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Official: Crisis will cost U.S. 'status'

Sept. 25, 2008 at 8:28 PM   |   Comments

BERLIN, Sept. 25 (UPI) -- The financial crisis will cost the United States its status as a global financial superpower, German Minister of Finance Peer Steinbruck said Thursday.

Steinbruck, who has a history of favoring strict financial market rules, told the German parliament the U.S. government is responsible for the crisis because Washington has resisted Europe's demands for tougher regulations, The Financial Times reported Thursday.

He said the United States "will lose its status as the superpower of the world financial system" as stronger, better-capitalized financial centers emerge in Asia and Europe.

"The world will never be the same again," Steinbruck said.

"Ten years from now," he told reporters after his remarks to German leaders, "we will see 2008 as a fundamental rupture. I am not saying the dollar will lose its reserve currency status, but it will become relative."

Steinbruck said Washington's attempt at crisis management in recent days -- including negotiations on a proposed $700 billion rescue package for the financial sector -- indicated the United States was acting not just in its own interest but also in the interest of other nations, the newspaper said.

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