It began with the strategic contraction of the United States. After Osama Bin Laden’s death, the Global War on Terrorism no longer seemed so compelling. Senior leaders in the US began to call for the US to withdraw quickly from Afghanistan, foreclose aid to Pakistan, and bring the troops home. Pressure to attempt to rebalance the US budget led to very significant cuts. With the US close to defaulting on its loans, power projection seemed like a luxury, and many of the programs envisioned by the Pentagon to stay relevant had to be cancelled. The US military bases in the Pacific were not strengthened. A new long-range bomber was not procured. The procurement of the Joint Strike Fighter was cut in half, raising per-unit costs and alienating many partners. None of this helped, and some even hurt the market, and despite deep budget cuts, the US was in decline.
In this period, China and India’s economy chugged along strongly.