End of Us Dominance

For the last two decades the United States of America has been a sole super power on the face of earth. No other country could challenge their position as financial, political and military leader of the world. Until now. We’re are witnessing an interesting era of fading power of the US. They are still powerful but their power is of diminishing kind as we can see from the ever weakening dollar or soaring public debt that is getting bigger even by time you are reading this. The FED is printing new dollar in order to keep america’s economy running, leading to ever increasing risk of huge inflation and the average american is consuming with loan money, paying little attention what really is happening to his country.

The reasons of decrease in influence of America is essentially of economic kind. For years American companies have been taking their manufacturing, the only real source of wealth, to countries where it is cheaper to produce. With manufacturing leaving, the country has lost it’s tangible export products thus leaving it with increasing trade deficit which means that they have to acquire more money from abroad in order to be able to pay for the imported products. And the citizens of USA have been happy to consume these cheap products, even though it is harming their own country. Thus, the US has gathered debt for years and years and now it has slowly become the time when the money borrowers start to ask if the US can ever pay back. And who knows if they can? With US economy producing mainly intangible products and the share of financial sector growing even larger, the US faces a situation where it actually produces only thin air. Money makes more money out of money and nothing real comes out of factories of america. It’s no wonder that financial bubbles keep coming year after year even though ,thanks for our former experiences, we should know how to stop them before they emerge. The US economy has formed a system that is not working, say, the problem is not some part of US economy but the economy in itself. 

USA losing her economic power, it is inevitable that her political and military power will begin to decrease, too. Still contributing a huge part of world’s GDP United States has a lot to say in world’s financial issues but in a couple of years emerging economies of third world will reduce that influence effectively. The US share of world economy is in decline and will be for coming years if no radical actions are being taken, for instance blocking Chinese products entering United States, hence creating new manufacturing jobs. With declining economy the political significance of America reduces rapidly in favor of other great powers including China and EU.

With shrinking economy the US must also face shrinking tax income. Less tax money leads also smaller military budget which means that US military intervention is less likely and they are no longer able to wage wars on distant locations. The military presence of US is other countries will reduce significantly on coming years due the lack of money. US military doctrine of Power Projection is likely to be replaced with something cheaper. The influence brought by superior military is now beginning to be a thing of past. The US must rely more and more on their soft power in solving problems.

Finally the United States must face the problems of sinking economy in their own country. With millions being laid off, the chance for civil unrest is increasing. Frustrated workers lose their homes because no social security and no other job. Families cannot be provided any more leading to a serious risk of society’s social collapse. Some have even predicted the US falling apart, states leaving union because of being tired of paying other states expenses, good example being Texas which is having a strong movement to get it out of the union. The government of US must calculate whit possible uprisings in poorer areas of USA because of discontent of working class. Also the government must prepare their country for potential high inflation rate, caused by collapse of dollar which is anticipated to happen within the coming 24 to 36 months.

These are all things that are either happening right now or are likely to happen in near future.