The messages about the dire economic situation of the United States are constantly increasing, and they warn that the country is rapidly entering a deep fiscal and debt crisis cycle. The collapse of the American economic model is coming “much earlier than previously estimated” and risks dragging Europe along with it.
It seems that we are at the end of the age of empire. There is a crescendo of debt that Bessent will be called upon to manage. He knows it – he is not stupid.
The government sees the danger, but doesn’t know what to do
The White House is aware of the risks, but not a clear strategy to deal with them. There are also doubts about whether President Donald Trump understands the magnitude of the problem. All the moves they are making show that they recognize the crisis, but they don’t know how to get out of it.
The entire government, to some extent, understands that the US is heading towards a crisis – but they don’t know what to do. They are running left and right, something typical of the current administration.
The fight for energy behind American choices
Meanwhile, Washington’s external moves with the need to secure energy resources, arguing that issues like Ukraine and Venezuela are a reflection of the US battle for access to oil. The US desperately needs oil so that Bessent has at least a chance to relieve the economy in the face of an immediate debt shock.
Warning to Europe
The concerns do not stop only in the US. They also extend to the economies of the European Union, which are in an equally fragile state. If they do not recognize the danger, “they will sink with the US and very quickly.” And European leaders must understand this. If they do not understand it, they will go to the bottom with the US.
“The economy and geo-economy now dictate geopolitics”
In similar crises, China chooses to handle matters cautiously. However, the US has now passed the caution point: The time for cautious moves is over. The system is entering a phase where the economy and geo-economy determine geopolitics, not the other way around.
