Over-financialization lead to the dotcom bubble, GFC and the great unwind now. While debt-fueled booms support growth, they disincentivize optimal allocation of resources within a nation’s borders, leave little time to retrain labor and expose the economy to painful deleveraging. https://twitter.com/svembu/status/1523547160666509312

The US uses the dollar’s reserve currency status to print money and let the free market allocate money to new and existing firms. It helps the economy reinvent itself and allocate more money to R&D. China uses state subsidies and a manipulated Yuan to achieve similar end goals. https://twitter.com/matthewstoller/status/1523459050377146368

The geopolitical corollary to the Fed’s regular money printing exercise is the “endless war” overseas. It keeps the military-industrial complex well oiled and ahead of its global competitors. Neoliberal economics and foreign interventions are used to maintain the US’ hegemony.

The American Dream is predicated on the idea that those within the borders can participate in endless growth and limitless opportunities. This idea is secured through neoliberal and military hegemony and works as long as viable alternative models aren’t presented.

The idea that democracy is intrinsically linked with the idea that consumers must access all products a global market offers, is one the great intellectual heists of modern times. It often fails at the doorstop. There are many examples but vaccine protectionism stands out lately.

My protectionism advances global economic interests, your protectionism is anti-freedom. My leveraging of the USD is needed to “save” the global economy, your monetary policy is irresponsible. My militarization will secure the world, your arms indigenization will disturb peace.

This behavior stands challenged. China built an alternative model ironically using the US’ need to export everything from manufacturing to pollution in exchange for low inflation. The US is now left holding the bag, exposed to the pitfalls of the very globalism they espoused.

The US’ domestic political churn from 2016 suggests the American Dream is under threat. The US’ recent moves in Europe and its tightening grip over information flow point to the fact that the cascading effect of decades of economic and military policy have come to bear.