Ali’s blog

Mostly quant stuff with occasional digressions

The end of the empire

Posted by alifinmath on October 15, 2008

Related to my previous post concerning the diminution of American power, here is a very recent piece by Pat Buchanan:

With tax revenue sinking, we will add to this year’s deficit the $200 to $300 billion needed to wipe the rotten paper off the books of Fannie and Freddie, the $700 billion (plus the $100 billion in add-ons and pork) for the Wall Street bailout, the $85 billion to bail out AIG, and $37 billion more now needed, the $25 billion for GM, Chrysler and Ford, and the hundreds of billions Hank Paulson will need to buy corporate paper and bail out banks to stop the panic.

As Americans save nothing, where are the feds going to get the money? Is the Fed going to print it and destroy the dollar and credit rating of the United States? Because the nations whose vaults are full of dollars and U.S. debt—China, Japan, Saudi Arabia, the Gulf Arabs—are reluctant to lend us more. Sovereign wealth funds that plunged billions into U.S. banks have already been burned.

Uncle Sam’s VISA card is about to be stamped “Canceled.”

The budget is going to have to go under the knife. But what gets cut?

It is the American Empire that is going to be liquidated.

We no longer live in Eisenhower or Reagan’s America. Even the post-Cold War world of George H. W. Bush, where America was a global hegemon, is history. In both relative and real terms, the U.S.A. is a diminished power.

The American Empire has become a vast extravagance.

With U.S. markets crashing and wealth vanishing, what are we doing with 750 bases and troops in over 100 countries?

America needs a bottom-up review of all strategic commitments dating to a Cold War now over for 20 years.

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