Saw this linked over on Metafilter, a good interview with historian Emmanuel Todd:
Assuming you are right: how did this budding empire slide so quickly into decline?
A rift has been developing, slowly at first and then more quickly, between the US and their various geo-political areas of interest. During the early 1970’s a deficit in the balance of trade began to open. The US assumed the role of consumer and the rest of the world took on the role of producer, in this increasingly unbalanced global process. The balance of trade went from a deficit of $100 billion in 1990 to $500 billion annually at present. This deficit has been financed through capital flowing into the US. Eventually the same effect experienced by the Spanish in 16th and 17th centuries will come to bear. As gold from the New World flooded in, the Spanish succumbed to decreasing productivity. They consumed and dissipated, lived high and beyond their means and fell into economic and technological arrears.
But America is still the leading example of economic and technological competence.
When I speak of the economy, then I mean the industrial core and the associated technological cutting edge, not the anemic New Economy. It is in the core industrial sphere that the US is falling dramatically behind. European investors lost billions in the US during the nineties, but the US economy lost an entire decade. As recently as 1990 the US was still exporting $35 billion more in advanced technology than it was importing. Now the balance of trade is negative even in this field. The US is far behind in mobile communications technology. The Finnish Nokia is four times the size of Motorola. More than half the communications satellites are being launched with European Ariane rockets. Airbus is about to surpass Boeing — the most important transportation medium for personnel traffic in the modern global economy is about to be manufactured primarily in Europe. These are the things that are ultimately important. These are by far more vital and decisive factors than a war against Iraq.