It is misplaying that hand with a vengeance, true, and at the moment it's tough to see a way back. But it's not that long ago that we could not easily see how the initiative would get away from USA.
With a truly progressive policy of healthcare, education for all and reductions of inequalities, coupled with a massive national infrastructure program to improve energy self-sufficiency, therefore reduce military spending and probably get massive market shares in the sustainable development market that is bound to appear one day (or else...), they could achieve a lot. Besides, they would have the luxury of being able to decide when the said markets appear. Almost at the press of a button.
They still have massive assets. But all of them, to be used, will require reversing the crazy ideology that has been paraded for 40 years. Earth provides enough to satisfy every man's need, but not every man's greed. Gandhi
But I don't see the US military "strength" as an asset but rather as a severe liability. It's a parasite on the economy and the government and, by maintaining the illusion of strength, it's a major roadblock obstacle on the USA #1 priority : reconnection with reality.
Theoretically, a reversal of policy could achieve much, until you consider that the reasons the US abandoned sustainable energy policy in 1980 are the same reasons it will not go back to it now. It is crucial to note that there is not enough sustainable energy in any form to power our civilization; sustainable energy implies the RADICAL transformation of that civilization, including not just conservation and reduction of resource use, but the end of capitalism and debt-based money.
Meanwhile, practically speaking, the window is closing: Year 2008 may well be the year when the US is revealed as bankrupt. After that, nothing will be done. The Fates are kind.
