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The global economy is no longer wobbling — it’s splintering. In a sweeping, unsparing conversation, economist Jeffrey Sachs describes a world pushed to the edge by Washington’s wars with Iran and Russia, its economic confrontation with China, and its attempt to reassert dominance across the Western Hemisphere. The pillars that held the global system together for decades — stable trade routes, energy flows, technological exchange, and financial integration — are being weaponized or dismantled outright. Europe, Sachs argues, has “cut itself off from its main natural resource provider” and is now “completely adrift economically,” while Asia accelerates toward deeper integration and long‑term advantage. The United States, meanwhile, is “irrational, poorly led, and desperate to keep control over what it no longer controls,” creating a world that is both fragmented and profoundly unstable.
The global economy is entering a period of rupture, not turbulence. That is the central warning from economist Jeffrey Sachs, who argues that Washington’s simultaneous confrontations with Iran, Russia, and China — combined with its efforts to dominate the Western Hemisphere — have pushed the international system to a breaking point. What once looked like temporary disruptions now resemble structural fractures.
Sachs begins with the U.S.–China relationship, which he says is “never going to be what it was 10 years ago,” noting that the era of “dynamic… mutual investments in both directions” is over. The same is true for Europe’s ties to Russia, which he describes as “damaged perhaps to the point of no return in our generation.” These ruptures are not cyclical; they are foundational.
A Fragmented World Takes Shape
According to Sachs, the world is reorganizing into regional blocs because long‑distance trade has become too risky. Asia is deepening its internal economic ties, Africa is likely to follow, and Europe — having severed its energy lifeline to Russia — is “completely adrift economically.” The continent, he argues, is now dependent on an “unstable, nasty and disdainful United States,” a strategic position that leaves it weaker than at any point since the end of World War II.
These shifts are not abstract. They are already reshaping global markets, supply chains, and political alignments. And Sachs warns that the situation could deteriorate rapidly if the United States “resumes the war with Iran,” a scenario he puts at “50% or higher,” with “devastating” consequences for the global economy.
Washington’s New Economic Doctrine: Hegemony First
Sachs traces the current crisis to a profound shift in U.S. thinking. For decades, economics was understood as a tool for mutual benefit — a view rooted in classical ideas about open trade. But as China rose and the U.S. share of global output declined, Washington’s foreign‑policy establishment reframed economics as an instrument of geopolitical control.
He describes how “international relations people… view the world not as win‑win but as win‑lose,” and how economic policy has been reoriented toward “preserving American hegemony.” This shift, he argues, has produced a 20‑year campaign to weaponize trade, technology, and finance — from semiconductor restrictions to sanctions to the freezing of sovereign assets.
The result is a world in which the basic scaffolding of globalization is being dismantled. Sachs rejects the claim that globalization “failed,” insisting instead that it “provided the basis for worldwide economic progress,” especially in developing economies. What failed, he says, was Washington’s expectation that it could remain permanently dominant.
Europe’s Strategic Blindness
Europe, in Sachs’s view, is the biggest loser in this new order. He argues that the continent “played along completely with the U.S.” in severing ties with Russia, despite decades of American pressure to prevent closer German‑Russian integration.
The result is a self‑inflicted wound: shuttered industries, soaring energy costs, and a political class that “bought into a completely failed economic and geopolitical strategy.” Sachs sees no path to recovery until Europe produces new leadership capable of recognizing geographic and economic realities.
The Return of Blockades and Piracy
One of the most alarming trends Sachs identifies is the resurgence of maritime coercion. He notes that Trump recently boasted that the U.S. is “essentially pirates now,” a statement that aligns with years of tanker seizures, sanctions‑driven blockades, and naval pressure campaigns.
Sachs calls this “shocking,” pointing out that freedom of navigation has been a bedrock principle of international order. He warns that if Europe participates in efforts to “contain” Russian shipping, “there will be war between Europe and Russia and Europe will be devastated.”
The United States, he argues, lacks both the naval capacity and the geopolitical support to sustain blockades against major powers. China, in particular, now possesses a “formidable navy” and a rapidly advancing military that makes U.S. dominance in Asia increasingly untenable.
A Dangerous Gap Between Ambition and Reality
Sachs’s most sobering claim is that the United States has become “the most dangerous country in the world” — not because of its strength, but because of the widening gap between its ambitions and its actual capabilities.
He describes a political class that is “irrational, very poorly led, rather desperate to keep control over what it no longer controls,” and a public that overwhelmingly believes the country is on the wrong track.
The danger, he argues, lies in the attempt to enforce global dominance through military and economic coercion at a moment when the U.S. lacks the power to achieve those aims. This mismatch creates instability, escalation risks, and the potential for catastrophic miscalculation.
Asia Ascendant
In contrast, Sachs sees Asia — particularly China — as the likely long‑term winner of the global realignment. Regional integration is accelerating, technological capacity is expanding, and the U.S. has limited leverage to disrupt these trends. “The closer one gets to Asia,” he says, “the less relevant the United States becomes.”
A World in Transition
The picture Sachs paints is stark: a fragmented world, a declining West, and a United States whose pursuit of hegemony is destabilizing the very system it once built. Whether the coming years bring a managed transition or a series of crises may depend on whether Washington can accept a multipolar world — or whether it continues to fight a losing battle to preserve the unipolar moment.
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