American Imperialism, Transnational Capitalist Class and Globalization of Capitalism

News Neoliberalism as a New form of Corporatism New American Militarism Super Imperialism Neocon foreign policy is a disaster for the USA America and the Neoliberal Imperial Project American Exceptionalism
The Grand Chessboard Wolfowitz Doctrine "Fuck the EU": State Department neocons show EU its real place Neoconservatism US Department of Imperial Expansion Amorality and criminality of neoliberal elite Looting pays dividends to empire
Technological imperialism War and Venture Capitalism Predator state Civil war in Ukraine Media domination strategy Transnational Corporations never let a good crisis go to waste US Department of Imperial Expansion
Republics warlike and unscrupulous Empires Then and Now - PaulCraig Disaster capitalism The Iron Law of Oligarchy The Deep State Humor Etc

Note: Partially based on Wikipedia article American imperialism (which avoids discussion neoliberalism as the "imperial method used for the building modern US empire).


Introduction

The "American Exceptionalism" is geo-political trap the USA now experiencing. This is a unique brand of nationalism and after September 2001 thee jaws of American imperialism: intelligence agencies, military and financial oligarchy are too tight for the country to leave this (potentially self-destructing) path. So it looks like the USA will continues its international power projection and unique financial imperialism in foreseeable future no matter what are internal costs. Leon Trotsky saying is fully applicable to the current decline of the American imperialism, the process started in 2008   "We will leave, but we will slam the door so hard the world will shudder," Trump presidency is clearly start of slamming the door.

Leopard can't change its spots. The same is true for the USA. It is metropolis for a large "neoliberal" empire governed from Washington and to some extent form London as the second most important financial center of the empire.  It is attached to neoliberalism and death of neoliberalism means the death of this empire.  The USA dominance is maintained mostly not by  force of arms but by installing and cultivating comprador elites ("regime change/color revolutions)  and financial mechanism, due to the role of dominant role of the USA Treasury, USA banks and two controlled by the USA international financial institutions (IMF and the World Bank)  in the world financial system. This mechanism involves in many cases converting and then keeping the country in the status of a debt  slave (to IMF or both IMF and private banks; Greece and Ukraine are notable examples)

Probably in a hundred years or so there will be discussion about whether the USA imperialism was totally harmful or at least somewhat beneficial for the vassal nations. Like discussion about Roman empire and British empire.

American imperialism is the economic/financial (as well as  military and cultural) dominance of the United States over other countries. It is based on neoliberalism, so it more properly can be called "neo-imperialism"

Neoliberalism and associated with it a new type of empire (the USA neoliberal empire)  was not an accident, it was a development that while started in the USA took roots in many countries, including such diverse as  Chile (Pinochet), GB (Thatcher), China (Deng Xiaoping was a neoliberal reformer),  Russia (Yeltsin gang), and many other countries. Since the late 1970s, a shift of economic activity from the production of goods and non-financial services to finance has been adopted as mean to escape diminishing return on capital.  The oil crisis of the 1970s was probably another factor in the decision of the elite (and it was decision, a conscious choice, not an accident) to switch to neoliberal policies. 

"American empire" consists of vassal states and colonies. Vassal state that have some degree of independence is essentially a codename for NATO. All other states are colonies. An international financial elite (Davos crowd) which BTW consider the USA and NATO as a enforcer, a tool for getting what they want, much like Bolsheviks considered Soviet Russia to be such a tool. The last thing they are concerned is the well-being of American people.

During its history which starts around 70th (with the first major success the Pinochet's coup de etat in Chile, which was supported by the USA), neoliberalism undergone several stages of development:

The implosion of the entire global banking/mortgage industry in 2008 has essentially delegitimized neoliberalism central mantra about self-regulating market (which was a fake to begin with) and thus made it far less attractive as an economic and social model which the U.S. has been pleased to espouse as the royal road to prosperity for decades.

The implosion of the entire global banking/mortgage industry in 2008 has essentially delegitimized neoliberalism central mantra about self-regulating market (which was a fake to begin with)  and thus made it far less attractive as an economic and social model which the U.S. has been pleased to espouse as the royal road to prosperity for decades.

Also the neoliberal Pax Americana and the neoliberal version of global capitalism are increasingly contested by China, with the help of India, Russia, and Brazil (Carl Schmitt’s War on Liberalism The National Interest )

In different ways, Xi Jinping’s China, Vladimir Putin’s Russia and Narendra Modi’s India represent an alternative economic model, in which free markets and state capitalism are blended under strong executive rule.

In other words 2008 signified the "end of the beginning, not the beginning of the end" of Washington Consensus, if we use Churchill's words. But in now way it means that period of neoliberal revolutions came ot the end. Inertia and the level of technological and cultural dominance of the USA and its allies (G7) is such that even after bankruptcy as an ideology, neoliberalism continues to its world expansion and claims new victims among "resource nationalists" or simply "not neoliberal enough" regimes. After 2008 Libya, Syria and Ukraine were successfully "regime changed". I think Ukraine, which was a neoliberal state even before EuroMaidan is a special case and much of EuroMaidan events were connected with the desire to "put Russia in place" by Washington (and its European poodles) as well as century old Germany desire to expand its market and dominance into Ukraine.   

If we assume that Marxism as a political philosophy was dead around 1960-1970 when it became evident that working class does not represent the new dominant class able to take power and govern in a new social system as well as the fact that Communist Party political dominance is unable to secure higher standard of living for people then advanced capitalist societies,  and never will, and that The Iron Law of Oligarchy  is applicable to the USSR even more, not less that to any Western country. Still it took 20 years for the USSR to collapse after the USA elite bought part of The USSR nomenclature and organized a quite coup installing puppet neoliberal Yeltsin regime (sold as a "victory of democracy" to lemmings by Western propaganda machine). Using neoliberal advisors from Harvard (aka "Harvard mafia") it instituted "shock therapy" which instantly pushed 90% of population of the  xUSSR region into object poverty very and also enriched beyond imagination few multinationals who were will full support of Yeltsin regime to steal assets and natural resources for pennies on dollar (using Russian fifth column as an intermediary). Essentially looting of the USSR area was one of key factors which ensured recovery and quick growth of the USA economy in late 90th which was interrupted only by the dot-com crysy of 2000.

I would assume that neoliberalism is probably twice more resilient the communism, so 50-60 years since it became clear that the economic doctrine of neoliberalism is a pseudoscientific joke and its political doctrine is an eclectic mix masking financial slavery masked with the smokescreen of propaganda about "entrepreneur class" and "shareholder value"  the first sign of decay might be a reasonable estimate ot its eventual lifetime.  Much depends on the dynamics of the price of oil, as globalization and thus forces of neoliberalism are inherently dependent on cheap hydrocarbons. High prices or relative scarcity that affects transcontinental trade might damage neoliberalism and undermine the fifth column that support it in.

Also high cost of hydrocarbons means "end of growth", and neoliberalism financial scheme based on cheap credit. It might implode in the environment of slow, or close to zero growth.

That means that consistent price of oil, say, over 120 is a direct threat to neoliberal project in the USA. Even with prices over $100 the major neoliberal economics  entered the stage of "secular stagnation". It also makes the US military which is the largest consumer of oil in the USA much more expensive to run and increase the costs of  neoliberal "wars for regime change", essentially curtailing neoliberal expansion. Or at least making it more difficult. The same is true about financiering of color revolutions, which as a new type of neoliberal conquests of other countries, also require some cash, although not at the scale of "boots on the ground".

It is possible to lower the oil price, as happened at the end of 2014, but the question is how long this period will last. 

At this point ideology of neoliberalism as an ideology is completely discredited and its fake nature is evident to large part of global elite (which probably never have any illusions from the very beginning) as well, which is more dangerous, large part of middle class. It still is supported by pure military and financial power of the USA and its allies as well as technological superiority of the West in general. So only postulates of neoliberalism, especially as for free market absolutization, started to be questioned.  And partically revised (increased financial regulation is one example). This form of neoliberalism with the core ideology intact but modified one of several postulates can be called post-neoliberalism.

The USA still remains the most powerful country in the world with formidable military, and still behave as a word hegemon and the only source of justice ignoring US and other International organization, unless it if convenient to them. But as Napoleon noted "You can do anything with bayonets, but you can't sit on them". Running aggressive foreign policy on a discredited ideology and relying on blunt propaganda is a difficult undertaking as resistance mounts and bubble out in un-anticipated areas (Crimea, Donetsk and Lugansk in Ukraine are recent example, when neoliberal color revolution, which was performed by few thousands trained by the West far right militants, including openly neo-fascist squads, led to civil war in the country).

Still, unfortunately, Libya, Syria  and Ukraine, were not probably a swan song of muscular enforcement of neoliberal model on other countries. While sponsored by the USA and allies anti-Putin putsch in Russia (aka white revolution") failed, events in Libya and Ukraine prove the neoliberalism sill can launch and win offensives (aka color revolutions). At the cost of plunging the country into economic and political chaos including civil war.  

Rule of financial oligarchy also gradually comes under some (although very limited) scrutiny in the USA. Some measures to restrict appetites of financial oligarchy were recently undertaken in Europe (bank bonuses limitations).

HFT and derivatives still remain off-reach for regulators despite JP Morgan fiasco in May 2012 in London branch. Trade loss was around two billions, decline of bank value was around $13bn (The Guardian) At this stage most people around the world realized that as Warren Buffett's right-hand man Charlie Munger quipped in his CNBC interview Trusting banks to self-regulate is like trusting to self-regulate heroin addicts. At the meeting of the Group of 20 (G20) heads of states in the spring of 2009, British Prime Minister Gordon Brown announced the death of “the Washington Consensus” — the famous list of market-liberalizing policy prescriptions that guided the previous 20 or 30 years of neoliberal expansion into third world countries  (Painter 2009).

Prominent economists in the United States and elsewhere pointed out that after decades of reform, market-liberalizing policies had not produced the promised benefits for either economic growth or social welfare of countries were those policies were applied (Stiglitz 2002, 2006; Rodrik 2006). These criticisms further undermined the legitimacy of neoliberal governance, exactly the same way as similar criticism undermined socialist model of the USSR and Eastern Europe. The problem is that while socialist experiment could be compared with the Western countries capitalism achievement, here there is no alternative model with which to compare.

Still a backlash directed at the USA is mounting even from the former loyal vassals. Even the UK elite starts to display the behavior that contradict its role of the obedient US poodle. The atmosphere is which the USA is considered "guilty" of pushing though the throats of other countries a utopia that harmed them is a different atmosphere for the US oligarchy that the role of it accustomed to.  Now the US oligarchy has found itself in USSR nomenklatura shoes and eventually might be called to answer for their global actions which similar to Opium Wars of the British can be called Dollar Wars.

Everybody is now aware of the substantial costs that the modern financial system has imposed on the real economy, especially in developing countries,  and no amount of propaganda and brainwashing can hide this simple fact.

Standard of living was rising slowly and after 2008 mostly stopped to rise and started to detiorate reflecting higher energy prices and the level on indebtness of many countries (Greece, Spain, Portugal, Bulgaria, Ukraine, etc).   So the key promise of neoliberalism that "trickle down" from super rich will be enough to sustain better standard of living for all proved to be a confidence game.

It is questionable that the "financial innovations" of the last three-four decades can compensate for those huge costs and that they warrants those costs. Shocks generated within the financial system and transformation of economies imposed by international financial oligarchy as the core of neoliberal elite, implies that the rule of financial oligarchy creates negative externalities for societies and that some types of financial activities and some financial structures should be treated like an organized crime (in other words as purely parasitic, extortionist type of players).

Still this stage preserves several attributes of previous stage and first of all push for globalization and aggressive foreign policy. While economic crisis of 2008 destroyed legitimacy of ideology of neoliberalism, neoliberalism as an ideology continue to exists as a cult, much like communism as an ideology continues to exist, despite the failure of the USSR. And being phony ideology from the very beginning, a smokescreen for  the revanchism of financial oligarchy, it still can be promoted by unrelenting propaganda machine of the same forces which put it into mainstream albeit with les efficiency.  

So far no viable alternatives emerged, and inertia is still strong, as strong as G7 block with the USA as the head of the block. Like in 20th failure of neoliberalism led to rise of nationalism, especially in Europe (France, Hungary, Ukraine). In some countries, such as Ukraine, the net result of neoliberal revolution was establishing a far right regime which has uncanny similarities to the régimes which came to power in 30th such as Franko regime in Spain.  The phase of neoliberal dominance still continues, it is just the central idea of neoliberalism, the fake idea of self-regulating markets that was completely discredited by the crisis of 2008. Actually it was discredited before during Great Depression, but the generation that remembered this lesson is now extinct (it looks like it takes approximately 50 years for humanity to completely forget the lessons of history ;-).

Latin America, once paragon of a neoliberal revolution (Chile, Argentina, Mexico, etc), is now dominated by left-wing governments elected on explicitly anti-neoliberal platforms. Around the world, economists and policymakers now come to consensus that excessive reliance on unregulated financial markets and the unrestrained rule of financial oligarchy was the root cause of the current worldwide financial crisis. That created a more difficult atmosphere for the USA financial institutions to operate abroad. Several countries are now trying to limit role of dollar as the world currency (one of the sins Saddam Hussein paid the price).

Also internal contradictions became much deeper and the neoliberal regime became increasingly unstable even in the citadel of neoliberalism -- the USA. Like any overstretched empire it became hollow within with stretches on potholes ridden roads and decaying infrastructure visible to everyone. Politically, the Republican Party became a roadblock for any meaningful reform (and its radical wing -- the tea party even sending its representatives to Congress), the Party that is determined to rather take the USA the road of the USSR, then change its ideology. All this points to the fact that neoliberalism as an socio-economic doctrine is following the path of Bolshevism.

But its media dominance of neoliberalism paradoxically continues unabated. And this is despite the fact that after the crisis of 2008, the notion that finance mobilizes and allocates resources efficiently, drastically reduces systemic risks and brings significant productivity gains for the economy as a whole became untenable. We can expect that like was the case with Catholicism in middle ages and Bolshevism in the USSR, zombie phase of neoliberalism can last many decades (in the USSR, "zombie" state lasted two decades, say from 1970 to 1991, and neoliberalism with its emphasis on low human traits such as greed and supported by military and economic power of the USA, is considerably more resilient then Bolshevism). As of 2013 it is still supported by elites of several major western states (such as the USA, GB, Germany, France), transnational capital (and financial capital in particular) and respective elites out of the sense of self-preservation. That means that is it reasonable to expect that its rule in G7 will continue (like Bolshevism rule in the USSR in 70th-80th) despite probably interrupted by bursts of social violence (Muslim immigrants in Europe are once such force).

In the US, for example, income and wealth inequality continue to increase, with stagnating middle-class earnings, reduced social mobility, and an allegedly meritocratic higher education system, generously supported by tax exemptions, has been turned into the system whose main beneficiaries are the children of the rich and successful. Superimposed on this class divide is an increasingly serious intergenerational divide, and increases level of unemployment of young people, which make social atmosphere somewhat similar to the one in Egypt, although the pressure from Muslim fundamentalists is absent.

More and more neoliberalism came to be perceived as a ruse intended to safeguard the interests of a malignantly narcissistic empire (the USA) and of rapacious multinationals. It is now more and more linked with low-brow cultural homogeneity, social Darwinism, encroachment on privacy, mass production of junk, and suppression of national sentiments and aspiration in favor of transnational monopolies. It even came to be associated with a bewildering variety of social ills: rising crime rates, unemployment, poverty, drug addiction, prostitution, organ trafficking, and other antisocial forms of conduct.

While ideology of neoliberalism is by-and-large discredited, the global economic institutions associated with its rise are not all equally moribund. For example, the global economic crisis of 2008 has unexpectedly improved the fortunes of the International Monetary Fund (IMF), an organization long famous for the neoliberal policy conditions attached to its loans that served to incorporate countries into a global neoliberal economic system. In 2008, a cascade of financial crises in Eastern Europe and Iceland fattened the IMF’s dwindling loan portfolio.

World Trade Organization (WTO), the key US-used and abused universal opener of markets to US corporations and investments is in worse shape then IMF, but still is viable too. The Doha round of negotiations is stalled, mostly due to irresolvable disputes between developed and developing countries. Consequently, the current crisis of neoliberalism raises many important questions about the future path of the current international institutions promoting the neoliberal order. But still Russia joined WTO in 2012 which means that this organization got a new lease of life.

Nonetheless, that "neoliberalism in name only" is still a powerful global "brand" which the U.S. seeks to maintain at all costs for macro geopolitical reasons (The Great Crash, 2008: A Geopolitical Setback for the West , Foreign Affairs)

The financial and economic crash of 2008, the worst in over 75 years, is a major geopolitical setback for the United States and Europe. Over the medium term, Washington and European governments will have neither the resources nor the economic credibility to play the role in global affairs that they otherwise would have played. These weaknesses will eventually be repaired, but in the interim, they will accelerate trends that are shifting the world's center of gravity away from the United States.

A brutal recession is unfolding in the United States, Europe, and probably Japan -- a recession likely to be more harmful than the slump of 1981-82. The current financial crisis has deeply frightened consumers and businesses, and in response they have sharply retrenched. In addition, the usual recovery tools used by governments -- monetary and fiscal stimuli -- will be relatively ineffective under the circumstances.

This damage has put the American model of free-market capitalism under a cloud. The financial system is seen as having collapsed; and the regulatory framework, as having spectacularly failed to curb widespread abuses and corruption. Now, searching for stability, the U.S. government and some European governments have nationalized their financial sectors to a degree that contradicts the tenets of modern capitalism.

Much of the world is turning a historic corner and heading into a period in which the role of the state will be larger and that of the private sector will be smaller. As it does, the United States' global power, as well as the appeal of U.S.-style democracy, is eroding.

Hegemony of the USA and its allies

The USA was and probably will remain the center of neoliberalism and firmly established as most important and the most powerful promoter of the doctrine (in some case, like with Serbia, Iraq and Libya, on the tips of bayonets).

After the dissolution of the USSR the US elite felt that "everything is permitted" and essentially started to pursue global Roman style imperial policy. The USA military forces are active over most of the globe: about 226 countries have US military troops, 63 of which host American bases, while only 46 countries in the world have no US military presence. This is a projection of military power that makes the Roman, British, and Soviet empires pale in comparison. In his 1919 essay, "The Sociology of Imperialisms," Joseph Schumpeter wrote of Rome during its years of greatest expansion.

There was no corner of the known world where some interest was not alleged to be in danger or under actual attack. If the interests were not Roman, they were those of Rome's allies; and if Rome had no allies, then allies would be invented. When it was utterly impossible to contrive such an interest-why, then it was the national honor that had been insulted.

The fight was always invested with an aura of legality. Rome was always being attacked by evil-minded neighbors, always fighting for a breathing-space. The whole world was pervaded by a host of enemies, and it was manifestly Rome's duty to guard against their indubitably aggressive designs.*

As G. John Ikenberry, professor of geopolitics at Georgetown University noted in Foreign Affairs:

The new grand strategy [initiated by the Bush administration]…. begins with a fundamental commitment to maintaining a unipolar world in which the United States has no peer competitor. No coalition of great powers without the United States will be allowed to achieve hegemony. Bush made this point the centerpiece of American security policy in his West Point commencement address in June: "America has, and intends to keep, military strengths beyond challenges-thereby making the destabilizing arms races of other eras pointless, and limiting rivalries to trade and other pursuits of peace."

…The United States grew faster than the other major states during the decade [of the 1990s], it reduced military spending more slowly, and it dominated investment in the technological advancement of its forces. Today, however, the new goal is to make these advantages permanent-a fait accompli that will prompt other states to not even try to catch up. Some thinkers have described the strategy as "breakout," in which the United States moves so quickly to develop technological advantages (in robotics, lasers, satellites, precision munitions, etc.) that no state or coalition could ever challenge it as global leader, protector and enforcer ("America's Imperial Ambition," Foreign Affairs, October 2002).

Perhaps one of extreme expressions of this neo-Roman imperial policy became that book by The Grand Chessboard: American Primacy And Its Geostrategic Imperatives by Zbigniew Brzezinski. This is how Brzezinski views the (supposedly sovereign) nations of Central Asia (sited from Amazon review by "A Customer" Jan 3, 2002 as pawns in a greater game for geopolitical domination:

The quote "... the three grand imperatives of imperial geostrategy are to prevent collusion and maintain security dependence among the vassals, to keep tributaries pliant and protected, and to keep the barbarians from coming together." (The Grand Chessboard p.40) is probably the most revealing. Just ponder the meaning of these statements in a post-9-11 world:

To most Americans the people of the world and other nations are just that -- people, just like us, with a right to self-determination. To Brzezinski, they are merely pawns on a chessboard. At the same time, despite the fact that the analogy are not perfect, Rome fell, Napoleon fell, Hitler fell, USSR fell. Countries with too aggressive foreign policy ultimately self-destruct, because they over-extend their own countries resources to the point when people wellbeing drops to the levels of some colonies. The USA have over million people with the security clearance. So in a way it is becoming a copy-cat of the USSR. And while the US military is busy fighting for oil interests all around the world, those wars were launched by borrowing money and it's unclear who will pay the bills.

Neoliberalism beginning as ideology start was pretty modest. It was never considered a "right" ideology, ideology for which people are ready to fight and die. It was just an "ideology of convenience", an eclectic mix of mutually incompatible and incoherent mosaic of various ideologies (including some ideas of Trotskyism and national socialism) that served as useful tool to counter communist ideology. This is the tress of Friedman pretty weak opus "Capitalism and Freedom" -- which can be considered to be close analog of Communist Manifesto for neoliberalism. It also was useful for fighting some Keynesian excesses. Only later it become favorite ideology of financial oligarchy.

So in fight against "Godless communism" which does not respect private property and used "all-powerful" state, it idealized private property ownership, the role of "free" (as in free shooting) market and stressed the necessity to control the size of the government. As a tools to fight communist ideology those were reasonably effective tools. But at some point this deeply flawed, but useful for the specific purpose framework went out of control and became the cult of the deified markets and explicitly stated the necessary of diminishing the role of the state to minimum to ensure the high level of inequality the new neoliberal elite strived for (note not optimizing for a given historical conditions and technology available, but unconditionally diminishing to the point of elimination). Reagan famous phase "Government is not a solution to our problem, government is the problem." is a perfect example of how to "Throw out the baby with the bath water". But the meaning is more sinister: it meant "throw out of the water middle class".

