For the past 500 years European nations—Portugal, the Netherlands, Spain, Britain, France and, briefly, Germany—were able to plunder much of the planet by projecting their naval power overseas. Since much of the world's population lives along the coasts, and much of it trades over water, armed ships that arrived suddenly out of nowhere were able to put local populations at their mercy.

The armadas could plunder, impose tribute, punish the disobedient, and then use that plunder and tribute to build more ships, enlarging the scope of their naval empires. This allowed a small region with few natural resources and few native advantages beyond extreme orneriness and a wealth of communicable diseases to dominate the globe for half a millennium.

The ultimate inheritor of this naval imperial project is the United States, which, with the new addition of air power, and with its large aircraft carrier fleet and huge network of military bases throughout the planet, is supposedly able to impose Pax Americana on the entire world. Or, rather, was able to do so—during the brief period between the collapse of the USSR and the emergence of Russia and China as new global powers and their development of new anti-ship and antiaircraft technologies. But now this imperial project is at an end.

Prior to the Soviet collapse, the US military generally did not dare to directly threaten those countries to which the USSR had extended its protection. Nevertheless, by using its naval power to dominate the sea lanes that carried crude oil, and by insisting that oil be traded in US dollars, it was able to live beyond its means by issuing dollar-denominated debt instruments and forcing countries around the world to invest in them. It imported whatever it wanted using borrowed money while exporting inflation, expropriating the savings of people across the world. In the process, the US has accumulated absolutely stunning levels of national debt—beyond anything seen before in either absolute or relative terms. When this debt bomb finally explodes, it will spread economic devastation far beyond US borders. And it will explode, once the petrodollar wealth pump, imposed on the world through American naval and air superiority, stops working.