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With Trump pushing ‘America First,’ you really can’t own enough of this hot investment

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Since the end of World War II almost 80 years ago, the United States has set the rules for every game of power in the world. The rules of trade, money, culture, intellectual property, war — all of these were set by the United States, and they go by the collective name of “Pax Americana.”

Pax Americana is a set of coordination games. The U.S. sets the rules, administers the rules through “neutral” multilateral institutions like NATO, the World Trade Organization and the United Nations, and then follows the rules like everyone else. There’s no “winning” and “losing” per se, in the sense that one country gets what another country loses. Instead, everyone is better off for playing the coordination game, the United States most of all, because the “neutral” rules make the U.S. dollar DX00 the required currency for in-game transactions. Think of Pax Americana as something like a giant casino filled with games where the United States is both a player and the house.

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