That happened when financial oligarchy understood that a tool created for fighting communism is perfectly suitable for fighting elements of "New Deal". And it proved to be pretty effective in dismantling of set of regulations of financial sector that were the cornerstone of "New Deal". That was a very smooth ride "deregulatory" ride until 2008. But after 2008 the USA (citadel of neoliberalism) faces the set of problems that at least on the surface look similar to the problem that USSR faced before its disintegration, although the USA still have much more favorable conditions overall and disintegration is not among the current threats. Among them:

Still there are important difference with Marxism: despite extremely flawed to the point of being anti-scientific neoliberal ideology is still supported by higher standard of living of population in selected Western countries (G7). If also can rely on five important factors:

  1. Military dominance of the USA and NATO. There are very few countries in the globe without explicit or implicit USA military presence.
  2. Financial dominance of USA and its allies. The role of dollar as world currency and the role of USA controlled global financial institutions such as World Bank and IMF
  3. Technological dominance of USA and G7. Continuing brain drain from "Third world" and xUSSR countries to G7 countries.
  4. Cultural dominance of the USA (although this is gradually diminishing as after 2008 countries started of assert their cultural independence more vigorously).
  5. Ideological dominance, neoliberalism as yet another major civic religion

Military dominance of USA and NATO

The American society and the U.S. armaments industry today are different then it was when Dwight Eisenhower in his farewell speech (Eisenhower's Farewell Address to the Nation) famously warned Americans to beware the "military-industrial complex." See also The Farewell Address 50 Years Later. The major opponent, the USSR left the world scene, being defeated in the cold war. That means that currently the USA enjoy world military dominance that reminds the dominance of Roman Empire.

The USA now is the world's greatest producer and exporter of arms on the planet. It spends more on armed forces than all other nations combined -- while going deeply into debt to do so.

The USA also stations over 500,000 troops, spies, contractors, dependents, etc. on more than 737 bases around the world in 130 countries (even this is not a complete count) at a cost of near 100 billions a year. The 2008 Pentagon inventory includes 190,000 troops in 46 nations and territories, and 865 facilities in more than 40 countries and overseas U.S. territories. In just Japan, the USA have 99,295 people who are either members of US forces or are closely connected to US. The only purpose is to provide control over as many nations as possible.

Funny but among other thing the Pentagon also maintain 234 golf courses around the world, 70 Lear Jet airplanes for generals and admirals, and a ski resort in the Bavarian Alps.

Military dominance of the USA and NATO were demonstrated during Yugoslavia bombing and then invasion of Iraq. It's clear the Yugoslavia bombing would be out of question if the USSR existed.

Neoliberalism and militarism

Under neoliberalism, markets are now fused with the logic of expansion and militarization is the most logical was of securing expansion, improving global positions, and the ordering of social relations in a way favorable to the transnational elite.

Under neoliberal regime the United States is not only obsessed with militarism, which is shaping foreign policy , but wars have become real extension of the politics, the force that penetrates almost every aspect of daily life. Support of wars became a perverted version of patriotism.

As Henry A. Giroux noted in his interview to Truth-out (Violence is Deeply Rooted in American Culture), paradoxically in the country of "advanced democracy" schools and social services are increasingly modeled after prisons. Four decades of neoliberal policies have given way to an economic Darwinism that promotes a politics of cruelty.

Police forces are militarized. Popular culture endlessly celebrating the spectacle of violence. The Darwinian logic of war and violence have become addictive, a socially constructed need. State violence has become an organizing principle of society that has become the key mediating force that now holds everyday life together. State violence is now amplified in the rise of the punishing state which works to support corporate interests and suppress all forms of dissent aimed at making corporate power accountable. Violence as a mode of discipline is now enacted in spheres that have traditionally been created to counter it. Airports, schools, public services, and a host of other public spheres are now defined through a militarized language of "fight with terrorism", the language of discipline, regulation, control, and order. Human relations and behaviors are dehumanized making it easier to legitimate a culture of cruelty and politics of disposability that are central organizing principles of casino capitalism.

The national news became a video game, a source of entertainment where a story gains prominence by virtue of the notion that if it bleeds it leads. Education has been turned into a quest for private satisfactions and is no longer viewed as a public good, thus cutting itself off from teaching students about public values, the public good and engaged citizenship. What has emerged in the United States is a civil and political order structured around the criminalization of social problems and everyday life. This governing-through-crime model produces a highly authoritarian and mechanistic approach to addressing social problems that often focuses on the poor and minorities, promotes highly repressive policies, and places emphasis on personal security, rather than considering the larger complex of social and structural forces that fuels violence in the first place.

The key reference on the topic is the book The New American Militarism (2005) by Andrew Bacevich. Here is one Amazon review:

In his book The New American Militarism (2005), Andrew Bacevich desacralizes our idolatrous infatuation with military might, but in a way that avoids the partisan cant of both the left and the right that belies so much discourse today. Bacevich's personal experiences and professional expertise lend his book an air of authenticity that I found compelling. A veteran of Vietnam and subsequently a career officer, a graduate of West Point and later Princeton where he earned a PhD in history, director of Boston University's Center for International Relations, he describes himself as a cultural conservative who views mainstream liberalism with skepticism, but who also is a person whose "disenchantment with what passes for mainstream conservatism, embodied in the present Bush administration and its groupies, is just about absolute." Finally, he identifies himself as a "conservative Catholic." Idolizing militarism, Bacevich insists, is far more complex, broader and deeper than scape-goating either political party, accusing people of malicious intent or dishonorable motives, demonizing ideological fanatics as conspirators, or replacing a given administration. Not merely the state or the government, but society at large, is enthralled with all things military.

Our military idolatry, Bacevich believes, is now so comprehensive and beguiling that it "pervades our national consciousness and perverts our national policies.

" We have normalized war, romanticized military life that formally was deemed degrading and inhuman, measured our national greatness in terms of military superiority, and harbor naive, unlimited expectations about how waging war, long considered a tragic last resort that signaled failure, can further our national self-interests. Utilizing a "military metaphysic" to justify our misguided ambitions to recreate the world in our own image, with ideals that we imagine are universal, has taken about thirty years to emerge in its present form.

It is this marriage between utopians ends and military means that Bacevich wants to annul.

How have we come to idolize military might with such uncritical devotion? He likens it to pollution: "the perhaps unintended, but foreseeable by-product of prior choices and decisions made without taking fully into account the full range of costs likely to be incurred" (p. 206). In successive chapters he analyzes six elements of this toxic condition that combined in an incremental and cumulative fashion.

  1. After the humiliation of Vietnam, an "unmitigated disaster" in his view, the military set about to rehabilitate and reinvent itself, both in image and substance. With the All Volunteer Force, we moved from a military comprised of citizen-soldiers that were broadly representative of all society to a professional warrior caste that by design isolated itself from broader society and that by default employed a disproportionate percentage of enlistees from the lowest socio-economic class. War-making was thus done for us, by a few of us, not by all of us.
  2. Second, the rise of the neo-conservative movement embraced American Exceptionalism as our national end and superior coercive force as the means to franchise it around the world.
  3. Myth-making about warfare sentimentalized, sanitized and fictionalized war. The film Top Gun is only one example of "a glittering new image of warfare."
  4. Fourth, without the wholehearted complicity of conservative evangelicalism, militarism would have been "inconceivable," a tragic irony when you consider that the most "Christian" nation on earth did far less to question this trend than many ostensibly "secular" nations.
  5. Fifth, during the years of nuclear proliferation and the fears of mutually assured destruction, a "priesthood" of elite defense analysts pushed for what became known as the Revolution in Military Affairs (RMA). RMA pushed the idea of "limited" and more humane war using game theory models and technological advances with euphemisms like "clean" and "smart" bombs. But here too our "exuberance created expectations that became increasingly uncoupled from reality," as the current Iraq debacle demonstrates.
  6. Finally, despite knowing full well that dependence upon Arab oil made us vulnerable to the geo-political maelstroms of that region, we have continued to treat the Persian Gulf as a cheap gas station. How to insure our Arab oil supply, protect Saudi Arabia, and serve as Israel's most important protector has always constituted a squaring of the circle. Sordid and expedient self interest, our "pursuit of happiness ever more expansively defined," was only later joined by more lofty rhetoric about exporting universal ideals like democracy and free markets, or, rather, the latter have only been a (misguided) means to secure the former.

Bacevich opens and closes with quotes from our Founding Fathers. In 1795, James Madison warned that "of all the enemies of public liberty, war is perhaps the most to be dreaded, because it comprises and develops the germ of every other." Similarly, late in his life George Washington warned the country of "those overgrown military establishments which, under any form of government, are inauspicious to liberty, and which are to be regarded as particularly hostile to republican liberty."

Financial dominance

With dollar role as the primary world reserve currency the USA still rides on its "Exorbitant privilege". But there are countervailing forces that diminish dollar importance, such a euro. Financial dominance under neoliberalism became the primary tool of ensuring the control over the nations. See Neocolonialism as Financial Imperialism

US and Western banks dominate the globe with New York and London as two world financial centers.

Things little changed after 2008 despite the fact that the US economy in entered a deep debt crisis, which is amplified by the level of destruction of real economy by offshoring and outsourcing achieved under the umbrella of neoliberalism during previous four decades. While the USA remains the sole super power its imperial problems now reached such a level that they may start to affect the foreign policy. Troubles of organizing an invasion in Syria are probably symptomatic. It proved to be more difficult undertaking that similar invasion of Iraq a decade earlier.

Economic troubles have important side effect: the ideological dominance, achieved by the USA during 1989 till 2008 is now under attack. There are a lot of skeptic and in a way neoliberalism goes the way of Marxism with the major difference that there were probably some sincere followers of Marxism at least during the first 30 years of its development.

Centrality of transnational financial flows (including emerging countries debt) and financial oligarchy in neoliberal regime

Since the late 1970s, there was a radical shift of economic activity from the production of goods and non-financial services to finance with the rapid growth since then of the share of financial profits in total corporate profits. Also reflective of this process of "financialisation of the Economy" was the explosive growth of private debt as a proportion of gross domestic product, and the piling of layers upon layers of claims with the existence of instruments like options, futures, swaps, and the like, and financial entities like hedge funds and structured investment vehicles.

With financialisation, the financial masturbation -- speculation directed on making money within the financial system, bypassing the route of commodity production, increasingly became the name of the game. Using Marxist terminology the general formula for capital accumulation, M-C-M', in which commodities are central to the generation of profits, was replaced by M-M', in which money simply begets more money with no relation to production.

This is related to the reason which brought on the financialization of the economy in the forefront: beginning with the sharp recession of 1974-75, the US economy entered a period of slow economic growth, high unemployment/underemployment and excess capacity. That happened after around 25 years of spectacular ascent following the second world war. So financialisation was thought a s a remedy to this "permanent stagnation" regime. And for a while it performed this function well, although it was done by "eating the host".

Finance under any neoliberalism-bound regime can be best understood as a form of warfare, and financial complex (typically large Western banks as locals are not permitted, unless specially protected by remnants of the nation state) as an extension of military-industrial complex. Like in military conquest, its aim is to gain control for occupying country of land, public infrastructure, and to impose tribute putting the country in debt and using dominance of dollar as world reserve currency. This involves dictating laws to vassal countries (imposing Washington consensus, see below) and interfering in social as well as economic planning using foreign debt and the necessity to service the foreign loans as a form of Gosplan.

The main advantage of neoliberalism in comparison with the similar practice of the past is the conquest is being done by financial means, without the cost to the aggressor of fielding an army. But the economies under attacked may be devastated as deeply by financial stringency as by military attack when it comes to demographic shrinkage, shortened life spans, emigration and capital flight. Actually following s successful attack of neoliberalism and conquest of the country by neoliberal elite Russian economy was devastated more then during WWII, when Hitler armies reached banks of Volga river and occupies half of the country.

This attack is being mounted not by nation states alone, but by a cosmopolitan financial class and international financial institutions such as World bank and IMF with full support of major western banks serving as agencies of western governments. Finance always has been cosmopolitan more than nationalistic – and always has sought to impose its priorities and lawmaking power over those of parliamentary democracies.

Like any monopoly or vested interest, the financial "Trojan horse" strategy seeks to block government power to regulate or tax it. From the financial vantage point, the ideal function of government is to enhance profits via privatization and protect finance capital from the population to allow "the miracle of compound interest" to siphon most of the revenue out of the country. Some tiny share of this revenue is paid to compradors within the national elite. In good years such tactic keeps fortunes multiplying exponentially, faster than the economy can grow. This "paradise for rentiers" last until they eat into the core and cause deindustrialization and severe debt crisis. Eventually they do to the economy what predatory creditors and rentiers did to the Roman Empire.

Technological dominance

The globalist bloc of Western countries led by the USA achieved hegemony in the end of the twentieth century because it managed to become the center of technological progress and due to this acquired a commanding influence over industrial production and social life around the world, including the ability to provide rewards and impose sanctions. One or the reason of technical backwardness of the USSR just before the dissolution were technical sanctions imposed by the West via COCOM. As most of global corporations belong to G7 this lead to "natural" technological hegemony of this block. As Thatcher used to say "There is no alternatives", although she meant there is no alternatives to neoliberalism, not to Western technology from G7 nations. Only recently Asian countries started to challenge this status quo in some areas.

Global corporation managed to create a situation in which the same goods are used in most countries of the globe. Western brand names dominate. American and European airliners, Japanese, American and German cars, Korean and American smartphones, Chinese and American PCs, etc.

China became world factory and produces lion share of goods sold under Western brands.

Dominance in Internet and global communications

The debate about the USA dominance in internet and global communications reemerged in June 2008 due to revelations make about existence of the Prism program and similar program by British security services. For example, Jacob Augstein used the term "Obama's Soft Totalitarianism" in his article Europe Must Stand Up to American Cyber-Snooping published by SPIEGEL. The NSA's infrastructure wasn't built to fight Al Qaeda. It has a far greater purpose, one of which is to keep the USA as the last superpower.

The USA has capabilities of intercepting of lion share of global internet traffic and with allies tries to intercept all the diplomatic communication during major conferences and trade talk in direct violation of Vienna protocols. Latin American countries were one of the recent victims of this activity during trade talks with the USA. There were reports about snooping on UN personnel communications in NYC.

Here is an interesting comment of user MelFarrellSr in The Guardian discussion of the article NSA analysts 'willfully violated' surveillance systems, agency admits (August 24, 2013):

Here's the thing about the NSA, the GCHQ, Yahoo, Google, Microsoft, et al...

We all have to stop commenting as if the NSA and the GCHQ are in this thing on their own; the reality is that no one was supposed to know one iota about any of these programs; the NSA and the GCHQ began and put in place the structure that would allow all internet service providers, and indeed all corporations using the net, the ability to track and profile each and every user on the planet, whether they be using the net, texting, cell, and landline.

We all now know that Google, Yahoo, and the rest, likely including major retailers, and perhaps not so major retailers, are all getting paid by the United States government, hundreds of millions of dollars of taxpayer money, our money, to profile 24/7 each and every one of us..., they know how we think, our desires, our sexual preferences, our religious persuasion, what we spend, etc.; make no mistake about it, they know it all, and what they don't currently have, they will very soon…

These agencies and indeed all those who are paid by them, will be engaged over the next few weeks in a unified program of "perception management" meaning that they will together come up with an all-encompassing plan that will include the release of all manner of statements attesting to the enforcement of several different disciplinary actions against whomever for "illegal" breaches of policy...

They may even bring criminal actions against a few poor unfortunate souls who had no idea they would be sacrificed as one part of the "perception management" game.

Has anyone wondered why, to date, no one in power has really come out and suggested that the program must be curtailed to limit its application to terrorism and terrorist types?

Here's why; I was fortunate recently to have given an education on how networks such as Prism, really work, aside from the rudimentary details given in many publications. They cannot, and will not, stop monitoring even one individuals activity, because to do so will eventually cause loss of the ability to effectively monitor as many as 2.5 Million individuals.

Remember the "Two to Three Hop" scenario, which the idiot in one of the hearings inadvertently spoke of; therein lies the answer. If the average person called 40 unique people, three-hop analysis would allow the government to mine the records of 2.5 million Americans Do the math; Internet usage in the United States as of June 30, 2012 reached a total of over 245,000,000 million…

The following link shows how connected the world is… http://www.internetworldstats.com/stats2.htm

We should never forget how the Internet began, and who developed it, the United States Armed Forces; initially it was known as Arpanet, see excerpt and link below…

"The Internet may fairly be regarded as a never-ending worldwide conversation." - Supreme Court Judge statement on considering first amendment rights for Internet users.

"On a cold war kind of day, in swinging 1969, work began on the ARPAnet, grandfather to the Internet. Designed as a computer version of the nuclear bomb shelter, ARPAnet protected the flow of information between military installations by creating a network of geographically separated computers that could exchange information via a newly developed protocol (rule for how computers interact) called NCP (Network Control Protocol)."

http://inventors.about.com/library/weekly/aa091598.htm

There is no government anywhere on the planet that will give up any part of the program…, not without one hell of a fight...

Incidentally, they do hope and believe that everyone will come to the same conclusion; they will keep all of us at bay for however long it takes; they have the money, they have the time, and they economically control all of us...

Pretty good bet they win...

That includes industrial espionage:

EntropyNow:

Or industrial espionage?

Absolutely. See EUROPEAN PARLIAMENT report dated 11 July 2001 (Note it was before the 9/11 attack in the US).

7. Compatibility of an 'ECHELON' type communications interception system with Union law

7.1. Preliminary considerations
7.2. Compatibility of an intelligence system with Union law

7.2.1. Compatibility with EC law
7.2.2. Compatibility with other EU law

7.3. The question of compatibility in the event of misuse of the system for industrial espionage
7.4. Conclusion

EntropyNow -> StrawBear

The fact that they snoop on us all constantly, that's the problem. I agree that the indiscriminate surveillance is a problem. However, with such vast powers in the hands of private contractors, without robust legal oversight, it is wide open to abuse and interpretation. I believe we need to pull the plug and start again, with robust, independent, legal oversight, which respects fundamental international human rights laws In the US, the NDAA is a law which gives the government the right to indefinitely detain US citizens, without due process, without a trial, if they are suspected to be associated with 'terrorists'. Now define 'terrorism'?

Section 1021b is particularly worrying, concerning "substantial support." It is wide open to interpretation and abuse, which could criminalize dissent and even investigative journalism. See Guardian's excellent article by Naomi Wolf, 17 May 2012::

As Judge Forrest pointed out:

"An individual could run the risk of substantially supporting or directly supporting an associated force without even being aware that he or she was doing so. In the face of what could be indeterminate military detention, due process requires more."

In an excellent episode of Breaking the Set Feb 7 2013 Tangerine Bolen (Founder and Director, Revolutiontruth) stated that 'Occupy London' was designated a 'terrorist group" officially. There are independent journalists and civil liberty activists being targeted by private cyber security firms, which are contractors for the DOD, they are being harassed and intimidated, threatening free speech and liberty for everyone, everywhere. As Naomi Wolf concludes:

"This darkness is so dangerous not least because a new Department of Homeland Security document trove, released in response to a FOIA request filed by Michael Moore and the National Lawyers' Guild, proves in exhaustive detail that the DHS and its "fusion centers" coordinated with local police (as I argued here, to initial disbelief), the violent crackdown against Occupy last fall.

You have to put these pieces of evidence together: the government cannot be trusted with powers to detain indefinitely any US citizen – even though Obama promised he would not misuse these powers – because the United States government is already coordinating a surveillance and policing war against its citizens, designed to suppress their peaceful assembly and criticism of its corporate allies."

MadShelley

It seems to me that potential terrorist threats come in two sorts: the highly organised and funded groups that could commit catastrophic destruction, and the local schmucks that are really just old-fashioned losers-with-a-grudge adopting an empowering ideology.

The first group would be immensely cautious with their communications, and fall outside this sort of surveillance. The second group, if Boston and Woolwich are any evidence, are not effectively detected by these measures.

It appears very clear to me that this is runaway state power, predictably and transparently deflected with cries of "terrorism". And, perhaps most worrying, that definition of terrorism is now as wide as the state requires. Anything that embarrasses or exposes the evils of our states, including rendition, torture, and all manner of appalling injustice, is classified as a matter of 'national security', which must not be exposed lest it aid the enemy.

I know Orwell's name gets tossed around too much... but Jesus! I really hope we're not bovine enough to walk serenely into this future.

General_Hercules

...The NSA's infrastructure wasn't built to fight Al Qaeda. It has a far greater purpose, one of which is to keep the USA as the last superpower and moral authority for the rest of the time humanity has in this world.

All this muck is hurting bad. Obama is having a tough time from all sides. All the moralists think he is a villain doing everything he promised to change. All the secret society members think he is a clown who has spilled out every secret that was painstakingly put together over decades....

Cultural dominance

The temples of neoliberalism are malls and airports ;-). And they are build all over the glone is a very similar fashion. A drunk person accidentally transfered from New Jersey to, say Kiev and put in one of mjor malls can never tell the difference :-).

English became the major international language. Both language of technology and commerce. Much like Latin was before.

In developing countries goods are sold at considerable premium (up to 100%) but generally everything that can be bought in the USA now can be bought say in Kiev. Of course affordability is drastically different, but for elite itis not a problem. That create another opportunity for the top 1% to enjoy very similar, "internationalized" lifestyle all over the globe.

Hollywood films dominate world cinemas. American computer games dominate gaming space. In a way the USA culturally is present in any country. It was amazing how quickly remnants of communist ideology were wipes out in the xUSSR countries (Globalization, ethnic conflict and nationalism Daniele Conversi - Academia.edu):

Contrary to the globalists or ideologues of globalization (Steger 2005), both Marxists and liberals have highlighted the ' pyramidal ' structure underlying globalization. This metaphor applies well to cultural dissemination.

An elite of corporate, media, and governmental agencies sits at the pyramid' s top level, small regional intermediary elites sit immediately below, while the overwhelming majority of humans are pushed well down towards the pyramid' s bottom. In the realm of ' global culture ' , this looks like a master-servant relationship with much of the world at the boot-licking end. Whether such a relationship really exists, or is even practical, this metaphorical dramatization can nevertheless help to understand collective self-perceptions. The consequences in the area of ethnic conflict are significant. Such a hierarchical structure makes it impossible for global exchanges to turn into egalitarian relationships based on evenly balanced inter-cultural communication and dialogue.

On the contrary, cultural globalization is not reflected in a genuine increase of inter-personal, inter-ethnic and inter-cultural contacts. As I shall argue, in most public areas ' cultural globalization ' really means the unreciprocated, one-way flow of consumerist items from the US media and leisure machine to the rest of the world.

This top-down distribution ensures that a few individuals and groups, nearly all in the USA, firmly establish the patterns of behaviour and taste to be followed by the rest of mankind. Is this congruent with the view that there is a form of ' global centralization ' in cultural-legal matters leaning towards Washington, DC? As for a supposed ' global culture ', the symbolic capital would ideally be located in Hollywood, rather than Washington.

In fact, the term ' Hollywoodization ' insinuates a media-enforced hierarchical structure with immediate symbolic resonance. It also offers a more cultural, perhaps less sociological, focus than the Weberian concept of bureaucratic ' McDonaldization ' (Ritzer 1996).

