In short, American hegemony and alliance sprawl, including the pivot to Asia, is turning out to be more durable during this period when the United States seems to be on the ropes, than almost anyone thought. America’s ability to borrow and keep its global hegemony rolling along is staggering. Almost everyone expected the bond market to turn against the United States in the last decade given exploding debt and deficits, huge welfare state expansions like Medicare part D and ObamaCare, the financially mismanaged war on terror, China’s ascent, the Great Recession, and two rounds of quantitative easing. But it didn’t happen.
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