The article argues that the U.S., through recent policy signals—such as questioning NATO's value or sympathizing with great-power territorial claims—is inadvertently adopting the core tenets of non-alignment, prioritizing transactional national interests over binding alliances. Historically, while non-alignment allowed developing nations to gain benefits without commitment, the analysis notes that this approach lacks the deep trust and shared obligations necessary for robust security structures. The implication is critical: by undermining established alliances, the U.S. risks losing its greatest strategic asset—the network of mutual commitments—as allies actively seek alternative bilateral or regional defense pacts.
Rising Stock-Bond Volatility Correlation Is Undermining Global Risk Models
English Summary
The traditional inverse relationship between stock and bond markets has broken down since 2013, with volatility in both asset classes now moving in tandem even outside acute crises—fundamentally undermining financial risk management. Historically, when equities fell, Treasury bonds rose and provided a buffer for financial institutions; now simultaneous stock-bond declines leave institutions vulnerable to collateral shortfalls that can spiral into systemic crises. Current regulatory frameworks including Basel III and central bank liquidity facilities were designed for pre-2013 correlation patterns and fail to account for this structural change. Policymakers must revalidate bank risk models, restructure emergency liquidity facilities for dual-asset shocks, and pursue credible fiscal consolidation to restore market confidence in sovereign debt. Without these reforms, financial institutions will lack shock absorbers to absorb the next major market stress.
中文摘要
股票與債券市場傳統的負相關關係自2013年以來已瓦解。現在，這兩類資產的波動性即使在非急性危機時期也呈現同步變動，從根本上動搖了金融風險管理。歷史上，當股票下跌時，美國國債通常上漲，為金融機構提供了緩衝；然而，現在股票與債券同步下跌，使得機構容易面臨抵押品不足的風險，這可能螺旋式發展成系統性危機。現行的監管框架，包括《巴塞爾協議III》和中央銀行的流動性工具，都是為2013年之前的相關性模式設計的，無法應對這種結構性變化。政策制定者必須重新驗證銀行的風險模型，重組應對雙資產衝擊的緊急流動性機制，並推動可信的財政整固，以恢復市場對主權債務的信心。若缺乏這些改革，金融機構將缺乏吸收下一次重大市場壓力的緩衝機制。
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