View Single Post
Old 12-11-2009, 08:02 PM   #32
vanir
Forumite
 
vanir's Avatar
 
Join Date: Sep 2005
Location: south of Gundagai
Posts: 632
The US is economically far stronger than the USSR was. What you are feeling now is the economic pinch of frivolous defence expenditure throughout the Cold War, which destroyed the Soviet Union as a political powerbase (it is still a major world power and a formiddable one under the umbrella of the CIS and Supreme Soviet controlled strategic capability).

Throughout the 90's US defence expenditure was still in the thousands of millions per individual project, aside unit cost and any hope of cost recovery. This is what funded your F-22 and F-35, in effect the SuperHornet is a mild attempt at cost recovery (strictly speaking it's overpriced but is a good enough product to justify the cost).

What has happened since then is cost recovery projects in Europe and the Asia-Pacific have completely fallen apart. At least 15,000-million US dollars were expected to be partially recovered with Block 50/60 F-16 and new F-35 sales which never materialised. The Europeans went and built something better themselves, and the Russians have been selling Flankers and Fulcrums and rock bottom prices...incredibly this is something which completely slipped the minds of US defence/economy analysts back in the 90's.

You see nobody really expected the USSR to collapse economically in 1991 except the KGB (whom were well aware of this course since 1980), so nobody figured into the equation that an economically smashed Soviet Union would be selling its latest military hardware at affordable prices, much cheaper than US material yet with comparable performance. And buying US isn't any guarantee of product support unless certain trade agreements are made (capitalists to the end). Updates are also ridiculously expensive, where Russian updates are cheap or free.

It is in fact this "economic altruism" of communist thought which forms a cultural base in the CIS and many Asiatic regions. Not entirely sound business wise, but given appropriate circumstances can be confounding.

The Euro has basically gotten stronger whilst the US dollar has degraded. The pound has remained fairly consistent, but the biggest impact has been the growth of the Euro, this is expected since the EU has been growing in member nations from the Atlantic seaboard to the Caspian Sea.
The role of the US as the primary defence contractor in Europe has disappeared completely, whilst as a primary industrial power has been degraded by development in Asia and throughout Europe.

I do not think the US will economically collapse immediately, but the cultural lifestyle and strict capitalist theme is based strongly in consumerism and this necessarily has to change or the place will end up looking like Russia does today, which trust me isn't too pretty.

You're way in the red, most of your defence expenditure through the 90's did as much damage to your economy as that of the USSR in the 80's, you're just a little more resilient to begin with so you're feeling it later and more gradually. It's going to get worse before it gets better though. Check out the costs and appropriations of just one of those defence projects like the Raptor, or having whole fleets of supercarriers in service, no less than five independent military organisations plus support and logistics, and domestic industrial empires built on defence contracting.

You've already shot yourselves in the foot just like the Russians did, now you're in an ambulance on the way to the hospital is all.
vanir is offline   you may: quote & reply,