In this episode of the Wolf Krugman Exchange, Martin Wolf and Paul Krugman dissect the implications of the new US national security strategy, focusing on its departure from liberal values, its stance on Europe, and its approach to competition with China. They explore whether the US is abandoning its commitment to democracy and potentially fostering racial division in Europe by supporting far-right parties. The discussion further examines the US's seemingly diminished interest in challenging China's global influence, economically and technologically, and the potential consequences for Europe and other nations. Krugman and Wolf analyze Europe's capacity for strategic autonomy, economically and militarily, in light of the US's shifting priorities and the challenges posed by China's economic power. They conclude with a discussion on how other countries might navigate this evolving geopolitical landscape, particularly concerning trade and influence, and express hope for a future shift in US policy away from its current trajectory.
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