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Fragility of neoliberal globalization and US-China trade war

News Neoliberalism Recommended Links Blowback against neoliberal globalization TTP, NAFTA and other supernational trade treates Brexit revisited: Ethno-linguistic and "Cultural" Nationalism as antidote to Neoliberalism Attempt to suppress Huawei using security as the pretext
Anti-globalization movement US-China trade war Brexit as the start of the reversal of neoliberal globalization National Security State National Socialism and Military Keysianism Media-Military-Industrial Complex American Exceptionalism
American Imperialism, Transnational Capitalist Class and Globalization of Capitalism Technological imperialism Judicial Imperialism Cultural imperialism Neocons as USA neo-fascists Gangster Capitalism: The United States and the Globalization of Organized Crime Neocolonialism as Financial Imperialism
Pope Francis on danger of neoliberalism Predator state Disaster capitalism Ethno-lingustic Nationalism Neoliberal debt slavery Resurgence of neo-fascism as reaction on crisis of  neoliberalism Etc

From Wikipedia:

Many critics of trade liberalization, such as Noam Chomsky, Tariq Ali, Susan George, and Naomi Klein, see the Washington Consensus as a way to open the labor market of underdeveloped economies to exploitation by companies from more developed economies. The prescribed reductions in tariffs and other trade barriers allow the free movement of goods across borders according to market forces, but labor is not permitted to move freely due to the requirements of a visa or a work permit. This creates an economic climate where goods are manufactured using cheap labor in underdeveloped economies and then exported to rich First World economies for sale at what the critics argue are huge markups, with the balance of the markup said to accrue to large multinational corporations. The criticism is that workers in the Third World economy nevertheless remain poor, as any pay raises they may have received over what they made before trade liberalization are said to be offset by inflation, whereas workers in the First World country become unemployed, while the wealthy owners of the multinational grow even more wealthy.

Anti-globalization critics further claim that First World countries impose what the critics describe as the consensus's neoliberal policies on economically vulnerable countries through organizations such as the World Bank and the International Monetary Fund and by political pressure and bribery. They argue that the Washington Consensus has not, in fact, led to any great economic boom in Latin America, but rather to severe economic crises and the accumulation of crippling external debts that render the target country beholden to the First World.

Many of the policy prescriptions (e.g., the privatization of state industries, tax reform, and deregulation) are criticized as mechanisms for ensuring the development of a small, wealthy, indigenous elite in the Third World who will rise to political power and also have a vested interest in maintaining the local status quo of labor exploitation.

Some specific factual premises of the critique as phrased above (especially on the macroeconomic side) are not accepted by defenders, or indeed all critics, of the Washington Consensus. To take a few examples,[29] inflation in many developing countries is now at its lowest levels for many decades (low single figures for very much of Latin America). Workers in factories created by foreign investment are found typically to receive higher wages and better working conditions than are standard in their own countries' domestically-owned workplaces. Economic growth in much of Latin America in the last few years has been at historically high rates, and debt levels, relative to the size of these economies, are on average significantly lower than they were several years ago.

Despite these macroeconomic advances, poverty and inequality remain at high levels in Latin America. About one of every three people - 165 million in total- still live on less than $2 a day. Roughly a third of the population has no access to electricity or basic sanitation, and an estimated 10 million children suffer from malnutrition. These problems are not, however, new: Latin America was the most economically unequal region in the world in 1950, and has continued to be so ever since, during periods both of state-directed import-substitution and (subsequently) of market-oriented liberalization.[30]

Some socialist political leaders in Latin America are vocal and well-known critics of the Washington Consensus, such as Venezuelan President Hugo Chávez, Cuban ex-President Fidel Castro, Bolivian President Evo Morales, and Rafael Correa, President of Ecuador. In Argentina, too, the recent Peronist party government of Néstor Kirchner undertook policy measures which represented a repudiation of at least some Consensus policies (see Continuing Controversy below). However, with the exception of Castro, these leaders have maintained and expanded some successful policies commonly associated with the Washington Consensus, such as macroeconomic stability and property rights protection.

Others on the Latin American left take a different approach. Governments led by the Socialist Party of Chile, by Alan García in Peru, by Tabaré Vázquez in Uruguay, and by Luiz Inácio Lula da Silva in Brazil, have in practice maintained a high degree of continuity with the economic policies described under the Washington Consensus (debt-paying, protection to foreign investment, financial reforms, etc.). But governments of this type have simultaneously sought to supplement these policies by measures directly targeted at improving productivity and helping the poor, such as education reforms and subsidies to poor families conditioned on their children staying in school.


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[Mar 27, 2020] Senior officials in the Trump administration agreed to new measures to restrict the global supply of chips to China's Huawei Technologies, sources familiar with the matter said, as the White House ramps up criticism of China over coronavirus.

Mar 27, 2020 | www.moonofalabama.org

Likklemore , Mar 26 2020 21:56 utc | 66

Is the troop deployment along the Canadian border is to stop anyone interfering in the coming chaos?

Posted by: Ian2 | Mar 26 2020 20:34 utc | 36

You have a point there --the coming chaos after the COVID-19 Health crisis.

Wondering if Trudeau knows about the fences that were erected this morning?

Maybe I missed Trump's tweet on his declaration of War.

- He has imposed more sanctions on Iranians.
- Indicted Maduro of Venezuela on narco trafficking, sponsor of terrorism; placed a $15 million bounty on his head --straight from the Panama playbook.

and this beauty - continues his trade war on China because -----

Exclusive: U.S. prepares crackdown on Huawei's global chip supply - sources

(Reuters) - Senior officials in the Trump administration agreed to new measures to restrict the global supply of chips to China's Huawei Technologies, sources familiar with the matter said, as the White House ramps up criticism of China over coronavirus.

The move comes as ties between Washington and Beijing grow more strained, with both sides trading barbs over who is to blame for the spread of the disease and an escalating tit-for-tat over the expulsion of journalists from both countries.

Under the proposed rule change, foreign companies that use U.S. chipmaking equipment would be required to obtain a U.S. license before supplying certain chips to Huawei. The Chinese telecoms company was blacklisted last year, limiting the company's suppliers.[.]
"This is going to have a far more negative impact on U.S. companies than it will on Huawei, because Huawei will develop their own supply chain," trade lawyer Doug Jacobson said. "Ultimately, Huawei will find alternatives."[.]

Huawei has been doing just that - finding alternatives. Trade wars have been proven to end badly. They end up going hot.

[Mar 24, 2020] With the neocon foreign policy of "full Spectrum Dominance" the USA seems well trapped in its rail tracks

Mar 24, 2020 | www.unz.com

Daniel Chieh , says: Show Comment March 24, 2020 at 1:21 pm GMT

@Divine Right American conflicts with Russia are based partly on self-serving fictions of the military industrial complex that need an enemy for their continued existence, as well as some more realistic conflicts involving Eastern Europe and rival interests over oil prices. The US need for hegemony, which is highly tied to the value of the dollar as a reserve currency, further thrusts this forward and center(and indeed, into conflict with China as well). This all is intermingled with a [fake and hypocritical] generalized rejection of "authoritarian" governments.

China, on the other hand, has no real current conflicts with Russia – most conflicts involve sales of weaponry and political influence over central Asian states, nothing of vast importance at least compared to being their the target of an enormous world-spanning sanctions order or a dedicated trade war.

Your argument has the weird self-contradiction that the CCP both is supposedly the mind-controlling alien brain of all Asians, while at the same time, not actually benefiting from any specific conflict with Russia. This also ignores the fact that Asians tend to assimilate the highest by any population(at nearly 40% intermarriage in some segments, that Chinese students in particularly no longer tend to stay in the US( only 20% by 2017 ), and that a overwhelming part of the demographic increase by immigration is Indian with long historical and cultural rivalries with China. And far more than Chinese Americans, who often engage in racial masochism(witness Gordan Chang ), Indian Americans are vastly more active and influential in American politics both due to cultural reasons as well as higher verbal IQ. This isn't even hypothetical: Indian American political writers dominate National Interest articles stressing for more hawkish Chinese attitudes and were directly contributory to renaming the South China Seas conflict to the "Indo-Pacific region."

I do agree that the US has long since crippled its resource base. But there's no evidence that Trump, or anyone else, is demonstrating the barest inkling of trying to resolve it(or that it is even possible, given the bueaucratic overload and red tape of regulations). Gould once described evolution as a "drunkard's walk" between complexity, where organisms sometimes fall trapped inside rail tracks, unable to stumble out.

The US seems well trapped in its rail tracks.

Blinky Bill , says: Show Comment March 24, 2020 at 2:35 pm GMT
@Daniel Chieh

Indian American political writers dominate National Interest articles stressing for more hawkish Chinese attitudes and were directly contributory to renaming the South China Seas conflict to the "Indo-Pacific region."

Prime example Saagar Enjeti.

https://www.youtube.com/embed/vkqq74knVXM?feature=oembed

neutral , says: Show Comment March 24, 2020 at 3:25 pm GMT
@Blinky Bill This is just further proof that there is a growing Indian problem in America.

[Mar 24, 2020] Many Italians in Northern Italy sold their leather goods and textiles companies to China. Italy then allowed 100,000 Chinese from Wuhan/Wenzhou to move to Italy to work in these factories, with direct Wuhan flights. Result: Northern Italy is Europe's hotspot for Wuhan Coronavirus

Mar 24, 2020 | www.unz.com

Felix Keverich , says: Show Comment March 22, 2020 at 4:37 pm GMT

@Anatoly Karlin There is apparently a large colony (100.000) of Chinese workers in Lombardy, with direct flights between Lombardy and Wuhan, so this Italian outbreak is not a coincidence.

