The US

  • “Civilizational Rupture”

    About twenty-five years ago, I published a collection of essays titled Toward a World Where Meaning Disintegrates. It traced the social transformations unfolding in Russia, Western Europe, the United States, Uzbekistan, and Japan. What I tried to argue there was that several of the core values that had sustained the modern world were beginning to lose their absolute authority. .…

  • Inequality? Perhaps. But the Rich Already Pay Most of the Income Tax

    　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　.Akio KAWATO In today’s advanced economies, discussion of “inequality” has become almost constant. Manufacturing has declined, while finance, IT, and other sectors increasingly concentrate income in the hands of a relatively small elite. . In the United States, the top 10 percent of earners now receive roughly 45–50 percent of national income. In Britain, the figure is around 35–40 percent;…

  • Gulf Security After the Iran War

    Akio KAWATO . Back in March, the American geopolitical analyst Andrew Korybko wrote something interesting. Citing a report by Reuters, he argued that the Gulf states — having been drawn into a war with Iran without prior consultation and having suffered both economic and military damage in the process — were beginning to question whether they should continue relying on…

  • What Happens If “Lehman 2.0” Hits?

    Akio KAWATO . Today, May 7, the Japanese stock market surged, with the Nikkei reaching historic highs. Hopes for a ceasefire involving Iran also helped push stock prices upward. Yet beneath the surface, the financial markets of both Japan and the United States are showing troubling signs. In both countries, long-term interest rates are rising—meaning confidence in government bonds is…

  • “From ‘Markets = Wealth’ Back to ‘Territory = Wealth’”

    Watching the way Trump and Putin speak and act, one cannot help but feel how fundamentally different their mindset is from ours. Seizing land through connections, force, and money, then developing it for enormous profit—Trump seems to view the world with the mentality of a ruthless land developer, which he really is. It is like a schoolyard bully who never…

  • The Foundations of “Modernity” Are Gone—So We Need New Institutions

    　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　.Akio KAWATO In Japan, Europe, and the United States, we still debate politics using the modern values of “freedom” and “democracy.” But the real foundation supporting those values was the economic development of Western Europe since the 17th century—above all, the dramatic rise in productivity brought by manufacturing. As manufacturing expanded, more people were able to earn solid middle-class incomes…

  • Is Lehman 2.0 Around the Corner? What Happens If It Hits?

    　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　Akio Kawato In September 2008, the collapse of Lehman Brothers brought the world economy to a temporary halt. Today, excess liquidity in Japan and the United States, stock market bubbles, and ever-expanding fiscal deficits are raising fears of “another 2008.” Yet even if the next crisis resembles 2008, the scenery will be somewhat different. That difference is worth examining. .…

  • The End of Gunboat Taiwan Policy

    Watching the U.S. Navy hesitate to push into the Strait of Hormuz during the current Iran conflict, one begins to wonder whether the old scenario—U.S. carrier strike groups rushing to the rescue in a “Taiwan contingency”—has already lost much of its credibility. That does not mean Taiwan is defenseless. Quite the contrary. Taiwan could potentially destroy a Chinese amphibious invasion…

  • Does the Iran War Herald the Advent of the “Euro Renminbi”

    Akio Kawato Since the 2008 financial crisis and the COVID shock of 2020, the United States has continuously expanded the supply of dollars. Federal debt has now exceeded the size of annual GDP. Policymakers fear that, at some point, this could erode confidence in U.S. Treasuries, trigger a surge in interest rates, and destabilize public finances. . Could the current…

  • After America: What Middle Powers Can Still Build

    Iran ceasefire talks are now beginning. Had the war continued, Iran’s retaliation might well have threatened the very survival of Gulf civilization itself, while also exposing the limits of U.S. military power and potentially bringing an end to America’s unipolar dominance. The ceasefire has, at least for now, bought everyone some breathing room. . Even so, this latest attack on…