Competing terminologies include ' Disneyfication ' / ' Disneyization ' , with its stress on extreme predictability and the infantilization of leisure (Bryman 2004), 'Walmarting ' as the streamlining of the retail sector (Fishman 2005, Morrow 2004), or earlier Cold War terms like ' Coca-Colonization ' (Wagnleitner 1994). We previously saw how the term ' McGuggenization ' has been used to indicate art-related cultural franchising and other forms of Americanization in the Basque Country (McNeill 2000).

All these equally refer to socio-economic trends originated in the USA and are hence forms of Americanization. However, ' Hollywoodization ' has broader implications for ethnic relations and nationalist conflicts.

In practice, Hollywood-inspired simplifications have become the daily staple for millions of peoples around the world in their leisure time. In the area of ethnicity, ' Hollywoodization ' has been elevated to the only known reality and the unique source of information about the outside world for increasing numbers of people, not only in the USA. Thus, the world is more likely to get its stereotypes of the Brits from US movies like The Patriot or Saving Private Ryan than via British productions.Similarly, most of the world is likely to see Scotland through the lenses of US-made Braveheart , as the larger public can barely afford any access to Scottish cultural productions.

This monopoly of global stereotyping and ethnic imagery has serious implicationsf or the spread and continuation of ethnic conflict.

The tools of primary socialization were once under firm control of the family, either nuclear or extended. They were subsequently assumed by the state in the industrialization ' phase ' , notably with post-1789 mass militarization and compulsory schooling (Conversi2007, 2008).

Under neo-liberal globalization, primary socialization has been seized by unaccountable cash-driven corporations and media tycoons. This has further reduced the space of inter-generational transmission and family interaction. If a community can no longer socialize its children according to its culture and traditions, then the very bases of local, regional, and national continuity are all visibly at stake. This threat to a group's survival is often seized upon by patriots and ethno-nationalists, whose political programs are founded on providing a new sense of social cohesion and security – even if the targets are often hapless and unprotected minorities.

That is partly how nationalism and xenophobia have expanded in tandem with globalization. Ethno-nationalism not only persisted through change, but is perceived by many as a response to the growth of globalization, providing a prêt-à-porter hope for national resistance and resilience. By depending on Hollywood as unique conveyor of ' globalization ', inter-ethnic interaction is inevitably undermined. In some instances, international communication has practically evaporated.

... ... ...

I have described, and subsequently dismissed, the profit-oriented ideology that globalization, intended as Mcdonaldization and Hollywoodization, can contribute to better international understanding. On the contrary, it has ushered in a process of planetary cultural and environmental destruction, while hampering inter-ethnic communication and fostering human conflict. The notion of cultural security, so central to international relations and peaceful coexistence, has undergone unprecedented challenges.

...Insofar as cultural globalization is understood as uni-dimensional import of standardized cultural icons, symbols, practices, values, and legal systems from the United States, it can simply be re-described as Americanization (rather than Westernization in the broad sense), or ' globalization by Americanization ' (Hilger 2008). This is of central importance for the study of ethnic conflict.

In fact, the outcome is scarce hybridization, amalgamation, and metissage . Rather than providing an inter-cultural bridge, this unilateral drive has often eroded the basis for mutual understanding, impeding inter-ethnic, inter-cultural, and international interaction. Given the current vertical, pyramidal structure of the ' cultural world order ' , the opportunity of distinctive groups to communicate directly and appreciate each other's traditions has decreased, except in the virtual area of long-distance communication. For an increasing number of individuals, an American mass consumer culture remains the only window on the world. Hence, to know and appreciate one ' s neighbours has become an ever-arduous task. To recapitulate my point, wherever cultural globalization appears as synonymous with Americanization, it engenders conflicts on a variety of levels.

Because the process is one-way and unidirectional, the result is unlikely to be a fusion between cultures or, evenless, the blending of ethnic groups. Contrary to the globalist utopia, the imposition of more and more American icons means less and less possibility for direct inter-ethnic encounter and communication among nations. Together with the collapse of state legitimacy, this substantially contributes to the spread of ethnic conflict and nationalism.

Incorporation of "globalist" parts of national élites as second class citizens of the transnational ruling class

Another aspect of cultural power of neoliberalism is that it accepts national elites (on some, less favorable then "primary" elites conditions) as a part of a new transnational elite, which serves as the dominant class. By class, following classic Marxism we mean a group of people who share a common relationship to the process of social production and reproduction, positioned in the society relationally on the basis of social power.

The struggle between descendant national fractions of dominant groups and ascendant transnational fractions has often been the backdrop to surface political dynamics and ideological processes in the late 20th century. These two fractions have been vying for control of local state apparatuses since the 1970s.

Trans national fractions of local elites swept to power in countries around the world in the 1980s and 1990s. They have captured the "commanding heights" of state policymaking: key ministries and bureaucracies in the policymaking apparatus - especially Central Banks, finance and foreign ministries - as key government branches that link countries to the global economy.

They have used national state apparatuses to advance globalization and to pursue sweeping economic restructuring and the dismantling of the old nation-state–based Keynesian welfare and developmentalist projects.

They have sought worldwide market liberalization (following the neoliberal model), and projects of economic integration such as the North American Free Trade Agreement (NAFTA), the Asia Pacific Economic Cooperation (APEC) forum, and the European Union. They have promoted a supra-national infrastructure of the global economy, such as the World Trade Organization, as we discuss below.

In this new, transnational social system transnational corporations are intermixed with nation-states which they have special privileges. And the state itself now serves not the people of the country (which historically were upper classes) but primarily service the interests of the transnational corporations (and, by extension, narrow strata of "comprador" elite, much like aristocracy of the past). It is now extension and projection of corporate power ("What is good for GE is good for America"). Both the transactional elite (and first of all financial oligarchy) and transnational corporation enjoy tremendous privileges under such a regime (corporate socialism, or socialism for the rich). Like Bolshevik state was formally dictatorship of proletariat but in reality was dictatorship of the elite of an ideological sect called Communist Party (so called nomenklatura), transformed nation-states like the USA, GB, France, Russia, etc now to various degrees look like dictatorships of transnational elite (transnational bourgeoisie like Marxist would say ;-) while formally remaining sovereign democratic republics. Like with Communist Parties in various countries that does not excuse antagonism or even open hostilities.

That does not eliminates completely the elites competition and for example the EU elite put a knife in the back of the US elite by adopting the euro as completing with the dollar currency (so much about transatlantic solidarity), but still internalization of elites is a new and important process that is more viable that neoliberal ideology as such. Also for any state national elite is not completely homogeneous. While that is a significant part of it that favor globalization (comprador elite or lumpen elite) there is also another part which prefer national development and is at least semi-hostile to globalism. Still the comprador part of the elite represents a very important phenomenon, a real fifth column of globalization, the part that makes globalization successful. It plays the role of Trojan horse within nation states and the name "fifth column" in this sense is a very apt name. This subversive role of comprador elite was clearly visible and well documented in Russian unsuccessful "white revolution" of 2011-2012: the US supported and financed project of "regime change" in Russia. It is also clearly visible although less well documented in other "color revolutions" such as Georgian, Serbian, and Ukrainian color revolutions. comrade Trotsky would probably turn in his coffin if he saw what neoliberal ideologies made with his theory of permanent revolution ;-).

Propaganda victory of neoliberalism over Marxism and New Deal capitalism

As professor David Harvey noted in his A Brief History of Neoliberalism neoliberal propaganda has succeeded in fixating the public on a peculiar definition of "freedom" that has served as a smoke screen to conceal a project of speeding upper class wealth accumulation. In practice, the neoliberal state assumes a protective role for large and especially international corporations ("socialism for multinationals") while it sheds as much responsibility for the citizenry as possible.

The key component of neoliberal propaganda (like was the case with Marxism) was an economic theory. Like Marxism it has three components

For more information see

Ideological dominance, neoliberalism as yet another major civic religion

There is no question that neoliberalism emerged as another major world civic religion. It has its saints, sacred books, moral (or more correctly in this case amoral) postulates and the idea of heaven and hell.

Neoliberalism shares several fundamental properties with high demand religious cults. Like all fundamentalist cults, neoliberalism reduces a complex world to a set of simplistic dogmas (See Washington Consensus). All of society is viewed through the prism of an economic lens. Economic growth, measured by GDP, is the ultimate good. The market is the only and simultaneously the perfect mechanism to achieve this goal. Neoliberalism obsession with materialism have become normalized to the degree that it is hard to imagine what American society would look like in the absence of these structural and ideological features of the new and militant economic Darwinism that now holds sway over the American public. The mantra is well known: government is now the problem, society is a fiction, sovereignty is market-driven, deregulation and commodification are the way to a bright future, and the profit is the only viable measure of the good life and advanced society. Public values are a liability, if not a pathology. Democratic commitments, social relations, and public spheres are disposables, much like the expanding population of the unemployed and dispossessed. Any revolt is the threat to the neoliberal regime of truth and should be dealt with unrestrained cruelty. The market functions best with minimal or no interference from government or civil society and those who don't agree will be taken by police to the proper reeducation camps. All governments with possible exception of the US government should be minimized to allow unrestricted dominance of global corporations. The genius of neoliberalism as a cult, was its ability to cloak the US pretences of world hegemony in an aura of scientific and historical inevitability. Which again makes it very similar and in a way superior to Marxism as a cult. The collapse of the Soviet Union was the supreme, heaven sent validation of Margaret Thatcher's claim that there was no alternative. There is only one blessed road to prosperity and peace and outside it there is no salvation, nor remission from sins.

The great economic historian Karl Polanyi observed, "The idea of a self-adjusting market implied a stark utopia." And neoliberalism was a stunning utopia of economic determinism, one even more ambitious than that of Marx.

With all the big questions thus settled, history appeared to be at an end. There was one and only one route to prosperity and peace. All that was required was to make sure the model was correctly applied and all would be well. We all settled into our assigned roles. Capitalists retreated to the role of technocrats, eschewing risk themselves while shifting and spreading it throughout society. The rest of us were relegated to the roles not of citizens, but of consumers. Using our homes as ATMs, we filled our lives with Chinese-made goods, oblivious to the looming environmental and social costs of a runaway, unregulated consumer-driven society. Only a marginalized few questioned the basic economic structure. It was the era of homo economicus, humans in service to the economy.

Now that perfect machinery lies in pieces all around us and the global economic free fall shows no signs of ending any time soon. The fundamental reasons underlying the collapse aren't all that difficult to discern. Central to the whole neoliberal project was the drive to rationalize all aspects of human society. Relentless efforts to cut costs and increase efficiency drove down the living standards of the vast majority, while the diminution of government and other non-commercial institutions led to increasing concentration of wealth at the very top of society. As high paying jobs in the industrial and technical sectors moved from developed countries to low wage export-based economies in the developing world, capacity soon outstripped demand and profits in the real economy began to sag. Not content with declining earnings, wealthy elites began to search for investments offering higher returns. If these couldn't be found in the real economy, they could certainly be created in the exploding financial sector.

Once consigned to the unglamorous world of matching those with capital to invest with those with enterprises seeking to grow, finance became the powerful new engine of economic growth. No longer stodgy, bankers and brokers became sexy and glamorous. Exotic new financial instruments, called derivatives, traded on everything from commodities to weather.

This speculative frenzy was supported by a central bank only too happy to keep credit extremely cheap. Debt exploded among consumers, businesses and government alike. Creating new debt became the source of even more exotic investment vehicles, often bearing only the most tenuous of connections to underlying assets of real value, with unwieldy names such as "collateralized debt obligations" and "credit default swaps."

All the debt and the shuffling of fictional wealth hid the underlying rot of the real economy. It was a house of cards just waiting for the slight breeze that would send it all crashing down. And a collapse in housing prices in 2008 laid bare the economic contradictions.

The fundamental contradiction underlying much that confronts us in the age of crises is an economic and social system requiring infinite growth within the confines of a finite planet. Any vision seeking to replace neoliberalism must take this contradiction into account and resolve it. The overriding market failure of our time has nothing to do with housing. It's the failure to place any value on that which is truly most essential to our survival: clean air and water, adequate natural resources for the present and future generations, and a climate suitable for human civilization.

No such new vision is currently in sight. That this leaves everyone, neoliberals and their foes alike, in a state of uncertainty and doubt is hardly surprising. The seeming triumph of neoliberalism was so complete that it managed to inculcate itself in the psyches even of those who opposed it.

We find ourselves unsure of terrain we thought we knew well, sensing that one era has ended but unsure as to what comes next. We might do well to embrace that doubt and understand its power to free us. Our doubt allows us to ask meaningful questions again and questioning implies the possibility of real choice. Removing the intellectual straitjacket of neoliberal orthodoxy opens up the space necessary to reconsider the purpose of an economy and its proper role in a decent human society and to revisit the old debate over equity versus efficiency. It calls into question the assumption most central to homo economicus; that all humans act only to maximize their own interests.

It seems clear that the world emerging over the coming decades will look quite different from the one we now inhabit. Of necessity it will evolve in ways we can't fully understand just yet. Old battle lines, such as the ones between capitalism and socialism, will likely fade away. Both of those models arose in a world of abundant and cheap fossil fuels and within the confines a planet with a seemingly endless capacity to absorb the wastes of our conspicuous consumption. New battle lines are already beginning to take shape.

The Revolution is Upon Us The Age of Crisis and the End of Homo Economicus Logos

I think that like is the case with Marxism, the staying power of neoliberalism is that propose the religion picture of world with its "creation history", saints, and way of salvation. In a way it plays the role similar to the role of Catholicism in middle ages (aka Dark Ages). The greed of catholic clergy in Middle ages (trade in indulgencies) is a match of the greed of neoliberals( with financial derivates replacing indulgencies ;-). It is equally hostile to any attempts to analyze it, with the minor difference that heretics that question the sanctity of free market are not burned at the stake, but ostracized. It support "new Crusades" with the same mechanism of "indulgences" for small countries that participate.

The level of hypocrisy is another shared trait. The great irony is that the USA, the world's leading proponent of neoliberalism (with the US President as a Pope of this new religion), systematically is breaking the rules when it find it necessary or convenient. With high deficit spending and massive subsidizing of defense spending and financial sector, the United States has generally use a "do as I say, not as I do" approach. And with the amount of political appointee/lobbyists shuttling back and forth between business and government, Adam Smith's "Invisible Hand" looks more and more like a crushing fist of corporatist thugs. It involves dogmatic belief that the society is better off when ruled by a group of wealthy financiers and oligarchs, than by a group of professional government bureaucrats and politicians with some participation of trade unions.

The USA also dominates the cultural scene:

The United States' position as the leading maker of global culture has been basically unchallenged for the last century or so, especially in the Western world. Yet the economic power of the Western world is waning even as new nations, with new models of economic and social life, are rising. Might one -- or several -- of these nations like China, India or Brazil become new centers of global culture?

I believe that the answer to this question for the foreseeable future is "no." While the U.S.'s cultural prominence is partially related to its political, military and economic power, such power is not the only cause of America's global cultural hegemony. Rather, the U.S. offers a unique convergence of several factors, including economic opportunity, political freedom and an immigrant culture that served as a test bed for new cultural products.

Let me offer a brief account of the rise of the American film industry to suggest the way political, economic and immigrant forces shaped American cultural hegemony. In the U.S., the film industry started as commercial enterprise largely independent of state control. Movies had to adapt to market conditions to earn profit for their producers. In order to achieve this goal, American movies needed to appeal to a diverse population made up of both native-born and immigrant citizens.

As a consequence, filmmakers had to make movies that could appeal to international audiences simply to meet domestic demand. This fact helped the American film industry become globally preeminent well before the U.S. became a superpower. In other words, while U.S. military and economic power strengthened the position of the U.S. movie industry as globally dominant, that position was not dependent on U.S. military and economic power. Instead, American producers had a competitive advantage in global markets that was later cemented in place by the U.S. post-war economic and military hegemony in the West.

After the dissolution of the USSR, the USA became natural center of the "neoliberal religion" a dominant force in the new world order (the world's only superpower). And they used their newly acquired status against states which were not "friendly enough" very similar to Catholicism with its Crusades, launching a series of invasions and color revolutions against "nonbelievers" in a globalist neoliberal model. The level of plunder of Russia after the dissolution of the USSR looks like a direct replay of Crusades with the siege of Constantinople as primary example (despite stated goals, Crusades were by-and-large a monetary enterprise of the time with fig leaf of spread of Catholicism attached). This period of neoliberal crusades still continued in 2013, sometimes using various proxy to achieve "the regime change" by military means.

As we already refereed to neoliberalism as a cult an interesting question is whether neoliberalism can be viewed new "civic religion". The answer is unconditional yes, and I think that like Marxism before it should be considered to be yet another civic religion. It has it's set of holy books, Supreme being to worship, path to salvation and set of Apostils. Like communism before it propose humanity grand purpose and destiny.

Approliving:

Theistic and civic religions are also similar in that they both offer visions of humanity's grand purpose and destiny.

There are also significant differences between theistic religions and civil religions. Theistic religions explicitly rely on claims of divine authority for their validity, while civil religions rely on reason and the interpretation of commonly-accepted historical knowledge. Followers of theistic religions stress the importance of faith in times of adversity, while followers of civil religions tend to have a more pragmatic attitude when reality casts doubt on their beliefs.

Civil religions are more like big social experiments than actual religions because their central claims are much more falsifiable, and their followers show evidence of holding this perception (e.g. references to "the American experiment"; the voluntary abandonment of Communism throughout Eurasia when it became clear that it wasn't working).

Communism bears so much resemblance to Christianity because, as you mentioned last week, the Western imagination was thoroughly in the grip of Christianity when Communism emerged. Communism is similar to Christianity out of practical necessity: had it not been based on the Christian template, Communism probably would have been too intellectually alien to its Western audience to have ever taken off. Luckily for the founders of Communism, they were also subjected to this Christian cultural conditioning.

With all this in mind, and given that religion is evolving phenomenon, I think that civil religion is actually a distinct species of intellectual organism which has (at least in part) evolved out of religion.

Like Marxism, neoliberalism is first and foremost a quasi religious political doctrine. But while Marxism is aimed at liberation of workers , a political doctrine neoliberalism is aimed at restoring the power of capital. Neoliberalism originated in the rich countries of Anglo-Saxon world (GB and USA) so along with open despise of poor, it always has a distinct flavor of despise for peripheral countries. In global politics, neoliberalism preoccupies itself with the promotion of four basic issues:

As such, neoliberalism, in its crudest form, is crystallized in the Ten Commandments of the 1989 Washington Consensus (policy of debt slavery set for the world by the US via international financial institutions). While pushing the democracy as a smoke screen, they implicitly postulate hegemony of the financial elite (which is a part of "economic elite" that neoliberalism defines as a hegemonic class). Financialization of the economy also serves as a powerful method of redistribution of wealth, so neoliberalism generally lead to deterioration of standard of living for lower quintile of the population and in some countries (like Russia in 1991-2000) for the majority of the population. This is done largely via credit system and in this sense neoliberalism represents "reinters paradise". Neoliberal globalization was built on the foundation of US hegemony, conceived as the projection of the hegemony of the US capital and dollar as the dominant reserve currency. As such it is critically dependent of the power and stability of the US and the financial, economic, political and military supremacy of the US in every region. For this purpose the USA maintains over 500 military bases (737 by some counts) and over 2.5 million of military personnel.

But there are also important differences. Unlike most religions, neoliberalism is highly criminogenic (i.e., having the quality of causing or fostering crime). It is more criminogenic in countries with lower standard of living and in such countries it often lead to conversion of a "normal", but poor state into a kleptocratic state (Yeltsin's Russia is a good example) with the requisite mass poverty (Global Anomie, Dysnomie and Economic Crime Hidden Consequences of Neoliberalism and Globalization in Russia and Around the World). Unfortunately architects of this transformation (Harvard Mafia in case of Russia) usually avoid punishment for their crimes. Corruption of the US regulators which happened under neoliberal regime starting from Reagan is also pretty well covered theme.

While economic crisis of 2008 led to a crisis of neoliberalism, this is not necessary a terminal crisis. The phase of neoliberal dominance still continues, but internal contradictions became much deeper and the regime became increasingly unstable even in the citadel of neoliberalism -- the USA. Neoliberalism as an intellectual product is practically dead. After the crisis of 2008, the notion that finance mobilizes and allocates resources efficiently, drastically reduces systemic risks and brings significant productivity gains for the economy as a whole became untenable. But its zombie phase supported by several states (the USA, GB, Germany), transnational capital (and financial capital in particular) and respective elites out of the sense of self-preservation might continue (like Bolshevism rule in the USSR in 70th-80th) despite increasing chance of facing discontent of population and bursts of social violence.

Cornerstone of neoliberal regime, the economic power of the USA is now under threat from the rise of Asia. This is one reason of mutation of neoliberalism into aggressive neoconservative imperialism that we witness in the USA.

While intellectually neoliberalism was bankrupt from the beginning, after 2008 believing it in is possible only by ignoring the results of deregulation in the USA and other countries. In other words the mythology of self-regulating "free market" became a "damaged goods". In this sense, any sensible person should now hold neoliberal sect in contempt. But reality is different and it still enjoy the support of the part of population which can't see through the smoke screen. With the strong support of financial oligarchy neoliberalism will continue to exists in zombie state for quite a while, although I hope this will not last as long as dominance of Catholicism during European Dark Ages ;-). Still the US is yet to see its Luther. As was noted about a different, older sect: "Men are blind to prefer an absurd and sanguinary creed, supported by executioners and surrounded by fiery faggots, a creed which can only be approved by those to whom it gives power and riches".

Like communism in the USSR it is a state supported religion: Neoliberalism enjoys support of western governments and first of all the US government. Even when the US society entered deep crisis in 2008 and fabric of the society was torn by neoliberal policies it did not lose government support.

US was an imperial nation driven by annexation of territories from the very beginning

The USA has a history of "plain vanilla" (British style) imperialism, based on annexation and occupation of territories since the presidency of James K. Polk who led the United States into the Mexican–American War of 1846, and the eventual annexation of California and other western territories via the Treaty of Guadalupe Hidalgo and the Gadsden purchase. The term is most commonly used to describe the U.S.'s status since the 20th century (Empire - Wikipedia):

The term "American Empire" refers to the United States' cultural ideologies and foreign policy strategies. The term is most commonly used to describe the U.S.'s status since the 20th century, but it can also be applied to the United States' world standing before the rise of nationalism in the 20th century. The United States is not traditionally recognized as an empire, in part because the U.S. adopted a different political system from those that previous empires had used. Despite these systematic differences, the political objectives and strategies of the United States government have been quite similar to those of previous empires. Krishna Kumar explores this idea that the distinct principles of nationalism and imperialism may, in fact, result in one common practice.