Many Italians in Northern Italy sold their leather goods and textiles companies to China. Italy then allowed 100,000 Chinese from Wuhan/Wenzhou to move to Italy to work in these factories, with direct Wuhan flights. Result: Northern Italy is Europe's hotspot for Wuhan Coronavirus

-- George Papadopoulos (@GeorgePapa19) March 18, 2020

UK had a "herd immunity" strategy from the beginning. They made no real effort at containment. British government allowed their people to become infected, and only began to change course after public outrage.

Europe Europa , says: Show Comment March 22, 2020 at 4:48 pm GMT
@Felix Keverich The large Chinese population in Italy has been completely ignored by the media, in fact China itself seems to have been let completely off the hook. The focus is now on how terrible Britain and the native British people are.

Someone even posted a Tweet above by a Vietnamese person trying to claim that BRITAIN of all countries is responsible for the outbreak in Vietnam, I mean what kind of ridiculous logic is that? Vietnam bloody BORDERS China, the origin and epicentre of the Coronavirus outbreak, and the Vietnamese are trying to say Britain is the cause? It beggars belief.

[Mar 24, 2020] Manufacturing in cheap Third World countries and rewarding the local compradors with a permission to migrate to the West as contributing factor to the coronavirus epidemic

Mar 24, 2020 | www.unz.com

Beckow , says: Show Comment March 22, 2020 at 6:56 pm GMT

@AP

less globalization outside North America/Europe/Japan/Australia

You are missing the point of globalization: manufacturing in cheap Third World countries and rewarding the local compradors with a permission to migrate to the West. That's the deal, that's what globalization is.

With NA-Europe-Japan all you get is tourism and travel. I would be surprised if we can at this point convince Chinese and the other cheap labor countries to do the work and forgo the hope of migration. It was a Faustian deal and those as we know end in hell.

utu , says: Show Comment March 22, 2020 at 7:01 pm GMT
@AP Calm down, man and stop the stupid blaming game. It seems that your Banderite spin also includes bashing Chinese which, on the second thought, should not be surprising as there is only one paymaster. Perhaps you should specialize in Ukraine only and leave China to more competent haters.

Compare Canada and Italy on Chinese residents: Canada has 5 times more Chinese than Italy but 62 times less infection cases and 539 times less fatalities than Italy (as of March 16). Furthermore France and UK have more Chinese than Italy.

What about tourists: In Canada 0.75 mil Chinese tourist but in Italy 3.5 mil Chinese tourists. So it must be the tourists, right?

So compare Japan with Italy on Chinese tourists: 8.4 mil Chinese tourist in Japan vs. 3.5 mil Chinese tourists in Italy. How many cases in Japan?

So what I am trying to convey is that the expression of the epidemic in different countries is not congruent with the number of Chinese residents or Chinese tourist.

We will never know where the patients zero (yes plural, there are many patients zero) really came from. For various political reasons we will not be told and what we will be told we must be skeptical about. I found interesting data about the first infected in British Columbia that has huge rather affluent Chinese population. There were as many Iranians as non-Iranians on the list.

In British Columbia cases 1 to 5 were from China though it does not appear they infected others while cases 6, 7, , 12 and 14, 15, 19 were traced to Iran. Then the case 22 was from Iran and also case 31. Case 32 was from Italy, case 35 was from Egypt and case 37 was from Germany. So out of first 37 cases over 50% were people came form Iran, Egypt, Germany and Italy. My point is that while Canada has huge Chinese population (1.7 mil) and gets 700,000 Chinese visitors per year it does not look like China was the main vector. In BC it is Iran and Europe.

https://nationalpost.com/news/canada/covid-19-coronavirus-canadian-cases

One should consider a possibility whether virus introduction to Iran and the Middle East did precede its introduction in China.

Now let's return to Italy. Most Chinese tourists go to Rome, Florence and Venice. These cities were not affected as much as Lombardy where there is not that many tourists. So we are told that Chinese workers could carry the virus. So look at Prato (in Tuscany near Florence) which has the highest density of Chinese population in Italy. Wiki lists 11,882 (6.32%) for Prato while the highest absolute number is Milan 18,918 (1.43%). The numbers are probably outdated as most likely they do not include illegal residents.

On March 11 Italy had 12,246 cases.
https://www.worldometers.info/coronavirus/country/italy/

So I checked what Prato had on March 11:

https://iltirreno.gelocal.it/prato/cronaca/2020/03/11/news/coronavirus-casi-triplicati-a-prato-e-il-giorno-piu-nero-1.38580402
Coronavirus, casi triplicati a Prato: è il giorno più nero

"In a single day the positive cases of coronavirus in the province of Prato have tripled: from 7 to 21 . It is the darkest day since the outbreak began. According to what was announced in the afternoon of today, March 11, by the bulletin of the regional council "

"Therefore, 314 patients are currently positive in Tuscany. This is the subdivision by signaling areas: 71 Florence, 32 Pistoia, 21 Prato (total Asl center: 124), 43 Lucca, 40 Massa Carrara, 34 Pisa, 16 Livorno (total North West Asl: 133), 12 Grosseto, 37 Siena , 14 Arezzo (total Asl southeast: 63)."

So clearly the 2nd largest Chinese community in Italy (and first in density) with 21 cases (out of 12,246 cases in Italy) did not contribute a lot to the corona virus outbreak in Italy.

utu , says: Show Comment March 22, 2020 at 7:01 pm GMT
@AP Calm down, man and stop the stupid blaming game. It seems that your Banderite spin also includes bashing Chinese which, on the second thought, should not be surprising as there is only one paymaster. Perhaps you should specialize in Ukraine only and leave China to more competent haters.

Compare Canada and Italy on Chinese residents: Canada has 5 times more Chinese than Italy but 62 times less infection cases and 539 times less fatalities than Italy (as of March 16). Furthermore France and UK have more Chinese than Italy.

What about tourists: In Canada 0.75 mil Chinese tourist but in Italy 3.5 mil Chinese tourists. So it must be the tourists, right?

So compare Japan with Italy on Chinese tourists: 8.4 mil Chinese tourist in Japan vs. 3.5 mil Chinese tourists in Italy. How many cases in Japan?

So what I am trying to convey is that the expression of the epidemic in different countries is not congruent with the number of Chinese residents or Chinese tourist.

We will never know where the patients zero (yes plural, there are many patients zero) really came from. For various political reasons we will not be told and what we will be told we must be skeptical about. I found interesting data about the first infected in British Columbia that has huge rather affluent Chinese population. There were as many Iranians as non-Iranians on the list.

In British Columbia cases 1 to 5 were from China though it does not appear they infected others while cases 6, 7, , 12 and 14, 15, 19 were traced to Iran. Then the case 22 was from Iran and also case 31. Case 32 was from Italy, case 35 was from Egypt and case 37 was from Germany. So out of first 37 cases over 50% were people came form Iran, Egypt, Germany and Italy. My point is that while Canada has huge Chinese population (1.7 mil) and gets 700,000 Chinese visitors per year it does not look like China was the main vector. In BC it is Iran and Europe.

https://nationalpost.com/news/canada/covid-19-coronavirus-canadian-cases

One should consider a possibility whether virus introduction to Iran and the Middle East did precede its introduction in China.

Now let's return to Italy. Most Chinese tourists go to Rome, Florence and Venice. These cities were not affected as much as Lombardy where there is not that many tourists. So we are told that Chinese workers could carry the virus. So look at Prato (in Tuscany near Florence) which has the highest density of Chinese population in Italy. Wiki lists 11,882 (6.32%) for Prato while the highest absolute number is Milan 18,918 (1.43%). The numbers are probably outdated as most likely they do not include illegal residents.

On March 11 Italy had 12,246 cases.
https://www.worldometers.info/coronavirus/country/italy/

So I checked what Prato had on March 11:

https://iltirreno.gelocal.it/prato/cronaca/2020/03/11/news/coronavirus-casi-triplicati-a-prato-e-il-giorno-piu-nero-1.38580402
Coronavirus, casi triplicati a Prato: è il giorno più nero

"In a single day the positive cases of coronavirus in the province of Prato have tripled: from 7 to 21 . It is the darkest day since the outbreak began. According to what was announced in the afternoon of today, March 11, by the bulletin of the regional council "

"Therefore, 314 patients are currently positive in Tuscany. This is the subdivision by signaling areas: 71 Florence, 32 Pistoia, 21 Prato (total Asl center: 124), 43 Lucca, 40 Massa Carrara, 34 Pisa, 16 Livorno (total North West Asl: 133), 12 Grosseto, 37 Siena , 14 Arezzo (total Asl southeast: 63)."

So clearly the 2nd largest Chinese community in Italy (and first in density) with 21 cases (out of 12,246 cases in Italy) did not contribute a lot to the corona virus outbreak in Italy.

Daniel Chieh , says: Show Comment March 22, 2020 at 7:10 pm GMT
@AP

If this started in the USA and spread elsewhere the world would have good cause to condemn the USA and to judge any subsequent efforts by Americans to help others as "the least they could do."

Chinese shipments of medical goods are actually to the risk of the own population, where hospitals are still recovering. While in some ways it is a blatant PR play, its quite a significant cost amd self-risk that goes beyond "the least they could do."

[Mar 24, 2020] Chinese settlers in northern Italy.

Mar 24, 2020 | www.unz.com

AP , says: Show Comment March 22, 2020 at 3:09 pm GMT

@TheTotallyAnonymous

The Chinese are showing an unprecedented amount of humanity, morality and basic decency by giving medical aid to more than half the world in genuinely useful forms despite almost everyone shitting on them by calling this a "Chinese virus" and other garbage.

... ... ...

Here is an article about them in the New York Times. Written soon before the onset of the plague. It would not be written now – there's too obvious a connection between open borders, multiculturalism, and death:

https://www.nytimes.com/2019/12/05/business/italy-china-far-right.html

As Prato's factories went dark, people began arriving from China to exploit an opportunity.

