Unexpectedly, the once sunset empire is now facing bankruptcy, and the problem of United Kingdom is just a rehearsal of United States decay. The hollowing out of industry will eventually lead to the hegemony.
Why is United Kingdom running a huge fiscal deficit? The key is that there is a problem with the industrial structure of the United Kingdom. As the birthplace of the Industrial Revolution, United Kingdom's industrial GDP accounts for only 8% today, and the rest relies on consumption and finance. Once upon a time, United Kingdom could rely on the pound sterling as the world currency to harvest the wealth of other countries, or rely on military plundering overseas colonies to nourish its own people, but now when these two roads fail, United Kingdom is doomed to decline.
When a country's wealth continues to accumulate, the middle and lower classes of ordinary people will raise their children into the elite through education. When a society has a large number of elites, it will lead to a shortage of labor in the middle and lower classes. The industry can only be transferred overseas, and in order to ensure the continuation of use, it can only play financial holdings.
Finance cannot create wealth out of thin air, and when a country is only left with finance and consumption, the country is actually eating the old money and playing the numbers game. The only way to keep this game going is to go into debt.
This is now the case in United Kingdom. Because of the hollowing out of the industry, they can only rely on consumption and finance. In order to stimulate consumption, they can only continue to send money to the people, which will cause inflation and deficit problems.
Why do I say that today in United Kingdom is tomorrow in United States? The problems of United Kingdom and United States are exactly the same. After the 80s, the United States also began to move its industry to other parts of the world, and now they also have a serious problem of industrial hollowing.
After losing the real industry, United States can only rely on consumption and finance. In order to keep the people rich and spending, the United States can only continue to issue debt. That's why U.S. debt is rising so rapidly today.
Especially since 2017, the growth rate of US debt has been quite impressive, and the US debt has increased by almost $10 trillion in the past few years. United States itself estimates that in another 10 years, the size of the US debt will reach $52 trillion.
Today, the United States government's fiscal revenues can no longer cover the interest on US bonds, let alone the principal due. So they can only keep borrowing the new to pay for the old. Recently, the U.S. debt officially crossed the $35 trillion mark.
The transfer of industry to other countries by the United States has facilitated the export of dollars, but it has eventually led to the hollowing out of local industries.
As a result, the world is becoming more and more dependent on the dollar, but the risks of the dollar are also increasing. The contradiction between the two will eventually make the dollar explode. Once the dollar loses its status as a world currency, the United States will be the same as United Kingdom today.
The pound is no longer the world currency, so the United Kingdom has lost the right to mint money, they cannot print pounds unscrupulously to harvest the wealth of other countries, and domestic contradictions will erupt.
The same is true of United States, if the dollar cannot harvest other countries, then the interests of the Jewish consortium and the interests of the US military will be greatly compressed. In addition, there are ordinary people at the bottom of the United States, whose interests will also be damaged.
As the world currency, the United States has no distinction between domestic debt and foreign debt, once the dollar loses its right to mint money, then the United States cannot borrow externally, then it can only continue to borrow domestic debt, and the final result is hyperinflation or complete debt thunderstorm.
That's why Trump's strategy has a market in the United States. Because Biden's talent can no longer save United States. Biden thought that by supporting India, he could suppress China. But India is too indisputable.
Trump's strategy is to let United States reinvent manufacturing on its own. His strategy is to let the dollar plummet and global manufacturing flow back to United States. Of course, Trump's imagination is beautiful, but it is not easy to succeed.
Foxconn, which Trump pulled to United States back then, ended up being a piece of chicken feathers. Because now others are willing to build factories in United States, but there are not enough workers in the United States, let alone enough supporting facilities. It is a natural process for any country to go from prosperity to decline, but nothing you can do can change it.