@Frank Apisa,
Frank Apisa wrote:I know it is OUR problem, but we need help.
I think (and hope) that this could soon resolve itself.
In the 19th century, European colonial powers, as well as the United States and Japan, were able to divide up large parts of the world among themselves. Their developmental advantage gave them a power imbalance that no longer exists.
Unlike China, the USA currently appears to be more economically powerful than any other region in the world. It dominates the digital age. Tech companies and the artificial intelligence bubble overshadow obvious weaknesses.
But that can change quickly.
Washington has no strategy
Trump primarily follows his intuition and gut feeling. In fact, Washington's government actions are not guided by any coherent strategy (even if the national security strategy is called that). This leads to adventurous contradictions.
Imperialism is incredibly expensive
Without a comprehensible strategy, imperial ambitions become even more expensive. This could overwhelm the US financially.
America cannot finance itself
So far, America's deficit financing has not been a problem. But the pillars on which the national business model is based could quickly collapse. Then things would look very different.
High government debt, Trump's attacks on the independence of the Federal Reserve, and erratic interventions in the economy and science are weakening confidence in America's solidity. Against this backdrop, an AI crash could be the signal that causes the influx of capital to slow down significantly. America's capital markets would be thrown back on themselves.
The US would then no longer be able to afford many things, certainly not a £1.5 trillion military budget.