In "Nation-states as empires, empires as nation-states: two principles, one practice?" she argues that the pursuit of nationalism can often coincide with the pursuit of imperialism in terms of strategy and decision making. Throughout the 19th century, the United States government attempted to expand their territory by any means necessary. Regardless of the supposed motivation for this constant expansion, all of these land acquisitions were carried out by imperialistic means. This was done by financial means in some cases, and by military force in others. Most notably, the Louisiana Purchase (1803), the Texas Annexation (1845), and the Mexican Cession (1848) highlight the imperialistic goals of the United States during this "modern period" of imperialism.

The U.S. government has stopped pursuing additional territories since the mid 20th century. However, some scholars still consider U.S. foreign policy strategies to be imperialistic. This idea is explored in the "contemporary usage" section.

... ... ...

Stuart Creighton Miller posits that the public's sense of innocence about Realpolitik (cf. American Exceptionalism) impairs popular recognition of US imperial conduct since it governed other countries via surrogates. These surrogates were domestically-weak, right-wing governments that would collapse without US support.[30] Former President G.W. Bush's Secretary of Defense, Donald Rumsfeld, said: "We don't seek empires. We're not imperialistic; we never have been."[31] This statement directly contradicts Thomas Jefferson who, in the 1780s while awaiting the fall of the Spanish empire, said: "...till our population can be sufficiently advanced to gain it from them piece by piece".[32][33][34] In turn, historian Sidney Lens argues that from its inception, the US has used every means available to dominate other nations.[35] Other historian Max Ostrovsky argues that the term hegemony is better than empire to describe the US' role in the world but finds that hegemony is likely to be an intermediate stage between states system and empire.[36]

... ... ...

In his book review of Empire (2000) by Michael Hardt and Antonio Negri, Mehmet Akif Okur posits that since the 11 September 2001 terrorist attacks in the US, the international relations determining the world's balance of power (political, economic, military) have been altered. These alterations include the intellectual (political science) trends that perceive the contemporary world's order via the re-territorrialisation of political space, the re-emergence of classical imperialist practices (the "inside" vs. "outside" duality, cf. the Other), the deliberate weakening of international organisations, the restructured international economy, economic nationalism, the expanded arming of most countries, the proliferation of nuclear weapon capabilities and the politics of identity emphasizing a state's subjective perception of its place in the world, as a nation and as a civilisation. These changes constitute the "Age of Nation Empires"; as imperial usage, nation-empire denotes the return of geopolitical power from global power blocs to regional power blocs (i.e., centered upon a "regional power" state [China, Russia, U.S., et al.]) and regional multi-state power alliances (i.e., Europe, Latin America, South East Asia). Nation-empire regionalism claims sovereignty over their respective (regional) political (social, economic, ideologic), cultural, and military spheres.[43]

Annexation was the crucial instrument in the expansion of the USA after it won independence. The United States Congress' ability to annex a foreign territory is explained in a report from the Congressional Committee on Foreign Relations,

"If, in the judgment of Congress, such a measure is supported by a safe and wise policy, or is based upon a natural duty that we owe to the people of Hawaii, or is necessary for our national development and security, that is enough to justify annexation, with the consent of the recognized government of the country to be annexed."

Even prior to annexing a territory, the American government usually held tremendous political power in those territories through the various legislations passed in the late 1800s. The Platt Amendment was utilized to prevent Cuba from entering into any agreements with foreign nations, and also granted the Americans the right to build naval stations on their soil.[39] Executive officials in the American government began to determine themselves the supreme authority in matters regarding the recognition or restriction of [39]

When asked on April 28, 2003, on al-Jazeera whether the United States was "empire building," Secretary of Defense Donald Rumsfeld replied "We don't seek empires, we're not imperialistic. We never have been."[40] And this denial is typical for "Empire of Lies" as some researchers call the USA. Historian Donald W. Meinig says the imperial behavior by the United States dates at least to the Louisiana Purchase, which he describes as an "imperial acquisition-imperial in the sense of the aggressive encroachment of one people upon the territory of another, resulting in the subjugation of that people to alien rule." The U.S. policies towards the Native Americans he said were "designed to remold them into a people more appropriately conformed to imperial desires."[41]

Writers and academics of the early 20th century, like Charles A. Beard, discussed American policy as being driven by self-interested expansionism going back as far as the writing of the Constitution. Some politicians today do not agree. Pat Buchanan claims that the modern United States' drive to empire is "far removed from what the Founding Fathers had intended the young Republic to become."[42]

Andrew Bacevich who is a an influencial writer about the US empite with his book American empite (2002) argues that the U.S. did not fundamentally change its foreign policy after the Cold War, and remains focused on an effort to expand its control across the world.[43] As the surviving superpower at the end of the Cold War, the U.S. could focus its assets in new directions, the future being "up for grabs" according to former Under Secretary of Defense for Policy Paul Wolfowitz in 1991.[44]

In Manufacturing Consent: The Political Economy of the Mass Media, the political activist Noam Chomsky argues that exceptionalism and the denials of imperialism are the result of a systematic strategy of propaganda, to "manufacture opinion" as the process has long been described in other countries.[45]

Thorton wrote that "[…]imperialism is more often the name of the emotion that reacts to a series of events than a definition of the events themselves. Where colonization finds analysts and analogies, imperialism must contend with crusaders for and against."[46] Political theorist Michael Walzer argues that the term hegemony is better than empire to describe the US's role in the world;[47] political scientist Robert Keohane agrees saying, a "balanced and nuanced analysis is not aided...by the use of the phrase 'empire' to describe United States hegemony, since 'empire' obscures rather than illuminates the differences in form of rule between the United States and other Great Powers, such as Great Britain in the 19th century or the Soviet Union in the twentieth.".[48] Emmanuel Todd assumes that USA cannot hold for long the status of mondial hegemonic power due to limited resources. Instead, USA is going to become just one of the major regional powers along with European Union, China, Russia, etc.[49]

International relations scholar Joseph Nye argues that U.S. power is more and more based on "soft power", which comes from cultural hegemony rather than raw military or economic force.[69] This includes such factors as the widespread desire to emigrate to the United States, the prestige and corresponding high proportion of foreign students at U.S. universities, and the spread of U.S. styles of popular music and cinema. Mass immigration into America may justify this theory, but it is hard to know for sure whether the United States would still maintain its prestige without its military and economic superiority.

Military and cultural imperialism are interdependent. American Edward Said, one of the founders of post-colonial theory, said that,

[…], so influential has been the discourse insisting on American specialness, altruism and opportunity, that imperialism in the United States as a word or ideology has turned up only rarely and recently in accounts of the United States culture, politics and history. But the connection between imperial politics and culture in North America, and in particular in the United States, is astonishingly direct.[51]

International relations scholar David Rothkopf disagrees and argues that cultural imperialism is the innocent result of globalization, which allows access to numerous U.S. and Western ideas and products that many non-U.S. and non-Western consumers across the world voluntarily choose to consume.[52] Matthew Fraser has a similar analysis, but argues further that the global cultural influence of the U.S. is a good thing.[53]

Nationalism is the main process through which the government is able to shape public opinion. Propaganda in the media is strategically placed in order to promote a common attitude among the people. Louis A. Perez Jr. provides an example of propaganda used during the war of 1898,

"We are coming, Cuba, coming; we are bound to set you free! We are coming from the mountains, from the plains and inland sea! We are coming with the wrath of God to make the Spaniards flee! We are coming, Cuba, coming; coming now!"[39]

Chip Pitts argues similarly that enduring U.S. bases in Iraq suggest a vision of "Iraq as a colony".[ While territories such as Guam, the United States Virgin Islands, the Northern Mariana Islands, American Samoa and Puerto Rico remain under U.S. control, the U.S. allowed many of its overseas territories or occupations to gain independence after World War II. Examples include the Philippines (1946), the Panama canal zone (1979), Palau (1981), the Federated States of Micronesia (1986) and the Marshall Islands (1986). Most of them still have U.S. bases within their territories. In the case of Okinawa, which came under U.S. administration after the Battle of Okinawa during the Second World War, this happened despite local popular opinion.[56] As of 2003, the United States had bases in over 36 countries worldwide.[57]

How America built its empire

How America built its empire The real history of American foreign policy that the media won't tell you - Salon.com

When you talk about the effectiveness of American imperialism, you highlight the fact that part of the reason it's so effective is because it has been able to be largely invisible, and it has been invisible, you point out, through, I think, two mechanisms, one, that it trains the elites in other countries in order to manage affairs on behalf of American imperialism, and also because it disseminates, through popular media, images of America that in essence -- I'm not sure you use this word exactly -- indoctrinate or brainwash a population into allowing them to believe that America is instilled with values that in fact it doesn't have, the ability of imperialistic forces to supposedly give these values to the countries they dominate.

I mean, that is a kind of a raison d'être for economic and even military intervention, as we saw in Iraq, in planning democracy in Baghdad and letting it spread out across the Middle East, or going into Afghanistan to liberate the women of Afghanistan. That, as somebody who spent 20 years on the outer edges of empire, is a lie.

The other day I wrote Perry Anderson, the subject of the following interview, to ask what he thought of the foreign policy debates, such as they are, among our presidential aspirants. Logical question: Anderson, a prominent scholar and intellectual for decades, has just published "American Foreign Policy and Its Thinkers," a superbly lucid account of U.S policy's historical roots and the people who shape policy in our time.

"Current candidates' f/p talk leaves me speechless," came Anderson's terse reply.

Perfectly defensible. Most of what these people have to say-and I do not exclude the Democratic candidates-is nothing more than a decadent, late-exceptionalist rendering of a policy tradition that, as Anderson's book reminds readers, once had a coherent rationale even as it has so often led to incoherent, irrational conduct abroad.

Born in London in 1938-during the Munich crisis, as he points out-Anderson has been a presence on the trans-Atlantic intellectual scene since he took the editor's chair at the then-struggling New Left Review in 1962, when he was all of 24. Eight years later NLR launched Verso, a book imprint as singular (and as singularly influential) as the journal.

Anderson has headed both at various intervals for years. His own books range widely. My favorites are "Zone of Engagement" (1992) and "Spectrum" (2005), which collect essays on an amazing range of 20th century thinkers. To them I now add the new foreign policy book, which I count indispensable to anyone serious about the topic.

I met Anderson, who has taught comparative political and intellectual history at UCLA since 1989, at his home in Santa Monica this past summer. Over a fulsome afternoon's conversation in his admirably spartan study, he impressed me again and as readers will see for themselves, but the counterarguments are generously given and always rewarding.

The transcript that follows is the first of two parts and includes a few questions posed via email after we met. It is otherwise only lightly edited. Part 2 will appear next week.

"American Foreign Policy and its Thinkers" is well timed, given the unusual prominence foreign policy now assumes in the American political conversation. How would you describe your approach? What distinguishes the book from so many others? How should one read it? What's the project?

The book tries to do two things. One is to cover the history of American foreign policy, from around 1900 to the present, tracing the gradual construction of a global empire. This first really came into view as a prospect during the Second World War and is today a reality across all five continents, as a glance at the skein of its military bases makes clear. The Cold War was a central episode within this trajectory, but the book doesn't treat just the U.S. record vis-á-vis the USSR or China. It tries to deal equally with American relations with the Europe and Japan, and also with the Third World, treated not as a homogenous entity but as four or five zones that required different policy combinations.

The second part of the book is a survey of American grand strategy-that is, the different ways leading counselors of state interpret the current position of the United States on the world stage and their recommendations for what Washington should do about it.

The "big think" set, in other words-Kissinger, of course, Brzezinski, Walter Russell Mead, Robert Kagan. And then people such as Francis Fukuyama, whom I consider a ridiculous figure but whose thinking you judged worth some scrutiny. How did you choose these?

From the range of in-and-outers-thinkers moving between government and the academy or think-tanks-who have sought to guide U.S. foreign policy since 2000, with some intellectual originality. Kissinger isn't among these. His ideas belong to a previous epoch, his later offerings are boilerplate. Fukuyama, who sensed what the effects of office on thought could be, and got out of state service quite early, is a mind of a different order. The figures selected cover the span of options within what has always been a bipartisan establishment.

You make a distinction between American exceptionalism, which is much in the air, and American universalism, which few of us understand as a separate matter. The first holds America to be singular (exceptional), and the second that the world is destined to follow us, that the trails we've blazed are the future of humanity. You call this a "potentially unstable compound." Could you elaborate on this distinction, and explain why you think it's unstable?

It's unstable because the first can exist without the second. There is, of course, a famous ideological linkage between the two in the religious idea, specific to the United States, of Providence-that is, divine Providence. In your own book "Time No Longer" you cite an astounding expression of this notion: "However one comes to the debate, there can be little question that the hand of Providence has been on a nation which finds a Washington, a Lincoln, or a Roosevelt when it needs him." That pronouncement was delivered in the mid-1990s-not by some television preacher, but by Seymour Martin Lipset: chairs at Harvard and Stanford, president of both the American Sociological and the American Political Science Associations, a one-time social democrat.

What is the force of this idea? A belief that God has singled out America as a chosen nation for exceptional blessings, a notion which then easily becomes a conviction of its mission to bring the benefits of the Lord to the world. President after president, from Truman through to Kennedy, the younger Bush to Obama, reiterate the same tropes: "God has given us this, God has given us that," and with the unique freedom and prosperity he has conferred on us comes a universal calling to spread these benefits to the rest of the world. What is the title of the most ambitious contemporary account of the underlying structures of American foreign policy? "Special Providence," by Walter Russell Mead. Year of publication: 2001.

But while a messianic universalism follows easily from providential exceptionalism, it is not an ineluctable consequence of it. You mount a powerful attack on the idea of exceptionalism in "Time No Longer," but-we may differ on this-if we ask what is the more dangerous element in the unstable compound of the nation's image of itself, I would say exceptionalism is the less dangerous. That may seem paradoxical. But historically the idea of exceptionalism allowed for an alternative, more modest deduction: that the country was different from all others, and so should not be meddling with them-the argument of Washington's Farewell Address [in 1796].

A century later, this position became known as isolationism, and as the American empire took shape, it was all but invariably castigated as narrow-minded, short-sighted and selfish. But it could often be connected with a sense that the republic was in danger at home, with domestic ills that needed to be addressed, which vast ambitions abroad would only compound. Mead terms this strand in American sensibility Jeffersonian, which isn't an accurate description of Jefferson's own empire-building outlook, but he otherwise captures it quite well.

We don't ordinarily apply the term "exceptionalist" in the same breath to America and to Japan, though if there is any nation that claims to be completely unique, it is Japan. But the claim produced a drastic isolationism as a national impulse, both in the Tokugawa period [1603-1868, a period of severely enforced seclusion] and after the war. Does that support the point you're making?

Exactly. Historically, exceptionalism could generate a self-limiting, self-enclosing logic as well as the gigantic expansionist vanities of the Co-Prosperity Sphere and the "Free World" [narrative]. In the American case, the two strands of exceptionalism and universalism remained distinct, respectively as isolationist and interventionist impulses, sometimes converging but often diverging, down to the Second World War. Then they fused. The thinker who wrote best about this was Franz Schurmann, whose " Logic of World Power" came out during the Vietnam War. He argued that each had a distinct political-regional base: the social constituency for isolationism was small business and farming communities in the Midwest, for interventionism it was the banking and manufacturing elites of the East Coast, with often sharp conflicts between the two up through the end of thirties. But in the course of the Second World War they came together in a synthesis he attributed-somewhat prematurely-to FDR, and they have remained essentially interwoven ever since. The emblematic figure of this change was [Arthur H.] Vandenberg, the Republican Senator from Michigan [1928-51], who remained an isolationist critic of interventionism even for a time after Pearl Harbor, but by the end of the war had become a pillar of the new imperial consensus.

Mainstream debate today seems to have constructed two very stark alternatives: There is either engagement or isolation. In this construction, engagement means military engagement; if we are not going to be militarily engaged we are isolationists. I find that absolutely wrong. There are multiple ways of being engaged with the world that have nothing to do with military assertion.

True, but engagement in that usage doesn't mean just military engagement, but power projection more generally. One of the thinkers I discuss toward the end of my book is Robert Art, a lucid theorist of military power and its political importance to America, who argues for what he calls selective-expressly, not universal-engagement. What is unusual about him is that in seeking to discriminate among engagements the U.S. should and should not select, he starts considering in a serious, non-dismissive way what would typically be construed as isolationist alternatives, even if ending with a fairly conventional position.

How far do you view the contemporary American crisis-if you accept that we are living through one-as, at least in part, one of consciousness? As an American, I tend to think that no significant departure from where find ourselves today can be achieved until we alter our deepest notions of ourselves and our place among others. I pose this question with some trepidation, since a change in consciousness is a generational project, if not more. Our leadership is not remotely close even to thinking about this. I'm suggesting a psychological dimension to our predicament, and you may think I put too much weight on that.

You ask at the outset whether I accept that Americans are living through a crisis. My reply would be: not anything like the order of crisis that would bring about the sort of change in consciousness for which you might hope. You describe that as a generational project, and there, yes, one can say that among the youngest cohorts of the U.S. population, the ideologies of the status quo are less deeply embedded, and in certain layers even greatly weakened. That is an important change, but it's generational, rather than society-wide, and it's not irreversible.

At the level of the great majority, including, naturally, the upper middle class, the image you use to describe the purpose of your last book applies: you write that it aims "to sound the tense strings wound between the pegs of myth and history during the hundred years and a few that I take to be the American century. It is this high, piercing tone that Americans now have a chance to render, hear, and recognize all at once. We have neither sounded nor heard it yet." That's all too true, unfortunately. The most one can say is that, among a newer generation, the strings are fraying a bit.

I tend to distinguish between strong nations and the merely powerful, the former being supple and responsive to events, the later being brittle and unstable. Is this a useful way to judge America in the early 21st century-monumentally powerful but of dubious strength? If so, doesn't it imply some change in the American cast of mind, as the difference between the two sinks in?

That depends on the degree of instability you sense in the country. In general, a major change in consciousness occurs when there is a major alteration in material conditions of life. For example, if a deep economic depression or dire ecological disaster strikes a society, all bets are off. Then, suddenly, thoughts and actions that were previously inconceivable become possible and natural. That isn't the situation so far in America.

Can you discuss the new accord with Iran in this context? I don't see any question it's other than a breakthrough, a new direction. What do you think were the forces propelling the Obama administration to pursue this pact? And let's set aside the desire for a "legacy" every president cultivates late in his time.

The agreement with Iran is an American victory but not a departure in U.S. foreign policy. Economic pressure on Iran dates back to Carter's time, when the U.S. froze the country's overseas assets after the ousting of the Shah, and the full range of ongoing U.S. sanctions was imposed by the Clinton administration in 1996. The Bush administration escalated the pressure by securing U.N. generalization of sanctions in 2006, and the Obama administration has harvested the effect.

Over the past decade, the objective has always been the same: to protect Israel's nuclear monopoly in the region without risking an Israeli blitz on Iran to preserve it-that might set off too great a wave of popular anger in the Middle East. It was always likely, as I point out in "American Policy and its Thinkers," that the clerical regime in Tehran would buckle under a sustained blockade, if that was the price of its survival. The agreement includes a time-out clause to save its face, but the reality is an Iranian surrender.

You can see how little it means any alteration in imperial operations in the region by looking at what the Obama administration is doing in Yemen, assisting Saudi Arabia's wholesale destruction of civilian life there in the interest of thwarting imaginary Iranian schemes.

This next question vexes many people, me included. On the one hand, the drives underlying the American imperium are material: the expansion of capital and the projection of power by its political representatives. The American mythologies are shrouds around these. On the other hand, the issue of security has a long history among Americans. It is authentically an obsession independent of capital-American paranoia dates back at least to the 18th century. I don't take these two accountings to be mutually exclusive, but I'd be interested to know how you reconcile these different threads in American foreign policy.

Yes, there has been a longstanding-you could say aboriginal-obsession with security in the United States. This can be traced as an independent strand running through the history of American dealings with the outside world. What happened, of course, from the Cold War through to the "war on terror" was a ruthless instrumentalization of this anxiety for purposes of expansion rather than defense. At the start of the Cold War you had the National Security Act and the creation of the National Security Council, and today we have the National Security Agency. Security became a euphemistic cloak for aggrandizement.

The United States occupies the better part of a continent separated by two immense oceans, which nobody in modern history has had any serious chance of invading, unlike any other major state in the world, all of which have contiguous land-borders with rival powers, or are separated from them only by narrow seas. The U.S. is protected by a unique geographical privilege. But if its expansion overseas cannot be attributed to imperatives of security, what has driven it?

A gifted and important group of historians, the Wisconsin school [which included the late William Appleman Williams, among others], has argued that the secret of American expansion has from the beginning lain in the quest by native capital for continuously larger markets, which first produced pressure on the internal frontier and the march across the continent to the Pacific, and when the West Coast was reached, a drive beyond into Asia and Latin America, and ultimately the rest of the world, under the ideology of the Open Door.

A couple of good scholars, Melvyn Leffler and Wilson Miscamble, one a liberal and the other a conservative, have identified my position with this tradition, taxing me with a belief that American foreign policy is essentially just an outgrowth of American business. This is a mistake. My argument is rather that because of the enormous size and self-sufficiency of the American economy, the material power at the disposal of the American state exceeded anything that American capital could directly make use of or require.

If you look at the First World War, you can see this very clearly. East Coast bankers and munitions manufacturers did well out of supplying the Entente powers, but there was no meaningful economic rationale for American entry into the war itself. The U.S. could tip the scales in favor of the British and French variants of imperialism against the German and Austrian variants without much cost to itself, but also much to gain.

The same gap between the reach of American business and the power of the American state explains the later hegemony of the United States within the advanced capitalist world after the Second World War. Standard histories wax lyrical in admiration of the disinterested U.S. generosity that revived Germany and Japan with the Marshall and Dodge Plans [reconstruction programs after 1945], and it is indeed the case that policies crafted at the State and Defense Departments did not coincide with the desiderata of the Commerce Department. The key requirement was to rebuild these former enemies as stable capitalist bulwarks against communism, even if this meant there could be no simple Open Door into them for U.S. capital.

For strategic political reasons, the Japanese were allowed to re-create a highly protected economy, and American capital was by and large barred entry. The priority was to defend the general integrity of capitalism as a global system against the threat of socialism, not particular returns to U.S. business. The importance of those were never, of course, ignored. But they had to bide their time. Today's Trans-Pacific Partnership will finally pry open Japanese financial, retail and other markets that have remained closed for so long.

I'd like to turn to the origins of the Cold War, since I believe we are never going to get anywhere until these are honestly confronted. You give a forceful account of Stalin's reasons for avoiding confrontation after 1945 and Washington's reasons for not doing so. But should we attribute the outbreak of the Cold War to the U.S. without too much in the way of qualification?

