America s policy shift will inevitably erode the Western liberal axis.

As China s global economic role increases, its labor costs will rise and its currency will appreciate, eroding its competitiveness.

As the misdeeds of banksters come to light, the system no longer seems fair.

This erodes the flexibility and ultimate effectiveness of fiscal responses.

Such rent creating corruption is quite expensive and corrosive of growth.

It erodes the relative security in which the rich world could shelter itself, as in a cocoon.

This is eroding the external surplus, weakening domestic purchasing power, and causing investments to be postponed.

True, a steep and persistent collapse in earnings will erode wealth invested in stocks.

If repeated, this pattern may erode confidence in financial markets and regulators, which could well lead to heavy handed regulation, the expansion of the state, and retrenchment from globalization.

At the same time, forgoing intervention and allowing the currency to appreciate erodes external competitiveness, leading to dangerous external deficits.

Latin America s governments and citizens can recognize and address distortions in their own thinking, or they can remain on a path of corruption and violence that erodes states and citizenship alike.

From stymieing medium term fiscal reforms to delaying needed overhauls of the labor and housing markets, congressional dysfunction would keep US economic performance below its capacity over time, it would also eat away at potential output.

But the inflation that accompanies it will produce a steeper and larger erosion of real wealth invested in nominal bonds.

Higher inflation would cause the interest rate on new debt to rise in a way that prevents the erosion of the real value of the total debt.

The current fighting will not erode that support, which regards resistance to Israel as a victory in itself.

Preference erosion was likely to have serious adverse effects only for a few LDCs, and it was still too early to know with certainty what the effects would be.

Fourth, America s decision to back extremists in Syria contradicts its war on terrorism and will erode international support for it.

At the same time, however, the erosion of traditional structures, including as a result of conflict and HIV AIDS, is exacerbating problems of care and protection.

This clearly raises the stakes.

This could lead to pulling away (human) resources from the primary health care structure including sexual and reproductive health , and will eventually lead to the erosion of the overall health care structure.

Since its focus is the law of laws, the Assembly implicitly questions the status of all public norms and bodies, thus eroding the political system.

The switchover, however, would more than double the electricity bill in this example.

We should not ignore how the absence of a peace process could ultimately erode the fragile (and by no means universal) gains in the rest of the Arab world.

Continuing to stumble forward, however, would inevitably lead to a debilitating, if not fatal, fall.

Slower economic growth will cause a shortfall of jobs for new entrants to the workforce, thereby increasing the incidence of poverty.

It may also erode the charter value of institutions.

The Erosion of Law

At the same time, holding another vote would leave the question of the electoral law unresolved.

This policy mix will slow their growth, and that of the rest of Europe.

Failure will be a constant danger and the military risk will be high.

Inaction or delay would be disastrous for the climate, but it would also be disastrous economically.

Additional border crossings and the long distance from major markets, coupled with cumbersome procedures and inadequate infrastructure, substantially increase the total expenses for the transport services that erode the competitive edge of landlocked developing countries.

She suggested that the effects of preference erosion could be compensated, inter alia, by existing World Bank and IMF resources, in the light of relevant impact assessments.

Second, Obama s election will lead to a reorientation of US foreign policy in the medium term.

Failure to share resources and coordinate policy would seriously undermine Europe s security interests.

On the other side is the danger that a completed development round will fail to live up to the high expectations that it has spawned, further eroding the legitimacy of global trade rules over the longer run.

Their reduced demand for dollars will cause the dollar to decline and the trade deficit to shrink. That reduced trade deficit and the resulting decline in capital inflows will lead to higher real interest rates in the US.

And the longer this continues, the greater the risk that Germany s neighborhood will erode the robustness of what the country has painstakingly built.

The contraction of property and stock markets will undoubtedly dampen US household borrowing and demand, potentially triggering a downward spiral.

No water, no corrosion.

In a worst case scenario, falling property prices or diminishing faith in implicit government guarantees would compound the risks generated by the shadow banking system, severely undermining China s financial stability.

At home, too, massive distrust will further complicate an inherently difficult task.

First, the regime s implosion would unleash a massive refugee flow, implying enormous social and economic costs.

This is unsustainable, and sooner or later it will precipitate a major confrontation with the US (and Europe).

Doing so will raise the cost of imports and lower the cost of exports, leading to an improvement in its trade balance.