Quantum Strategy founder: US turns its back on NATO

Proceeding from a fresh article, Fortune unveils that founder of Quantum Strategy declared, “NATO is dead” as the US distances itself from its European partners and forms closer relations with Russia. 

In an interview, David Roche, founder of Quantum Strategy argued that this shift has positioned Russian President Vladimir Putin and Chinese President Xi Jinping as the "big winners," while the US stands as the "big loser." He also highlighted that the Japanese yen is increasingly replacing the US dollar as the world’s safe-haven currency.

Roche's comments come amidst growing concerns over the US changing foreign policy, particularly under President Donald Trump. As Trump distances the US from NATO, he has been more favourable towards Russia, even recently engaging in a public confrontation with Ukrainian President Volodymyr Zelenskyy. According to Roche, this makes the US a less reliable partner on the global stage. "The big loser is actually the US, because nobody will trust a US treaty again," he stated, adding that many countries in the Global South may turn towards China for support.

Trump has been a vocal critic of NATO, urging European countries to increase their defence spending. NATO members have made some progress, with three-fourths of them now meeting the 2 per cent GDP defence spending benchmark, a significant increase since 2015. However, Trump has continued to press allies, warning that the US will not defend them unless they contribute their fair share. "If they don’t pay, I’m not going to defend them," he asserted.

In response to the US shifting stance, European leaders are preparing for a future without American protection. The European Union has announced plans to boost defence spending by over $800 billion. Roche predicts that Europe will need five to six years to rebuild its military capabilities, amid a growing geopolitical shift that is also impacting global financial markets.

By Naila Huseynova