America: An empire built on sand?

[Droppyale]

http://news.bbc.co.uk/2/hi/americas/3521691.stm

interesting...

[willy_ph]

It's an interesting suggestion, to say the least. Clearly, the fact that America owes a huge amount in terms of foreign loans has significant consequences for America's hegemonic status in the international theatre.

I think Will Hutton has it right when he suggests that American economic and military dominance is built upon money from others. This, combined with growing resentment towards American foreign and military policy could ultimately break the back of the American economy. How do you ask? By merely requesting the return of monies owed. How likely is this scenario? Clearly it is not likely anytime soon, however, it is an interesting proposition to consider.

[Target]

That was an interesting look at America......

Be sure to read all parts in order though.

[ClubMed]

willy,

I don’t think it is a realistic scenario to say that money will ever be demanded back. But it is more realistic given the global economic situation that more and more countries will switch to alternative currencies such as the Euro when it comes to their reserves.

One of the fundamental reasons behind the invasion of Iraq was to bind the oil to the dollar and make it harder for other countries to ditch the dollar to more profitable currencies, and also to make it harder for other oil producing countries to demand the Euro in oil transactions.

Americas Achilles heel is ironically enough it’s economy IMO. An implosion due to massive military spending and continued cuts in social spending will lead to a continued growth in the massive debt that currently tops 7 trillion if I am not mistaken.

[osprey4]

All empires are ultimately built on sand. They come and they go.

Cuts in social spending will lead to growth of the national debt? That's certainly an interesting economic postulate.