‘Americans live in the illusion…’ Economist says it is the US and not Trump that’s the problem

The problem is not only Donald Trump but Americans, who think they are entitled to a certain position in the world, said economist and co-founder at PAICE, Lars Christensen. He backed his claim with the lack of reaction from the US public, Congress and the US Supreme Court. 

“The problem isn't Trump. The problem is the US,” said Christensen in a lengthy post on X, adding that it must be then understood that not only Trump but the entire US has betrayed the international order, something they themselves were the architects of after World War II.

“Americans live in the illusion that the US can do everything on its own, despite the fact that the US for nearly 20 years has lived beyond its means,” said Christensen.

The economist said that US private and government consumption has been funded by European central banks and pension funds among others. The question to be asked now is why would any nation want to trade in dollars, he asked. “If the US is not a rules-based society, we cannot trust the dollar to be a stable currency, and it would be insane to hold dollars,” he said. 

“If the US threatens the territory of allies, then the US acts as an authoritarian bully nation. Nobody in their right mind would lend money to the US government. If the US doesn't live up to its international obligations and respect the sovereignty of other nations, why would we expect the US government to honour its debts,” said Christensen. 

Why would anyone risk investing in the US when it can tariff nations that won’t give up their territory, he asked. He said there’s no reason to believe that the US would not introduce capital controls.

He said every day Trump remains in the office, it gets more expensive for the country. “It takes years to build trust, but you can destroy it by your actions in minutes,” he said. 

Christensen said it is now up to the American people to demonstrate that Trump is the outlier. 

Trump has come under fire from experts, analysts and world leaders alike for his heavy-handedness in dealing with his demands. For instance, he threatened tariffs on certain European countries if he did not get his way with Greenland – a threat he has since rescinded after a chat with NATO chief Mark Rutte.