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Let's have a closer look:
- 1. US dollar is still the world reserve currency. US can print as "much" dollar bills as she likes too. US has plenty of allies who are really to stick with the dollar as the sole trade settlement currency.
Yes, the US can print as much money as she wants but with each quantitative easing she further destroys her own currency and trust in it and accelerates her economic downfall. The day it does hurt her allies and, this day is not far away, they will look for alternative investments, outside of the U.S
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- 2. US owns all the investment rating agencies. These agencies with the US government instruction can do almost anything to any investment instruments from the world - upgrade or downgrade at will. See recent downgrading of the investment rating of all Chinese companies and Euro in order to attract direct investment back to US
The process of founding independent rating agencies has already started. China was the first nation and there is growing pressure within the EU to create at least one multinational, independent rating agency which does not dance to US tunes.
- 3. US can stir up any chaos in the world to make all investment to flow into the safe haven a.k.a. USA
This is more than doubtful. An increasing number of countries don't fall for nonsense anymore.
- 4. US can invade or go to war with any country in the world to affect the investment environment of that country.
Not anymore. Wars are expensive and even the smallest war triggers more errosion and leads faster to economic downfall. As you also know, America prefers wars with weak nations only.
- 5. The recent release of the oil from the US oil reserve is another example how US can alter value of the dollar. The oil price was coming down, but why suddenly Obama decided to release more oil from the reserve. The idea is not about oil but about the value of the dollar.
This affected <0,2% of the world's oil reserves and was nothing but a show for the gallery. In Europe people and even media had a good laugh at it.
- 6. US is still the world largest GDP. She can affect the trade with any country in the world. If US decides to create unemployment in China, she just make some rule-changes.
Yes, the US is still the world largest economy but if you've studied the news over the last 6 to twelve months you'd also know that China's dependence on the US market is shrinking and I do not see evidence that this would change anytime in the future
- 7. US government can control the media to affect the outcome of other people' impression of the great USA.
Yes, that's what they do perfectly but watch out, Fox belongs to Murdoch and Murdoch ...... well, you know.....
- 8. US government still controls all the biggest Internet companies in the world and can use social networking to control other countries.
At least not China. They took early steps to avoid falling in the US trap.
- 9. US's CIA budget is $400B a year, the largest in the world.
- 10. US's military might is still the #1 in the world.
No. 9 is nothing to be proud of, no. 10 is a fact.
- 11. US hedge funds can be directed by the government as a weapon e.g. 1997 Asian financial crisis.
Not so easy anymore. It needs a lot of liquidity and with Q1 to Q 10 liquidity will be there but increasingly worthless.
- Evil or not, this is what US is. She still can control the world at ease.
Evil or not, the control of the world will become more and more difficult and yes, decline is in the eyes of the beholders.
Other than that, it would perhaps be better for The US and her citicens to stop boasting and concentrate on real life rather than on Fantasy world.
Just my 2 cents