Is democracy tipping over? America’s (Night)Dream

Frankfurt America fears for its democracy before the midterm elections in the fall, in which around a third of the senators and all members of Congress will be reelected. It is badly damaged: a country with only one major party that peacefully accepts the results of elections no longer offers its citizens a real choice.

America’s strength still seems undiminished so far. The military, despite new aircraft carriers in China and a still large nuclear arsenal in Russia, has no serious rivals. In principle, despite inflation, the creation of the euro and the foreseeable rivalry of the Chinese renminbi, the dollar remains for the world what gold used to be: the world currency, the reserve currency, the haven in crises.

The only difference is that gold has to be painstakingly dug up, while the US Federal Reserve can produce new dollars at any time with the stroke of a pen – and it has done so diligently in recent years.