The United States of America is technically bankrupt. For the past.5 years (2021-2025), US has always run a budget deficit of US$1.38 trillion to US$2.77 trillion. For 2026, Donald Trump is expected to create an all time high (since COVID) deficit of over US$2 trillion with the US war “adventure”in Iran-this will be a whopping 12% of GDP. The failure and upcoming refund of the illegal import tariffs is only going to worsen the deficit. Its heavy spending on healthcare (Medicare and Medicaid) as well as social security by being a welfare state are placing huge burden on its public finance.
Donald Trump To Cut Down US Military Presence in Europe and Asia
Already, we are seeing Trump using the excuse of the Iran War and no assistance from its European allies to “re-evaluate” its military assets deployed in Europe. I believe US will gradually reduce the number of US overseas military bases as well as its overseas military personnel to reduce unjustifiable military spending so as to rein in the deficit. While US is still a powerful nation, it is no longer a “super power” like it used to be immediately post World War 2.
Donald Trump has also succeed in isolating America from its allies by pursuing import tariffs (that economics 101 lesson has clearly stated the negative repercussion) against all nations and withdrawal of military resources from allied nations to prioritise fighting the war in Iran.
Parting Thoughts
The MAGA movement led by Trump seems to be doing more harm than good to US and as a matter of fact, it is hastening the US decline as a global super power. We are now starting to see the decline of the US dollars starting with the cracks appearing in the US petrol dollar regime.
No comments:
Post a Comment