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Stephen Thair's avatar

What about the 2nd and 3rd order effects, particularly the economic ones?

Certainly here in the UK no-one has any interest in buying any more US weapons systems, and there is a growing push to get off US tech in a wider sense eg cloud platforms, since no-one trusts the USA with its data anymore, either.

The USD is the world's reserve currency because (a) "petrodollar" and (b) the US was seen as a stable place to park your money eg in US T-bills.

I'm not sure anyone sees the US under Trump as "stable" and all the noise around a crypto sovereign wealth fund has the Doomers saying that this is the start of a USD default.

Even if this is fantasy, it's still swirling around out there in the ether and is part of the risk assessment, even if it's super low risk. And if the USD isn't stable, then (a) comes into play, and it's not like BRICS hasn't been flirting with the idea of an alt-petrodollar for ages. I doubt China would relish their trillions of T-bills being devalued but hey, when you've got a 1,000yr perspective they might want to take the hit in the short term.

The problem that I see with Trump (and tbh a lot of American thinking) is that's it all very zero-sum game and linear. But the world isn't like that. Sure, you might be the 800lb gorilla and used to getting your own way but the world is increasingly "volatile, uncertain, complex and ambiguous".

Acting like a playground bully and thinking there won't be any pushback or that your immune from any potential consequences is like the before scene in every underdog movie where the bully doesn't see the baseball bat to their knee from behind the dumpster and the next thing they remember is waking up in hospital with their jaw wired shut and tubes up every orifice after they've been beaten half to death. Sure, the US economy dwarfs every other countries' but just because it's large does not mean it's not fragile or vulnerable.

And this is where I keep waiting for the other shoe to drop... The fundamental axiom of finance is that risk must be proportional to reward. And by any stretch the current US actions introduce insane levels of risk so *SOMEONE* has to be expecting insane levels of reward.

Sure, if you start with nothing then there is little downside risk but Trump's backers are, by and large, the wealthiest people in human history. So why would they take such insane risks? Are they really that greedy for more, more, more OR are they hedging against a downside risk ie they think they are in danger of losing it all and this is all a defensive ploy.

If so, what are they so afraid of? Civilisation collapsing due to climate change? What do they know about the pressing existential nature of that risk that would lead them to take such insane risks NOW? What are we missing in this equation to make sense of it all?

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Peter Jones's avatar

This article is the rationalisation of bullying.

Not only is Putin culturally, politically unworthy of Ukraine.. but militarily.

So.. even might.. in this case .. is not right.

But aside from that… this article divorces morality from competence and geopolitical values.

The only context it recognises is the big stick.

But not America’s.

Nor American foreign policy imperatives regarding its allies…

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