Most were from Wenzhou, a coastal city famed for its entrepreneurial spirit. They took over failed workshops and built new factories. They imported fabric from China, sewing it into clothing. They cannily imitated the styles of Italian fashion brands, while affixing a valuable label to their creations -- "Made in Italy."

Chinese groceries and restaurants have emerged to serve the local population. On the outskirts of the city, Chinese-owned warehouses overflow with racks of clothing destined for street markets in Florence and Paris.

Among Italian textile workers who have veered to the right, the arrival of the Chinese tends to get lumped together with African migration as an indignity that has turned Prato into a city they no longer recognize.

"I don't think it's fair that they come to take jobs away from Italians," says Ms. Travaglini, the laid-off textile worker. She claims that Chinese companies don't pay taxes and violate wage laws, reducing pay for everyone.

Since losing her job at a textile factory nearly three years ago, Ms. Travaglini has survived by fixing clothes for people in her neighborhood. "There are no jobs, not even for young people," she says.

Chinese-owned factories have jobs, she acknowledges, but she will not apply. "That's all Chinese people," she says, with evident distaste. "I don't feel at ease."

:::::::::::

Lots of Ukrainians there also. They don't bring such a virus to Italy, but they bring the virus back to Ukraine.

::::::::::

So nice PR move after killing lots of European old people. One of the sacrificed in Milan to this virus, Vittorio Gregotti, was an architect who helped build the city. Killed by the Chinese virus. A symbol of native Italy replaced by migration.

[Mar 24, 2020] The Chinese have internal natural resources and have been vigorously working world wide to obtain rights to, develop, and extract mineral and energy resources in order to keep production going

Mar 24, 2020 | www.unz.com

Alfa158 , says: Show Comment March 22, 2020 at 3:25 pm GMT

@Kim The Chinese have internal natural resources and have been vigorously working world wide to obtain rights to, develop, and extract mineral and energy resources in order to keep production going. See the documentary Empire of Dust about Chinese getting the rights to African resources and developing the infrastructure to extract them. Also following the supposed "war for oil" in Iraq the oil contracts went almost entirely to China. China has a lot of the mines for the rare earths needed in modern technological products. The largest single mine used to be in California. A Chinese company bought and re-opened it.

In effect they already own or have contracts for what they need and are much less leveraged than we are.

As to whether their customers can continue to pay for it, that is a different kettle of fish. The rest of us have been running up our credit card with them. We have been paying it off by selling off our countries piece by piece through Chinese purchases of real estate, businesses, port facilities etc. As China has grown economically they have been developing their internal market to reduce dependence on Wal-Mart so that might reduce the impact of poorer foreign markets.

In any event they own a huge infrastructure in plants tooling and human expertise for making things. Our leaders have deliberately hollowed ours out for profits and cheaper consumer goods.

[Mar 19, 2020] Much of the US elite is sinecured in the media, foreign policy, and national security state establishments

Mar 19, 2020 | www.unz.com

Anonymous [252] Disclaimer , says: Show Comment March 18, 2020 at 6:53 pm GMT

@Sean

Here was me thinking the Western elites wanted to continue making money on Chinese growth.

Much of the US elite is sinecured in the media, foreign policy, and national security state establishments, whose status depends on the relative power and prestige of the US state. The relative power and prestige of the US state is jeopardized by the continued growth of China.

If you follow US coverage of China in the US, you'll find that this US elite is generally critical of China, although style and presentation vary. The liberal "China watchers" among the US elite in the media and foreign policy establishment tend to focus on human rights, democracy promotion, and liberalism as vectors to attack the Chinese state. They tend to be polished and more subtle rather than explicitly hostile.

The US elite in the national security establishment tend to be more overt about military containment and or confrontation with China, and on developing an anti-China coalition in the Pacific.

[Mar 09, 2020] COVID-19 burst the asset price bubble. In a new low, Pompeo passes buck to Beijing

Mar 09, 2020 | www.moonofalabama.org

CitizenX , Mar 9 2020 2:58 utc | 57

"Perhaps this will finally burst the out-of-control asset price bubble and drop-kick the Outlaw US Empire's economy into the sewer as the much lower price will rapidly slow the recycling of what remains of the petrodollar. Looks like Trump's reelection push just fell into a massive sinkhole as the economy will tank."

Posted by: karlof1 | Mar 9 2020 1:29 utc | 49
....

Call me crazy- but this Virus provides great cover as to why the economy plummets, the Murikan sheeple will eat it up. Prepare for the double media blitz on the virus AND the economy tanking as its result.

Don't worry...just continue to go shopping and take those selfies.


vk , Mar 9 2020 3:37 utc | 60

Pompeo accuses China of giving "imperfect data" on COVID-19, blame it for US failure in containing the virus:

In new low, Pompeo passes buck to Beijing

It will be hard for the American people to swallow that one. From day 1 I've read a lot of "articles" and "papers" from know-it-all Western doctors and researchers from commenters here in this blog, all of them claiming to have very precise and definitive data on what was happening. A lot of bombastic conclusions I've read here (including one that claimed R0 was through the roof - it's funny how the R0 is being played down after it begun to infect the West; suddenly, it's all just a stronger cold...).

And that's just here, in MoA's comment section. Imagine what was being published in the Western MSM. I wouldn't be surprised there was a lot of rednecks popping their beers celebrating the fall of China already.

--//--

China to back global virus fight with production boost

Since China allegedly had a lot of idle industrial capacity - that is, if we take the Western MSM theories seriously (including the fabled "ghost towns" stories) - then boosting production wouldn't be a problem to China.

Disclaimer: it's normal for any kind of economy - socialist or capitalist - to have a certain percentage of idle capacity. That's necessary in order to insure the economy against unexpected oscillations in demand and to give space of maneuvre for future technological progress. Indeed, that was one of the USSR's mistakes with its economy: they instinctly thought unemployment should be zero, and waste should also be zero, so they planned in a way all the factories always sought to operate at 100% capacity. That became a problem when better machines and better methods were invented, since the factory manager wouldn't want to stop production so that his factory would fall behind the other factories in the five-year plan's goals. So, yes, China indeed has idle capacity - but it is mainly proposital, not a failure of its socialist planning.

--//--

... ... ...

vk , Mar 9 2020 3:56 utc | 61
This is important. The only reason I didn't comment about it is I hadn't the data:

Follow the money: Understanding China's battle against COVID-19

By the latest count, in addition to yuan loans worth 113 billion U.S. dollars granted by financial institutions and more than 70 billion U.S. dollars paid out by insurance companies, the Chinese government has allocated about 13 billion U.S. dollars to counter fallout from the outbreak.

The numbers could look abstract. However, breaking the data down reveals how the money is being carefully targeted. The government is allocating the money based on a thorough evaluation of the system's strengths.

...

Local governments are equipped with more local knowledge that allows them to surgically support key manufacturers or producers that are struggling.

Together, they have borne the bulk of the financial responsibility with an allocation of equivalently more than nine billion U.S. dollars. It is carefully targeted, divided into hundreds of thousands of individual grants that are tailor-made by and for each county, town, city and business.

This is the mark of a socialist system.

The affected capitalist countries will simply use monetary devices (so the private sector can offset the losses) and burn their own reserves with non-profitable palliatives such as masks, tests, other quarantine infrastructure etc.

Pft , Mar 9 2020 4:44 utc | 64
Sounds like US socialism. Basically corporate socialism. Loans are just dollars created out of thin air, same as in US. Insurance payouts come from premiums, nothing socialist about that, pure capitalism. Government hand outs to provinces, cities, state owned corporations,well all of these are run by the party elite, its called pork. US handed out a lot of pork during the last financial crisis. None of it trickled down to the little people. I doubt it does in China either.

All crisis are opportunities for the elite to get richer. Those Biolake firms in Wuhan will make out like bandits. Chinese firms will double the price of API's sold to India and US. China will knock out the small farmer in the wake of concurrent chicken and swine flu so the big enterprises take over, a mimicry of the US practice over the last century. China tech firms will double up on surveillance apps, censoring tools, surveillance and toughen up social credit restrictions. 5G will allow China to experiment with nanobots to monitor citizens health from afar (thanks to Harvards Dr Leiber).

Oh yes, socialism with Chinese characteristics is a technocratic capitalists dream. Thats why the West has never imposed sanctions on China since welcoming them to the global elites club. Sanctions are reserved for those with true socialism, especially those who preach equality and god forbid, democracy.

uncle tungsten , Mar 9 2020 8:35 utc | 83

CitizenX #57

Call me crazy- but this Virus provides great cover as to why the economy plummets, the Murikan sheeple will eat it up. Prepare for the double media blitz on the virus AND the economy tanking as its result.


Don't forget the Russians.. They have to be to blame. See they just kept the price of oil low so now the rest of the world gets gas cheaper than the USA. The USA motorist now has to bail out the dopey frackers and shale oil ponzis.

Global envy will eat murica. Maybe they will just pull out all their troops and go home. ;)

[Mar 06, 2020] Over eighty percent of the medicines used in the United States are manufactured in China

Mar 06, 2020 | www.unz.com

Anon 2 , says: Show Comment February 25, 2020 at 5:39 am GMT

As far as I know, no one here has mentioned that because of the globalization drive by Clinton, Bush, and Obama, 85% of the medicines used in the United States are manufactured in China. Even U.S. troops depend on medicines from China! China could bring the entire health system in the U.S. to a stop in a matter of months. This is what our inept elites have done to America – they gave away the shop. People are beginning to realize that manufacturing our own medicines is a matter of national security but it'll take years to bring the factories back to the U.S. So much for globalization.

Rod Dreher's blog IMHO is the best source for quick info on the coronavirus because he is in touch with American M.D.'s who are married to women from China who in turn are in contact with relatives at home and the Chinese media. Of course, Rod himself can be hysterical at times but, apparently, that's what it takes to have a successful blog. The M.D.'s are reporting that the U.S. is already beginning to run out of certain medications, and recommend stocking up on the basic necessities, i.e., recommend assuming the mental framework of the survivalists – have plenty of canned goods, etc and refill your prescriptions ASAP. This is what many people here seem to forget – the coronavirus's indirect effects due to having no access to medications may be much worse than the direct pathogenic effects.

