On the monetary end, because U.S. greenbacks are used in so many places around the globe, recent actions by the Fed to reduce dollar interest rates and expand the dollar money supply have added significant new liquidity to dollar holders worldwide. Japan, meanwhile, is finally taking steps to properly expand its money supply and reform its dysfunctional banking system.
On the fiscal end, the broad-based Bush tax cuts passed in May have emboldened many nations to follow suit. Lower tax rates are being enacted in France, Germany, Poland, Hungary and Slovakia, while Russia and the Baltic countries are completing flat-tax reforms. Outside of Europe, lower tax rates in Thailand, the Philippines, Taiwan, Singapore, Australia and elsewhere in the Pac Rim are being put in place.
All this proves that American leadership in the world economy is just as vital as it is in foreign affairs. When the United States is willing to take actions that export its liberty-loving principles of free speech, free elections and free enterprise, the rest of the world benefits enormously.