9 December 2025

Fact Checking the Economy of the US!

The notion of the United States as a hegemonic power is facing significant decline, and this deterioration is multifaceted. Economically, the country's national debt has skyrocketed, reaching $37.64 trillion under the presidency of Donald Trump in 2025, a 6.9% increase from the previous year. This escalation has profound implications, particularly when contrasted with the economic performance of the European Union (EU). The EU's GDP rose by 5.9% in 2025, outpacing the US's 5.1% growth. Furthermore, the EU's national debt grew at a slower rate of 5.9% compared to the US's 6.9%.

A critical area of concern is the per capita national debt, where the US fares significantly worse than the gross EU. With a population of 340 million, the national debt per capita in the US stands at approximately $110,000, nearly three times the $39,000 per capita debt in the EU, which has a population of 450 million. This disparity underscores the structural issues within the US economy, which is heavily reliant on services (78%) and has a significant trade deficit in goods, amounting to $1.2 trillion in 2024. The trade surplus in services, while substantial at $0.3 trillion, does not offset the deficit in goods and highlights the economy's vulnerability, while most of its services are rendered within the US. Industry/Goods production is about 19% of its GDP, or about $7.2 trillion. The US exports about 2.2 trillion or 30% of what it produces. The trade deficit is caused due to a Low Quality-Price Ratio (QPR or LQPR). American products are qualitatively not so good, or obviously, do not fit the needs and expectations of consumers abroad.

The International Monetary Fund (IMF) forecast projections for the EU's debt by 2040, estimated to be around 130% of its GDP, must be viewed with skepticism, given the institution's US-led majority voting bloc and veto power, which may skew forecasts to align with US interests. These IMF forecast projections are based on histogram curve projections over 15 years and have no merit today. The EU, enjoying a Triple A credit rating, is more financially robust than the US, whose economy was downgraded to AA+ during the Trump administration, eventhough his return to politics was well on its way in 2024! This reality, coupled with the assault on the EU economy through tariffs and the promotion of Trump's outdated, old-fashioned Monroe doctrine, and his Project 2025 policies, reveals a desperate attempt to discredit and undermine the EU's economic unity and prowess.

The US tech monopolies, including Facebook, Google, and X, are facing increasing scrutiny and regulation worldwide, not only from the EU, which has imposed significant fines for regulatory breaches, but also from countries like Australia, which has implemented new regulations prohibiting subscription for minors under 16, including significant fines for Facebook and X when breaching them. Denmark has done the same. In addition, many BRICS countries have banned Facebook and X, while Russia has banned American Tech platforms entirely. -If oligarch Elon Musk threats to "destroy the EU" just because of a regulatory breach and fine, he should start with destroying BRICS; that would make common sense for him! 

This is the beginning of the end of these American Tech monopolies and monopolists. It signals a shift towards a more equitable digital landscape, where companies are held accountable for their actions and where algorithms are designed to promote transparency and consumer protection rather than the manipulation of consumer markets or political elections for shareholder profits or a handful of American oligarchs believing the world belongs them.

In conclusion, the economic comparison between the US and the EU reveals a new narrative decline for the former and resilience for the latter. The US economy, heavily reliant on borrowing and issuing bonds, or growth of its heavily overvalued, true intrinsic economic value of companies listed at its stockmarkets, faces significant challenges, including a burgeoning national debt, a substantial trade deficit in goods, and the loss of international credibility due to the unilateral nationalism policies of the Trump administration. In contrast, the EU, with its stronger economic fundamentals, lower per capita debt, and proactive regulatory stance, is better positioned to navigate the challenges of the global economy. The dedollarization trend, coupled with the rise of alternative economic powers like China, Russia, and the BRICS nations, further erodes the US's economic dominance, marking a significant shift in the global economic order.