We can look at the onset of the Cold War on two levels. One is that of punctual events. There, you are certainly right to pick out the ideological starting gun as Truman's speech on Greece in 1947, designed the "scare hell" out of voters to win acceptance for military aid to the Greek monarchy. In policy terms, however, the critical act that set the stage for confrontation with Moscow was the flat American refusal to allow any serious reparations for the staggering level of destruction Russia suffered from the German attack on it. The most developed third of the country was laid waste, its industry and its cities wrecked, while Americans suffered not a fly on the wrist at home-basking, on the contrary, in a massive economic boom. There was no issue Stalin spoke more insistently about than reparations in negotiations among the Allies. But once the fighting was over, the U.S. reneged on wartime promises and vetoed reparations from the larger part of Germany-far the richest and most developed, and occupied by the West-because it did not want to strengthen the Soviet Union and did want to rebuild the Ruhr as an industrial base under Western control, with a view to creating what would subsequently become the Federal Republic.

Can you put Hiroshima and Nagasaki into this context?

Prior to this came Truman's decision to drop atomic bombs on Japan. He did so, of course, to shorten the war, and partly also because the Pentagon wanted to test its new weapons. But there was a further reason for the obliteration of Hiroshima and Nagasaki. It was urgent to secure a Japanese surrender before the Red Army could get close to the country, for fear that Moscow might insist on a Soviet presence in the occupation of Japan. The U.S. was determined not to let the Russians in, as they could not stop them from doing in Germany. So if we look just at events, you can say the starting points were the use of atomic bombs in Japan and the refusal of reparations in Germany. In that sense, those who argue that the Cold War was an American initiative-the Swedish historian Anders Stephanson, who has written most deeply about this, calls it an American project-are justified in doing so.

So these are your "punctual events."

Exactly. On the hand, if we look at the structural origins of the Cold War, they don't lie in these punctual events, but in the radical incompatibility between American capitalism and Soviet communism as forms of economy, society and polity. Revisionist historians have pointed out quite properly that Stalin was defensive in outlook after the war, determined to erect a protective glacis in Eastern Europe against any repetition of the Nazi invasion of Russia, but otherwise acutely conscious of Soviet weakness and superior Western strength.

All of that is true, but at the same time Stalin remained a communist who firmly believed that the ultimate mission of the world's working class was to overthrow capitalism, everywhere. His immediate stance was defensive, but in the much longer run his expectation was offensive. In that sense, U.S. policies toward the USSR were not needlessly aggressive, as revisionists maintain, but perfectly rational. The two systems were mortal antagonists.

Let's move to the topic of social democracy. I did a lot of my learning in developing countries and have a sense that Washington's true Cold War enemy was social democracy as it spread through Western Europe and all the newly independent nations. What's your view of this?

Strong disagreement, so far as Europe is concerned. If you look at the whole period from 1945 through to the present, you could argue that, on the contrary, European social democracy was Washington's best friend in the region. NATO was the brainchild not of the Pentagon but of Ernest Bevin, the social-democratic foreign secretary in Britain. Attlee, his prime minister, then split his own government by cutting the health service to fund rearmament for the American war in Korea. In France, the most ruthless crackdown on labor unrest after the war came from Jules Moch, the Socialist interior minister.

Think, too, of the Norwegian social democrat who Washington put in charge of the U.N. as its first secretary general, Trygve Lie, an odious collaborator with McCarthyism inside the United Nations. This was the period in which Irving Brown of the A.F.L., working closely with local social democrats, was installed in Europe by the C.I.A. with funds to divide and corrupt trade unions everywhere. He was still active in plotting against Allende [the Chilean social democratic president] in the '70s. As to more recent years, who was Bush's most ardent European ally in the war on Iraq? Not any conservative politician, but British social democrat Blair.

There were exceptions to this dismal record, but few and far between. Not by accident, they generally came from neutral countries that stayed out of the Cold War. In Sweden, Olaf Palme was a courageous opponent of the American war in Vietnam, detested by the U.S. for that reason. In Austria, Bruno Kreisky took an independent line on the Middle East, refusing to fall in with Western support for Israel-itself governed in those years by another social democratic party-and so was scarcely less disliked by the U.S.

But the dominant pattern has always been craven submission to Washington.

Well, I was thinking more of figures like Mossadeq, Arbenz and Allende-maybe the Sandinistas, too.

Their fate is certainly relevant, but there you are talking of a different political phenomenon-nationalism in the Third World, typically though not invariably of the left. You could add Lumumba in the Congo, Goulart in Brazil, Bosch in the Dominican Republic and others to the list. Not all were figures of the left, but from the Cold War onward the U.S. regarded nearly all serious attempts at nationalization of local resources as a threat to capital and worked to subvert or overthrow those who undertook them. A good part of my book is devoted to this front of imperial operations.

I've often wondered what the fate of Cuba would have been if Castro had been properly received in Washington in 1960. Could he have become something like a social democrat?

Excluded, if only because of the side of the Cuban Revolution that distinguished it from both the Chinese Revolution and from the outcome of Russian Revolution after Lenin, which was genuine internationalism. It had to be internationalist because it was a small island close to the United States, not a huge country far away, so it needed revolutionary solidarity within Latin America, which it couldn't hope for as long the continent was populated by assorted clients of the United States, most of them dictators. So even if, counterfactually, Eisenhower or Kennedy had rolled out a tactical red carpet for Fidel, there would have still have been insurmountable conflict over all these Latin American regimes propped up by the United States. The Cubans would have never said, if you put up with us, you can do what you want anywhere. Think of the fact they sent troops [in 1975] even to Angola-where they had no regional connection at all-to save it from a U.S.-backed invasion by South Africa.

Do you see any inflections in the development of American foreign policy over this period?

There is an underlying continuity in the long arc of the U.S. imperium that extends from FDR to Obama. But one can distinguish successive phases in this arc. You have the period that runs from Truman to Kennedy, the high Cold War. Then comes Nixon, the only American president with an original mind in foreign policy. He was intelligent because he was so cynical. He wasn't taken in or mystified by the enormous amount of rhetoric surrounding the lofty U.S. mission in the world. He was therefore more ruthless, but also genuinely innovative in a whole series of ways, the most important of which was to capitalize on the Sino-Soviet split.

The next phase runs from Carter through Reagan to the elder Bush, which sees a reversion to the earlier forms of foreign policy during the Cold War. The fourth phase, of humanitarian intervention, from Clinton through the younger Bush to Obama.

I once thought Carter was an exception in this line, but have since been persuaded to think again.

If you're interested in Carter, there's a good chapter on him in the huge "Cambridge History of the Cold War" by a scholar sympathetic to Carter, which captures the ambiguities and contradictions of his presidency quite well. He did, of course, talk a lot about human rights at the beginning of his tenure, and appointed Patricia Derian, who genuinely believed in them but was quite powerless, to an assistant position in the State Department. But one has to remember that at the outset he appointed Zbigniew Brzezinski as national security adviser, on whom he relied throughout his presidency.

Brzezinski was in many ways brighter than Kissinger, in later years an overrated showman not particularly interesting as a thinker. Brzezinski's cold, brittle mind was a good deal sharper. He was also as much, if not more, of a hawk than Kissinger had been. His masterstroke was funding religious and tribal resistance to the Communist regime in Afghanistan well before any Soviet troops were there, with the clear-cut and entirely successful aim of making the country the Vietnam of the USSR. There followed the Carter Doctrine, which put the U.S. into the military emplacements in the Gulf, where it remains today, while the president was toasting the Shah as a close personal friend and pillar of human rights. To top it off, with Brzezinski at his elbow again, Carter patronized and protected Pol Pot and the Khmer Rouge, keeping them at the U.N. as the legitimate government of Cambodia, as part of the deal with China for its attack on Vietnam.

In the Middle East, the peace treaty between Sadat and Begin is generally credited to Carter. Its precondition, however, was the double rescue of Israel and of Egypt by Nixon and Kissinger in the 1973 war, which put both countries into the palm of the American hand. What was the regional upshot? Sadat ditched the Palestinians and became a well-funded U.S. client, Begin secured an ally on Israel's southern flank and the Egyptians got the tyranny of Sadat, Mubarak and now Sisi for the next 40 years. Yet to this day Carter gushes over Sadat, a torturer whose memory is loathed by his people, as a wonderful human being. What is nevertheless true is that with all his weaknesses-and worse-Carter was a contradictory figure, who, once he was ousted from office, behaved more decently than any other ex-president in recent memory. Today, he's almost a pariah because of what he says on Israel. One can respect him for that.

Turning to Europe for a moment, I often feel disappointed-I don't think I'm alone in this-at the hesitancy of the Europeans to act on what seems to be their underlying impatience with American primacy. Is this an unrealistic expectation?

Impatience isn't the right word. The reality is rather its opposite. Europe has become ever more patient-a better word would be submissive-with the United States. After 1945, Western Europe was far weaker in relation to America than the E.U. today, which is larger than the U.S. in both GDP and population. But think of three European politicians-in France, Germany and England-in the first 15 years after the war. You had a great statesman in De Gaulle; a very strong, if much more limited leader in Adenauer, and a weak ruler in Eden. But the striking thing is all three were quite prepared to defy the United States in a way that no subsequent politician in Europe has ever done.

Eden launched the Suez expedition against Nasser [in late 1956] without informing Washington - the Americans were livid, Eisenhower beside himself, fearing that it would stoke popular anti-imperialism across Africa and Asia. So the U.S. brought the expedition to an abrupt halt by triggering a run on sterling, and Eden fell. But there was an aftermath. The French premier at the time was Guy Mollet, the Socialist who was an accomplice of Eden in the attack on Egypt, with, himself, a terrible record in Algeria. When the idea of a Common Market came up shortly after the Suez debacle, though he was personally favorable to it, he faced a lot of opposition in France - as there was, too, in Germany. Adenauer, who was quite willing to make commercial concessions to France to smooth the path for the undertaking, gave Mollet a political reason for the Common Market. Look what happened when you fought at Suez, he told him. None of our countries is strong enough to resist the U.S. on its own. Let's pool our resources and then we can do so.

Adenauer was loyal enough to the West, and a staunch anticommunist, but Germany, not America, was what counted for him. As for De Gaulle, he famously pulled France out of the military command of NATO, and defied America with éclat virtually throughout.

Since then, there has been nobody like this. If we ask why, I think the answer is that all these people were formed before the First and Second World Wars broke out, in a period in which major European states had as much weight as the United States on the international checkerboard, if not more. They were not brought up in a world where American hegemony was taken for granted. All of them were involved in the two World Wars, and in the Second De Gaulle had good reason to be distrustful of the U.S., since Roosevelt was long pro-Vichy and wanted to oust him as leader of the Free French.

We could add, incidentally, a couple of later politicians, who fought in the second conflict. One was the English Tory prime minister, Edward Heath, the only postwar ruler of Britain who never made the trip to simper on the White House lawn, receiving an audience and paying tribute, that would become a virtual ceremony of investiture for any new ruler around the world. The other was Helmut Schmidt, a veteran of Operation Barbarossa [the Nazi invasion of the Soviet Union in June 1941] who scarcely concealed his disdain for Carter. These were latecomers from the past. Their successors have grown up under U.S. paramountcy and take it for granted. This is America's world. It is second nature for them to defer to it.

You describe a generational difference in sensibility. But what about the EU?

If the generational declension is one big change, another is what has become of the European Union itself. On paper, it's much more powerful than any of the individual countries. But so far as any coherent foreign policy is concerned, it's institutionally paralyzed by the number of states that make it up-originally six, now 28-and the labyrinthine nature of their dealings with each other. None of them has any complete autonomy of initiative. A staggering amount of time is wasted in endless summits behind closed doors, agendas prepared by bureaucrats, tremulous fear of any public disagreement. No serious international statecraft can emerge from this.

During the countdown to the war in Iraq, there were large street demonstrations in not a few countries, which Dominique Strauss-Kahn-no less-described as a European Declaration of Independence. Schröder [Gerhard, the German chancellor from 1998-2005] announced that Germany could not accept the war, and Chirac [Jacques, the French president, 1995-2007] blocked a U.N. resolution endorsing it. Were these bold acts of independence? Far from it. The French envoy in Washington told Bush in advance: You already have one U.N. resolution saying Saddam must comply with inspections, which is suitably vague. Don't embarrass us by trying to get another resolution that is more specific, which we'll have to oppose. Just use that one and go in. No sooner, indeed, was the attack launched than Chirac opened French skies to U.S. operations against Iraq. Can you imagine De Gaulle meekly helping a war he had said he opposed? As for Schröder, it was soon revealed that German intelligence agents in Baghdad had signaled ground targets for "Shock and Awe." These were politicians who knew the war was very unpopular in domestic opinion, and so made a show of opposing it while actually collaborating. Their independence was a comedy.

That was a dozen years ago. What's the position today?

Edward Snowden's break with the illegalities of Obama's government revealed that it was not only spying on European as well as American citizens en masse, but tapping the phones and communications of Merkel, Hollande and other pillars of Atlantic solidarity. How have these leaders reacted? With an embarrassed smile, before the next warm embrace with the Leader of the Free World. Has one single European government dreamt of offering asylum to Snowden? Not one. Under Merkel, indeed, it now emerges that German intelligence itself was illegally spying on Germans at the behest of the U.S., and passing on the information it gathered to the CIA. There are no consequences to such revelations, except to those who reveal them. The level of abjection passes belief.

Let's put the Ukraine crisis in this context. It is, after all, what prompted me to raise the question of European passivity in the trans-Atlantic relationship. Here, it seems to me, the Europeans are furious with Washington for encouraging Kiev toward a patently dangerous confrontation with Russia. Animosity has been evident since Vicky Nuland's infamous "'F'the E.U." remark just before the coup last year. And now we see Merkel and Hollande more or less pushing the U.S. aside in favor of a negotiated settlement-or "seem to see," in any case. What's your view here?

Why should Washington object to European attempts to reach a stand-off in the Ukraine, so long as sanctions in Russia remain in place? Berlin and Paris are not going to defy it. Any real settlement is for the time being out of reach, but if one were materialize, they would be convenient sherpas for it. The E.U. as such hardly matters: Its reaction to Nuland's dismissal [of them] was to turn the other cheek.

Patrick Smith is Salon's foreign affairs columnist. A longtime correspondent abroad, chiefly for the International Herald Tribune and The New Yorker, he is also an essayist, critic and editor. His most recent books are "Time No Longer: Americans After the American Century" (Yale, 2013) and Somebody Else's Century: East and West in a Post-Western World (Pantheon, 2010). Follow him @thefloutist. His web site is patricklawrence.us.

More Patrick L. Smith.

The Making Of Global Capitalism The Political Economy Of American Empire

The Making Of Global Capitalism The Political Economy Of American Empire Sam Gindin, Leo Panitch

Amazon.com

Hans G. Despain on October 7, 2012

Powerful Political Economy

Panitch and Gindin argue that market economies have never existed independent of nation states. The state was necessary for the genesis of capitalism, and the state was, and still is, necessary for its historical development and continuous reproduction. Nonetheless, Panitch and Gindin argue there is significant autonomy, or historical "differentiation," between the economy and the nation state. There are economic structural tendencies manifest from the logic of capital and the functioning of the market-system. At the same time nation states can affect these structural tendencies in remarkable ways.

In this sense, there has never been "separation" between capitalist reproduction/development and the state, but there is "differentiation" which has radically significant effects. There is a symbiotic relationship between the state and capitalistic reproduction/development.

This is a book of economic history. But is also a book of economic theory. The economic history is rich and interesting, aimed at explaining the historical emergence of global financial capitalism. While the history Panitch and Gindin offer is rich and interesting, the theory is still richer and even more intriguing.

Their history is primarily aimed, (1) at explaining the emergence of the "informal American empire" (what makes this empire "informal" is the hegemony is accomplished primarily through economic strategy, policy, and diplomacy; and less through military might and political coercion) and (2) demonstrating the historical shifting relationship (from decade to decade since the World War I) between workers, business, finance, and the state.

Their theoretical concern is threefold;

  1. (1) offer a theoretical explanation of the crisis of 2007-8;
  2. (2) offer guidance toward the direction the future the "informal American empire" has for guiding the economies of world; and
  3. (3) to understand the "informal American empire" as a set of beliefs, doctrine, and ideology of how to organize modern societies (workers, business, finance and the state) and the global order (both political [e.g. UN, NATO, etc.] and economical [World Bank, IMF, WTO) for the (ideological) common good.

Although Panitch and Gindin accept that capitalistic development is uneven and unstable, it is crucial to their thesis that each crisis is unique depending upon the particular relationships and alliances forged between workers, business, finance, and the state. In this sense, the crisis of 2007-8 is necessarily unique and the solutions or economic fiscal policies necessary for recovery necessarily different from previous crises.

The highlights of their economic global history include that there have been four! major historical global crises, the long depression in the 1870, the Great depression of 1930, the Great recession of 1970s, and the Great financial crisis of 2007-09.

According to Pantich and Gindin, the 1970s is an economic watershed moment which separates "two Golden ages" of American capitalism.

It may be quite strange to many readers to call 1983 - 2007 a Golden Age. But in fact when looking at the economic data of the period it was quite literally a Golden Age, with millions of Americans and Global financiers and business leaders becoming impressively wealthy. Moreover, the levels of production (GDP) and productivity during the second Golden Age generally outperform the levels of production and productivity during the first Golden Age. Nonetheless the distribution of this wealth is radically narrow and concentrated within primarily finance, while political power concentrated toward "free-trade" orientated states, and away from workers and industrial production. Moreover, Pantich and Gindin maintain that workers are generally weaker during the second Golden Age, finance is strengthen and trumps over production processes, which is more or less conventional wisdom of this period of modern history. Less conventional is their thesis that the state, in particular the American domestic fiscal state and global "informal American empire," greatly strengthened post-1973-83 crisis.

It is not clear the direction the post-2007-09 crisis will take the global economy and American capitalism. What is clear is that the symbiotic relationship between workers, business, finance, and the state, and the global order (U.S. Treasury, IMF, World Bank, WTO, UN) is once again shifting. Pantich and Gindin's book offers to the reader a far

Jeb Sprague on November 8, 2014

Fascinating & important book, yet suffers from nation-state centrism & ignores novel social dynamics of Global Capitalism era

Panitch and Gindin's epic and fascinating book has the goal of tracing what the authors describe as the central role of the informal "American empire" and U.S. capital in the formation of the contemporary global capitalist system. I published a review in the journal Critical Sociology (Vol. 40, No. 5. P. 803-807) earlier this year that expands further on the importance of this work but I also have some criticisms, of which I paste some of below:

Whereas the authors emphasize the role of longstanding national and international dynamics, they overlook the numerous studies that have shown how novel transnational dynamics have come about even as historic residue remains (see for example Harris, 2013; Murray G, 2012; Robinson, 2003, 2004, 2014). Other than briefly denying the usefulness of the idea, the authors say little about the good deal of work on transnational class relations, for example in regards to the different fractions of the transnational capitalist class (as detailed in the works of Baker, 2011; Robinson, 2003, 2008; Harris, 2008; Sklair, 2001; Carrol, 2011; Murray J, 2013). Panitch and Gindin argue that theories of a TCC (transnational capitalist class) lead us to overlook uneven development between "nation-states" and the "economic competition between various centers of accumulation" (p. 11).... Yet while capital tends to concentrate in particular built up spaces, this corresponds, as a number of studies have shown, less and less to the strict restrictions of national space. Functionally integrated circuits of production and finance, and other networks, for example, have come to cut through various geographic scales (including national space) (Dicken, 20112; Robinson, 2010). Whereas local, national, regional, and international dynamics remain legion and substantial, many decisive economic, social, and political processes have become transnationally oriented....

The role of the state and its different policies is a clear focus of Panitch and Gindin's book. At times the authors do refer to the role of state elites, but often the authors can reify the state, describing the state as if it acts on its own and of its own accord. We need here to understand more clearly the class nature of the state, how specific social groups operate through state apparatuses as a site of struggle. Rather than individuals of the capitalist class serving directly in the state, it is governing political groups that normally do this. As relatively autonomous these political groups and state elites maintain legitimacy in the eyes of the electorate, even as they overwhelmingly operate in the "collective" interests of capital. This relative autonomy is conditioned by a number of dynamics, such as prevailing socioeconomic conditions, the balance and struggle of social forces, and the position or character of the state. In those instances where Panitch and Gindin do write about state elites and political groups, these groups are presented as essentially the traditional nation-state governing elite who often operate in the interests of domestic capitalists. While these groups may fight among themselves or wrestle with domestic classes to carry out policies that are internationally geared, these political elites, as Panitch and Gindin describe them, do not veer far from the mold of their nation-state predecessors. The authors never recognize the fundamental changes that are taking place, through which state apparatuses, most importantly the U.S., are being utilized to reproduce conditions for circuits of global capital accumulation.

The authors pass over quickly some theories of the state that they disagree with, giving a straw person description of a "supranational global state" (p. 11) and citing an article by Philip McMichael (2001) that similarly misexplained ideas on the emergent transnationalization of state apparatuses and rise of transnationally oriented technocrats and elites who operate through state apparatuses (as discussed by Jayasuriya, 1999, 2005; Liodakis, 2010; Robinson, 2004, 2012; Sprague, 2012). I would argue for example that transnationally oriented state elites and technocrats believe that to develop they must insert their national states and institutions into global circuits of accumulation. They need access to capital, and capital is in the hands of the TCC. However, state elites must still appeal to their home audiences. They still interact with a variety of social groups and social classes, some more transnationally oriented and others with a more national orientation. Because of this, even as ties between state elites and TCC fractions deepen, national rhetoric and national state policies occur that are in apparent contradiction with TCC interests. In this way, political leaders attempt to maintain national political legitimacy while deepening practices of a global nature. However, as these state elites become entangled with and dependent upon processes of global capital accumulation they increasingly transition from taking part in national or international processes to transnational processes.

In regards to law, Panitch and Gindin argue that "Americanized internationalized law" has supplanted local international investment laws in much of the world. Here the authors obscure how transnational legal frameworks have come about through coalitions and the support of various interests and social forces. The mere adoption of laws for instance (even when heavily influenced by U.S. state elites) does not explain how they are implemented or modified. Nor does it explain the different interests behind these changes.

The authors emphasize the role of the "informal U.S. empire," with globalization "imbricated in the American empire," a system "under continuing US leadership," with the country maintaining its "imperial responsibilities for the reproduction of global capitalism" (p. 330). Yet they never clearly explain what is global capitalism, globalization, or the difference between the international and the transnational. This is because their conceptions of class, capital, and the state don't help us to understand the fundamental changes taking place. While they provide an extensive and critical historical overview in pointing out the leading role of the U.S. state and its policies in reproducing today's "system of class power and inequality" (p. 330), they don't recognize how this has occurred through fundamentally new dynamics of the global epoch.

While the authors help us to better understand the key role of the U.S. government and its policies during the late twentieth and early-twenty-first centuries, they do so through an outdated theoretical scope that never gets at the deep changes occurring. Rather than the U.S. nation-state empire and those operating through it creating conditions beneficial for closely aligned internationally active domestic capitalists, more and more we can see how transnationally oriented elites operating through the most powerful national state apparatus (headquartered in Washington) are promoting conditions for circuits of global capital accumulation and in the interests of TCC fractions.