[Mar 05, 2020] What is Globalism? Globalism is Neoliberalism which is Corporatism

Mar 05, 2020 | www.reddit.com

The term Globalism has been around from at least the 1960's but its origins come from Cecil Rhodes Round Tables which were set up around 1900 as a mechanism for Rhodes and his allies from the British and South African Oligarchs to take over the world. Globalism is another term for Neoliberalism, which is another term for Corporatism. It is principally pushed by Fake Liberals who pretend to be lefties, but are actually Corporatists or Corporate Fascists.

Globalism

The aim of Globalism is to transfer all power and wealth from ordinary people to a handful of Banking Elites, Oligarchs and major Corporate CEO's. The ultimate aim is to set up an anti democratic, authoritarian one world government where ordinary people are effectively serfs and have no say, in a system of Neo-Feudalism. We are very nearly already there.

This is being constantly carried out by transferring ever increasing powers from elected local governments to massive governmental Super States, such as the EU or the Federal government in Washington DC.

A great example of a Globalist policy was Obama's Corporate Power Grab TPP and TTIP, Corporate protectionist deals, which transferred power from elected legislatures to transnational tribunals staffed by Corporate lawyers acting as Judge and Jury.

TPP, TISA and TTIP agreements are massive Corporate power grabs dressed up as trade deals http://ian56.blogspot.com/2015/11/tpp-tisa-and-ttip-agreements-are.html

"Neo-libs" are NOT Centrists. They are extremist supporters of Perpetual War, Corruption, Corporatism, Authoritarianism & the Transfer of all wealth & power from ordinary ppl to the Oligarchs & CEOs in the top 0.01%.

What is Globalism? Clue: Its NOT what the Corporate Establishment tells you it is http://ian56.blogspot.com/2017/11/what-is-globalism.html

Neoliberalism. The ideology that dare not speak its name is actually a New, More Dangerous, Form of Corporatism http://www.softpanorama.org/Skeptics/Political_skeptic/Neoliberalism/index.shtml

[Feb 29, 2020] Boris Johnson s Incredible Landslide by Catte Black

Notable quotes:
"... Corbyn's weakness was always the elephant in the room but was fully revealed when he had to step up to plate and fight. No leader can survive without being able to fight his enemies and no country should be led by such a person. Saddly he squandered the enormous opportunity handed to him in the last election: in hindsight, that opportunity was handed to him by an electorate steeped in wishful thinking ..."
"... Of course it's criticism of the state of Israel. And of course that's not anti-Semitism. But the label "anti-Semitism" is the kiss of death to the executive class i.e. that middle layer who "inform" the masses. If you are one of them and you get called "anti-Semitic", it's the equivalent of your boss saying, "I want a word – and bring your coat!" ..."
"... Corbyn seems like a nice enough guy, an honest, yet unremarkable footsoldier MP, but the idea he was suited to leading the Labour Party into an epic struggle with a revitalised Tory Party under a strong leader like Boris Johnson, is a fantastic notion. Johnson had to be cut down to size, before the election. ..."
"... And, finally, Corbyn could have turned the media bias against him to his advantage, only he's not suited to the strategy that's required. That strategy is the one Donald Trump employed, taking on the media and identifying them as the enemy and explaining why they publish lies. Corbyn should have publically taken on both the Guardian and the BBC, rather than appeasing them, unsuccessfully, because appeasing them isn't possible. ..."
"... Why didn't Corbyn express anger and shock when he was accused of being a paedophile, sorry, an anti-Semite? Those MPs who went along with that sordid narrative, should have been kicked out of Labour immediately by Corbyn himself. ..."
"... "A big part of why Labor and Corbyn lost so badly is the complete abdication of "the Left" on Brexit. The left were supposed to be anti-globalists, in which case their task was to join battle offering an egalitarian, left-populist version of Brexit which would have benefited the people. Instead, faced with a real decision and a real opportunity they punted and ran home to globalist mama. This removed one of the main reasons to bother supporting them. ..."
"... The point about the EU not being directly responsible for Tory austerity is technically true but it is nonetheless a neo liberal monster crushing the shit out of the most vulnerable ..."
"... Especially when it comes to countries like Greece. I don't understand the constant veneration of the EU. By design, our membership did nothing to protect us from the carnage of this Tory crime wave. The EUs constitutional arrangements contains baked in obligations to maintain permanent austerity in the service of ever greater corporate profit. ..."
Dec 13, 2019 | off-guardian.org

... ... ...

No one feels like recalling, for example, that more people voted against the Tories than for them (13.9mn for and 16.2mn against).

Or that 10.3 million people still voted Labour despite the entirety of the unprecedentedly vicious and Stalinist hate campaign conducted against them – and Corbyn in particular – since the latter became leader in 2015.

Which fact, along with Labour's near-win in 2017 and the surprise Brexit victory in 2016, implies the mainstream media's ability to direct and manipulate public opinion is a lot less wholesale and guaranteed than we oftentimes assume, and that this is unlikely to be a single explanation for yesterday's result.

More importantly, no one – even those who are boggling at the implausibility – is questioning the validity of the result.

No one.

It's as if even suggesting election fraud can happen in a nice majority-white western country like the UK is improper and disrespectful. Election fraud is – as every good racist knows – done by brown people or Orientals, or 'corrupt' eastern European nations, not by fine upstanding empire builders like the British.

This seems to be so much of a given that the results of any vote are simply accepted as 100% valid – no matter how improbable they may seem.

And apparently even in the face of clear evidence for at least some level of shady activity.

Remember this? It only happened on Wednesday but it's already some way down the Memory Hole.

Laura Kuenssberg, being the true idiot she really is, blabbing off on prime time telly about apparently institutional election malpractice – and not even having the basic brains to see the import of what she's letting slip.

There's been a lot of effort expended in minimising the significance of this in social media and in the mainstream press – and indeed by resident trolls on OffG. There have been claims it's 'routine' – as if that somehow makes it ok. Or that Kuenssberg was misinformed, or 'tired'.

.... ... ...

Consider the facts

Labour's socialist policies are known to be popular . Poverty has increased so much under the Tories that 22% of the country now lives below the poverty line , including 4 million children. 200,000 people have died as a result of austerity-driven cuts, foodbank use is increasing by tens of thousands year on year . The mortality rate is going up and up . And Boris Johnson was caught in a direct, proven lie about "protecting" the NHS.

And after all this, Labour heartlands – red since World War 2, through Thatcher and Foot and every anti-Labour hate campaign the media could muster – all voted Conservative?

Does that seem likely?

I don't know, all I do know is I think that discussion needs to start. I think it's time to think the unthinkable, and at least open the prospect of electoral fraud up for real discussion.

How secure is our electoral process? Can results be stage-managed, massaged or even rigged? What guarantees do we have that this can't happen here? In an age of growing corruption and decay at the very top, do the checks and balances placed to safeguard our democracy sill work well, or even at all?

This Friday the Thirteenth, with BoJo the Evil Clown back in Downing Street, looks like a good moment to get it going.


aspnaz ,

Corbyn's weakness was always the elephant in the room but was fully revealed when he had to step up to plate and fight. No leader can survive without being able to fight his enemies and no country should be led by such a person. Saddly he squandered the enormous opportunity handed to him in the last election: in hindsight, that opportunity was handed to him by an electorate steeped in wishful thinking. Should he apologise to his supporters, probably not, they backed the wrong horse but the limp was visible from day one.

Bootlyboob ,

NHS in for a rough ride. https://m.youtube.com/watch?v=JpseLa9_txw

Gezzah Potts ,

How do you mean 'weird'?

That inequality and poverty will continue increasing under neoliberal economic policies, and the majority of us will continue being ground into the dirt, or that Julian Assange will end up in the U.S for certain to face a Stalinesque show trial, or the observation about George Galloway.

George Mc ,

I know it's bad for my health but oh I just can't stop myself. Had another Groan trip. Here's one from that good time gal Jess Phillips:

https://www.theguardian.com/commentisfree/2019/dec/14/working-class-voters-didnt-trust-labour-jess-phillips

I only supply the link to see if anyone can see any actual content in this. I suppose it must be a real cushy number to get paid for pitching in a lot of foaming waffle that feels purposeful but remains totally non-commital. That and those nice cheques rolling in from that Hyslop and Merton quiz fluff.

George Mc ,

You have to understand that it's all showbiz. Why did the Tories prefer Boris to Jeremy Hunt? Because Hunt looked and sounded like the oily little tyke everyone wanted to kick. Whereas Boris was the cutesie country womble from a Two Ronnies sketch. When Boris appeared on his test outing as host for Hignfy, all he had to do was to be incompetent i.e. all he had to do was turn up. Oh how we all laughed.

As for Jess – well, she's the ballsy fake prole tomboy – like a WOKE verson of Thatcha. I doubt anyone is "buying this" (to use one of the Americanisms we'll all be spouting as we become the 51st state) but it's all part of "the movie".

ricked by its sharp thorn anywhere near the heart. Don't know what the street name will be for it but it has two current codewords i heard 'stellar' & 'jessa'.

George Mc ,

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When I said "come clean" I meant as in "reveal yourself". I really think you should calm down. Take some deep breaths. Have a nice cup of tea.

Chris Rogers ,

Alan,

By all means comment, but when you slander those who actually felt it important that their vote counted, that their opinion mattered and then were told to fuck off by the very people asking them for their opinion, its expected you get blow back, which is what has happened.

Now, may i enquire, do you have a belief in democracy and upholding democratic outcomes, do you believe that Russian interference actually resulted in the Brexit vote itself, and do you believe that the working class is so fucking pig ignorant that it should never be allowed to vote.

