What could be the consequences of a severe shock due to the AI-bubble’s bursting, which will surely happen even nobody knows when?
The law of supply and demand will function just as well without the United States as with them. This is because the United States do not possess an unique technology, an unique knowledge, or an unique raw material (such as rare earths). If the American economy suffers a severe shock, what will happen in the rest of the world? The global economy will continue to function, and trade will continue to exchange. The United states are not essential to the rest of the world.
The United states today represent less than 10% of global exports. American hegemony in industry and finance ceased to exist at the beginning of the new century. And it will not return. We shouldn’t be nostalgic for it because restoring it is impossible. But neither should we do anything rash, as Donald Trump, that could accelerate its decline.
In 2026, our country could be kick out of global economy and out of history. Because of the stupidity of a bunch of morons in Washington. Happy new year !