While this book is well worth your time reading, for getting a deeper understanding of contemporary political economy I suggest Global Capitalism and the Crisis of Humanity clearer picture of what is at stake and who are the main institutional actors in the historical drama and capitalistic tragedy we call modern human history.


Top Visited
Switchboard
Latest
Past week
Past month

NEWS CONTENTS

Old News ;-)

Home 2018 2017 2016 2015 2003

For the list of top articles see Recommended Links section

[Jul 22, 2019] Zionists in the Bush Administration

Jul 22, 2019 | newobserveronline.com

Zionists in the Bush Administration

The IASPS conference study group leader was a Zionist named Richard Perle, who attended as a delegate from the American Enterprise Institute; while another Jewish neocon named Douglas Feith attended as a representative of Feith and Zell Associates.

Both these individuals then emerged as key players in the Bush administration: Perle was Chairman of George Bush's Defense Policy Board Advisory Committee, and Feith became Under Secretary of Defense and the Pentagon's Policy Advisor.

They were joined by a long list of similarly Israel-first Zionists in the Bush administration:

The scene was now set: all they needed was an excuse to maneuver America into destroying Iraq for the benefit of Israel, according to the plan which Perle and Feith had already helped to map out.

[Jul 22, 2019] All Hail Europe's Permanent Ruling Class

Notable quotes:
"... That said, Germany's military readiness directly relates to the invasion threat from Russia Europe actually faces. I.e., ZERO. Washington should take note but of course it won't because there is no money in it for the American Merchants of Death. And the Generals inside the Pentagon just have too much fun fear-mongering about illusory existential enemies. ..."
"... As Politico recently reported, "an investigative committee of the German parliament -- the toughest instrument that lawmakers can use to probe government misdeeds -- is digging into how lucrative contracts from her ministry were awarded to outside consultants without proper oversight ..."
"... Yet another U.S. mirror image. Because that is exactly how inside baseball works in the Pentagon acquisition system. von der Leyen as a European Hack is no worse than the Washington / Pentagon Hacks on the other side of the Atlantic. Note, MIC lifer and Raytheon parasite Mark Esper currently sitting in the Big Seat in the Pentagon. You can be sure that DoD reform is way down on his bucket list. ..."
Jul 22, 2019 | www.theamericanconservative.com

Meet Ursula von der Leyen, the new president-elect of the European Commission, the executive branch of the European Union.

Like all those soon to occupy positions of power in the EU, von der Leyen did not run in the recent European elections for the position she is about to hold. She did not participate in the debates in front of various national electorates. But she was chosen -- after the elections -- by the political class in Brussels, ostensibly for her faith in and loyalty to the European superstate, and personally to the German chancellor Angela Merkel.

Since 2013, von der Leyen has been the German defense minister. During that time, a parliamentary report exposed German planes that can't fly and guns that don't shoot. Fewer than a fifth of Germany's helicopters are combat ready. Luftwaffe revealed that most of its 128 Typhoon jets were not ready to leave ground. All of Germany's six submarines were out of commission.

Another report by the Rand Corporation , a think tank, revealed that it would take Germany a month to mobilize in the case of a Russian invasion of the Baltic States. Von der Leyen is very unpopular in the German army , but very popular with the Eurocrats. She's a fervent supporter of a European army and a "United States of Europe" -- the ultimate qualification for being president of the European Commission.

But there is more to the von der Leyen story. As Politico recently reported , "an investigative committee of the German parliament -- the toughest instrument that lawmakers can use to probe government misdeeds -- is digging into how lucrative contracts from her ministry were awarded to outside consultants without proper oversight, and whether a network of informal personal connections facilitated those deals."

The scent of corruption is a common element among those who are to hold key positions in the European Union over the next few years. Josep Borrell, minister of foreign affairs for the socialist government of Spain, was fined 30,000 euros for insider trading. He is expected to hold the foreign policy post in the European Commission.

Christine Lagarde, most recently chief of the IMF, was involved in the case of an arbitration panel that awarded a massive payout to a French tycoon while she was the finance minister of France. A special court for ministerial misconduct found her guilty of "negligence" but "waived any punishment or criminal record, citing her 'international reputation' and role in dealing with 'the international financial crisis.'" A marvelously L'état, C'est Moi form of legal reasoning. Lagarde is expected to be the next president of the European Central Bank.

The common threads of corruption, incompetence, and lack of accountability are what unites a political class that has divorced itself from the concerns of the average European. In the last days before her confirmation, von der Leyen pursued a charm offensive that included a commitment to a "Green New Deal," a continuation of an open borders policy , and a further deepening and enlargement of the European superstate. This included the story of her having offered hospitality to a Syrian immigrant who "now speaks German fluently."

Emmanuel Macron: Trade Wars for Me, But Not for Thee Voters in Europe Just Smashed the Mainstream Establishment

Obviously von der Leyen would never have won the May elections running on an agenda like that. But of course, she never had to run a campaign to win the votes of the peoples of Europe. The campaign that she did run was premised on her having built "an extensive international network in politics and business," as another Politico story put it .

Von der Leyen thrived in the networking atmosphere of World Economic Forum meetings, where she "serves on the organization's board of trustees," Politico noted, adding, "She's also forged close ties to powerful figures outside the world of politics, most notably Bertelsmann, Europe's largest media company, which owns RTL, the Continent's largest commercial broadcaster, book publisher Random House and a stable of magazines."

A senior Green quoted for the article said her fluency in French has helped her establish a rapport with the French political class that is unrivaled in Berlin.

It's clear that von der Leyen's domestic record appears to have had little effect on her election -- what matters is that she is universally liked by the who's who. "What matters most in these circles is the personal connection," said an adviser to the leader of one of the EU's smaller member states.

Those who count and those who are to be ruled are not the same group of people. That seems to be the essence of modern European politics: a political class and ideological cult that masquerades as a competent technocratic elite, despite its long and disastrous history. Von der Leyen's terrible record as defense minister meant nothing. Neither did Lagarde's record as head of the IMF, where, for instance, the Greek debt crisis was transformed into a social catastrophe. The deciding factor was their dedication to something that "those who count" are committed to. Elections are merely a necessary, archaic ritual of legitimization.

Napoleon Linarthatos is a writer based in New York.


Parrhesia 10 hours ago

On Monday 22 July 1940, a major meeting was held at the Reich Economic Ministry in Berlin, under the chairmanship of Minister Walther Funk, to discuss a directive issued by Hermann Göring on 22 June, concerning the organization of a Greater European Economic Area under German leadership. The Germans were well advanced with their plans for a post-war settlement. One of the difficulties of planning lay in the fact that the Führer's aims and decisions were not yet known and the military measures against Britain were not yet concluded.

Plus ça change........

Lars 10 hours ago
What? A techno-managerial clique ruling the rest of us Great Unwashed (see "Deplorables")? It couldn't happen here, could it? It's OK if they went to the right schools, isn't it?
genocidal_maniac 10 hours ago
Too much use if the word disastrous. Disastrous is what Wilhelm II did to the German empire. This is not disastrous, but it is concerning like a rudderless ship.
Salt Lick 7 hours ago
Today's Holy Roman Empire.

Voltaire's comment back then still rings true."It was neither Holy, Roman nor an Empire."

Sid Finster 7 hours ago
Don't be asinine. Russia is not going to invade anything and has no claim on any part of western Europe. The only thing the German military is good for is for sucking up additional budgetary funds.
SteveM 6 hours ago
Another report by the Rand Corporation, a think tank, revealed that it would take Germany a month to mobilize in the case of a Russian invasion of the Baltic States.

For the sake of completeness, the Rand Corporation is actually a marketing arm of the Pentagon fully funded by the U.S. government.

That said, Germany's military readiness directly relates to the invasion threat from Russia Europe actually faces. I.e., ZERO. Washington should take note but of course it won't because there is no money in it for the American Merchants of Death. And the Generals inside the Pentagon just have too much fun fear-mongering about illusory existential enemies.

Of course that does not dismiss the charges of cronyism and corruption associated with Ursula von der Leyen. But re:

But there is more to the von der Leyen story. As Politico recently reported, "an investigative committee of the German parliament -- the toughest instrument that lawmakers can use to probe government misdeeds -- is digging into how lucrative contracts from her ministry were awarded to outside consultants without proper oversight , and whether a network of informal personal connections facilitated those deals."

Yet another U.S. mirror image. Because that is exactly how inside baseball works in the Pentagon acquisition system. von der Leyen as a European Hack is no worse than the Washington / Pentagon Hacks on the other side of the Atlantic. Note, MIC lifer and Raytheon parasite Mark Esper currently sitting in the Big Seat in the Pentagon. You can be sure that DoD reform is way down on his bucket list.

The real story is that taxpayers on both NATO poles are played for chumps by the Power Elites.

[Jul 22, 2019] Cold War Success Cost America Its Place in the Global Order The National Interest

www.nakedcapitalism.com
Disqus is a discussion network

Read full terms and conditions


John Andris 2 hours ago ,

Fukuyama a "great scholar"? Bahahahahaha

commentwars 7 hours ago ,

After the cold war ended in the 1990s the US quickly became the worlds leading police state with mass incarceration, more of its own people in jail and prison then any nation in the history of mankind. Who are we now to preach about freedom to the world ?

Binaj 2 days ago ,

When dollar and yanks are gone,peace and prosperity will come

redeemed626 2 days ago ,

The primary weaknesses of liberal democracy and the capitalist order come from the decisions made by voters and captains of industry. When political and economic freedom create impoverishment, income disparity, racial strife, and nationalist xenophobia, the fruits of a free society die on the vine. I see the Yahoo News elderly guys and the Russian trolls are mystified by this obvious state of world affairs.

Mel Profit 2 days ago ,

One of the silliest pieces TNI has ever published.

toucheamigos 2 days ago • edited ,
Through our words and deeds, America demonstrates a positive alternative to political and religious despotism

A negative alternative.

Znaika toucheamigos 15 hours ago ,

The problem is that for many decades american "words" contradict american "deeds", and the whole world can easily see american double standards. That's why american "alternative" is negative, not positive. As an example (one of 100s) we can remember that famous 1939 phrase "Somoza may be a son of a b.., but he's our son of a b..."

toucheamigos 2 days ago ,

This article shows why America will lose eventually. It sill believes that ideals of human rights and democracy are good.

They are not. As a matter of fact they are source of most evil in this world. America creates its own enemies, so they will never end.

Gary Sellars toucheamigos 2 days ago • edited ,

Institutionalized group-think is the Great Enemy of any Empire. It leads to complacency and a refusal to see the world as it really it, and to view oneself as uniquely gifted and therefore exceptional and eternal.

Eventually this will become the prevailing wisdom in post-hegemony US just as it became so in post-Empire Britain or post-Soviet Russia.

Cool2HatE 2 days ago ,

Lets see, mistakes:
Iraq war, Kosovo war, NATO enlargement, let Russia economy crushed at 90's. Let Libya completely, Syria partially destroyed. Become arrogent see non-western nations low. Etc. etc.

We can tell post cold-war is about "end of freedom commercial" and get real "wild capitalism." China was mis-calculation. They decided to use it as cheap workforce and a not-formal colony which ended surprisingly otherwise.

All above talk is a naive try to turn back "freedom commercial" days. Best thing USA can teach now, how to kill people in every imaginable way.

Yuki 3 days ago ,

The post Cold War worst mistake of US was the EU enlargement, Russia could have become less paranoid and nationalist and perhaps a more solid democratic culture would have been established

Gary Sellars Yuki 2 days ago ,

"Democracy" is simply the rule of a small elite minority of organised people over a much greater majority of disorganised people. Russian "democracy" delivers what its people want to the same degree as US "democracy". In fact, judging by Putins much higher domestic approval numbers that the Trumpster, I'd say it delivers more...

Yuki Gary Sellars a day ago ,

Democracy" is simply the rule of a small elite minority of organised people over a much greater majority of disorganised people. This is "oligarchy", not "democracy", the regime that is running in Russia,China,NK and similar heavens of dictators.

toucheamigos Yuki 2 days ago ,

We will never have a democratic culture. We despise that system too much.

Yuki toucheamigos a day ago ,

Oh well, no problem if you not like democracy. you can live everyday with police that can arrest you at midnight, like in old Soviet times.

Gary Sellars 3 days ago ,

"The result was an economic boom, a wave of democratization, and victory in an existential struggle against Communism without yet another great-power global war. "

Victory? I assume you guys are aware that the Chinese are Communists?

Surely you didn't think that global completion over ideology and nationhood was resolved in the Cold War? That was just a single geopolitical skirmish, one game in a whole season. It ain't over till it over.... and its ain't done by a long shot.

Donald Smith Gary Sellars 3 days ago ,

"...are Communists?" Labels don't mean anything. They're huge, getting richer, have an historically motivated chip on their shoulder and want to assume the place in the world, particularly Asia, they feel is their due. They are sensitive to their public's opinion That we have a buffoon in charge is certainly an impediment; we're still involved in 'unforced error' wars the last appointed, incurious executive began as

Gary Sellars Donald Smith 2 days ago • edited ,

China is hard to classify in the traditional sense. Its government is what we would call "Communist", but its ruling ethos is essentially Confucianist , its social ideology is Socialist, but it uses market economics, mercantilism and Capitalism to generate wealth and pay for it all.

The Chinese are not fools. They have taken the best aspects of many ideologies and wielded them into a system that seems to work well for them. What Americans might feel about it is utterly superfluous.

Walter Tseng 3 days ago ,

Whether realizing or not, the author, quoting the National Security Strategy report of 2018, ironically described the US to a T when they wrote "For today, the dictator (the US) may be your friend, but tomorrow he will need you as an enemy (China)". & "... (the US) seek lifetime tenure (hegemony), expanding territories (bases) total authority (MAGA) & obedient subjects"!
.
The philanthropic & much admired champion has grown into an ugly dictator, bending the world to its will through soft & strong power. The global revulsion towards the misuse of hegemonic muscle is what caused the US to lose its place in the Global Order! Simple as that!

Begemot 3 days ago ,

To this panglossian peaen to the American imperial system and its promotion of democracy, human freedom and all other nice things against the dark forces represented by those other guys like Russia and China, let us consider a reality of American foreign policy that belies this tripe: US support of Saudi Arabia from 1945 to the present moment. I suggest that if any of what this writer proposes we believe is true about the motives underlying US foreign policy, then the theocratic and medieval regime Saudi Arabia would no longer exist. Yet it continues to exist and is a valued partner of America.

[Jul 22, 2019] Perhaps the most immediately effective strategy for effecting a realignment of the global economy, ending the US pursuit of global military hegemony and the other planet threatening practices of the US and Western plutocracy would be for other countries to follow the historical precedent set by the United States in its Lend Lease dealings with Great Britain as detailed in Hudson's Super Imperialism >

Notable quotes:
"... Hudson may be hinting at this with his de-dollarization strategy suggest of "Deprivatization and buyouts of US assets abroad." ..."
Jul 22, 2019 | www.nakedcapitalism.com

Steven , July 22, 2019 at 10:35 am

Perhaps the most immediately effective strategy for effecting a realignment of the global economy, ending the US pursuit of global military hegemony and the other planet threatening practices of the US and Western plutocracy would be for other countries to follow the historical precedent set by the United States in its Lend Lease dealings with Great Britain as detailed in Hudson's Super Imperialism :

Britain was near the end of its financial tether. Its gold and dollar reserves had fallen to $1 billion by September 1940, when it nationalized the overseas investments of its large corporations and put them up for sale abroad. (p. 119)

(I am assuming Britain didn't do this voluntarily.) Hudson may be hinting at this with his de-dollarization strategy suggest of "Deprivatization and buyouts of US assets abroad."

This would expose the whole rotten edifice of Western finance capitalism, perhaps provoking a dangerous planet suicidal response. But one or two shots over the bow would be far more effective in curbing the wealth addiction and predatory propensities of the West's plutocracy than Trump's tariffs.

It would also provide the Western money worshipping public with a powerful lesson they need a better definition of wealth than the price of stocks.

[Jul 22, 2019] Latest desperate attempt to trigger a color revolution in Hong Kong

Jul 22, 2019 | www.moonofalabama.org

vk , Jul 22 2019 11:50 utc | 123

Latest desperate attempt to trigger a color revolution in Hong Kong:

Mob Attack at Hong Kong Train Station Heightens Seething Tensions in City

William Gruff , Jul 22 2019 12:36 utc | 130

Damnit, folks, it is their job to say things that are wrong!

There is being wrong because one is missing some crucial information, or because one is personally invested in a wrong narrative, but then there is being wrong because one is deliberately trying to change a narrative to a false one for duty and profit.

The goings on in Hong Kong are so obviously a retry of the previous color revolution attempt by the evil empire that it can be used as a reliable litmus test for who is carrying water for the US State Department and Atlantic Council.

Herr Ringbone , Jul 22 2019 12:57 utc | 135
gzon @129

Yes, they 'feel encroached upon'. But honestly, their feelings in this matter are delusional, and I mean that they are on the same level of delusion as the beliefs of those involved in the Salem witch trials. Fantastic, community-wide, shared delusion.

It is hard for people to get their heads around the truth, because the narrative universally starts from the assumption that 'China has been interfering', 'China hasn't kept its word', etc.

And why not? It's China, right? It's a communist dictatorship. All those have to be safe assumptions?

Except that they aren't; such assumptions are quite wrong. China has pretty much left Hong Kong alone.

Yes, many Hong Kongers believe that they are being oppressed by China. But the belief is simply and literally delusional. Very badly so.

vk , Jul 22 2019 13:00 utc | 136
@ Posted by: aspnaz | Jul 22 2019 1:51 utc | 90

Your theory fails the empirical test. It's an abstraction akin to the "Sea Peoples" theory about the end of the Late Bronze Age.

Hong Kong, even after receiving 2 million migrants (which should've risen it GDP considerably), begun to stagnate in relation to the Mainland. Since 1997, it's grown on average 30%-50% the Mainland's average annual GDP growth rate (it is now growing at a 3% annual average -- half the Mainland's rate).

In 2017, Shenzhen surpassed Hong Kong in terms of "GDP".

The matter is simple: after the handover (1997), Hongkongers demanded to remain capitalist. The "One country, two systems" deal was a Hongkonger condition to go back to China. At the time, it seemed like a wise decision: China was still a poor country, and there was no signal Deng Xiaoping's reforms would be able to get out of the "middle income trap".

They simply bet on the wrong horse: Chinese socialism demonstrated more dynamism than Soviet socialism and achieved an important breakthrough in the period that ranged from its accession to the WTO in 2001 to the aftermath of the 2008 crisis in 2012 (when, e.g. Brazil -- another country growing at an accelerated pace from 2005 to 2011 thanks to high commodities' prices and was used as a counterexample to Chinese socialism's success -- collapsed).

We can attest this "bet on the wrong horse" theory by simply looking at the protesters' face: most of them very young, probably born after 1997 or too young to remember pre-1997 Hong Kong. They didn't live during the British despotic and authoritarian rule; they waived the colonial flag and called it freedom. They forgot they are already living the British dream: Hong Kong is still capitalist to the bone -- and will be until 2047, as the deal dictates (legal guarantee of deals is a basic principle of freedom, since it's a basic principle of Rule of Law -- so I don't know why the protesters are complaining about it).


@ Posted by: Herr Ringbone | Jul 22 2019 12:15 utc | 126

This "Hongkonger is a nationality" is farce, a modern fabrication by the Western MSM. Hong Kong was never a nation, and never will be a nation. The city proper doesn't even have a source of potable water.

And you don't have to be unicultural to be a country; the same way, having a culture doesn't entitle you to be a country. Culture doesn't equal country. This myth, that states country borders are determined by cultural (specially, linguistic) differentiation is a post-WWI fabrication, when the big imperialist powers had to find an excuse to partition the Ottoman and Austro-Hungarian empires. Nobody outside Europe (and the Japanese) believes that.

In fact, China officially is a multi-ethnic nation, as it reiterated in a recent white paper about the Uighur quesiton.

Herr Ringbone , Jul 22 2019 13:18 utc | 140
Posted by: vk | Jul 22 2019 13:00 utc | 137

You are right. Hong Kongers effectively bet on the wrong horse. I mean, you can't really blame them. Even Deng didn't realize how quickly China would grow.

Personally I think that Hong Kongers are having a very hard time, psychologically, adjusting to the fact that Mainland Chinese are catching up or surpassing them in terms of wealth. In the 1990s, they felt superior to other Chinese, and were secure in this feeling.

That's all finished now.

In fact, given that this current colour revolution falls flat and we get back to normal in a couple of months, I predict that Hong Kongers themselves will beg for One Country, Two Systems to be ended early in about fifteen years' time. By then, it will be clear to anyone who isn't brain dead that 1C2S is harming the Hong Kong economy by preventing full integration with China, and no one in HK will support it any more.

You'll see Chinese flags being waved enthusiastically all over the place, probably by a lot of 37-year-olds who were once chucking bricks at the cops and yelling for 'independence' in 2019.

People are like that.

Jonathan , Jul 22 2019 15:23 utc | 157
@ Posted by: Herr Ringbone | Jul 22 2019 13:18 utc | 140

The lack of any productive industry is the fundamental economic problem with HK since 1997, and it's prior prosperity based on using itself as a main trade and investment gateway into the Mainland is a short and one-time affair of the unique geopolitics of that era. HKers who believe that privilege will last forever was naive to say the least, even when back in 97.

Contrast with Singapore that insists on sustaining a sizable manufacturing base to the point it's considered a top economic priority, albeit one where much of it is being owned by foreign capital.

Nemesiscalling , Jul 22 2019 16:18 utc | 167
Some posters are arguing that Hong Kongers are deluding themselves and that they should know better and stop fighting assimilation into the Chinese system.

Talk about arrogance. Hey, Venezuelans should stop fighting the U.S. And kiss the ring! I know what's good for them.

A good analogy for asserting our will over Hong Kong would be like trying to change the nature of lemmings because we know what's best for them. Sure they commit ritualistic suicide, but it is still their right and within their nature to do so.

Everything else equates to meddling and this is the stuff of absolute power and empire. A far cry indeed from the ideals that most here espouse in every other circumstance. I am not buying for a second that Hong Kongers don't have legitimate grievances with the concept of being absorbed into China and that they are indeed airing them out for the world to see.

*Applause*

[Jul 22, 2019] In Hong Kong, what we already suspected is now pretty much confirmed: there was an attempt of a color revolution in the city

Jul 22, 2019 | www.moonofalabama.org

vk , Jul 21 2019 16:51 utc | 19

In Hong Kong, what we already suspected is now pretty much confirmed: there was an attempt of a color revolution in the city:

Two of three men arrested over Hong Kong's biggest bomb plot, discovered on eve of major anti-government protest, are members of pro-independence groups

The process was textbook hybrid warfare: first, they tried to do "mass peaceful protests" in order to seek a violent police response (preferably, with some dead) so as to trigger a chain reaction to topple the democratically elected government. The Chinese are not stupid and ordered the police to not act violently. Then, they tried to storm the Legco in order to provoke a violent response: the police was against smart, and used the "scorched earth" tactic: the building was left empty and unprotected, so all that was left to the protesters was to vandalize the building (which played against their image); the fact that some blowhards waived the colonial flag also didn't help their image (good image is a conditio sine qua non for a color revolution).