In summation, are you a Blairite by any chance as they way you communicate shows an utter contempt for those poor sods slagged off by Remainiacs for so long to just fuck off.

As for economic decline, strange, but the UK is one of the top 10 wealthy nations globally, much of said wealth now from the FIRE Economy, which means its extractive and put to no real purpose, whilst the break-up of the Union is up to the constituent parts itself – as i support Irish reunification, i don't weep for Northern Ireland, whilst the Scots have every right o be free of Westminster, its not as if they held an actual Referedum on it prior to the signing of the Act of Union is it.

And as for wales, well, here's a small country who's political establishment are incapable of recognising it elected to Leave the EU, which sometimes has aspirations itself to Independence, an Independence it will never gain due to the fact nearly 800K English live within our lands, but the fantasists persist none the less.

Now, as the EU, via the Treaty named after Lisbon is very much a neoliberal organisation, one that puts monetary union above the welfare of its own citizens, please explain why I must support such an Institution that does not benefit the average Joe in most member States?

Alan Tench ,

What you must remember is that a democratic decision isn't always a good one. In my view, the current one concerning Brexit, is a bad one. The fact that a majority support it doesn't make it good or right. We just have to live with it. Consider the death penalty. I'm sure the vast majority of voters in this country would vote in favour of it. Would that might it right?

Ruth ,

Don't blame them. In all likelihood they had their votes hijacked by MI5

Alan Tench ,

All this anti-Semitism stuff – anyone know what it's about? I assume it had zero influence on the electorate. Just how does it manifest itself? Is most of it – maybe nearly all of it – concerned with criticism of the state of Israel? If so, it's not anti-Semitism .

George Mc ,

Of course it's criticism of the state of Israel. And of course that's not anti-Semitism. But the label "anti-Semitism" is the kiss of death to the executive class i.e. that middle layer who "inform" the masses. If you are one of them and you get called "anti-Semitic", it's the equivalent of your boss saying, "I want a word – and bring your coat!"

MichaelK ,

I think the Labour Party's election strategy, and long before, was fatally flawed. I'm shocked by it. How bad it was. First they should never have agreed to an election at this time. Wait, at least until Spring. The idea, surely, was to keep weakening Johnson's brand and splitting the Tories apart. Johnson wanted an election for obvious reasons, that alone should have meant that one did everything in one's power not to give him what he wanted. Labour did the exact opposite of what they should have done, march onto a battleground chose by Johnson.

Of course one can argue that the liberals and the SNP had already hinted that they would support Johnson's demand, but Labour could have 'bought them off' with a little effort. Give the SNP a pledge on a second referendum and give the Liberals a guarantee of electoral reform, whatever.

The Liberals actually had an even more stupid and incompetent leadership than Labour and suffered a terrible defeat too. Why is it that it's only the Tories who know how to play the election game, usually?

Corbyn seems like a nice enough guy, an honest, yet unremarkable footsoldier MP, but the idea he was suited to leading the Labour Party into an epic struggle with a revitalised Tory Party under a strong leader like Boris Johnson, is a fantastic notion. Johnson had to be cut down to size, before the election.

Allowing the Tories to become the People's Party, the Brexit Party in all but name; was a catastrohic mistake by Labour; unforegivabel really.

And, finally, Corbyn could have turned the media bias against him to his advantage, only he's not suited to the strategy that's required. That strategy is the one Donald Trump employed, taking on the media and identifying them as the enemy and explaining why they publish lies. Corbyn should have publically taken on both the Guardian and the BBC, rather than appeasing them, unsuccessfully, because appeasing them isn't possible.

Why didn't Corbyn express anger and shock when he was accused of being a paedophile, sorry, an anti-Semite? Those MPs who went along with that sordid narrative, should have been kicked out of Labour immediately by Corbyn himself. He needed to be far more aggressive and proactive, taking the fight to his enemies and using his position to crush them at once. Call me a kiddy fiddler and I'll rip your fucking throat out! Only Corbyn was passive, defencesive, apathetic and totally hopeless when smeared so terribly. People don't respect a coward, they do respect someone who fights back and sounds righteously angry at being smeared so falsely. Corbyn looked and sounded like someone who had something to hide and appologise about, which only encouraged the Israeli lobby to attack him even more! Un-fuckin' believable.

What's tragic is that the right understood Corbyn's weaknesses and character far better than his supporters, and how to destroy him.

Ruth ,

I agree with you about the election timing

Derek ,

And, finally, Corbyn could have turned the media bias against him to his advantage, only he's not suited to the strategy that's required.

Yes you are absolutely right, he should have stolen a journalists phone or hid in a fridge, maybe stare at the ground when shown a picture of a child sleeping on a hospital floor. Now that's turning turning events to your advantage right?

He made many mistakes and you are right, but caving into "remain" the perceived overturning of the referendum by the Labour party is what dunnit, the final nail in his coffin. I am sorry to see him go.

tonyopmoc ,

Judging by the spelling of "Labour", I guess an American wrote this on The Moon of Alabama's blog. It is however very accurate and I know that MOA is a German man, running his blog from Germany. His analyses, are some of the best in the world.

Tony

"A big part of why Labor and Corbyn lost so badly is the complete abdication of "the Left" on Brexit. The left were supposed to be anti-globalists, in which case their task was to join battle offering an egalitarian, left-populist version of Brexit which would have benefited the people. Instead, faced with a real decision and a real opportunity they punted and ran home to globalist mama. This removed one of the main reasons to bother supporting them.

Posted by: Russ | Dec 13 2019 7:09 utc | 33″

MichaelK ,

I thought the left were supposed to be internationalists too? I dunno. I think they should never have supported the referendum scam in the first place. If the Tories wanted it, that alone should have made them oppose it. Look at what's happened, the referendum and Brexit have massively benefitted the Tories and crushed everyone else. Isn't that an objective fact, or am I missing something; seriously?

What does 'anti-globalist' really mean? The tragedy was allowing the Tories to blame Europe for the devastating consequences of their own 'austerity' policies which hit the North so hard. These policies originated in London, not Bruxelles!

The truth is harsh. Corbyn was a terrible leader with awfully confused policies that he couldn't articulate properly and a team around him that were just as bad.

Pam Ryan ,

The point about the EU not being directly responsible for Tory austerity is technically true but it is nonetheless a neo liberal monster crushing the shit out of the most vulnerable.

Especially when it comes to countries like Greece. I don't understand the constant veneration of the EU. By design, our membership did nothing to protect us from the carnage of this Tory crime wave. The EUs constitutional arrangements contains baked in obligations to maintain permanent austerity in the service of ever greater corporate profit.

Thom ,

'Incredible' is the word. We're expected to believe that for all his personal and intellectual flaws, Johnson achieved a landslide on the scale of Blair and Thatcher; that he drew in Leave supporters from traditional Labour voters while holding on to Remain Tories; that all three major UK opposition parties flopped, including the one party pushing for outright Remain; and that turnout fell even though millions registered just before the election. Sorry, but it doesn't add up.

nottheonly1 ,

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What just happened was an inverted U.S. selection. In the U.S., a confused rich man got elected, because the alternative was a psychopathic war criminal. In the U.K. a confused upper class twat got elected, because the alternative was too good to be true.

Something like that?

tonyopmoc ,

Something strange going on in Sedgefield. What the hell is Boris Johnson doing there today? Tony Blair Labour, Boris Johnson Tory. What's the difference? Same neocons. Same sh1t?

tonyopmoc ,

Dungroanin, Jeremy Corbyn is 70 now. He's done his bit. Now its time for him to take it easy.

Incidentally "Viscount Palmerston was over 70 when he finally became Prime Minister: the most advanced age at which anyone has ever become Prime Minister for the first time."

George Mc ,

The Groan is keen to highlight the sheer thanklessness of the BBC's undying fight to objectively bring The Truth to the masses:

https://www.theguardian.com/media/2019/dec/14/bbc-staff-express-fear-of-public-distrust-after-election-coverage

And for all the tireless work they do, they are open to accusations of "conspiracy theory" and worse:

"The conspiracy theories that abound are frustrating. And let's be clear – some of the abuse which is directed at our journalists who are doing their best for audiences day in, day out is sickening. It shouldn't happen. And I think it's something social media platforms really need to do more about."

Sickening social media abuse? Echoes of all those frightfully uncivil – and never verified – messages that wrecked poor little Ruth Smeeth's delicate health.

Thom ,

The only way the BBC and Guardian will understand if people don't pay the licence fee and don't click on their articles (and obviously don't contribute!). Hit them in the pockets.

George Mc ,

It didn't take long for the Groaniad to "dissect" the Labour defeat. Here we get THE FIVE REASONS Labour lost the election:

https://www.theguardian.com/politics/2019/dec/13/five-reasons-why-labour-lost-the-election

Interesting. Note the space given to Blairite toadies Ruth Smeeth and Caroline Flint. Note the disingenuousness of this:

"In London, antisemitism and what people perceived as the absence of an apology appeared to be a key issue."

It's always suspicious when we get that expression "what people perceived". What "people"? And note that the dubiousness relates to the absence of an apology for anti-Semitism – not the anti-Semitism itself which is, of course, taken for granted.

Also note the conclusion:

"With a new Conservative government led by Boris Johnson poised for office, the Guardian's independent, measured, authoritative reporting has never been so vital."

Yes – The Groaniad is yer man, yer champion, yer hero!

