A Pathway to Dedominance

Ever since Teddy Roosevelt’s “Great White Fleet” initiative, the United States has striven to hold onto some form of international dominance. The two World Wars gave us a perfect opportunity to rise quickly and re-order world affairs to our fancy. This form of relationship with other countries was a stark departure from the more isolationist approach of the Founding Fathers. While the Founders were so isolationist as to even be protectionist, they did so without attempting to meddle in the affairs of other countries, as we have more recently. Rather than benefiting American citizens, the desire to restructure the world and operate as an empire has greatly harmed citizens and states in many unforeseen ways. There are undoubtedly some benefits from our role as the world’s most involved superpower, yet the costs of maintaining such a regime are paid in individual freedom and a weakening of all more localized forms of government. However, in this position of unique control, the country cannot merely step back from its obligations, but rather must do so strategically and taking into account how it could harm itself and the world by doing so irrationally.

Whether or not it likes it, America has taken a huge step back from currency dominance. To face this inevitability with as little harm as possible, the State must stop running deficits before the de-dollarization situation gets any more drastic. Deficits are enabled by the Dollar’s unique global position, and the less unique that position is, the greater the consequences for taking on debt will be. While it would be impossible at this point to get out of debt in the near future, the State must at least stop accruing more debt as the level and rate of debt are both increasing. If that is not taken care of before de-dollarization becomes more serious, the State will be in an almost unmanageable financial crisis. Debt will become more and more expensive as fewer people internationally demand dollars. The house of cards on which this constant irresponsibility was enabled is already being toppled, and the State must recognize this and act quickly.…