By Denis Hay
US dependence. Discover real steps Australia can take to diversify defence, diplomacy & trade while using its currency power to reclaim sovereignty.
Location: Canberra, 2024. The Defence Minister stands before cameras, repeating familiar rhetoric: “The US alliance is central to Australia’s security.” But in community halls, cafés, and public forums across the nation, a growing number of Australians are beginning to ask: What if it’s not?
Thoughts: Many Australians feel a quiet unease about our nation’s strategic direction. We’ve followed the US into war zones, hosted its military bases, and allowed our foreign policy to align too closely with American interests. Yet few alternative paths are ever seriously discussed in public debate.
Emotions: There’s frustration, even disillusionment. Australia is a sovereign nation. Why then do we act like a client state?
Dialogue: “It’s not anti-American to want independence,” says Jenny, a retired diplomat. “It’s just good strategy.”
Problem: The Australia-US alliance has become a crutch. While it served a purpose post-WWII, the world has changed. The Indo-Pacific is more multipolar than ever. To secure a peaceful, just future, Australia must explore new defence partnerships, deepen regional diplomacy, and reshape trade alliances. Critically, we must use our monetary sovereignty to do this independently, not through the profit-driven mechanisms of public-private partnerships.
Following WWII, Australia signed onto ANZUS, believing American power would guarantee our safety. But since then, Australia has:
• Participated in every major US-led conflict since Vietnam.
• Spent billions hosting US military infrastructure (like Pine Gap).
• Aligned its foreign policy with US military objectives, often at odds with neighbours.
Meanwhile, the security landscape has shifted:
• China, India, and ASEAN nations now influence the Indo-Pacific.
• US influence is declining, with unpredictable leadership changes.
• Regional cooperation, not superpower allegiance, is the new path to peace.
Real Example: The AUKUS submarine deal, projected to cost over $368 billion, ties Australia into US military logistics for decades – yet those funds could be spent on domestic defence innovation, regional aid, or green manufacturing.
Internal Reflections: “Why are we borrowing American power when we have the capacity to build our own?”
Note on Defence Think Tanks: When assessing defence strategies, it’s important to consider the source. The Australian Strategic Policy Institute (ASPI), often referenced by the government and media, receives funding from the Australian Department of Defence, foreign governments, and major US arms manufacturers such as Lockheed Martin and Northrop Grumman.
These financial ties raise serious concerns about bias in ASPI’s advocacy for militarised solutions and deepening reliance on the US military-industrial complex.
Heightened Risk Through US Dependence: By embedding ourselves in the strategic priorities of the United States, Australia risks becoming a target in conflicts that are not of our making.
Should tensions escalate between the US and China, Australia’s hosting of American military bases, integration into US-led command systems, and participation in initiatives like AUKUS make us more – not less – vulnerable to retaliation.
Instead of ensuring protection, over reliance on US dependence could make Australia a frontline state in the event of a major geopolitical confrontation. The risk is amplified when one considers the United States’ long and well-documented history of military interventions, regime change operations, and aggressive foreign policy – often justified under the banner of “freedom” but resulting in destabilisation, displacement, and long-term suffering in regions such as Iraq, Vietnam, Libya, and Afghanistan.
Imagine you’re a young Pacific Island leader sitting across from an Australian diplomat in 2030. Rising seas threaten your nation, yet Australia prioritises nuclear submarines over climate aid. “You talk about friendship,” she says, “but you act like a US outpost.”
This isn’t just geopolitical optics:
• Australia risks alienating regional neighbours.
• We are perceived as an extension of Western military ambitions.
• The economic burden of defence decisions like AUKUS will fall on future generations.
Stat: 56% of Australians in a 2024 Lowy Institute poll said Australia should remain neutral in a US-China conflict. The people are ahead of the policymakers.
1. Strengthen Ties with Regional Powers
Japan: Australia and Japan already have a strong relationship, but the Reciprocal Access Agreement (RAA) signed in 2022 offers a new level of cooperation. It allows Australian and Japanese defence forces to train and operate on each other’s territory. Expanding this agreement would mean more joint training exercises, maritime patrols, and technology sharing. Japan shares many of Australia’s concerns about regional stability, especially around the South China Sea. By deepening our alliance with Japan, we can enhance regional security without relying solely on US command.
