

My comment on Europe needing to spend more was simply in terms of the reality of facing down a belligerent Russia.
Americans generally do not seem to understand that their massive military spending is actually in support of and necessary as long as they wanted the dollar as global reserve currency. This doesn’t surprise me and isn’t really a criticism (we have similar issues in the UK). The American people I have come across online appear to have grown up being told they are exceptional, the best, apparently without actually being told the reality of 20th century economic history.
The world was forced to buy oil in dollars due to the arrangement the US made with the Saudis, meaning the world had to buy US debt if it wanted oil. Obviously in this scenario the US print the money other people are borrowing facilitating the transfer of wealth that is coming to an end. When the likes of Saddam Hussein said he was going to sell oil in Euros he got a good ol’ dose of freedom. The 9/11 attackers were Saudis but the US would never touch them due to this arrangement. Anyway, this is why US defence spending has been what it has been. It isn’t the case that the rest of the world should have paid more. In fact the rest of the world paid the US deficit at least in part by this mechanism. Trump is bringing those halcyon days to a premature end intentionally because now he wants the likes of Europe to pay US debts but not get military support lol.
If/when the US doesn’t spend that money on military support of regions like Europe the US are in a sense reneging on their agreement and so they no longer get that global reserve currency status, everybody sells US debt, the dollar is greatly weakened (which might be what Trump wants, in terms of making US made goods affordable for people outside the US, whether misguided or not) and presumably interest rates rise considerably. Moving away from SWIFT and the WTO are 100% unambiguous signals of the EU’s intent to ‘dedollarise’ we have seen in just the last few days.
This reserve currency status is roughly what has given America a large amount of unearned global wealth post ww2, and more or less allowed boomers to buy a home on one wage etc. Changing it is a huge upheaval on US life that will last many decades. Military spending has supported the dollar, Trump is more or less throwing that away.
‘You mean’
No I didn’t mean that. Please don’t waste my time.