broadcast on 1130AM in the New York Metropolitan area and is available on XM and Sirius.