Carrie Lam then outsmarted the protesters further by killing the bill (which is not essential to Mainland governance of Hong Kong either way). That further delegitimized the continuation of the protests. We can even speculate here if this bill wasn't a bait used to test the waters in Hong Kong.

As a last, desperate attempt by the protesters, they tried to besiege the police hq in order to try to induce a massacre. That obviously didn't work.

And then, this came to light:

Hong Kong protesters 'went to Taiwan in June' to explore options for asylum

Those "protesters" are likely the heads of the color revolution attempt, almost surely on the pockets of some NGO linked to Washington. They are now planning a fall back in order to regroup. Taiwan is using this to consolidate itself even more as liberal Festung in China.

As I stated here before, a color revolution only works against a strong government when it has the backup of the unconventional warfare (UW). Hong Kong is very susceptible to a color revolution, but is inviable as an unconventional warfare theater. That's because it doesn't have any sources of potable water -- which comes from the New Territories (the flatlands directly above the city-peninsula).

Well, it seems the color revolutionaires are very aware of this fact:

Police use tear gas against protesters in heart of city, violence erupts in New Territories

According to "Two masked male protesters", there's new reivindication in the agenda: they want the dissolution of the government and new elections, to be decided by "popular vote" (i.e. whoever is in the pockets of Washington).

vk , Jul 21 2019 17:10 utc | 21

Now even the Chinese government recognize the existence of the "Clash of Civilizations" doctrine in the USA:

Op-Ed: Promulgating the myth of "clash of civilizations" is stupid and dangerous

[Jul 22, 2019] T>here's a fundamental difference between debt in the past and debt today. In the past debt was owed to the state, today it's owed to some wealthy corporations. Good luck with debt jubilees in the absence of violent uprisings.

Notable quotes:
"... As Mael Colium says, the US picks off individual countries by isolating them. ..."
"... there's a fundamental difference between debt in the past and debt today. In the past debt was owed to the state, today it's owed to some wealthy corporations. Good luck with debt jubilees in the absence of violent uprisings. ..."
"... The difference is they internalize profit and externalize cost. And that's fundamentally different from all other epochs in the past. Even the birth of nation state was out of their rationalization of how to maximize profit extraction and cost externalization in the 1st place. Good luck with debt jubilees. ..."
"... How would this occur aside from a repudiation of the almighty buck one wonders, and would it be based on reserves in the vault, or actual use as money? ..."
"... The Eurozone and China could run trade deficits, thereby creating an opportunity for their currencies to become reasonably viable alternative reserves. But they don't because they don't want to cede control of their manufacturing and export-driven economic bases away. ..."
"... The sine qua non of our economic empire (which I learned here) is that a global currency requires global trade deficits, which must grow as quickly as the global economy to fulfill its role. ..."
"... So American deficits are structural. Our debt-ceiling controversies are theater. And our dollar is exceptional until the instant it isn't–then the Fed electron-tranfers trillions more to the speculators whose notional dollars just evaporated, keeping the currencies in the air with their new casino chips. Is this a loan? A gift? An electron cloud? It's the fog of war by other means . . . ..."
"... Resources and the critical health of the planet bother me a lot. Money and "gold" are, in the end, both fictitious obsessions. ..."
"... You'll find few authors willing to provide their seminal work for free online– 2nd Edition PDF . I think it fair for those unfamiliar with Hudson's work to read his analysis prior to being judgmental. ..."
Jul 22, 2019 | www.nakedcapitalism.com

"On a similar note, I've wondered why Russia has not defaulted on it's considerable USD and EUR debt (also too, why is Russia still doing debt in USD and thus strengthening U.S.?)"

It should be noted that Russia has almost zero foreign public debt and that the private foreign debt has been much reduced and now amounts to US dollars 450 billion.

As Russia has a surplus of more than US dollars 100 billion on the current account the total foreign debt amounts to 4 years current account surplus only.

Ad to this that Russias international currency reserves amounts to ca. US dollars 500 billion which meens that Russia is in a very strong fiscal position as it is capable of paying off its entire foreign debt any time it chooses.


Ian Perkins , July 21, 2019 at 9:16 am

Along the same lines, the summary starts with, "The first existential objective is to avoid the current threat of war by winding down U.S. military interference in foreign countries and removing U.S. military bases as relics of neocolonialism."

Either would be taken as proof of evil anti-US intentions, leading to sanctions, coups, assassinations, regime change, and eventually outright war. As Mael Colium says, the US picks off individual countries by isolating them.

Off The Street , July 21, 2019 at 9:19 am

Peripherally related MMT 2nd of 3 articles

jsn , July 21, 2019 at 11:50 am

When we have MMT paying for arts, history, journalism and particularly editors, I won't be so irritated by these kinds of criticisms.

We live in a very advanced world of Bernaysian propaganda where the communicative industries are privately owned and directed to ensure deep criticisms of the hyper-exploitative current reality CANNOT be published and promoted.

When someone takes the effort to produce something, like this or the book other commenters on this thread are also slighting, at great personal expense to themselves without corporate backing or institutional support, a decent reply would be "Thank you!", rather than tasking them or our hosts here at this site to "go back and clean up this mess??"

If you had any decency, you might suggest clarifying edits in comments, like changing "– so that it can taxing its own citizens." at the end of the 23rd paragraph to, "– so that it can avoid taxing its own citizens", to help the people you are criticizing for making things so difficult for you.

Jonathan Holland Becnel , July 21, 2019 at 1:43 pm

Michael Hudson is a modern day Saint! Who cares about a few typos when his ideas are truly REVOLUTIONARY!

For example, i had no idea about Debt Jubilees in early civilizations 3000 years ago! The pyramids built by FREE MEN! Liberty and Freedom originating from canceling debts! Torches and Beacons of light as representatives of said Debt Jubilees!

If you ask me, the #HudsonHawk is trying to awaken the Workers of the World in Forgiveness, Peace, Love, and Solidarity.

HUDSON 2024

softie , July 21, 2019 at 3:27 pm

I didn't know that until I read anthropologist David Graeber's Debt: The First 5,000 Years.

But there's a fundamental difference between debt in the past and debt today. In the past debt was owed to the state, today it's owed to some wealthy corporations. Good luck with debt jubilees in the absence of violent uprisings.

Kurtismayfield , July 21, 2019 at 5:20 pm

And those corporations get favorable rates on money printed by the government.. and the government backs trillions in mortgage and student loans.

Not much different.

softie , July 21, 2019 at 10:22 pm

The difference is they internalize profit and externalize cost. And that's fundamentally different from all other epochs in the past. Even the birth of nation state was out of their rationalization of how to maximize profit extraction and cost externalization in the 1st place. Good luck with debt jubilees.

Wukchumni , July 21, 2019 at 10:15 am

That is why Russia, China and other powers that U.S. strategists deem to be strategic rivals and enemies are looking to restore gold's role as the preferred asset to settle payments imbalances.

How would this occur aside from a repudiation of the almighty buck one wonders, and would it be based on reserves in the vault, or actual use as money?

Keep in mind that there isn't a human alive now who ever proffered a monetized gold coin in order to purchase something, and increasingly relatively few that have ever used a monetized silver coin for the same purpose.

Clive , July 21, 2019 at 10:44 am

I don't have a huge amount of sympathy. The Eurozone and China could run trade deficits, thereby creating an opportunity for their currencies to become reasonably viable alternative reserves. But they don't because they don't want to cede control of their manufacturing and export-driven economic bases away.

The US doesn't mind and doesn't care about the domestic repercussions. For how much longer that can continue, especially as Trump's America First policy is putting that under some strain, is an open question. But for now, it's willing to be satisfied with a little rowing back rather than wholesale reversal (back to, for example, an immediate-post war position of significant trade surpluses although the article is correct to point out this was due to the US being the last man standing, in terms of having a manufacturing base still intact).

The Eurozone and China are not only not showing any signs of a policy change, they've continued embedding and strengthening the current modus operandi. You pays your money, you takes your choices. Here as elsewhere. If they'd rather not have the US$ having a more-or-less monopoly position in then global financial system as a reserve currency, they'll need to make the compromises needed to set up these challenger currencies as viable alternatives.

But they can't have their economic cakes and eat them, too.

And it's not just currencies. You need legal systems which are deemed to be (which can only come through real, observational experience) investor-friendly -- not just prone to supporting or at the very least given an easy ride to domestic stalwarts. Again, this has repercussions if you then have to stop cosseting domestic "champions". The US legal system is ridiculously business friendly. But it doesn't, overtly, differentiate between US and non-US companies in a commercial dispute.

barefoot charley , July 21, 2019 at 11:31 am

The sine qua non of our economic empire (which I learned here) is that a global currency requires global trade deficits, which must grow as quickly as the global economy to fulfill its role. Tell that to Germany! If your silly little euro or yen or renminbi tries to go global, the dollar-based currency speculators will shrivel it like Soros did the pound in the 90s.

So American deficits are structural. Our debt-ceiling controversies are theater. And our dollar is exceptional until the instant it isn't–then the Fed electron-tranfers trillions more to the speculators whose notional dollars just evaporated, keeping the currencies in the air with their new casino chips. Is this a loan? A gift? An electron cloud? It's the fog of war by other means . . .

It may have been Hudson who explained that a quarter (or was it half?) of all corporate profits after WWII went to American companies, when our economy was that much of the world's. Now we're a much smaller fraction of the global economy, but our corporate sector still profits as much as it did when it was producing, rather than marketing, real goods. Another exceptional achievement.

Summer , July 21, 2019 at 1:20 pm

Really all we know is that such a plan would create a different order. That so many countries have continued to pauper their populations long after the obviousness that "development" is a sham doesn't bode well for their intentions even after the USA is brought to heel.

hunkerdown , July 22, 2019 at 5:20 am

Agreed. The likes of the Regional Comprehensive Economic Partnership are still under negotiation and still, like every other multilateral investment agreement of recent vintage, apparently primarily concerned with creating supranational rights for landlords, especially of the absentee variety, at the expense of citizens in their collective capacity.

Susan the other` , July 21, 2019 at 2:30 pm

This is a good summary of our irrational world. MMT and the GND can save the situation but only if we industrialized humans forego any more fossil fuels except for long-term survival purposes. Ration it with draconian discipline. That in turn will discipline our military and turn our energies to things we can no longer ignore. Money doesn't bother me much. Resources and the critical health of the planet bother me a lot. Money and "gold" are, in the end, both fictitious obsessions.

karlof1 , July 21, 2019 at 4:56 pm

Thanks for providing this transcript prior to Hudson posting it to his own website. He was the first political-economist to lay out the Outlaw US Empire's game plan when he published Super Imperialism: The Economic Strategy of American Empire in 1972.

You'll find few authors willing to provide their seminal work for free online– 2nd Edition PDF . I think it fair for those unfamiliar with Hudson's work to read his analysis prior to being judgmental.

[Jul 21, 2019] Michael Hudson U.S. Economic Warfare and Likely Foreign Defenses naked capitalism

Jul 21, 2019 | www.nakedcapitalism.com

https://acdn.adnxs.com/ib/static/usersync/v3/async_usersync.html

https://eus.rubiconproject.com/usync.html

https://c.deployads.com/sync?f=html&s=2343&u=https%3A%2F%2Fwww.nakedcapitalism.com%2F2019%2F07%2Fmichael-hudson-u-s-economic-warfare-and-likely-foreign-defenses.html <img src="http://b.scorecardresearch.com/p?c1=2&c2=16807273&cv=2.0&cj=1" /> By Michael Hudson, a research professor of Economics at University of Missouri, Kansas City, and a research associate at the Levy Economics Institute of Bard College. His latest book is "and forgive them their debts": Lending, Foreclosure and Redemption from Bronze Age Finance to the Jubilee Year Keynote paper delivered at the 14th Forum of the World Association for Political Economy, July 21, 2019

Today's world is at war on many fronts. The rules of international law and order put in place toward the end of World War II are being broken by U.S. foreign policy escalating its confrontation with countries that refrain from giving its companies control of their economic surpluses. Countries that do not give the United States control their oil and financial sectors or privatize their key sectors are being isolated by the United States imposing trade sanctions and unilateral tariffs giving special advantages to U.S. producers in violation of free trade agreements with European, Asian and other countries.

This global fracture has an increasingly military cast. U.S. officials justify tariffs and import quotas illegal under WTO rules on "national security" grounds, claiming that the United States can do whatever it wants as the world's "exceptional" nation. U.S. officials explain that this means that their nation is not obliged to adhere to international agreements or even to its own treaties and promises. This allegedly sovereign right to ignore on its international agreements was made explicit after Bill Clinton and his Secretary of State Madeline Albright broke the promise by President George Bush and Secretary of State James Baker that NATO would not expand eastward after 1991. ("You didn't get it in writing," was the U.S. response to the verbal agreements that were made.)

Likewise, the Trump administration repudiated the multilateral Iranian nuclear agreement signed by the Obama administration, and is escalating warfare with its proxy armies in the Near East. U.S. politicians are waging a New Cold War against Russia, China, Iran, and oil-exporting countries that the United States is seeking to isolate if cannot control their governments, central bank and foreign diplomacy.

The international framework that originally seemed equitable was pro-U.S. from the outset. In 1945 this was seen as a natural result of the fact that the U.S. economy was the least war-damaged and held by far most of the world's monetary gold. Still, the postwar trade and financial framework was ostensibly set up on fair and equitable international principles. Other countries were expected to recover and grow, creating diplomatic, financial and trade parity with each other.

But the past decade has seen U.S. diplomacy become one-sided in turning the International Monetary Fund (IMF), World Bank, SWIFT bank-clearing system and world trade into an asymmetrically exploitative system. This unilateral U.S.-centered array of institutions is coming to be widely seen not only as unfair, but as blocking the progress of other countries whose growth and prosperity is seen by U.S. foreign policy as a threat to unilateral U.S. hegemony. What began as an ostensibly international order to promote peaceful prosperity has turned increasingly into an extension of U.S. nationalism, predatory rent-extraction and a more dangerous military confrontation.

Deterioration of international diplomacy into a more nakedly explicit pro-U.S. financial, trade and military aggression was implicit in the way in which economic diplomacy was shaped when the United Nations, IMF and World Bank were shaped mainly by U.S. economic strategists. Their economic belligerence is driving countries to withdraw from the global financial and trade order that has been turned into a New Cold War vehicle to impose unilateral U.S. hegemony. Nationalistic reactions are consolidating into new economic and political alliances from Europe to Asia.

We are still mired in the Oil War that escalated in 2003 with the invasion of Iraq, which quickly spread to Libya and Syria. American foreign policy has long been based largely on control of oil. This has led the United States to oppose the Paris accords to stem global warming. Its aim is to give U.S. officials the power to impose energy sanctions forcing other countries to "freeze in the dark" if they do not follow U.S. leadership.

To expand its oil monopoly, America is pressuring Europe to oppose the Nordstream II gas pipeline from Russia, claiming that this would make Germany and other countries dependent on Russia instead of on U.S. liquified natural gas (LNG). Likewise, American oil diplomacy has imposed unilateral sanctions against Iranian oil exports, until such time as a regime change opens up that country's oil reserves to U.S., French, British and other allied oil majors.

U.S. control of dollarized money and credit is critical to this hegemony. As Congressman Brad Sherman of Los Angeles told a House Financial Services Committee hearing on May 9, 2019: "An awful lot of our international power comes from the fact that the U.S. dollar is the standard unit of international finance and transactions. Clearing through the New York Fed is critical for major oil and other transactions. It is the announced purpose of the supporters of cryptocurrency to take that power away from us, to put us in a position where the most significant sanctions we have against Iran, for example, would become irrelevant."[1]

The U.S. aim is to keep the dollar as the transactions currency for world trade, savings, central bank reserves and international lending. This monopoly status enables the U.S. Treasury and State Department to disrupt the financial payments system and trade for countries with which the United States is at economic or outright military war.

Russian President Vladimir Putin quickly responded by describing how "the degeneration of the universalist globalization model [is] turning into a parody, a caricature of itself, where common international rules are replaced with the laws of one country."[2]That is the trajectory on which this deterioration of formerly open international trade and finance is now moving. It has been building up for a decade. On June 5, 2009, then-Russian President Dmitry Medvedev cited this same disruptive U.S. dynamic at work in the wake of the U.S. junk mortgage and bank fraud crisis.

Those whose job it was to forecast events were not ready for the depth of the crisis and turned out to be too rigid, unwieldy and slow in their response. The international financial organisations – and I think we need to state this up front and not try to hide it – were not up to their responsibilities, as has been said quite unambiguously at a number of major international events such as the two recent G20 summits of the world's largest economies.

Furthermore, we have had confirmation that our pre-crisis analysis of global economic trends and the global economic system were correct. The artificially maintained uni-polar system and preservation of monopolies in key global economic sectors are root causes of the crisis. One big centre of consumption, financed by a growing deficit, and thus growing debts, one formerly strong reserve currency, and one dominant system of assessing assets and risks – these are all factors that led to an overall drop in the quality of regulation and the economic justification of assessments made, including assessments of macroeconomic policy. As a result, there was no avoiding a global crisis.[3]

That crisis is what is now causing today's break in global trade and payments.

Warfare on Many Fronts, with Dollarization Being the Main Arena

Dissolution of the Soviet Union 1991 did not bring the disarmament that was widely expected. U.S. leadership celebrated the Soviet demise as signaling the end of foreign opposition to U.S.-sponsored neoliberalism and even as the End of History. NATO expanded to encircle Russia and sponsored "color revolutions" from Georgia to Ukraine, while carving up former Yugoslavia into small statelets. American diplomacy created a foreign legion of Wahabi fundamentalists from Afghanistan to Iran, Iraq, Syria and Libya in support of Saudi Arabian extremism and Israeli expansionism.

The United States is waging war for control of oil against Venezuela, where a military coup failed a few years ago, as did the 2018-19 stunt to recognize an unelected pro-American puppet regime. The Honduran coup under President Obama was more successful in overthrowing an elected president advocating land reform, continuing the tradition dating back to 1954 when the CIA overthrew Guatemala's Arbenz regime.

U.S. officials bear a special hatred for countries that they have injured, ranging from Guatemala in 1954 to Iran, whose regime it overthrew to install the Shah as military dictator. Claiming to promote "democracy," U.S. diplomacy has redefined the word to mean pro-American, and opposing land reform, national ownership of raw materials and public subsidy of foreign agriculture or industry as an "undemocratic" attack on "free markets," meaning markets controlled by U.S. financial interests and absentee owners of land, natural resources and banks.

A major byproduct of warfare has always been refugees, and today's wave fleeing ISIS, Al Qaeda and other U.S.-backed Near Eastern proxies is flooding Europe. A similar wave is fleeing the dictatorial regimes backed by the United States from Honduras, Ecuador, Colombia and neighboring countries. The refugee crisis has become a major factor leading to the resurgence of nationalist parties throughout Europe and for the white nationalism of Donald Trump in the United States.

Dollarization as the Vehicle for U.S. Nationalism

The Dollar Standard – U.S. Treasury debt to foreigners held by the world's central banks – has replaced the gold-exchange standard for the world's central bank reserves to settle payments imbalances among themselves. This has enabled the United States to uniquely run balance-of-payments deficits for nearly seventy years, despite the fact that these Treasury IOUs have little visible likelihood of being repaid except under arrangements where U.S. rent-seeking and outright financial tribute from other enables it to liquidate its official foreign debt.

The United States is the only nation that can run sustained balance-of-payments deficits without having to sell off its assets or raise interest rates to borrow foreign money. No other national economy in the world can could afford foreign military expenditures on any major scale without losing its exchange value. Without the Treasury-bill standard, the United States would be in this same position along with other nations. That is why Russia, China and other powers that U.S. strategists deem to be strategic rivals and enemies are looking to restore gold's role as the preferred asset to settle payments imbalances.

The U.S. response is to impose regime change on countries that prefer gold or other foreign currencies to dollars for their exchange reserves. A case in point is the overthrow of Libya's Omar Kaddafi after he sought to base his nation's international reserves on gold. His liquidation stands as a military warning to other countries.

Thanks to the fact that payments-surplus economies invest their dollar inflows in U.S. Treasury bonds, the U.S. balance-of-payments deficit finances its domestic budget deficit. This foreign central-bank recycling of U.S. overseas military spending into purchases of U.S. Treasury securities gives the United States a free ride, financing its budget – also mainly military in character – so that it can taxing its own citizens.

Trump Is Forcing Other Countries To Create an Alternative to the Dollar Standard

The fact that Donald Trump's economic policies are proving ineffective in restoring American manufacturing is creating rising nationalist pressure to exploit foreigners by arbitrary tariffs without regard for international law, and to impose trade sanctions and diplomatic meddling to disrupt regimes that pursue policies that U.S. diplomats do not like.

There is a parallel here with Rome in the late 1 st century BC. It stripped its provinces to pay for its military deficit, the grain dole and land redistribution at the expense of Italian cities and Asia Minor. This created foreign opposition to drive Rome out. The U.S. economy is similar to Rome's: extractive rather than productive, based mainly on land rents and money-interest. As the domestic market is impoverished, U.S. politicians are seeking to take from abroad what no longer is being produced at home.

What is so ironic – and so self-defeating of America's free global ride – is that Trump's simplistic aim of lowering the dollar's exchange rate to make U.S. exports more price-competitive. He imagines commodity trade to be the entire balance of payments, as if there were no military spending, not to mention lending and investment. To lower the dollar's exchange rate, he is demanding that China's central bank and those of other countries stop supporting the dollar by recycling the dollars they receive for their exports into holdings of U.S. Treasury securities.

This tunnel vision leaves out of account the fact that the trade balance is not simply a matter of comparative international price levels. The United States has dissipated its supply of spare manufacturing capacity and local suppliers of parts and materials, while much of its industrial engineering and skilled manufacturing labor has retired. An immense shortfall must be filled by new capital investment, education and public infrastructure, whose charges are far above those of other economics.

Trump's infrastructure ideology is a Public-Private Partnership characterized by high-cost financialization demanding high monopoly rents to cover its interest charges, stock dividends and management fees. This neoliberal policy raises the cost of living for the U.S. labor force, making it uncompetitive. The United States is unable to produce more at any price right now, because its has spent the past half-century dismantling its infrastructure, closing down its part suppliers and outsourcing its industrial technology.

