Wilhelm II, German Emperor

Context: Bismarck resigned at Wilhelm II's insistence in 1890, at the age of 75, to be succeeded as Chancellor of Germany and Minister-President of Prussia by Leo von Caprivi, who in turn was replaced by Chlodwig, Prince of Hohenlohe-Schillingsfurst, in 1894. Following the dismissal of Hohenlohe in 1900, Wilhelm appointed the man whom he regarded as "his own Bismarck", Bernhard von Bulow.  In foreign policy Bismarck had achieved a fragile balance of interests between Germany, France and Russia--peace was at hand and Bismarck tried to keep it that way despite growing popular sentiment against Britain (regarding colonies) and especially against Russia. With Bismarck's dismissal the Russians now expected a reversal of policy in Berlin, so they quickly came to terms with France, beginning the process that by 1914 largely isolated Germany.  In appointing Caprivi and then Hohenlohe, Wilhelm was embarking upon what is known to history as "the New Course", in which he hoped to exert decisive influence in the government of the empire. There is debate amongst historians as to the precise degree to which Wilhelm succeeded in implementing "personal rule" in this era, but what is clear is the very different dynamic which existed between the Crown and its chief political servant (the Chancellor) in the "Wilhelmine Era". These chancellors were senior civil servants and not seasoned politician-statesmen like Bismarck. Wilhelm wanted to preclude the emergence of another Iron Chancellor, whom he ultimately detested as being "a boorish old killjoy" who had not permitted any minister to see the Emperor except in his presence, keeping a stranglehold on effective political power. Upon his enforced retirement and until his dying day, Bismarck was to become a bitter critic of Wilhelm's policies, but without the support of the supreme arbiter of all political appointments (the Emperor) there was little chance of Bismarck exerting a decisive influence on policy.  Bismarck did manage to create the "Bismarck myth," the view (which some would argue was confirmed by subsequent events) that Wilhelm II's dismissal of the Iron Chancellor effectively destroyed any chance Germany had of stable and effective government. In this view, Wilhelm's "New Course" was characterised far more as the German ship of state going out of control, eventually leading through a series of crises to the carnage of the First and Second World Wars.  In the early twentieth century Wilhelm began to concentrate upon his real agenda; the creation of a German navy that would rival that of Britain and enable Germany to declare itself a world power. He ordered his military leaders to read Admiral Alfred Thayer Mahan's book, The Influence of Sea Power upon History, and spent hours drawing sketches of the ships that he wanted built. Bulow and Bethmann Hollweg, his loyal chancellors, looked after domestic affairs, while Wilhelm began to spread alarm in the chancellories of Europe with his increasingly eccentric views on foreign affairs. CANNOTANSWER

Question: How did the Iron Chancellor effectively destroy any chance of Germany having a stable government?
Answer: creation of a German navy that would rival that of Britain and enable Germany to declare itself a world power. He ordered his military