ABSTRACT
The US debt debacle may signal the end of the American century not only economically, but also militarily and diplomatically. There is . . . [a] new geopolitical reality confronting the US. It can no longer afford to be the world’s policeman . . . if countries like the US . . . are forced to scale down their capacity for military intervention, they will find their ability to conduct soft diplomacy gravely undermined. There will always be other powers waiting to fill the vacuum. China has announced that it is increasing its defence spending this year by 12.7%, to £56.2 billion. China watchers say the figure is far higher. Vladimir Putin plans to spend £400 billion of its oil and gas riches on military hardware by 2020. The West’s addiction to debt is proving even more costlier than we feared.1
