Trump Has Weakened the United States

Make America Great Again (MAGA) was sold to Americans as a promise to restore the United States to a golden age—greater economic vitality, stronger sovereignty and renewed global influence. But as Donald Trump's second term approaches its midpoint, the record increasingly suggests the opposite - America may be becoming more powerful in rhetoric, but weaker in substance.

Trump is undoubtedly one of the most consequential presidents in modern American history. The problem is that many of the consequences of his policies have been damaging not only to American society but also to the country's relative power and standing in the world.

America's greatest strength has never rested solely on its military or economic might. It has also depended on the credibility of its commitments. Allies cooperate with Washington because they believe its promises will endure beyond the next political cycle. Trump's repeated threats against NATO, public attacks on allies and abrupt shifts in foreign policy have weakened that confidence while creating opportunities for adversaries.

His transactional approach to diplomacy has produced another cost, unpredictability. Tariff threats, sudden policy reversals and pressure on partners have made it increasingly difficult for governments to know where Washington will stand tomorrow. Trade wars have also imposed costs on American consumers, farmers and manufacturers while inviting retaliation.

At home, the damage is equally consequential. Persistent attacks on the judiciary, media, intelligence agencies and electoral institutions have deepened political polarization and eroded public trust. A democracy that increasingly doubts its own institutions cannot project the same confidence abroad.

The consequences extend to America's fiscal position and long-term resilience. Large deficits, rising debt, weakened climate preparedness and politicization of national-security decisions constrain the country's ability to respond effectively to future crises.

MAGA promised to make America great again. Yet greatness is not measured by how loudly a nation asserts its power, but by how effectively it converts economic strength, democratic institutions, alliances and international trust into lasting influence.

Trump may have strengthened the politics of grievance, but he has weakened the foundations of American power. In seeking to put America first, he risks leaving the United States more divided at home, less trusted abroad and, ultimately, weaker.

Sinokor VLCC abandoned

The crew of the VLCC Senegal Prosperity have been evacuated leaving the tanker abandoned and listing in the Strait of Hormuz. The Liberian-registered 320,780 dwt Senegal Prosperity was struck three times by what were described in security reports as “rockets” while transiting the Strait of Hormuz. The tanker was struck on its port side, engine room, and ballast tank.

According to an update from the Joint Maritime Information Center (JMIC) the Senegal Prosperity was southbound exiting the Strait to the Gulf of Oman and was 4 nm from the Oman coast at the time of the incident on 22:00hrs UTC on 30 August.

JMIC said the Company Security Officer (CSO) reported that all communications were lost with the vessel following the attack and it was dead in the water and listing to port.

The VLCC dropped anchor at position 2619N 05633E. The crew of the vessels were evacuated by the local authorities leaving it abandoned in the Strait of Hormuz off the Omani coast. There no casualties among the crew.

The tanker's last broadcast AIS position was two days ago offshore from Ju Aymah Oil Terminal in Saudi Arabia, in a laden condition on 28 August, according to data from Pole Star Global.

Meanwhile US forces undertook further strikes on 1 September on Iranian military targets bordering the Strait.

“US forces struck Islamic Revolutionary Guard Corps (IRGC) targets including air defense sites, radar systems, maritime assets and facilities, mine laying capabilities, and communications sites,” US Central Command said.

“The strikes follow recent attempted attacks by the IRGC against commercial shipping in the Strait of Hormuz and against American service members.”

Courtesy: Seatrade Maritime News

 

Egypt–China: Is China Rewriting the Strategic Equation?

For decades, Egypt has been regarded as one of Washington’s most important partners in the Middle East. It was the first Arab state to establish diplomatic relations with Israel following the Camp David Accords and has remained a major recipient of US military assistance. Yet the strategic landscape appears to be changing.

The ongoing US-Iran war has forced countries across the Middle East to reassess their security and economic relationships. Against this backdrop, Chinese President Xi Jinping’s return to Egypt after a decade is more than a ceremonial visit. It comes as Beijing and Cairo celebrate 70 years of diplomatic relations and deepen cooperation in trade, investment, defence and technology.

The question, therefore, is not simply whether Egypt is moving away from Washington. Is China gradually rewriting Egypt’s strategic equation—and using Cairo as a gateway to a broader Middle Eastern and African presence?

Egypt occupies a unique geopolitical position. It connects the Arab world with Africa, the Mediterranean and the Red Sea, while the Suez Canal remains a critical artery of global commerce. Chinese investment around the canal has transformed this geography into a major industrial opportunity.

