Forever war, domestic economy to geoeconomics

Forever war has to be initially financed by domestic economics but in the long run you have to resort to geoeconomics manoeuvres. Here is how America juggles domestic and global economics to get through in her forever war:

Domestically the first step is to increase public expenditure where allocation of funds are funnelled into. There is no consideration given to the aspect of productivity in terms internal relevance. To wit, build domestic infra-structure in terms of roads & transport, health & education facilities, health& safety are priorities abandoned. Instead more of the allocation goes for increasing non-productive sectors such as arms & ammunitions manufacture.

Finance is raised by way of debt and taxation. As regards to debt short term ones are preferred and in the case of taxation indirect taxes such as VAT bands are elevated. Additionally money printing is accelerated. Here the checks and balances are still maintained. One way to do is to allow inflation to rise and thereafter be stabilised at an optimum level such that money earned through increased wages and profits does not necessarily make real wages or profits rise up in proportion.

Once the domestic economy is manoeuvred attention turns towards geoeconomics. An export drive is undertaken where arms & ammunition, rockets & missiles, tanks & vehicles and planes & ships are rolled out to be exported to allies insisting that they use these for their own benefit in defence posture.  These are priced with premium so that the recipients pay for the forever war of America more than what Americans themselves cough out for it. True enough, part of the armoury is used to persecute forever war by America herself.

This way American power in the geoeconomics clout is not only maintained but enhanced. For example after the Shock & Awe operation in Iraq, the military industrial complex became a major export earner. This also helped the Americans to shut out other global competitions in the arms trade.

The crux of the matter is American military industrial complex can call the shots in politics & economics within United States and elsewhere in geoeconomics globally.

 

Cheers!

 

Muthu Ashraff Rajulu

Business Strategist

Mobile: + 94 777 265677

E-mail: cosmicgems@gmail.com

Blog:   Business Strategist