[Feb 29, 2020] A very interesting and though provoking presentation by Ambassador Chas Freeman "America in Distress: The Challenges of Disadvantageous Change"

Highly recommended!
Notable quotes:
"... the American-led takedown of the post-World War II international system has shattered long-standing rules and norms of behavior. ..."
"... The combination of disorder at home and abroad is spawning changes that are increasingly disadvantageous to the United States. With Congress having essentially walked off the job, there is a need for America's universities to provide the information and analysis of international best practices that the political system does not. ..."
Feb 29, 2020 | angrybearblog.com

likbez , February 29, 2020 7:38 pm

A very interesting and though provoking presentation by Ambassador Chas Freeman "America in Distress: The Challenges of Disadvantageous Change"

https://www.youtube.com/watch?v=mvILLCbOFo4

I think this would be very informative for anybody seriously interested in the USA foreign policy. Listening to him is so sad to realize that instead of person of his caliber we have Pompous Pompeo, who forever is frozen on the level of a tank repair mechanical engineer, as the Secretary of State.

Published on Feb 24, 2020

In the United States and other democracies, political and economic systems still work in theory, but not in practice. Meanwhile, the American-led takedown of the post-World War II international system has shattered long-standing rules and norms of behavior.

The combination of disorder at home and abroad is spawning changes that are increasingly disadvantageous to the United States. With Congress having essentially walked off the job, there is a need for America's universities to provide the information and analysis of international best practices that the political system does not.

Ambassador Chas W. Freeman, Jr. is a senior fellow at Brown University's Watson Institute for International and Public Affairs, a former U.S. Assistant Secretary of Defense, ambassador to Saudi Arabia (during operations Desert Shield and Desert Storm), acting Assistant Secretary of State for African Affairs, and Chargé d'affaires at both Bangkok and Beijing. He began his diplomatic career in India but specialized in Chinese affairs. (He was the principal American interpreter during President Nixon's visit to Beijing in 1972.)

Ambassador Freeman is a much sought-after public speaker (see http://chasfreeman.net ) and the author of several well-received books on statecraft and diplomacy. His most recent book, America's Continuing Misadventures in the Middle East was published in May 2016. Interesting Times: China, America, and the Shifting Balance of Prestige, appeared in March 2013. America's Misadventures in the Middle East came out in 2010, as did the most recent revision of The Diplomat's Dictionary, the companion volume to Arts of Power: Statecraft and Diplomacy. He was the editor of the Encyclopedia Britannica entry on "diplomacy."

Chas Freeman studied at the Universidad Nacional Autónoma de México and in Taiwan, and earned an AB magna cum laude from Yale University as well as a JD from the Harvard Law School.

He chairs Projects International, Inc., a Washington-based firm that for more than three decades has helped its American and foreign clients create ventures across borders, facilitating their establishment of new businesses through the design, negotiation, capitalization, and implementation of greenfield investments, mergers and acquisitions, joint ventures, franchises, one-off transactions, sales and agencies in other countries.

He is the author of several books including the most recent

Interesting times: China, America, and the shifting balance of prestige (2013)

[Feb 24, 2020] The fatal flaw of neoliberalism: it's bad economics by Dani Rodrik

Notable quotes:
"... Neoliberalism and its usual prescriptions – always more markets, always less government – are in fact a perversion of mainstream economics. ..."
"... The term is used as a catchall for anything that smacks of deregulation, liberalisation, privatisation or fiscal austerity. Today it is routinely reviled as a shorthand for the ideas and practices that have produced growing economic insecurity and inequality, led to the loss of our political values and ideals, and even precipitated our current populist backlash. ..."
"... The use of the term "neoliberal" exploded in the 1990s, when it became closely associated with two developments, neither of which Peters's article had mentioned. One of these was financial deregulation, which would culminate in the 2008 financial crash and in the still-lingering euro debacle . The second was economic globalisation, which accelerated thanks to free flows of finance and to a new, more ambitious type of trade agreement. Financialisation and globalisation have become the most overt manifestations of neoliberalism in today's world. ..."
"... That neoliberalism is a slippery, shifting concept, with no explicit lobby of defenders, does not mean that it is irrelevant or unreal. Who can deny that the world has experienced a decisive shift toward markets from the 1980s on? Or that centre-left politicians – Democrats in the US, socialists and social democrats in Europe – enthusiastically adopted some of the central creeds of Thatcherism and Reaganism, such as deregulation, privatisation, financial liberalisation and individual enterprise? Much of our contemporary policy discussion remains infused with principles supposedly grounded in the concept of homo economicus , the perfectly rational human being, found in many economic theories, who always pursues his own self-interest. ..."
Nov 14, 2017 | www.theguardian.com

Neoliberalism and its usual prescriptions – always more markets, always less government – are in fact a perversion of mainstream economics.

As even its harshest critics concede, neoliberalism is hard to pin down. In broad terms, it denotes a preference for markets over government, economic incentives over cultural norms, and private entrepreneurship over collective action. It has been used to describe a wide range of phenomena – from Augusto Pinochet to Margaret Thatcher and Ronald Reagan, from the Clinton Democrats and the UK's New Labour to the economic opening in China and the reform of the welfare state in Sweden.

The term is used as a catchall for anything that smacks of deregulation, liberalisation, privatisation or fiscal austerity. Today it is routinely reviled as a shorthand for the ideas and practices that have produced growing economic insecurity and inequality, led to the loss of our political values and ideals, and even precipitated our current populist backlash.

We live in the age of neoliberalism, apparently. But who are neoliberalism's adherents and disseminators – the neoliberals themselves? Oddly, you have to go back a long time to find anyone explicitly embracing neoliberalism. In 1982, Charles Peters, the longtime editor of the political magazine Washington Monthly, published an essay titled A Neo-Liberal's Manifesto . It makes for interesting reading 35 years later, since the neoliberalism it describes bears little resemblance to today's target of derision. The politicians Peters names as exemplifying the movement are not the likes of Thatcher and Reagan, but rather liberals – in the US sense of the word – who have become disillusioned with unions and big government and dropped their prejudices against markets and the military.

The use of the term "neoliberal" exploded in the 1990s, when it became closely associated with two developments, neither of which Peters's article had mentioned. One of these was financial deregulation, which would culminate in the 2008 financial crash and in the still-lingering euro debacle . The second was economic globalisation, which accelerated thanks to free flows of finance and to a new, more ambitious type of trade agreement. Financialisation and globalisation have become the most overt manifestations of neoliberalism in today's world.

That neoliberalism is a slippery, shifting concept, with no explicit lobby of defenders, does not mean that it is irrelevant or unreal. Who can deny that the world has experienced a decisive shift toward markets from the 1980s on? Or that centre-left politicians – Democrats in the US, socialists and social democrats in Europe – enthusiastically adopted some of the central creeds of Thatcherism and Reaganism, such as deregulation, privatisation, financial liberalisation and individual enterprise? Much of our contemporary policy discussion remains infused with principles supposedly grounded in the concept of homo economicus , the perfectly rational human being, found in many economic theories, who always pursues his own self-interest.

But the looseness of the term neoliberalism also means that criticism of it often misses the mark. There is nothing wrong with markets, private entrepreneurship or incentives – when deployed appropriately. Their creative use lies behind the most significant economic achievements of our time. As we heap scorn on neoliberalism, we risk throwing out some of neoliberalism's useful ideas.

The real trouble is that mainstream economics shades too easily into ideology, constraining the choices that we appear to have and providing cookie-cutter solutions. A proper understanding of the economics that lie behind neoliberalism would allow us to identify – and to reject – ideology when it masquerades as economic science. Most importantly, it would help us to develop the institutional imagination we badly need to redesign capitalism for the 21st century.


N eoliberalism is typically understood as being based on key tenets of mainstream economic science. To see those tenets without the ideology, consider this thought experiment. A well-known and highly regarded economist lands in a country he has never visited and knows nothing about. He is brought to a meeting with the country's leading policymakers. "Our country is in trouble," they tell him. "The economy is stagnant, investment is low, and there is no growth in sight." They turn to him expectantly: "Please tell us what we should do to make our economy grow."

The economist pleads ignorance and explains that he knows too little about the country to make any recommendations. He would need to study the history of the economy, to analyse the statistics, and to travel around the country before he could say anything.

Facebook Twitter Pinterest Tony Blair and Bill Clinton: centre-left politicians who enthusiastically adopted some of the central creeds of Thatcherism and Reaganism. Photograph: Reuters

But his hosts are insistent. "We understand your reticence, and we wish you had the time for all that," they tell him. "But isn't economics a science, and aren't you one of its most distinguished practitioners? Even though you do not know much about our economy, surely there are some general theories and prescriptions you can share with us to guide our economic policies and reforms."

The economist is now in a bind. He does not want to emulate those economic gurus he has long criticised for peddling their favourite policy advice. But he feels challenged by the question. Are there universal truths in economics? Can he say anything valid or useful?

So he begins. The efficiency with which an economy's resources are allocated is a critical determinant of the economy's performance, he says. Efficiency, in turn, requires aligning the incentives of households and businesses with social costs and benefits. The incentives faced by entrepreneurs, investors and producers are particularly important when it comes to economic growth. Growth needs a system of property rights and contract enforcement that will ensure those who invest can retain the returns on their investments. And the economy must be open to ideas and innovations from the rest of the world.

But economies can be derailed by macroeconomic instability, he goes on. Governments must therefore pursue a sound monetary policy , which means restricting the growth of liquidity to the increase in nominal money demand at reasonable inflation. They must ensure fiscal sustainability, so that the increase in public debt does not outpace national income. And they must carry out prudential regulation of banks and other financial institutions to prevent the financial system from taking excessive risk.

Now he is warming to his task. Economics is not just about efficiency and growth, he adds. Economic principles also carry over to equity and social policy. Economics has little to say about how much redistribution a society should seek. But it does tell us that the tax base should be as broad as possible, and that social programmes should be designed in a way that does not encourage workers to drop out of the labour market.

By the time the economist stops, it appears as if he has laid out a fully fledged neoliberal agenda. A critic in the audience will have heard all the code words: efficiency, incentives, property rights, sound money, fiscal prudence. And yet the universal principles that the economist describes are in fact quite open-ended. They presume a capitalist economy – one in which investment decisions are made by private individuals and firms – but not much beyond that. They allow for – indeed, they require – a surprising variety of institutional arrangements.

