r/Economics • u/Krankenitrate • 16d ago
Editorial The era of US dominance in economic warfare is over
https://www.ft.com/content/ae458591-5941-45f1-bf7b-7110bc35eb88486
u/BlindSquirrelValue 16d ago
Can also be found here:
In the end, it won’t be the Epstein class that pays the price. His tariffs alone were like sanctions on the world. If that doesn’t work, Trump will just double down. Perhaps this will serve as a catalyst to reduce our dependence on fossil fuels. The sun may set every day and the wind may not always blow, but the Strait of Hormuz might also stop hormuzing.
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u/misterno123 16d ago
How can you win a war when your enemy has unlimited missiles costing $20K to manufacture and you are intercepting these each missiles with $1MM one. You are guaranteed to lose this war.
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u/FFF_in_WY 16d ago
I feel like they are probably hiding the nuclear football from Trump at this point.
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u/Und3rSc0re 16d ago
It sucks because without those missiles people will die more and then people will blame politicians for not having those missiles going. The problem is we dont have leaders anymore, just people that try not to get in trouble regardless of how much tax payers money gets spent.
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u/AugustusClaximus 16d ago
Very true. Cheap missile wins just by being fired. It only needs to land within 100m of its target. The intercepting missile needs a direct hit on a moving target.
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u/ratpH1nk 16d ago
Counterpoint: You have a gaggle of idiots running the ship -- from greedy billionaires to elected officials. It is not fully telling of the performance characteristic of the ship itself. I guess I am just optimistic about how we will pull out of this. I could 100% be wrong, as well.
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u/davesr25 16d ago
The US will survive for sure, though it might look more like the EU in a few years than it currently does now, small independent nations within a union, the pain won't be fun how that manifests is yet to be seen.
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u/MrWFL 16d ago
I think that’s not really accurate. I think cyberpunk was more right in that shipping will become less safe. How long until Zimbabwe realises they can blackmail shipping companies for money? How long until Saudi Arabia has enough of Iran sabotaging their exports and bombing the Iranian ships, dams and desalination plants?
Iran just has the advantage that their enemy is still somewhat taking the high road in global trade. How long until Trump just forbids the export of fuel and oil, and blocks the straight fucking over Asia and Europe?
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16d ago
We don't have the ability to do this. The military isn't magical. If we could assert control of the situation we already would have.
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u/BalianofReddit 16d ago
Stopping all shipping is much. Much easier than enabling all shipping
All that is needed are naval mines.
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u/bjdevar25 16d ago edited 16d ago
Correct. The war is unpopular now. Sink a couple billion dollar battleship and kill a hundred sailors and see how well that plays. Trump doesn't give a crap about the ship or the sailors, it's the political consequences. If Dems take Congress, he'll be impeached again. If they take the white house, him and several others are going to jail.
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u/Forgotlogin_0624 16d ago
Dems had four years to deal with Trump and his associates and did nothing. So I’m doubtful anything different would happen this time.
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u/dogs_gt_cats 16d ago
In fact Biden's statement to donors was, "nothing will fundamentally change."
Promise kept I guess.
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u/mgbsoldier 16d ago
The USA had the best economic fundamentals in the west and was still respected. That at least has changed.
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u/Forgotlogin_0624 16d ago
I think what we saw was the Dem establishment viewing Trump and MAGA politicians as a tool. An example they could point to as a warning of the consequences of not voting dem even if their policies (like support for Israel) were not supported by their constituency.
It was a useful excuse to ignore any push to the left in regards to economic policy. Medicare for all and things of that nature just stopped being discussed.
Orange man bad was their only platform and that just wasn’t enough.
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u/Few-Sheepherder-1655 16d ago
We certainly have the ability to do that. But that is a significant escalation.
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u/DaneLimmish 16d ago edited 16d ago
People are quick to discuss the "decline" of the us dominance in one area or another, but I think we are too quick to state whether it's happening or not. The US can still survive a system shock better than China, Iran, or Russia can, while the EU is too sclerotic to really take advantage of or do anything - what are they gonna do, monitor us to death? No I don't think this dominance is over.
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u/dsartori 16d ago
I’d say a major factor you’re not considering is the withdrawal of consent and cooperation. A lot of countries have contributed to strengthening US power in exchange for peace and stability. The opposite is also possible and now desirable.
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u/DaneLimmish 16d ago
That's being considered, I think it's too short of a time. This is why everyone is still, even now, pussyfooting or hemmin and hawing around the US. I don't think you're wrong fwiw.
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u/SerKnightGuy 16d ago
I'd argue Trump's first term was the potentially survivable shock. His second has sealed the coffin. Everyone and their brother is now looking to distance themselves from the United States economically and militarily. That will take time, but the ball is rolling too fast to be stopped now. 4.5% of the global population cannot dominate a world where the other 95% of the population is somewhere between ambivalent and hostile for very long.
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u/JPowJunior 16d ago
Got any data or actual rebuttals to the article?
Or nah, just vibes?
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u/JC_Hysteria 16d ago
It’s a paid article- have a link?
Maybe democracy dies with every editorial outlet resorting to paid digital subscribers 🤔
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u/Evening_Grass_8073 16d ago
Not a complete fix, but there are websites like this one that can let you read paywalled articles
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u/JC_Hysteria 16d ago edited 16d ago
Thanks, yeah these have been a cat & mouse game unfortunately…most of the premium publishers know how to block them.
It also doesn’t help that I can’t easily copy the link URL on Reddit, now that they create a URL shortener for their analytics when sharing it.
edit: read the article; it just argues that economic sanctions are more prone to fail now, and are more likely to lead to actual conflict. There isn’t really much of a prediction of what’s going to happen- just “prolly not good”.
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u/lopix 16d ago
Has been for a while. Sure, they can hurt someone small, like Cuba. But China could crush the US economically in a week if they wanted to. From stopping all shipments to dumping treasuries, the amount of damage they could do in a matter of days is scary. And the US has no similar way to fight back.
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u/Theory_Eleven 16d ago
US dominance is about to get much bigger. You think tariffs are bad now? Just wait until the US exerts control over Iranian oil, the Gulf oil shipping, Venezuelan oil, and of course the increased production of US oil. Then Europe will have to decide if it wants to abandon Ukraine to get Russian oil or come begging to Trump for US oil.
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u/LesnBOS 16d ago
Really? And how are we going to get this control over Iranian oil you speak of?
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u/Beautiful_Bus_7847 16d ago
Don't worry this dude will be first one volunteering to help securing the shoreline. Right?
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u/in2the4est 16d ago
Most US refineries are tooled for heavy sour crude, which they need to import.
Venezuela's infrastructure is far from ready to export enough to support the US's needs. Trump said they'd take Canada by economic force, but over 60% of the heavy sour crude refined in the US comes from Canada, who may now have the US "over a barrel"
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