The relationship is also extending beyond economics. Joint military exercises and expanding defence cooperation indicate that Cairo is diversifying its strategic partnerships. At the same time, China’s growing engagement with Egypt reflects Beijing’s preference for influence through investment, infrastructure, technology and diplomacy rather than a conventional military footprint.

This does not necessarily mean Egypt is choosing China over America. Cairo may simply be seeking greater strategic autonomy at a time when regional countries are increasingly reluctant to depend exclusively on any single power, that may be the more significant development.

For decades, the Middle East operated largely within an American-led strategic framework. Today, China is emerging as an economic, diplomatic and technological alternative, while regional states appear increasingly comfortable cultivating relationships with multiple powers.

Perhaps, therefore, the real story is not Egypt moving from Washington to Beijing. It is the Middle East moving towards a new strategic equilibrium.

If so, the US-Iran war may ultimately be remembered not merely as another regional conflict, but as a catalyst that accelerated the transition from an old paradigm to a new one.

Even Trump Is Subservient to the Syndicate

The US-Israel war on Iran, which began on February 28, 2026, has entered its seventh month without a decisive outcome or a credible exit strategy. This raises an uncomfortable question: is the war being fought purely for strategic objectives—or are powerful vested interests benefiting from perpetual uncertainty?

I call these interests “The Syndicate”—an informal alignment of the military-industrial complex, oil and gas companies, Wall Street participants and media houses. Their interests may differ, but uncertainty serves them all. Prolonged conflict means more weapons orders, volatile energy prices, speculative opportunities and a continuous supply of headlines.

In this equation, President Donald Trump increasingly appears less like the sole architect of American policy and more like an “Operator”—a political leader who converts confrontation into leverage while powerful economic interests benefit from its consequences.

The circumstances surrounding the war are particularly revealing. Washington launched military action without securing the full backing of its European allies. For months, US military installations across the Gulf faced Iranian retaliation, while Israel received extensive American military and diplomatic protection. Yet the conflict continued, with no clear political settlement in sight.

More alarming is speculation that Washington could eventually consider using nuclear weapons if conventional military options become exhausted. Even without accepting such speculation as fact, its emergence illustrates how dangerously far the escalation has travelled.

America’s political system is formally accountable to voters, but money exercises enormous influence over elections and policymaking. Corporations and wealthy individuals spend billions seeking access and influence, raising an uncomfortable question - does political power ultimately serve voters—or those capable of financing it?

Trump continues to command strong support among America’s wealthiest constituencies. If that political-economic alliance remains intact, attempts to remove him may continue to falter, while his political future could remain far stronger than public sentiment suggests.

Perhaps the real question is not who controls Trump, but who benefits from endless uncertainty?

The answer may explain why, even in the world’s most powerful democracy, US president Trump himself could be subservient to the Syndicate.

Nepal Floods: A Natural Disaster with a Human Fingerprint

Nature does not negotiate with governments. It does not respect borders or development targets.

The horrifying images of floods devastating Nepal’s border region and Tibet are not merely scenes of a natural calamity. These are a warning that when human intervention collides with nature’s power, the consequences can be catastrophic.

The immediate question is not simply what happened, but whether human actions helped turn a natural disaster into a far greater catastrophe.

Brahma Chellaney argues that the Himalayan floods were triggered by nature but intensified by human intervention. Chinese construction has narrowed river corridors, generated dangerous debris and created bottlenecks that may have produced secondary flood surges. If development projects alter natural waterways and fragile mountain landscapes without adequate environmental safeguards, they can magnify the destructive power of extreme weather.

This warning is particularly relevant as Southeast Asia confronts another looming threat: a major El Niño event. Florian Krampe and Mely Caballero-Anthony warn that it could bring drought, wildfires, food shortages and widespread supply-chain disruption.

The irony is that governments are not entirely unprepared. ASEAN already has forecasting mechanisms and disaster-financing instruments. Yet these remain inadequately funded and poorly coordinated. The problem, therefore, is not the absence of knowledge or tools, but the lack of political will and financial commitment to deploy them effectively.

The consequences could extend far beyond disaster zones. Drought can devastate agricultural production, food shortages can fuel inflation and social tensions, wildfires can disrupt economic activity, and damaged infrastructure can cripple supply chains across national borders.

The Himalayan floods also expose a dangerous contradiction in the pursuit of development. Roads, dams, hydropower projects and expanding settlements may deliver economic benefits, but when these disregard rivers, forests and fragile ecosystems, these can magnify the risks they are intended to overcome.