So has the economist just delivered a neoliberal screed? We would be mistaken to think so, and our mistake would consist of associating each abstract term – incentives, property rights, sound money – with a particular institutional counterpart. And therein lies the central conceit, and the fatal flaw, of neoliberalism: the belief that first-order economic principles map on to a unique set of policies, approximated by a Thatcher/Reagan-style agenda.

Consider property rights. They matter insofar as they allocate returns on investments. An optimal system would distribute property rights to those who would make the best use of an asset, and afford protection against those most likely to expropriate the returns. Property rights are good when they protect innovators from free riders, but they are bad when they protect them from competition. Depending on the context, a legal regime that provides the appropriate incentives can look quite different from the standard US-style regime of private property rights.

This may seem like a semantic point with little practical import; but China's phenomenal economic success is largely due to its orthodoxy-defying institutional tinkering. China turned to markets, but did not copy western practices in property rights. Its reforms produced market-based incentives through a series of unusual institutional arrangements that were better adapted to the local context. Rather than move directly from state to private ownership, for example, which would have been stymied by the weakness of the prevailing legal structures, the country relied on mixed forms of ownership that provided more effective property rights for entrepreneurs in practice. Township and Village Enterprises (TVEs), which spearheaded Chinese economic growth during the 1980s, were collectives owned and controlled by local governments. Even though TVEs were publicly owned, entrepreneurs received the protection they needed against expropriation. Local governments had a direct stake in the profits of the firms, and hence did not want to kill the goose that lays the golden eggs.

China relied on a range of such innovations, each delivering the economist's higher-order economic principles in unfamiliar institutional arrangements. For instance, it shielded its large state sector from global competition, establishing special economic zones where foreign firms could operate with different rules than in the rest of the economy. In view of such departures from orthodox blueprints, describing China's economic reforms as neoliberal – as critics are inclined to do – distorts more than it reveals. If we are to call this neoliberalism, we must surely look more kindly on the ideas behind the most dramatic poverty reduction in history.

One might protest that China's institutional innovations were purely transitional. Perhaps it will have to converge on western-style institutions to sustain its economic progress. But this common line of thinking overlooks the diversity of capitalist arrangements that still prevails among advanced economies, despite the considerable homogenisation of our policy discourse.

What, after all, are western institutions? The size of the public sector in OECD countries varies, from a third of the economy in Korea to nearly 60% in Finland. In Iceland, 86% of workers are members of a trade union; the comparable number in Switzerland is just 16%. In the US, firms can fire workers almost at will; French labour laws have historically required employers to jump through many hoops first. Stock markets have grown to a total value of nearly one-and-a-half times GDP in the US; in Germany, they are only a third as large, equivalent to just 50% of GDP.

Facebook Twitter Pinterest 'China turned to markets, but did not copy western practices ... ' Photograph: AFP/Getty

The idea that any one of these models of taxation, labour relations or financial organisation is inherently superior to the others is belied by the varying economic fortunes that each of these economies have experienced over recent decades. The US has gone through successive periods of angst in which its economic institutions were judged inferior to those in Germany, Japan, China, and now possibly Germany again. Certainly, comparable levels of wealth and productivity can be produced under very different models of capitalism. We might even go a step further: today's prevailing models probably come nowhere near exhausting the range of what might be possible, and desirable, in the future.

The visiting economist in our thought experiment knows all this, and recognises that the principles he has enunciated need to be filled in with institutional detail before they become operational. Property rights? Yes, but how? Sound money? Of course, but how? It would perhaps be easier to criticise his list of principles for being vacuous than to denounce it as a neoliberal screed.

Still, these principles are not entirely content-free. China, and indeed all countries that managed to develop rapidly, demonstrate the utility of those principles once they are properly adapted to local context. Conversely, too many economies have been driven to ruin courtesy of political leaders who chose to violate them. We need look no further than Latin American populists or eastern European communist regimes to appreciate the practical significance of sound money, fiscal sustainability and private incentives.


O f course, economics goes beyond a list of abstract, largely common-sense principles. Much of the work of economists consists of developing stylised models of how economies work and then confronting those models with evidence. Economists tend to think of what they do as progressively refining their understanding of the world: their models are supposed to get better and better as they are tested and revised over time. But progress in economics happens differently.

Economists study a social reality that is unlike the physical universe. It is completely manmade, highly malleable and operates according to different rules across time and space. Economics advances not by settling on the right model or theory to answer such questions, but by improving our understanding of the diversity of causal relationships. Neoliberalism and its customary remedies – always more markets, always less government – are in fact a perversion of mainstream economics. Good economists know that the correct answer to any question in economics is: it depends.

Does an increase in the minimum wage depress employment? Yes, if the labour market is really competitive and employers have no control over the wage they must pay to attract workers; but not necessarily otherwise. Does trade liberalisation increase economic growth? Yes, if it increases the profitability of industries where the bulk of investment and innovation takes place; but not otherwise. Does more government spending increase employment? Yes, if there is slack in the economy and wages do not rise; but not otherwise. Does monopoly harm innovation? Yes and no, depending on a whole host of market circumstances.

Facebook Twitter Pinterest 'Today [neoliberalism] is routinely reviled as a shorthand for the ideas that have produced growing economic inequality and precipitated our current populist backlash' Trump signing an order to take the US out of the TPP trade pact. Photograph: AFP/Getty

In economics, new models rarely supplant older models. The basic competitive-markets model dating back to Adam Smith has been modified over time by the inclusion, in rough historical order, of monopoly, externalities, scale economies, incomplete and asymmetric information, irrational behaviour and many other real-world features. But the older models remain as useful as ever. Understanding how real markets operate necessitates using different lenses at different times.

Perhaps maps offer the best analogy. Just like economic models, maps are highly stylised representations of reality . They are useful precisely because they abstract from many real-world details that would get in the way. But abstraction also implies that we need a different map depending on the nature of our journey. If we are travelling by bike, we need a map of bike trails. If we are to go on foot, we need a map of footpaths. If a new subway is constructed, we will need a subway map – but we wouldn't throw out the older maps.

Economists tend to be very good at making maps, but not good enough at choosing the one most suited to the task at hand. When confronted with policy questions of the type our visiting economist faces, too many of them resort to "benchmark" models that favour the laissez-faire approach. Kneejerk solutions and hubris replace the richness and humility of the discussion in the seminar room. John Maynard Keynes once defined economics as the "science of thinking in terms of models, joined to the art of choosing models which are relevant". Economists typically have trouble with the "art" part.

This, too, can be illustrated with a parable. A journalist calls an economics professor for his view on whether free trade is a good idea. The professor responds enthusiastically in the affirmative. The journalist then goes undercover as a student in the professor's advanced graduate seminar on international trade. He poses the same question: is free trade good? This time the professor is stymied. "What do you mean by 'good'?" he responds. "And good for whom?" The professor then launches into an extensive exegesis that will ultimately culminate in a heavily hedged statement: "So if the long list of conditions I have just described are satisfied, and assuming we can tax the beneficiaries to compensate the losers, freer trade has the potential to increase everyone's wellbeing." If he is in an expansive mood, the professor might add that the effect of free trade on an economy's longterm growth rate is not clear either, and would depend on an altogether different set of requirements.

This professor is rather different from the one the journalist encountered previously. On the record, he exudes self-confidence, not reticence, about the appropriate policy. There is one and only one model, at least as far as the public conversation is concerned, and there is a single correct answer, regardless of context. Strangely, the professor deems the knowledge that he imparts to his advanced students to be inappropriate (or dangerous) for the general public. Why?

The roots of such behaviour lie deep in the culture of the economics profession. But one important motive is the zeal to display the profession's crown jewels – market efficiency, the invisible hand, comparative advantage – in untarnished form, and to shield them from attack by self-interested barbarians, namely the protectionists . Unfortunately, these economists typically ignore the barbarians on the other side of the issue – financiers and multinational corporations whose motives are no purer and who are all too ready to hijack these ideas for their own benefit.

As a result, economists' contributions to public debate are often biased in one direction, in favour of more trade, more finance and less government. That is why economists have developed a reputation as cheerleaders for neoliberalism, even if mainstream economics is very far from a paean to laissez-faire. The economists who let their enthusiasm for free markets run wild are in fact not being true to their own discipline.


H ow then should we think about globalisation in order to liberate it from the grip of neoliberal practices? We must begin by understanding the positive potential of global markets. Access to world markets in goods, technologies and capital has played an important role in virtually all of the economic miracles of our time. China is the most recent and powerful reminder of this historical truth, but it is not the only case. Before China, similar miracles were performed by South Korea, Taiwan, Japan and a few non-Asian countries such as Mauritius . All of these countries embraced globalisation rather than turn their backs on it, and they benefited handsomely.

Defenders of the existing economic order will quickly point to these examples when globalisation comes into question. What they will fail to say is that almost all of these countries joined the world economy by violating neoliberal strictures. South Korea and Taiwan, for instance, heavily subsidised their exporters, the former through the financial system and the latter through tax incentives. All of them eventually removed most of their import restrictions, long after economic growth had taken off.

But none, with the sole exception of Chile in the 1980s under Pinochet, followed the neoliberal recommendation of a rapid opening-up to imports. Chile's neoliberal experiment eventually produced the worst economic crisis in all of Latin America. While the details differ across countries, in all cases governments played an active role in restructuring the economy and buffering it against a volatile external environment. Industrial policies, restrictions on capital flows and currency controls – all prohibited in the neoliberal playbook – were rampant.

