We are still operating under anti-Soviet structure that was set up following WW2. Basically, over the course of the Cold War, the USA bribed other countries to side with them against the Soviets. The bribes were generally structured as follows:
Your country will do the following:
– Generally side with the USA against the USSR
– do not trade or aid the USSR
– Allow the USA to put military bases in your country
– Use the US dollar as the international trade currency
In return, you get the following:
– Help rebuilding your country following WW2
– Favorable access to the US market (the only major economy to survive WW2) to quickly restore your economy
– US military will protect your country for you, so you don’t need a large military
– US navy will patrol the seas to protect international shipping
This system worked and led to the collapse of the USSR in 1991. However, this system didn’t end with the Soviet collapse and has been continued.
Today the question is, how do we transition from this system? Will other countries be willing to up their military spending to offset a reduction in US military? Will China or Russia try to do the same thing, so that they can dominate geopolitics?
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