The Nepal floods should therefore be treated as a wake-up call. Natural disasters may be unavoidable, but their devastation is not always inevitable. When environmental safeguards are sacrificed for development, nature can leave a human fingerprint on a natural disaster.

US-Israel war on Iran: No End in Sight

The US-Israel war on Iran, launched on February 28, 2026, has completed six months—far longer than President Donald Trump’s initial claim that the conflict would be over within weeks. More troublingly, there is still no credible indication that the war is nearing an end.

A Washington Post report marking the six-month anniversary noted that Trump’s ability to achieve a decisive victory has declined sharply. Iran has demonstrated that it can withstand sustained bombardment while imposing significant costs on the world’s most powerful military through relatively inexpensive mines and drones.

Iran’s most potent weapon, however, has been its ability to disrupt the Strait of Hormuz, a critical global energy artery. Since the war began, oil and gas prices have surged, reportedly costing US consumers an estimated US$71.5 billion more at the pump than they otherwise would have paid.

Trump has repeatedly claimed that the Strait has been reopened. Yet the Post, citing Kpler, a commodities and shipping tracker, reported that more than 100 ships crossed the Strait daily before the war, compared with just five on one day this week. The stark difference between presidential claims and reality underscores the difficulty Washington faces in restoring normal shipping.

The Associated Press has highlighted another significant shift: Washington is increasingly relying on sanctions rather than military force to pressure Tehran. The move reportedly reflects concerns over dwindling US munitions and the potential impact of a prolonged conflict on American military readiness elsewhere.

Trump’s rhetoric has also changed. The president who once promised a quick victory now says he is “not in a hurry” to end the campaign.

Former US Defense Intelligence Agency officer Harrison Mann has argued that Trump has “lost the Iran War in every way possible,” citing failures to force regime change, ignite a Kurdish uprising and restore normal traffic through the Strait of Hormuz.

Six months of war have produced an outcome dramatically different from Washington’s expectations. Iran has survived the assault and strengthened its strategic leverage, while the US faces mounting economic, military and diplomatic costs.

With neither side appearing ready to concede and no clear political settlement in sight, the most sobering conclusion is simple, “The Iran war has entered its seventh month with no end in sight.”

PSX Benchmark Index Posts Paltry 0.3%WoW Gain

Pakistan Stock Exchange (PSX) remained range bound during the week ended on August 28, 2026.The benchmark Index posted 0.3%WoW gain to close at 177,697 points. Market activity improved, with the average daily traded volume rising by 24.7%WoW to 1.3 billion shares, as compared to 1.1 billion in the previous week.

Moody’s one-notch upgrade of Pakistan’s sovereign rating to B3 due to improvements in governance, provided a modest boost to investors’ sentiment.

The US-Iran situation remained under control, keeping oil prices below US$90/ bbl on Friday’s close, as Iran continued separate discussions with Oman and Qatar aimed at facilitating the reopening of the Strait of Hormuz.

Foreign exchange reserves held by State Bank of Pakistan (SBP) rose modestly to US$17.1 billion as of August 21, 2026.

Central bank transferred PKR1.9 trillion in profits to the Federal Government, PKR496 billion higher than the budgeted transfer.

Banking sector deposits rose by 14% YoY to PkR39.1 trillion as of end July 2026.

Other major news flow during the week included: 1) Saudi team and Prime Minister discuss investment in agriculture, real estate, energy and IT, 2) new SPV established for the privatization of three Discos, 3) Refineries to sign upgrade deals within 10 days, 4) Pakistan received US$763 million loans, grants in July this year, and 5) Government. introduces a performance based rebate on incremental exports.

Top performing sectors were: Textile Composite, FMCG, and Power, while sectors that lagged the most were: OMCs, Inv. Cos., and Technology.

Major net buying was recorded by Mutual Funds (US$6.2 million) and Companies with (US$4.3 million). Major net sellers were Foreigners with US$10.6 million.

Top performing scrips were: AICL, THALL, KTML, POWER, and ABOT, while laggards included: PGLC, SRVI, TRG, NBP, and HMB.

AKD Securities expects market to improve on strengthening economic indicators amid easing geopolitical tensions. A potential US-Iran deal could moderate international oil prices. Market continues to trade at attractive valuations.

Top picks of the brokerage house include: OGDC, PPL, UBL, MEBL, HBL, FFC, ENGROH, PSO, LUCK, FCCL, INDU, ILP and SYS.