America’s long‑standing dominance faces new pressure as fiscal deficits climb and trade policies shift. Investors note that the country’s 120% debt‑to‑GDP projection for 2036 signals a weakening fiscal foundation.

Trade‑weighted DXY fell 10% over 18 months, echoing concerns that the America dollar may lose its reserve status. Rising 30‑year Treasury yields now sit near 5.03%, higher than the 2.72% real yield on a TIP.

Defence spending, already exceeding $29bn, compounds the debt burden. A mixed record on 21st‑century warfare and stalled industrial revival raise doubts about the U.S.’s ability to sustain its military edge.

These developments suggest that the U.S. may lose the economic and diplomatic leverage that once cemented its hegemonic role, potentially reshaping global power dynamics.