For decades, the United States has stood out for its ability to seize opportunities and shape the world to its advantage. But what explains this fundamental difference with Europe? Why do Americans always seem to be one step ahead? This article delves into the roots of this dynamic and examines how the United States leverages its natural boldness and economic system to dominate the global landscape, often at Europe's expense.
A Genetics of Opportunism
A historical perspective: today’s Americans are the descendants of European immigrants who, centuries ago, dared to leave everything behind to try their luck in the New World. This decision was reserved for those with the courage and audacity to venture into the unknown. These pioneers passed down a legacy of innovation, risk-taking, and pragmatism.
In Europe, fear of the unknown lingers. Innovations are often hindered by excessive regulations, and elites tend to protect the status quo rather than foster technological breakthroughs. In contrast, Americans move forward with a clear vision of the future and an unmatched resilience.
De Gaulle, Nixon, and the Debt Economy
American economic opportunism is far from a recent phenomenon. In the early 1970s, General de Gaulle recognized that the gold standard was the only mechanism capable of ensuring a stable and reliable currency. His initiative to repatriate France's gold aimed to challenge the United States' economic dominance. Unfortunately, De Gaulle was unable to fully realize his vision, as he was forced to resign by the French Senate in April 1969.
In 1971, President Richard Nixon made a historic decision: suspending the convertibility of the dollar into gold. This major turning point allowed the U.S. to move away from an economy grounded in tangible assets to one based on debt. Since then, Americans have thrived by living on credit at the expense of the rest of the world. Warren Buffett aptly summed it up: "Never bet against America." Indeed, U.S. markets have only continued to rise, as evidenced by the evolution of the Dow Jones (one of the oldest U.S. stock indices) and similarly, the S&P 500.
Europe: A Paralyzed Regulator
In Europe, an obsession with regulation stifles innovation. A striking example is the treatment of crypto-assets. While the United States explores the potential of cryptocurrencies, Europe takes a hyper-regulatory stance. This creates an atmosphere of distrust and hampers the development of strong technological ecosystems on the Old Continent.
The future president Donald Trump appears poised to make another bold move by positioning the United States as a leader in the cryptocurrency sector. Meanwhile, Europe continues to miss major opportunities by holding back initiatives in this field.
Tether, USDT, and the Rise of Dollar 2.0
A tangible example of American strategy is the evolution of Tether and its stablecoin, USDT. Tether collateralizes its reserves with U.S. Treasury bonds, further solidifying the dollar’s hegemony. This strategy is backed by influential players like Cantor Fitzgerald, an institution considered a "primary dealer" in the United States. Primary dealers play a pivotal role in the U.S. government bond market, purchasing Treasury securities directly to support the country’s financial operations.
The impact of USDT is comparable to the suspension of dollar convertibility to gold in 1971. Each time an investor converts cryptocurrencies into USDT, U.S. Treasury bonds are purchased, fueling the American debt-driven economy. This innovative approach once again strengthens the financial dominance of the United States.
The Brain Drain in France
In France, the situation is markedly different. Despite its wealth of talent, an exceptionally rich culture, and an enviable quality of life, the country struggles with an uncompetitive economic environment. Many brilliant French minds leave the country in search of better opportunities abroad.
Figures like Xavier Niel have often highlighted the bureaucratic and fiscal obstacles that discourage entrepreneurs from staying in France. This trend weakens the nation and bolsters the dynamism of foreign economies.
Conclusion
The United States continues to showcase its skill in leveraging the rules of the global economic game, while Europe seems hampered by its own inertia. If Europe does not change course, it risks falling behind once again, condemned to endure rather than act. It is time for Europeans to take inspiration from American pragmatism and adopt a bolder vision for our economic future.
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