AMERICA IS IN DECLINE! Really?

AMERICA IS IN DECLINE! Really?

 My recent posts appear to have triggered the global population of conceited losers, who are more engaged in hating America (even though they owe most of their lives to it) than actually building up their own nations.

🔴 Well, if America is in decline then everybody else must already be in palliative care.

Let's look at its primary challenger: China.

It is such a rapidly rising superpower that it now has had to clamp down on capital outflows by its citizens desperate for an alternative investment producing decent enough rates of return, after the real estate market imploded 5 years ago and shows no signs of recovery.

This is a country that reports GDP per capita of just barely over 15% of the US, while its society is among the most rapidly ageing in the world (and its labour force has already started shrinking).

🔴 There is not a single case in the history of humanity where capital controls were a sign of a healthy economic situation. There is also not a single case of them ever having worked.

According to Henley & Partners, China has lost over 90,000 High  Net Worth Individuals in the past decade (people with investable assets of $1 million and over) while the US is among the biggest gainers, with a net inflow of over 40,000, comparable to a tax haven like the UAE.

🔴 In other words, successful people are trying to escape China, and quite a few of them head to the US - not the other way around.

Of course, we know of other signs of structural Chinese weaknesses: industrial overcapacity, putting downward pressure on consumer prices, which has erased corporate profits or even pushed companies into losses. And high unemployment, which could have been even worse if it weren't for state intervention propping up state-owned companies to prevent mass layoffs.

People gasp at the sight of modern Chinese cities and their high speed railway network, but don't ask about economic and social costs, which the ruling totalitarian regime is desperately trying to hide by controlling every bit of information in the media, and keeping the country tightly shut from Western platforms that permit more freedom of speech.

🔴 Is that the replacement for the US?

Or maybe Europe is?

Europe which has strangled its economy in its performative environmentalism which has put electricity prices at 2-3x of what Americans pay at home, effectively disqualifying the Old Continent from the AI race, as local entrepreneurs have to compete with one hand tied behind their backs.

The current state of AI is that the US is building foundational models, China is distilling whatever Americans produce and Europe can't be bothered to do even that.
Before the financial meltdown of 2008 American GDP per capita was about the same as Germany's (Europe's preeminent industrial power, after all). Today it's 50% higher.

🔴 Is that the "decline" you're talking about?

When Russia invaded Ukraine, after Europe spent 20 years prostituting itself with Putin for cheap gas, filling Kremlin's pockets, who did the EU capitals call for help first? Washington.

For years they have failed to abide by their defence spending commitments under NATO agreements, often showing their disdain for Americans, only to beg them for help yet AGAIN.

🔴 If America is going down then what do you say about them?
I'm not even going to mention Russia after it set off a meat grinder in Ukraine, where it is losing more people in 3 months than the US lost in Vietnam in a decade.

It's really quite funny witnessing people from all over the world congregate to hate on the US, while represeting nations that are never going to touch its level of influence, power and innovation.

Not to mention their very own dependence on America for  prosperity or even basic security.

The US has by far the strongest - and battle-tested - military in the world. It has the highest GDP of any nation and is the only large state that currently approaches per capita output of $100,000 annually.

To top it off, its stock markets account for about 2/3s of the global capitalisation of public companies, and are hoovering up money from all parts of the world, as they offer the highest rates of return and most investment opportunities.

In turn, that capital is used to build even more ground-breaking businesses, which could not flourish anywhere else in the world.

Decline? You wish