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Reply to "Trump has managed to push Japan and SK into an economic alliance with china"
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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]The saddest thing is there is no coming back from this. Even if the US elects an all-Democratic Presidency and Congress in 2028, the long-ter damage to US credibility means that no US trade agreement or military treaty will be taken seriously in the future. Eventually our status as world reserve currency will be eclipsed, maybe by China, as nations understand how fragile our government actually is. Like Russia, the US will only have the "stick" of a huge military to sway other nations.[/quote] You are half right. This will do long term damage to America’s international reputation but the idea that China will (or is even willing to) become the reserve currency is laughable. No country with an aging, shrinking population is going to become the world’s reserve currency. That would be economic suicide. The USA was the world’s trade balancing account. There simply is no country/economy (or combination of those) of scale that can step in and fill the role of the American economy under the status quo. Period. The options are simply cave into American demands or, essentially, other countries must go through the painful process of retreating from international trade as an engine for economic growth. All these allies banding together are going to do what, exactly? Move away from the American economy and figure out how some of them will sustainably run trade deficits? Good luck, that’ll last one election cycle for whichever international leader is so bold as to try it. Nobody is signing up to become the next UK. [/quote] But you know if nobody wants to have anything to do w the US, they find a way to do business with a number of countries and if it's a true partnership, they will make it work fine. The choices are ti align with a country that will stab you and acts erratically or figure out another plan - choice A may be preferred but in the absence of that as a tangible strategy, you make work what you can. OP I think you miscalculate that while you are correct that US is an amazing market, people have to still want be interested in playing in this market. There's others to choose from and personally I'd rather win moderately than lose spectacularly. The US is done. We pretty much self destructed by electing Trump. Within 5-10 years we will witness the impact of the destruction. It's pretty much over for us globally. Both foreign policy wise and economically. [/quote] It won't take 5-10 years. We will start feeling the impact later this year (and in some cases like travel and tourism, months) and it will be felt for the next generation.[/quote]
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