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Historian Daniel Larison unpacks this in his recent piece on his substack Eunomia, about how we are living through a time of persistent “threat inflation.”

In military metrics, US is plummeting next to China. It's always on the verge of default, with a yearly debt ceiling dance, its military can't found enough people willing to serve.

American yearly drug overdose deaths each outstrip the best efforts of Russian army in Ukraine by a factor of 4 if you believe Ukrainian government numbers.

It's a high speed national decline, masked only by the enormous amount of ruin that needs to be accomplished.

In addition to actual spy balloons (of which there are some) it does look like NORAD also shot down at least one hobbyist radio balloon that cost <$300 to send out, which were registered with the FAA and whose owners tried in vain to contact the proper authorities.

If that's not decline - a nation's air force not being able to check what has been reported to them by civilian authorities, and not being able to verify what it's shooting at despite the existence of optic pods (telescopes,. basically).. then what is 'decline' ?

A valuable rubric for prediction is "people overestimate the change the will happen in a year, but underestimate the change in a decade".

People see that China isn't overtaking the U.S. right now and assume all is well. It is not. China's economy is growing much faster than the U.S. and its natural growth will soon make it at least twice as large as the United States even if they do not escape the middle income trap. China also likely has on the order of 10 times as many people with an IQ over 130 as the U.S.

Nothing needs to change. Natural trajectory already has China far eclipsing the United States within a decade or two. Only a deus ex machina, such as AI or another Mao in China can prevent this.

Another thing that people don't realize is that Chinese military expenditure is practically much greater than the United States. The U.S. headline budget of $800 billion or whatever says more about bloated salaries than it does about how much war materiel can be produced. China greater productive capacity is quickly eroding the advantage of materiel which the U.S. has accumulated over decades. At some point, they will have significant advantages in missiles, armaments, planes, ships, drones, etc... They are wanting only in supplies of raw resources - a situation which they are rapidly improving.

Its greater then their headline spending numbers. If you adjust for purchasing power there is even a bigger difference then their official numbers. But its still less than the US's spending (although something like 85 or 90 percent instead of a much smaller fraction. Perhaps the numbers should be adjusted by a bit less than purchasing power parity (the difference between costs for high tech, or even more mundane military items isn't likely to be the same as it is for civilian production, and at least for the more advanced items is likely to be less), but even then you still get well over half, and China's spending is growing faster, and at least at the moment (and probably at least for the next couple of decades) any conflict would likely happen nearer to China, where China has almost all its forces while American forces are spread across the world with the largest portion in the relatively distant North America.

The main counterbalancing advantages for the US are

1 - The US has more built up capability from previous spending. (But military equipment is a depreciating asset, not a productive investment so the importance of this declines over time).

2 - The US is more likely to have allies on its side.

3 - The US has some geographical advantages. China has to get past potentially hostile countries in the first (and depending on the scenario 2nd) island chains. Also its easier to interdict shipping to China (at least with a distant blockade, a close blockade would be too costly) than it is to the US.

4 - (This one is weaker and less certain) China would probably be seen as the aggressor and get a more hostile world reaction then the US would. The US isn't going to invade China, or just start lobbing missiles at if for the lols. A war with China would most likely start over a Chinese attack of Taiwan, and the other scenarios mostly involve China grabbing disputed territory as well. If China doesn't make such an attack there won't be any war.