By Admin 
In the changing global environment, questions are being raised on America’s economy. Famous economist and co-founder of PAICE, Lars Christensen has given a big statement. He says that the American people are living under an illusion that their country is on top in the world and can do everything alone. But the real problem is not Donald Trump, but America itself. Christensen said this in a long post on X.
America is playing with the international system
Christensen said that America itself had created the international system after World War II, but is now betraying it. America has been spending more than its capacity for the last 20 years. The private and government spending of the American people is being funded by money received from European Central Banks and pension funds. Now the question is why would any country or investor trade in dollars? If the US doesn’t follow the rules, how can the dollar be trusted? It would be foolish to keep the dollar.
America took loan of up to 3.6 trillion dollars from EU
According to the US Treasury Department and Bureau of Economic Analysis, America has taken huge loans from the European Union (EU) and European countries. European investors hold $8 to $10 trillion in US bonds and securities, of which government debt accounts for $2 to $3.6 trillion. In EU countries alone this amount ranges from 1.5 to 2 trillion dollars. Europe is the region that lends the most money to the US, twice as much as the rest of the world. For example, by November 2025, the UK has invested $888 billion, Belgium $481 billion and France $376 billion.
In return, America has made major investments in Europe. American companies have made approximately $4 trillion in direct investments (e.g. buying factories, businesses) in Europe. By the end of 2024, America’s total foreign direct investment was $ 6.83 trillion, of which Europe’s share was $ 3.95 trillion, i.e. more than 59%. Europe is the largest investment destination for American companies.
America stopped getting loans due to Trump’s attitude
Christensen said that if America claims the land of its allies or threatens them, then it behaves like a dictatorial country. In such a situation, why would any sensible person give a loan to the American government? If the US does not respect the sovereignty of other countries and does not keep its international promises, how is it expected to repay the debt? He said that if America can impose tariffs on a country for not giving up its land, then why take the risk of investing? There is no guarantee that America can impose capital controls.
American losses will increase if Trump remains in power
On Trump’s policies, Christensen said that the longer Trump remains in power, the greater the loss for America. Now the onus is on the American people to prove that Trump is an exception, not the whole idea of America. Trump recently tried to buy Greenland and threatened European countries with tariffs, but withdrew the threat after talking to NATO Chief Mark Rutte. Due to this, Trump is being criticized at the global level.
Experts believe that Christensen’s statement suggests that if this attitude of America continues, it may be difficult to get loans from Europe. This could have a negative impact on America’s economy because it would be difficult to meet expenses due to the closure of European funding. This economic relationship between both sides is very strong, but Trump’s policies can weaken it. America now needs to improve its image, otherwise it may become isolated at the global level.