India: As the world’s largest democracy and a growing global power, India is a natural partner. Both countries are part of the Quadrilateral Security Dialogue (Quad), alongside the US and Japan. However, the Quad doesn’t have a standing military part. Australia can work bilaterally with India to set up an Indo-Pacific Security Corridor -ma network of logistics, cybersecurity cooperation, joint naval exercises, and mutual disaster response. India is particularly interested in countering piracy, terrorism, and supporting freedom of navigation – all areas where Australia can contribute.
Indonesia: As our closest neighbour and the largest country in Southeast Asia, Indonesia is vital to any regional defence strategy. Historically, military cooperation between Australia and Indonesia has been cautious due to political sensitivities. But there is growing recognition on both sides of the need for deeper ties. Australia can propose enhanced maritime coordination, shared surveillance of sea lanes, and joint disaster relief programs.
Increasing transparency in military planning and offering officer exchange programs can help build trust and cooperation between our two nations. However, Australia must also use its influence to discourage the misuse of military power in the region. This includes raising concerns over Indonesia’s ongoing human rights abuses and militarisation in West New Guinea, where Indigenous populations have long suffered under state violence.
Any deepened partnership must be conditional on upholding international human rights and civilian protection standards.
2. Engage in Multilateral Defence Forums
• Five Power Defence Arrangements (FPDA): Revive and modernise cooperation with Malaysia, Singapore, New Zealand, and the UK.
• ADMM-Plus: Use ASEAN-led platforms for inclusive, multipolar defence engagement.
3. Invest in Domestic Defence Capabilities with Public Money
• Build Sovereign Industries: Fund shipbuilding, aerospace, cybersecurity, and defence innovation directly through public institutions, not profit-driven PPPs.
• Use Monetary Sovereignty: As the issuer of its own currency, Australia does not need to “find the money” – we can choose to fund defence through targeted public investment, ensuring strategic independence and job creation.
“Australia has the skills and resources to build its own security framework. What’s missing is the political will to act,” argue many independent defence analysts and public policy researchers.
1. Deepen Engagement with Southeast Asia
• Offer infrastructure and education aid through public funding.
• Support ASEAN-led peace building initiatives.
• Show respect for non-aligned values.
2. Build Relationships with Pacific Nations
• Provide real climate action support, not military posturing.
• Co-develop renewable energy projects with island nations.
Location: In 2025, Australia committed $100 million to support the Pacific Resilience Facility (PRF), a regionally led initiative designed to help Pacific nations prepare for and recover from climate-related disasters.
According to Pacific Islands Forum Chair Mark Brown, the PRF will be operational by 2025 and will provide targeted funding for resilience projects in vulnerable communities. This shift toward publicly funded, locally driven resilience initiatives marks a new era of collaboration.
3. Leverage Soft Power
• Invest in ABC International to broadcast public diplomacy across Asia.
• Expand university scholarships and arts diplomacy to win hearts and minds.
1. Expand Trade with Ethical Partners
• Finalise and deepen trade deals with India, Brazil, South Africa, and Southeast Asia.
• Prioritise mutual benefit, environmental sustainability, and human rights.
2. Reduce Overdependence on Major Powers
• Diversify supply chains for pharmaceuticals, technology, and energy.
• Encourage local production through public sector support.
3. Invest in Future-Focused Industries
• Use public money to build up renewables, green hydrogen, advanced manufacturing, and AI.
• Fund through deficit spending when needed – Australia’s sovereign currency allows it.
“We can create the future we want,” says economist Dr. Julia Grant. “But only if we stop pretending, we’re broke.”
Australia stands at a crossroads. We can either:
• Continue down a narrow, US dependence, dictated by foreign interests.
• Or forge a sovereign strategy rooted in regional peace, domestic innovation, and global cooperation.
With monetary sovereignty, strategic independence is not only possible – it is essential.
Q1: Can Australia afford to diversify its defence strategy?
Yes. As a currency sovereign, Australia can issue the public money needed to fund new defence and diplomatic directions without relying on profit-driven PPPs or foreign debt.
Q2: Would moving away from the US dependence make Australia vulnerable?
No. Diversifying doesn’t mean abandoning – it means expanding. Strengthening ties with neighbours and global south countries can make us safer, not more exposed.
Q3: How can everyday Australians support this shift?
By demanding that politicians fund diplomacy, education, innovation, and aid over weapons. Engage in public forums, vote for independents, and support regional peace movements.
If you found this article insightful, explore more on political reform and Australia’s monetary sovereignty at Social Justice Australia.
