Thomas Piketty: 'The reality is the US is losing control of the world'

> Taking the US dollar as world reserve currency for granted.

It's the exact opposite: US citizens got fed up with the domestic problems created by Triffin's Dilemma and wanted out.

Remember, the "imperial revenue" in our model doesn't get helicoptered into the economy, it pumps assets. Stocks, bonds, and real estate. Your share of the imperial loot is proportional to the value of the assets that you own, and worse, even if you don't have a big house and fat brokerage account you still have to compete with people who do and they're going to bid up the price of anything that doesn't have highly elastic supply. Health care, housing, and education are the ones creating problems. America got a great deal, but most Americans got a raw deal: costs went up, income didn't, misery ensued.

Pumped bonds allow (force, really) the government to run deficits (homework: what breaks if they don't? It happened in Clinton's term, you can go and check) and to some extent that distributes the money. There's the whole services narrative which held that the services sector would pump hard enough to backfill manufacturing, but it never did. The people who got the door slammed in their face are no longer convinced that the door is their path to prosperity and now they want to tear the whole thing down.

If you want to hear an actual economist talk about this, see "Trade Wars are Class Wars" by Klein and Pettis.

Well you can’t power fighter jets or tanks on renewables yet so there’s still that.

But I think this past year really changed the direction of the US and to a lesser extent the EU with respect to oil and gas versus renewables.

As the US has realized at the institutional level that China has secured a very strong position on refining rare earth materials into batteries and other green technology it is doubling down on oil and gas as the energy choice for the foreseeable future, climate change be damned. Not that China ever really cared about the climate, they just, for good reasons, wanted an alternative energy production source because even if they seized Taiwan the US Navy can bring oil and gas imports to near 0. Pipelines from Russia are sitting ducks too, so not much reprieve there.

US is putting $40 billion into Al Udeid and signing AI deals with the Middle East powers, and is close enough on a deal to legitimize Israel. Add Venezuela. You can see where this is going.

The EU politically wants to switch to green tech but it’s facing a problem which is doing so will result in effective deindustrialization since they would wind up buying most equipment from China including cars. The EU either did or is about to shelve the requirement that cars are EVs by 2035. I expect this to be fully repealed. While the EU likes to not mince words about US tariffs, they’re ultimately heading in the same direction. China had a $1 trillion export surplus. If the US isn’t buying their subsidized products who is? Brazil? Right now it’s Europe, but do you think Germany will let its manufacturing sector go away? If so I have a ticket to sell you to the next AfD rally. The product dumping from China is going to be too much and in a judo move the west will be able to use China’s manufacturing capacity against it. Nice factories you have there, too bad nobody buys anything you make (relatively speaking).

So the EU is sitting between two oil and gas energy superpowers oh and the Middle East is just around the bend. Politically they’ll still work on climate change initiatives but as push comes to shove, and with China overplaying its hand with export controls on rare earth materials and creating more panic in Brussels (never mind China's support for Russia invading Ukraine), the EU will generally maintain an oil and gas industrial direction, if I were to guess.

I’m not pro gas/oil or anything like that. Drive an EV and love it. But that’s my fun armchair take on what’s going on here.

> India is yet to harmonise widespread organisation.

I've always said that if India got a unified national language they would become a nearly instant world power.

Imagine an India where English was mandated in every public school - and every child, regardless of caste (which officially doesn't exist...), attended school. English, because it's more internationally useful than Hindi, and doesn't have the same ethnological competition (Hindi vs Bengali vs Tamil vs ).

Then imagine that, now that all of India can actually speak to each other, they get their shit together, and build a truly functional national highway system. Top it off with a safe railway system, complete with modern trains. Enough trains that you don't have to ride on top. (OK, I'm starting to dream big.)

One generation later India is a dominant world power. Pakistan is completely fucked, sure, because Delhi will never get over their petty sibling hatred. But India can start power-brokering between all other nations.

Import substition is a process where domestic industry develops by adopting the processes of overseas industries contributing to imports, so that the country can import the raw materials and make the product, instead of importing the full product at the market price. Most surveys of macroeconomics reveal that it is integral and foundational to the development of most industrialised countries today, e.g. China.

The exporter countries contain smart people who may seek to suppress this process to maintain revenue flows. This prevents the development from happening.

Two examples:

1: the 'unequal treaties' between 19th century Japan and America prohibited certain kinds of tariffs and subsidies by Japan. This allowed westerners, prominently Americans, to maintain market share in Japan by product dumping.

2: in 18th and 19th century India various British offices at different times had policies of having their sepoys arrest textile workers and maim them by the forcible amputation of both thumbs, to preserve the market share of British textiles.

Do you forget their deal with the NSA? And their financial prowess?