Sovereign debt and its impact on the ability of a state to maintain government spending levels is a key topic perplexing the world right now.
But what is obvious is that, as debt levels increase, the power of state’s and their empires are endangered.
The British Empire may teach the American an excellent history lesson. From World War I to the end of World War II, the British Empire’s debts increased, much of it to a growing power in the United States that supplied it with arms.
For the U.S. today, China could be that supplier of goods, rather than guns, as the U.S. government racks up debt on the way to its decline.
Of course, this fate is far from certain, and there were many more reasons why the British Empire declined than just debt levels.
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