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The kind of far-sighted deal in which the US gets effective use of its allies territories to project military force far beyond its border, in order to contain i

by phs318u 9mo ago

The kind of far-sighted deal in which the US gets effective use of its allies territories to project military force far beyond its border, in order to contain its superpower rivals, the Russian Federation and China. This is done primarily to protect the USA's own interests (military and commercial), and secondarily (and as a quid-pro-quo) to defend the territory of its allies. That's what military alliances are about. You may recall the Iraq war when several allies of the US joined your country in fighting the Ba'athists, and then in the aftermath - when a multi-national peace keeping force was assembled (notably, including Denmark and Norway). Right or wrong, the US called, and allies responded. Of course, if the USA no longer wants those bases all around the world, the US government is entirely free to withdraw them. https://en.wikipedia.org/wiki/List_of_American_military_installations https://en.wikipedia.org/wiki/List_of_American_military_inst... https://en.wikipedia.org/wiki/Combatants_of_the_Iraq_War https://en.wikipedia.org/wiki/Combatants_of_the_Iraq_War

rayiner 9mo ago
[flagged]
- phs318u 9mo ago
  You're thinking too narrowly. It's not just about mutual trade. It's the fact that US companies have firmly planted the flag almost everywhere on earth - a feat only possible through the Pax Americana. If you want to see what the world will look like for the USA when it can rely on no allies to support its military misadventures, when it can rely on no favourable treatment from allies for its corporations, when it sees its former allies forming deals with former enemies, and when the cost of losing the US dollar's primacy as the reserve currency for world trade hits your country in its ability to raise (and service) debt - just wait. That world is slowly coming.
  - rayiner 9mo ago
    U.S. companies planted a flag all over the world for the same reason Chinese companies have done so. In 1930 the U.S. was the manufacturing giant that China is today. I suspect the military misadventures will have to end, but that’s a good thing. In terms of reserve currency and trade deals or whatnot—I’m not persuaded it matters for economic growth. Can you point out on this chart of U.S. GDP per capita at which point we began enjoying the economic benefits of being the reserve currency? https://www.aei.org/wp-content/uploads/2016/09/peth_09-72016.jpg?x97961 https://www.aei.org/wp-content/uploads/2016/09/peth_09-72016....
    - phs318u 9mo ago
      GDP per capita is irrelevant to the benefits of being the world's reserve currency. You could search for it yourself but I'll do you a favour. Having the US$ be the world's reserve currency means the US government can borrow far more and on more favourable terms than other countries. It's why your country seems immune to the consequences of an ever-spiralling debt burden. In addition, having the world's trade be denominated in US$ makes it incredibly easy for the US government to apply economic pressure to bear on other countries. This is a privilege that few other countries share in any meaningful way.
      - zozbot234 9mo ago
        Being the world's reserve currency just means that institutional investors around the world perceive U.S.-based assets as inherently more reliable, which leads to extra demand for these assets. That can degrade a lot quicker than you might expect when you see things like the current administration pressuring the Chairman of the Federal Reserve to lower rates and create more inflation, in direct violation of a very clear Congressional mandate.
      - rayiner 9mo ago
        > GDP per capita is irrelevant to the benefits of being the world's reserve currency. If none of that stuff makes the U.S. richer who cares?
        disgruntledphd2 9mo ago
        > If none of that stuff makes the U.S. richer who cares? Your bondholders certainly care, and you've been living beyond your means for quite some time. I wish you the very best of luck with either massive expenditure cuts causing civil unrest, or hyper-inflation. Honestly, I can't even believe that someone (who generally expresses reasoned viewpoints) would question the value of being the world's reserve currency. There's definitely downsides but it's allowed a lot more flexibility for the US since the 70s.

by phs318u 9mo ago

rayiner 9mo ago

[flagged]

phs318u 9mo ago
You're thinking too narrowly. It's not just about mutual trade. It's the fact that US companies have firmly planted the flag almost everywhere on earth - a feat only possible through the Pax Americana. If you want to see what the world will look like for the USA when it can rely on no allies to support its military misadventures, when it can rely on no favourable treatment from allies for its corporations, when it sees its former allies forming deals with former enemies, and when the cost of losing the US dollar's primacy as the reserve currency for world trade hits your country in its ability to raise (and service) debt - just wait. That world is slowly coming.
- rayiner 9mo ago
  U.S. companies planted a flag all over the world for the same reason Chinese companies have done so. In 1930 the U.S. was the manufacturing giant that China is today. I suspect the military misadventures will have to end, but that’s a good thing. In terms of reserve currency and trade deals or whatnot—I’m not persuaded it matters for economic growth. Can you point out on this chart of U.S. GDP per capita at which point we began enjoying the economic benefits of being the reserve currency? https://www.aei.org/wp-content/uploads/2016/09/peth_09-72016.jpg?x97961 https://www.aei.org/wp-content/uploads/2016/09/peth_09-72016....
  - phs318u 9mo ago
    GDP per capita is irrelevant to the benefits of being the world's reserve currency. You could search for it yourself but I'll do you a favour. Having the US$ be the world's reserve currency means the US government can borrow far more and on more favourable terms than other countries. It's why your country seems immune to the consequences of an ever-spiralling debt burden. In addition, having the world's trade be denominated in US$ makes it incredibly easy for the US government to apply economic pressure to bear on other countries. This is a privilege that few other countries share in any meaningful way.
    - zozbot234 9mo ago
      Being the world's reserve currency just means that institutional investors around the world perceive U.S.-based assets as inherently more reliable, which leads to extra demand for these assets. That can degrade a lot quicker than you might expect when you see things like the current administration pressuring the Chairman of the Federal Reserve to lower rates and create more inflation, in direct violation of a very clear Congressional mandate.
    - rayiner 9mo ago
      > GDP per capita is irrelevant to the benefits of being the world's reserve currency. If none of that stuff makes the U.S. richer who cares?
      - disgruntledphd2 9mo ago
        > If none of that stuff makes the U.S. richer who cares? Your bondholders certainly care, and you've been living beyond your means for quite some time. I wish you the very best of luck with either massive expenditure cuts causing civil unrest, or hyper-inflation. Honestly, I can't even believe that someone (who generally expresses reasoned viewpoints) would question the value of being the world's reserve currency. There's definitely downsides but it's allowed a lot more flexibility for the US since the 70s.