The arrogant and wrongheaded invasion and occupation of Iraq is going to hurt America down the line in substantial ways. I see a fundamental realignment underway in the world. China is a powerful growing economy. India is on the way up. Other developed nations, disgusted by our wreckless unilateralist behavior in the world will be thinking seriously about moving their investments to these now up-and-coming economic powerhouses.
For a lot of people around the world, I think the damage is pretty much done. The tipping point has been reached to where a disgust with our nation has gelled in their minds. A steadily weakening dollar should be good for our exports, but with citizens around the world being reluctant to funnel their money into a nation that's behaving like a loose cannon, exports will continue to suffer and the trade deficit will continue to mushroom. The economy will continue to fundamentally weaken, and our government will be increasingly pressured to institute protectionist measures. All this, while at the same time Americans will be compelled more than ever to buy cheap products from China and other growing economies as our economy falters.
Increasingly, the only industrial export that will continue to be viable will be our military technology. So, essentially, and in the spirit of throwing the baby out with the bathwater, our nation will be forced by economic realities to help other nations become militarily as strong. Ironically, China will be one of these nations, who's cheap products being purchased by Americans are helping to give them the funds to match US military might. We should just cut to the chase and let the Chinese purchase tactical nuclear and space supremacy technologies using shiploads of rubber ducks as the currency.