We have the strongest military and the world reserve currency, because oil is still purchased in dollars, although some countries now sell it in euros. But that does not define a superpower.
We lost our superpower status, because we are unable to produce or finance our own consumption. We have transformed to the world’s greatest debtor nation, and if the Asian countries were not so export dependent, our economy would have fallen apart 10 years ago. It is only because the Asian countries are export dependent, that we can consumer more than we make.
We are at the mercy of foreigners to fund our lifestyle. As soon as Asian countries stimulate consumption among themselves, they will not need us anymore. They will sell of their Treasury notes, and our dollar will vaporize. With Venezuela, Iran, and perhaps Saudi Arabia selling oil in euros, who needs dollars anymore? They will be too worried about our ability to repay them, and won’t want dollars.
So having a big military doesn’t make us a superpower, nor does the fact that we are the planet’s largest consumers of goods, oil, and all natural resources. Our military is funded by China, Japan, and all other nations that buy our debt, to keep our government going. Without them, we couldn’t afford to have the military.
A superpower leads the world, produces enough for its own people and exports the excess, and is admired for its financial and technical and political savvy. We have lost that status.
Don’t let your love of your country blind you. Investors have to keep an open mind. When we become in denial, we may be satisfied that “I am right”, but we lose the investor’s advantage which comes from seeeing the truth and not following the masses.
Let the masses think we are a superpower, put their money in the stock market, buy houses, think all is well. We profit at their expense.
This board is about opening our eyes, and part of that is understanding that the US economy is on its way down, and unless the political leaders have a sudden willingness to sacrifice today for a better tomorrow, the economic collapse will come. There is no preparation at all for $100 oil. Why couldn’t they see it coming?
How can we be a superpower if we are dependent on other countries to fund out main resource, oil? Why didn’t we plan for this permanent increase in oil prices by building windmills, promote solar energy panels, hybrid or hydrogen cars? We are dependent on countries which hate us, except Saudi Arabia our ally (?), to sell us the resource which runs our economy. If they pull out the rug from under us, or raise oil prices to $200/barrel because supply is running out, we will have an utter economic collapse.
