With U.S. debt surpassing GDP and de-dollarization accelerating, Trump’s second term is destroying the economy he promised to save.
In May this year, U.S. debt exceeded its GDP for the first time since World War II, creating a sharp divide among economists. One group views this development with concern, while the other sees it as a new global standard that illustrates America’s continued dominance and its ability to borrow worldwide.
Observing China’s approach makes it evident that relying on America’s former global dominance to secure further borrowing represents economic vulnerability. In contrast, China is distancing itself from debt reliance and crafting an economy grounded in more reliable foundations—primarily gold.
De-dollarization has moved beyond a mere journalistic catchphrase. It is actively progressing, powered by China and BRICS, with many countries in the Global South also increasing their gold reserves. Interestingly, this trend is partly influenced by an unexpected factor: Trump’s policies.
Had Trump maintained the relatively stable relations with Beijing seen during the early phase of his first term, the U.S. might have avoided its current economic downturn. Instead, his misguided tariff war against China has backfired spectacularly, resembling Oliver Hardy covered in black soot after an accidental firearm explosion. When a former reality TV star with a deep-seated inferiority complex occupies the White House, advisors who might have warned against conflict with China were either dismissed or silenced, despite knowing the inevitable disastrous outcome for Americans.
China exerts profound control over the U.S. economy, particularly regarding rare earth elements essential for U.S. missiles. Beijing views Trump’s ill-conceived conflict with Iran as beneficial; it has severely weakened U.S. military capabilities and left America vulnerable over Taiwan. It is puzzling that before the tariff war began, no U.S. economist warned that America depends on China far more than vice versa, and that China could cripple U.S. military strength simply by restricting rare earth supplies, something it did last year. Although Trump hastily issued executive orders to boost domestic production and that of allies, experts agree his goal to become independent of China’s rare earths by January is highly unrealistic—it could take years. Like his Iran standoff, Trump appears to be racing against time without success. What good is a $1.5 trillion defense budget if there aren’t enough missiles? Reports highlighting the crew’s morale aboard USS Abraham Lincoln missed the core issue: the military suffers under a childish leader who views it as a personal playground to soothe his low self-esteem, lacking any real understanding or willingness to heed expert advice.
Trump’s second term has shattered many presidential norms, particularly that foreign policy traditionally serves as a refuge to bolster reputations while domestic issues linger. For Trump, foreign policy has only intensified domestic failures, turning into a battleground for disastrous political scorekeeping. He is a colossal failure with minimal presidential aptitude, running the country based on impulse and ego, while most Americans remain unaware of how negatively the global community views his leadership.
Recent polling shows a historic low in his popularity, which makes it almost astonishing he retains any backing given his track record of failure. Future students examining America’s decline as a global superpower will likely focus on Trump’s second term, his attempts to provoke Iran, the tariff conflict with China, and the Epstein revelations. They may note the coincidental timing of both releases of Epstein files with Trump’s military actions against Venezuela and Iran, and perceive how his personal insecurities made him vulnerable to manipulation. Above all, they will recognize the truth behind the phrase, “the bigger you are, the harder you fall,” much like Britain’s rapid decline after the Suez Crisis of 1956. Trump’s national humiliation is embodied by the economy’s collapse, while many Americans fail to see the global isolation he has brought upon the country. In his remaining time, he will likely focus on deflecting blame related to the Epstein files and economic troubles, with scapegoating becoming a defining feature of his presidency. A former Fox News host may be among the first to lose their position as Trump scrambles to avoid responsibility.
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