The United States has privatized and financialized infrastructure and basic needs such as public health and medical care, education and transportation that other countries have kept in their public domain to make their economies more cost-efficient by providing essential services at subsidized prices or freely. The United States also has led the practice of debt pyramiding, from housing to corporate finance. This financial engineering and wealth creation by inflating debt-financed real estate and stock market bubbles has made the United States a high-cost economy that cannot compete successfully with well-managed mixed economies.

Unable to recover dominance in manufacturing, the United States is concentrating on rent-extracting sectors that it hopes monopolize, headed by information technology and military production. On the industrial front, it threatens disrupt China and other mixed economies by imposing trade and financial sanctions.

The great gamble is whether these other countries will defend themselves by joining in alliances enabling them to bypass the U.S. economy. American strategists imagine their country to be the world's essential economy, without whose market other countries must suffer depression. The Trump Administration thinks that There Is No Alternative (TINA) for other countries except for their own financial systems to rely on U.S. dollar credit.

To protect themselves from U.S. sanctions, countries would have to avoid using the dollar, and hence U.S. banks. This would require creation of a non-dollarized financial system for use among themselves, including their own alternative to the SWIFT bank clearing system. Table 1 lists some possible related defenses against U.S. nationalistic diplomacy.

As noted above, what also is ironic in President Trump's accusation of China and other countries of artificially manipulating their exchange rate against the dollar (by recycling their trade and payments surpluses into Treasury securities to hold down their currency's dollar valuation) involves dismantling the Treasury-bill standard. The main way that foreign economies have stabilized their exchange rate since 1971 has indeed been to recycle their dollar inflows into U.S. Treasury securities. Letting their currency's value rise would threaten their export competitiveness against their rivals, although not necessarily benefit the United States.

Ending this practice leaves countries with the main way to protect their currencies from rising against the dollar is to reduce dollar inflows by blocking U.S. lending to domestic borrowers. They may levy floating tariffs proportioned to the dollar's declining value. The U.S. has a long history since the 1920s of raising its tariffs against currencies that are depreciating: the American Selling Price (ASP) system. Other countries can impose their own floating tariffs against U.S. goods.

Trade dependency as an Aim of the World Bank, IMF and US AID

The world today faces a problem much like what it faced on the eve of World War II. Like Germany then, the United States now poses the main threat of war, and equally destructive neoliberal economic regimes imposing austerity, economic shrinkage and depopulation. U.S. diplomats are threatening to destroy regimes and entire economies that seek to remain independent of this system, by trade and financial sanctions backed by direct military force.

Dedollarization will require creation of multilateral alternatives to U.S. "front" institutions such as the World Bank, IMF and other agencies in which the United States holds veto power to block any alternative policies deemed not to let it "win." U.S. trade policy through the World Bank and U.S. foreign aid agencies aims at promoting dependency on U.S. food exports and other key commodities, while hiring U.S. engineering firms to build up export infrastructure to subsidize U.S. and other natural-resource investors.[4]The financing is mainly in dollars, providing risk-free bonds to U.S. and other financial institutions. The resulting commercial and financial "interdependency" has led to a situation in which a sudden interruption of supply would disrupt foreign economies by causing a breakdown in their chain of payments and production. The effect is to lock client countries into dependency on the U.S. economy and its diplomacy, euphemized as "promoting growth and development."

U.S. neoliberal policy via the IMF imposes austerity and opposes debt writedowns. Its economic model pretends that debtor countries can pay any volume of dollar debt simply by reducing wages to squeeze more income out of the labor force to pay foreign creditors. This ignores the fact that solving the domestic "budget problem" by taxing local revenue still faces the "transfer problem" of converting it into dollars or other hard currencies in which most international debt is denominated. The result is that the IMF's "stabilization" programs actually destabilize and impoverish countries forced into following its advice.

IMF loans support pro-U.S. regimes such as Ukraine, and subsidize capital flight by supporting local currencies long enough to enable U.S. client oligarchies to flee their currencies at a pre-devaluation exchange rate for the dollar. When the local currency finally is allowed to collapse, debtor countries are advised to impose anti-labor austerity. This globalizes the class war of capital against labor while keeping debtor countries on a short U.S. financial leash.

U.S. diplomacy is capped by trade sanctions to disrupt economies that break away from U.S. aims. Sanctions are a form of economic sabotage, as lethal as outright military warfare in establishing U.S. control over foreign economies. The threat is to impoverish civilian populations, in the belief that this will lead them to replace their governments with pro-American regimes promising to restore prosperity by selling off their domestic infrastructure to U.S. and other multinational investors.

US Warfare on Many Fronts Dedollarization defense

Military warfare (the Near East, Asia)

NATO and bilateral treaty (Saudi, ISIS, Al Qaida). color revolutions and proxy wars.

Shanghai Cooperation Organization, and pressure for Europe to withdraw from NATO unless the U.S. alleviates its New Cold War threats.
Dollarization is monetary warfare. The US Treasury-bill standard finances the mainly military U.S. balance-of-payments deficit. SWIFT threatens to isolate Iran and Russia Dedollarization will refrain from foreign central banks financing U.S. overseas military spending by keeping their savings in dollars.

Creation of alternative payments clearing system.

The IMF finances US client regimes and seeks to isolate those not following US policy. An alternative global financial organization, such as Europe's INSTEX to circumvent US anti-Iran sanctions, and Russo-China alternative to SWIFT.
Creditor policy forcing austerity on debtor economies, forcing them to privatize and sell off their public domain to pay debts. An international court empowered to write down debts to the ability to pay, based on the original principles that were to guide the BIS in 1931.
The World Bank finances trade dependency on US food exports and opposes national food self-sufficiency. An alternative development organization based on food self-sufficiency. Annulment of World Bank and IMF debt as "odious debt."
Unilateral US trade war based on levy of US protectionist tariffs, quotas and sanctions, Countervailing sanctions, and creation of an alternative to the WTO or a strengthened organization free of US control.
Cyber War, spycraft via US internet platforms, and Stuxnet sabotage. Work with Huawei and other alternatives to US internet options.
Class War: austerity program for labor MMT, taxation of rentier income and capital gains.
Neoliberal monetarist doctrine of privatization and creditor-oriented rules Promotion of a mixed economy with public infrastructure as a factor of production.
US patent policy seeks monopoly rents. Non-recognition of predatory monopoly patents.
Investment control Deprivatization and buyoutsof US assets abroad.
International law and diplomacy The U.S. as the world's "exceptional nation," not subject to international laws or even to its own treaty agreements.

Veto power in any organization it joins. The basic principle that the U.S. is not subject to any foreign say over its laws and policies.

Global Problems caused by US Policy Response to U.S. Disruptive Policy

U.S. refuses to join international agreements to reduce carbon emissions, Global Warming and Extreme Weather.

U.S. diplomacy is based on control of oil to make other countries dependent on U.S. energy dominance.

Trade and tax sanctions against U.S. exporters and banks. Taxes on U.S. tax avoidance by the oil industry's "flags of convenience" (convenient for tax avoidance).

Taxation or isolation of U.S. exports based on high-carbon production.

Attempt to monopolize new G5 Internet technology, Sanctioning of Huawei, insistence on US priority in high-tech. Rejection of patents on basic IT, medicine and other basic human needs.
Patent laws in pharmaceuticals, etc. Taxation of monopoly rents.

There Are Alternatives, on Many Fronts

Militarily, today's leading alternative to NATO expansionism is the Shanghai Cooperation Organization (SCO), along with Europe following France's example under Charles de Gaulle and withdrawing. After all, there is no real threat of military invasion today in Europe. No nation can occupy another without an enormous military draft and such heavy personnel losses that domestic protests would unseat the government waging such a war. The U.S. anti-war movement in the 1960s signaled the end of the military draft, not only in the United States but in nearly all democratic countries (Israel, Switzerland, Brazil and South Korea are exceptions).

The enormous spending on armaments for a kind of war unlikely to be fought is not really military, but simply to provide profits to the military industrial complex. The arms are not really to be used. They are simply to be bought, and ultimately scrapped. The danger, of course, is that these not-for-use arms actually might be used, if only to create a need for new profitable production.

Likewise, foreign holdings of dollars are not really to be spent on purchases of U.S. exports or investments. They are like fine-wine collectibles, for saving rather than for drinking. The alternative to such dollarized holdings is to create a mutual use of national currencies, and a domestic bank-clearing payments system as an alternative to SWIFT.Russia, China, Iran and Venezuela already are said to be developing a crypto-currency payments to circumvent U.S. sanctions and hence financial control.

In the World Trade Organization, the United States has tried to claim that any industry receiving public infrastructure or credit subsidy deserves tariff retaliation in order to force privatization. In response to WTO rulings that U.S. tariffs are illegally imposed, the United States "has blocked all new appointments to the seven-member appellate body in protest, leaving it in danger of collapse because it may not have enough judges to allow it to hear new cases."[5]In the U.S. view, only privatized trade financed by private rather than public banks is "fair" trade.

An alternative to the WTO (or removal of its veto privilege given to the U.S. bloc) is needed to cope with U.S. neoliberal ideology and, most recently, the U.S. travesty claiming "national security" exemption to free-trade treaties, impose tariffs on steel, aluminum, and on European countries that circumvent sanctions on Iran or threaten to buy oil from Russia via the Nordstream II pipeline instead of high-cost liquified "freedom gas" from the United States.

In the realm of development lending, China's bank along with its Belt and Road initiative is an incipient alternative to the World Bank, whose main role has been to promote foreign dependency on U.S. suppliers. The IMF for its part now functions as an extension of the U.S. Department of Defense to subsidize client regimes such as Ukraine while financially isolating countries not subservient to U.S. diplomacy.

To save debt-strapped economies suffering Greek-style austerity, the world needs to replace neoliberal economic theory with an analytic logic for debt writedowns based on the ability to pay. The guiding principle of the needed development-oriented logic of international law should be that no nation should be obliged to pay foreign creditors by having to sell of the public domain and rent-extraction rights to foreign creditors. The defining character of nationhood should be the fiscal right to tax natural resource rents and financial returns, and to create its own monetary system.

The United States refuses to join the International Criminal Court. To be effective, it needs enforcement power for its judgments and penalties, capped by the ability to bring charges of war crimes in the tradition of the Nuremberg tribunal. U.S. to such a court, combined with its military buildup now threatening World War III, suggests a new alignment of countries akin to the Non-Aligned Nations movement of the 1950s and 1960s. Non-aligned in this case means freedom from U.S. diplomatic control or threats.

Such institutions require a more realistic economic theory and philosophy of operations to replace the neoliberal logic for anti-government privatization, anti-labor austerity, and opposition to domestic budget deficits and debt writedowns. Today's neoliberal doctrine counts financial late fees and rising housing prices as adding to "real output" (GDP), but deems public investment as deadweight spending, not a contribution to output. The aim of such logic is to convince governments to pay their foreign creditors by selling off their public infrastructure and other assets in the public domain.

Just as the "capacity to pay" principle was the foundation stone of the Bank for International Settlements in 1931, a similar basis is needed to measure today's ability to pay debts and hence to write down bad loans that have been made without a corresponding ability of debtors to pay. Without such an institution and body of analysis, the IMF's neoliberal principle of imposing economic depression and falling living standards to pay U.S. and other foreign creditors will impose global poverty.

The above proposals provide an alternative to the U.S. "exceptionalist" refusal to join any international organization that has a say over its affairs. Other countries must be willing to turn the tables and isolate U.S. banks, U.S. exporters, and to avoid using U.S. dollars and routing payments via U.S. banks. To protect their ability to create a countervailing power requires an international court and its sponsoring organization.

Summary

The first existential objective is to avoid the current threat of war by winding down U.S. military interference in foreign countries and removing U.S. military bases as relics of neocolonialism. Their danger to world peace and prosperity threatens a reversion to the pre-World War II colonialism, ruling by client elites along lines similar to the 2014 Ukrainian coup by neo-Nazi groups sponsored by the U.S. State Department and National Endowment for Democracy. Such control recalls the dictators that U.S. diplomacy established throughout Latin America in the 1950s. Today's ethnic terrorism by U.S.-sponsored Wahabi-Saudi Islam recalls the behavior of Nazi Germany in the 1940s.

Global warming is the second major existentialist threat. Blocking attempts to reverse it is a bedrock of American foreign policy, because it is based on control of oil. So the military, refugee and global warming threats are interconnected.

The U.S. military poses the greatest immediate danger. Today's warfare is fundamentally changed from what it used to be. Prior to the 1970s, nations conquering others had to invade and occupy them with armies recruited by a military draft. But no democracy in today's world can revive such a draft without triggering widespread refusal to fight, voting the government out of power. The only way the United States – or other countries – can fight other nations is to bomb them. And as noted above, economic sanctions have as destructive an effect on civilian populations in countries deemed to be U.S. adversaries as overt warfare. The United States can sponsor political coups (as in Honduras and Pinochet's Chile), but cannot occupy. It is unwilling to rebuild, to say nothing of taking responsibility for the waves of refugees that our bombing and sanctions are causing from Latin America to the Near East.

U.S. ideologues view their nation's coercive military expansion and political subversion and neoliberal economic policy of privatization and financialization as an irreversible victory signaling the End of History. To the rest of the world it is a threat to human survival.

The American promise is that the victory of neoliberalism is the End of History, offering prosperity to the entire world. But beneath the rhetoric of free choice and free markets is the reality of corruption, subversion, coercion, debt peonage and neofeudalism. The reality is the creation and subsidy of polarized economies bifurcated between a privileged rentier class and its clients, eir debtors and renters. America is to be permitted to monopolize trade in oil and food grains, and high-technology rent-yielding monopolies, living off its dependent customers. Unlike medieval serfdom, people subject to this End of History scenario can choose to live wherever they want. But wherever they live, they must take on a lifetime of debt to obtain access to a home of their own, and rely on U.S.-sponsored control of their basic needs, money and credit by adhering to U.S. financial planning of their economies. This dystopian scenario confirms Rosa Luxemburg's recognition that the ultimate choice facing nations in today's world is between socialism and barbarism.

___________________

[1]Billy Bambrough, "Bitcoin Threatens To 'Take Power' From The U.S. Federal Reserve," Forbes , May 15, 2019. https://www.forbes.com/sites/billybambrough/2019/05/15/a-u-s-congressman-is-so-scared-of-bitcoin-and-crypto-he-wants-it-banned/#36b2700b6405.

[2]Vladimir Putin, keynote address to the Economic Forum, June 5-6 2019. Putin went on to warn of "a policy of completely unlimited economic egoism and a forced breakdown." This fragmenting of the global economic space "is the road to endless conflict, trade wars and maybe not just trade wars. Figuratively, this is the road to the ultimate fight of all against all."

[3]Address to St Petersburg International Economic Forum's Plenary Session, St Petersburg, Kremlin.ru, June 5, 2009, from Johnson's Russia List, June 8, 2009, #8,

[4] https://www.rt.com/business/464013-china-russia-cryptocurrency-dollar-dethrone/ . Already in the late 1950s the Forgash Plan proposed a World Bank for Economic Acceleration. Designed by Terence McCarthy and sponsored by Florida Senator Morris Forgash, the bank would have been a more truly development-oriented institution to guide foreign development to create balanced economies self-sufficient in food and other essentials. The proposal was opposed by U.S. interests on the ground that countries pursuing land reform tended to be anti-American. More to the point, they would have avoided trade and financial dependency on U.S. suppliers and banks, and hence on U.S. trade and financial sanctions to prevent them from following policies at odds with U.S. diplomatic demands.

[5]Don Weinland, "WTO rules against US in tariff dispute with China," Financial Times , July 17, 2019.


Mael Colium , July 21, 2019 at 8:53 am

Views from an economist who has been promoting neoclassical ideology for decades and then wonders when there are no alternatives to escape the narrative? Completely ignores how a monetary sovereign capacity can move away from US hegemony. The countries under the heel of the US are there because the IMF has engineered their economies in favour of the US. They could all threaten default at the same time and scare off the IMF horses – the US picks off individual countries by isolating them. Play the united game and the power of division practiced by the US would crumble. Just saying.

timbers , July 21, 2019 at 9:13 am

"They could all threaten default at the same time and scare off the IMF horses – the US picks off individual countries by isolating them. Play the united game and the power of division practiced by the US would crumble."

This is interesting. On a similar note, I've wondered why Russia has not defaulted on it's considerable USD and EUR debt (also too, why is Russia still doing debt in USD and thus strengthening U.S.?).

But only after she sells off all her U.S. holdings which will be (and have been already) seized by Out Law America.

I believe Russia would be on some sort of legal ground in doing so in response to the illegal sanctions imposed upon by by the EU and U.S.

And it will be interesting to see if Germany backs down on Nordstream II. Will she be a total puppet of the U.S.?

Of course, it's depressing Russia has not reformed it's internal economy so that she can grow faster. Maybe because while Putin and others don't want to take orders from Washington they are trapped in neoliberal economic thinking and can't think outside the box?

Until Washington changes, I firmly believe Russia and other nations must act as if their future hold one totally without U.S. interdependence and must create completely independent economies the U.S. can not touch. China? Hard to include China in that right now with so much trade with the U.S. but on the other hand their are reports U.S. related firms are starting to move out of China.

Synoia , July 21, 2019 at 11:57 am

Among the reports of companies leaving China, I've not seen any who declare they will return manufacturing to the US.

One of the major objectives of Tariffs, historically, is to favor local manufacture over imports. Other than defense, is that happening?

Boeing appears to be the poster child of how well a company with a large defense arm performs in the commercial sector.

Oh , July 21, 2019 at 12:44 pm

The corporations that moved manufacturing to Mexico and then subsequently to China will continue to seek cheaper labor so that their management can feather their own nests. They're not going to bring back manufacturing to the US. Look at these greedy corporations that sell Hanes underwear for example. They get rid of labels on their product to save less than a cent per item and spend money and spend millions in extolling the virtues of not having labesl on their tee shirts (Michael Jordon is the spokesman in the ad). Greed has no limits.

lazycat1984 , July 21, 2019 at 12:23 pm

"Maybe because while Putin and others don't want to take orders from Washington they are trapped in neoliberal economic thinking and can't think outside the box?"

Probably a lot there. Maybe the idea is that the system can work but needs to be fiddled with to make it more fair to B stringers like Russia and China.

The only time anyone has had any success escaping Anglo-American finance was Germany, Japan and the USSR in the 1930-45 period. The Soviets managed to keep their thing going until much later, but internal corruption ( where isn't this a factor?) did them in.

Oh , July 21, 2019 at 1:03 pm

Post WWII Japan kept away from the stranglehold of US Financiers by only purchasing technology and protecting their markets which other countries have to emulate.

Plenue , July 21, 2019 at 2:30 pm

"I've wondered why Russia has not defaulted on it's considerable USD and EUR debt (also too, why is Russia still doing debt in USD and thus strengthening U.S.?)"

They have. Russia has dropped 84% of the Treasury Securities it held. https://money.cnn.com/2018/07/30/investing/russia-us-debt-treasury/index.html

Notice how this hasn't effected anything; other parties just happily bought it all up. The Russians were stupid to drop it because Treasury Securities are a guaranteed return on investment. Because, stick with me here on this, the US government can't run out of US dollars.

Roger Boyd , July 21, 2019 at 4:10 pm

They have removed those assets from the very great possibility of seizure by the US and others (like the Venezuelan gold seized by the UK). When push comes to shove the US and its minions have no ethics abut breaking whatever laws they deem to be in their way.

They bought quite a lot of gold, which seems to be doing pretty well these days.

timbers , July 21, 2019 at 5:35 pm

You misunderstood me. Russia borrows USD and EUR from Western banks. That makes US – Russia's enemy – stronger. Russia should borrow from Russia not the US. I'm asking why don't they default on that debt. Your response assumed I was referring to Russia holding US assets. That's different. BTW I don't agree with you that Russia made a mistake getting rid of US assets given the US has stolen Russian real estate holdings in the US and other nations property held in US banks like Venezuela's USD deposits and gold.

Ian Perkins , July 21, 2019 at 9:16 am

Along the same lines, the summary starts with, "The first existential objective is to avoid the current threat of war by winding down U.S. military interference in foreign countries and removing U.S. military bases as relics of neocolonialism." Either would be taken as proof of evil anti-US intentions, leading to sanctions, coups, assassinations, regime change, and eventually outright war. As Mael Colium says, the US picks off individual countries by isolating them.

flora , July 21, 2019 at 1:11 pm

I noticed that. I think Michael Hudson is a classical economist pushing back against the currently reigning neo-classical economists. Classical economics is not Neo-classical economics. Saying Hudson promotes neo-classical economics is a mistake.

http://heteconomist.com/classical-vs-neoclassical-economics-tax-and-rent/

RBHoughton , July 21, 2019 at 9:42 pm

I believe his hope is for the world to recognise that Athens, Rome and Constantinoiple collapsed economically due to legislatively favoring creditors over debtors. Its a process we see alive in North America and Europe today. That's where he is coming from

jsn , July 21, 2019 at 11:36 am

"Views from an economist who has been promoting neoclassical ideology for decades and then wonders when there are no alternatives to escape the narrative?"

Really, you should read the article you posted this note under. What text is this comment in reference to?

Vato , July 21, 2019 at 12:57 pm

Michael Hudson promoting neoclassical ideology for decades?? Are we talking about the same Michael Hudson from UMKC?
Could you please provide one single link to a paper that was written by him relying on inductive methodology-based equilibrium theory??

Thank you

Off The Street , July 21, 2019 at 9:19 am

Peripherally related MMT 2nd of 3 articles

Trey N , July 21, 2019 at 9:20 am

There are a number of such "unclear sentences" in the article. Is the original article so poorly written/edited, or is it errata in the transcription here?

Either way, it's a shame that such errors detract from the clarity of the ideas presented. Is there any way to go back and clean this mess up??

barefoot charley , July 21, 2019 at 10:05 am

Reading Michael's fascinating history of debt forgiveness isn't much different. I'm grateful for his writing but suffer from his typing. Have proofreaders gone the way of buggy whips?

(And we must stipulate that typos here on NC are so buggy they're a feature. Which makes me wonder if/when Roman inscriptions went illiterate–first century BC civil wars, or third century AD Christian takeover? Valuable historic perspective!)

ex-PFC Chuck , July 21, 2019 at 12:36 pm

" Have proofreaders gone the way of buggy whips?"

Yes. The job has been outsourced to Spellcheck.

Vato , July 21, 2019 at 1:04 pm

The translations of his books into German are even worse. Lots of typos and often contentual mistranslation.

Adams , July 21, 2019 at 10:09 am

Support. I would go further and say the article should be taken down for editing. Needs to be translated into English.

Also, too, the final sentence: "This dystopian scenario confirms Rosa Luxemburg's recognition that the ultimate choice facing nations in today's world is between socialism and barbarism." is a rather large jump from the text. While many regular NC readers will agree, the connection for others is obscure.

Monty , July 21, 2019 at 6:02 pm

You should ask for a refund!

Oh wait

Anon ,