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This article was originally published on Social Justice Australia
Also by Denis Hay: How Quantum Theory Could Predict Our Future
See also: The old-world order is over
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View Comments
WOW Denis!! .....More concentrated alternative thinking to make Australia a better place for all voters.
Australia has no future as the 51st state of the USA (United States of Apartheid) or the 52nd state after genocidal apartheid Israel. Since 1974 Australia has been sucked into wars of American imperialism in Korea, Vietnam, Iraq and Afghanistan, at ENORMOUS EXPENSE TO AUSTRALIAN TAXPAYERS WHICH FUNDS WOULD HAVE BEEN BETTER SPENT IN AUSTRALIAN SOCIAL IMPROVEMENT POLICIES.
All these imperialistic episodes were initiated by LIARBRAL$ Prim Monsters; Menzies seeking redemption for resigning his Australian Army Commission on the first day of WW1 by inviting Australia into Korea and the Vietnam debacle; into Iraq thanks to never been near the sharp end Flakjacket Howard to secure the real & reserved petroleum deposits for the US multinational oil corporations; Afghanistan by ''Shit happens'' Toxic RAbbott best known for holding a fire hose.
Since the CIA and Buck Palace intervened to dismiss the Whitlam LABOR government in 1975, it has been blatantly obvious to my mate Blind Freddie that Australia must stand on its own two defence feet, manufacturing our own armaments and importantly ammunition for those armaments, training our society in military skills and thinking strategically about new military technology rather than the weapons that won WWI.
Perhaps T-Rump has done our farmers a favour, particularly soybeans.
U.S. soybean exports to China in fiscal year (FY) 2022 were $US16.4 billion (30.4 million tonnes) and with T-Rump's trade madness you can expect that China will be looking for alternative markets to source soybeans.
Australia grows soybeans but only in relatively small quantities (57,200 tonnes in 2022). But we have significant potential to increase that crop.
The opportunity for Australia to increase its China market is immense and this potential bonanza has not escaped the attention of our broadacre farmers.
We could benefit significantly from T-Rump's stupidity but we need to be careful as he won't like us stepping in to an American market that he wants to screw, but then he seems to have no qualms about screwing US farmers, does he ?
The media and the opposition are asking Albanese why he hasn't been on the phone to Trump to negotiate a deal on behalf of Australia over tariffs.
Overnight T-Rump has deferred many tariff impositions for ninety daya mainly to give the stock market a boost - and of course it worked. He has also said that :
During a speech at the National Republican Congressional Committee President's Dinner, President Donald Trump claimed that other countries were calling and "kissing my ass" to negotiate tariff rates just before they went into effect.
Mr Albanese, you have been very wise distancing us from this buffoon and be assured that had you been brown-nosing T-Rump as suggested, the coalition would have criticised you for Kissing his ass.
For dogs sake Albo, cancel the bloody sub deal because you can bet that Musk the Mad will find that the US "is being ripped off on the deal" and the prices must rise.
https://www.smh.com.au/world/north-america/musk-to-review-us-submarines-as-australia-warned-tariffs-could-push-up-cost-20250410-p5lqls.html
Terry: while they maybe kissing his ass, I'm sure they are smart enough to be working on alternatives. After all, no matter what deal you make with this guy, he can go back on it on a whim. The rest of the world has to understand that the USA is no longer a reliable partner in any agreement and should not be trusted. There are 100 other countries one can collaborate with, and forming such alliances would be useful in the long run. The USA may find that the rest of the world is very happy to get on without them, if only they don't use military strength and other covert means as they have been doing for the past century.
I see that accusations are being made against Trump for market manipulation by using the Dump and Pump stock scam where stocks are dumped based on adverse market information so that the market quickly loses value only to be pumped up again on favourable market information. Those in the know buy heavily on the falling market and sell quickly after the bounce.
Shouldn't be too hard to find out who the grifters are !
Terry, four hours before his tariff announcement he posted on his media platform that now was a good time to buy.
If there are charges down the track Trump will pardon them anyway if they are charged under federal law. Let’s hope it’s a state law.
Roswell: I think it is Federal Law and he will be the felon (accused) so by the SCOTUS argument he cannot be held guilty -complete immunity! See how far that takes him?
The only thing they can do is impeach him and you know how hard that is.
I don't think he will ever go to jail, much though I hate to admit it. It just shows how rotten the US system has become.
I am pleased to admit that in spite of many shortcomings, we in Oz are better off.