The world’s economies, alliances, and core legal and security structures might change dramatically in the transition away from American hegemony and into a new multipolar world. How will these changes impact some of America’s closest allies?

Straight Arrow News contributor Peter Zeihan asks that question of Australia. In his analysis, he pinpoints three economic vulnerabilities and one powerful security asset that Australia will have in the post-American world.

The following is an excerpt from Peter’s Jan. 3 “Zeihan on Geopolitics” newsletter:

We’re heading down under today, and we’re not here to f— spiders. The Australians are one of the few countries that will stay under the United States’ wing as the order collapses, but they have a few things to figure out first.

The Aussies have grown awfully close economically to the Chinese over the past few decades, so they’ll need to find some different customers. I’m sure the U.S. will make the list. Australia will also have to find a way to rapidly move up the value-add chain in terms of processing capabilities and capacity.

There’s also an Outback-sized sub-prime real estate issue that will trigger a financial crisis when it finally cracks… especially if all of these issues boil up at the same time.

Regardless, the Australians have got in good with the Americans, and they’re set to thrive in the deglobalized world. And the U.S. isn’t mad about it either; they’re getting a creative and capable ally with plenty of the stuff that will be in high demand in the coming years.

Access Peter’s other post-American world commentaries:

• East Asia in a post-American world
• Romania in a post-American world
• Scandinavia reawakens in a post-American world
• India in a post-American world
• How should Turkey navigate in a post-American world?
• Northern Africa in a post-American world
• Israel in a post-American world
• Germany’s steep decline poses dire threat to future of EU
• The Middle East in a post-American world
• Getting ready for the post-American world