Facebook Twitter Pinterest Protest against Nafta in Mexico City in 2008: since the reforms of the mid-90s, the country's economy has underperformed. Photograph: EPA

By contrast, countries that stuck closest to the neoliberal model of globalisation were sorely disappointed. Mexico provides a particularly sad example. Following a series of macroeconomic crises in the mid-1990s, Mexico embraced macroeconomic orthodoxy, extensively liberalised its economy, freed up the financial system, sharply reduced import restrictions and signed the North American Free Trade Agreement (Nafta). These policies did produce macroeconomic stability and a significant rise in foreign trade and internal investment. But where it counts – in overall productivity and economic growth – the experiment failed . Since undertaking the reforms, overall productivity in Mexico has stagnated, and the economy has underperformed even by the undemanding standards of Latin America.

These outcomes are not a surprise from the perspective of sound economics. They are yet another manifestation of the need for economic policies to be attuned to the failures to which markets are prone, and to be tailored to the specific circumstances of each country. No single blueprint fits all.


A s Peters's 1982 manifesto attests, the meaning of neoliberalism has changed considerably over time as the label has acquired harder-line connotations with respect to deregulation, financialisation and globalisation. But there is one thread that connects all versions of neoliberalism, and that is the emphasis on economic growth . Peters wrote in 1982 that the emphasis was warranted because growth is essential to all our social and political ends – community, democracy, prosperity. Entrepreneurship, private investment and removing obstacles that stand in the way (such as excessive regulation) were all instruments for achieving economic growth. If a similar neoliberal manifesto were penned today, it would no doubt make the same point.

Critics often point out that this emphasis on economics debases and sacrifices other important values such as equality, social inclusion, democratic deliberation and justice. Those political and social objectives obviously matter enormously, and in some contexts they matter the most. They cannot always, or even often, be achieved by means of technocratic economic policies; politics must play a central role.

Still, neoliberals are not wrong when they argue that our most cherished ideals are more likely to be attained when our economy is vibrant, strong and growing. Where they are wrong is in believing that there is a unique and universal recipe for improving economic performance, to which they have access. The fatal flaw of neoliberalism is that it does not even get the economics right. It must be rejected on its own terms for the simple reason that it is bad economics.

A version of this article first appeared in Boston Review

[Feb 20, 2020] China denounces US lies at the Munich Security Conference by Peter Symonds

Feb 19, 2020 | www.wsws.org

In unusually blunt statements, top Chinese officials hit back during last weekend's Munich Security Conference at Washington's confrontational stance toward Beijing on a range of issues, including the Chinese tech giant Huawei and China's response to the coronavirus.

Trump administration officials, supported to the hilt by top Democrats, took a particularly aggressive attitude at the conference, warning European powers that intelligence sharing could end if Huawei equipment were used in building 5G telecommunications networks.

US Secretary of State Mike Pompeo branded "Huawei and other Chinese state-backed tech companies" as "Trojan horses for Chinese intelligence." In his speech, US Defence Secretary Mark Esper accused Beijing of carrying out a "nefarious strategy" through Huawei.

In a bid to intensify its pressure on its European allies, the US last week announced new charges of racketeering and theft of trade secrets against Huawei. These follow the arrest of the company's chief financial officer, Meng Wanzhou, in Canada last year after the US filed charges of fraud and sanctions evasion, and sought her extradition.

Esper made clear that the US attack on China was across the board. He declared that under President Xi Jinping's rule, "the Chinese Communist Party is heading even faster and further in the wrong direction -- more internal repression, more predatory economic practices, more heavy-handedness, and most concerning for me, a more aggressive military posture."

Asked about the speeches by Pompeo and Esper, Chinese Foreign Minister Wang Yi did not mince words, branding the US allegations as "lies." He said their remarks were part of "a common scenario" everywhere they went. "I don't want to waste our time responding to each and every thing they've said. The thing I want to say is that all these accusations against China are lies and not based on facts."

Wang pointed to the driving force behind the confrontation -- the US drive to ensure its continued global domination by every available means. "The root cause of all these problems and issues is that the US does not want to see the rapid development and rejuvenation of China, still less would they want to accept the success of a socialist country, but that is not fair, China has the right to develop."

China, with its burgeoning markets, stock exchanges, billionaires and deep social divide, is not a socialist country. In fact, Huawei, as Wang said in countering US criticism, is a privately-owned company: the world's largest telecommunications equipment provider with nearly 200,000 employees.

Wang described the US attack on Huawei as "immoral" and asked: "Why can't America accept that other countries' companies can also display their talent in the economy, in technology? Perhaps deep down, it doesn't hope to see other countries develop." He accused the US of resorting to rumours to defame Huawei and declared there was no credible evidence that the company has a so-called back door that harms US security.

The US accusations against China and Huawei are utterly hypocritical. The revelations by the whistleblower Edward Snowden demonstrated that the US routinely spies electronically on the world's population, including governments and government leaders, allies and rivals alike, as well as its own citizens.

The US intelligence establishment has long relied on electronic "back doors" provided by American tech corporations to gather intelligence. The use of Huawei equipment not only threatens the economic position of US companies, but could undermine US spying operations.

China's forthright push back against heavy US criticism in Munich stems firstly from the relentless campaign by Washington, not only in propaganda, but through trade war measures and a huge military build-up in Asia against Beijing. Secondly, the Chinese regime is seeking support from the European powers. Wang's comments gained traction in Munich amid deepening conflicts between the US and its erstwhile European allies.

Britain has given the go-ahead for the inclusion of Huawei components in non-core aspects of its 5G rollout, while Germany and France have signaled they will do the same. The European decisions are largely driven by technical and economic factors, as Huawei is a leader in 5G technology and produces at a lower cost.

Washington's threats to end intelligence-sharing arrangements with the European powers could end up affecting US spying operations as much as those of its European rivals. The New York Times

The US has sought to exploit the coronavirus outbreak in China to add to the barrage of criticism against Beijing. Trump's economic adviser Larry Kudlow last week complained about the lack of Chinese transparency over the disease. He declared that Washington was disappointed that American health experts had not been allowed into China, and questioned Chinese statistics.

A considerable portion of Wang's speech to the Munich Security Conference was devoted to defending China's handling of the outbreak. He said the coronavirus largely had been confined to the city of Wuhan and Hubei Province, and the number of cases outside China was a small percentage of the total. Wang said this was the outcome of the rapid development of a test for the virus, the dispatch of 20,000 health workers to the area and the building of new health facilities.

Wang said: "In the spirit of openness and transparency, we promptly notified the world about the outbreak and shared the genetic sequence of the virus. We have been working closely with WHO [World Health Organisation], invited international experts to join our ranks, and provided assistance and facilitation to foreign nationals in China."

In comments to Reuters, the Chinese foreign minister effectively criticised the harsh travel restrictions imposed by the US on any foreign nationals coming from China. "Some countries have stepped up measures, including quarantine measures, which are reasonable and understandable, but for some countries they have overreacted which has triggered unnecessary panic," he said.

If Washington expected European support on the issue, its hopes were dashed. Conference chairman Wolfgang Ischinger praised China's response to the epidemic and declared it was "not getting a very fair deal I think China deserves a little bit of compassion and cooperation, and encouragement rather than only criticism."

China's reaction to the US criticisms in Munich underscores again the sharpening geo-political rivalries and break-up of longstanding alliances being fueled by worsening global economic conditions. Far from responding to the lack of support from Europe against China by moderating its confrontation, the US will intensify its provocative campaign, not just against Beijing, but any threat to its global position, including from its European allies.

[Feb 15, 2020] Global supply chains are cost-efficient but not resilient

Feb 15, 2020 | www.zerohedge.com

So here we are, with a global economy that's very cost-efficient but not resilient. It's wonderful that Walmart has worked out how to order a new tube of toothpaste from China the second one is pulled off a shelf in Topeka, KS. But that means there is no deep storage to draw upon in times of disruption to the status quo. No warehouses stocked with 12 months of future goods. Just a brilliantly-complicated supply chain thousands of miles long that has to work perfectly for things to keep running.

As an example that drives home this point: we learned during the 2011 earthquake in Japan that there was just one single factory making a necessary polymer gel for the odd-shaped lithium batteries used in smartphones and iPods. There was no backup factory.

We watched closely during that enormous crisis (which also spawned the Fukushima nuclear disaster) as electronics companies scrambled to triage their remaining supplies and attempt to find new sources. It was very touch and go. Vast portions of the battery-fueled electronic industry came within a whisker of simply shutting down production -- all for want of an esoteric polymer gel.

Yes, the most cost-effective way to make that gel was to house it all in a single plant. But it made no sense from a redundancy and resilience standpoint.

And did 'we' learn from that experience? Nope.

Supply Chain Armageddon

The global economy is more interdependent than ever. Its supply chains are built on a huge network of dependencies with many 'single points of failure' strung along its many branches.

Can anybody predict what will happen next? No.

But we're already seeing early failures as Chinese plants, factories and ports sit idle from the country's massive quarantine efforts:

China set to lose out on production of 1M vehicles as coronavirus closes car plants

China exports about $70 billion worth of car parts and accessories globally, with roughly 20 percent going to the U.S.

Feb. 5, 2020, 4:32 PM EST

By Paul A. Eisenstein

China could suffer the loss of a million vehicles worth of production as factories in its crucial automotive industry remain shuttered until at least next week -- and likely longer in Wuhan, the "motor city" at the center of the coronavirus outbreak.

With more than 24,000 people infected, the impact of the highly contagious disease is also beginning to be felt by automakers in other parts of the world. Hyundai is suspending production in its South Korean plants because of a shortage of Chinese-made parts, and even European car manufacturers could be hit: Volkswagen and BMW could see a dip of 5 percent in their earnings for the first half of 2020, according to research firm Bernstein.

( Source – NBC )

We're predicting that these auto shutdowns are just beginning. All it takes is a single component to be unavailable and the entire line has to be shut down.

Is China the sole source for many critical components in the auto industry? Absolutely.

Here's an inside view:

On Monday, Steve Banker and I had the opportunity to speak with Razat Gaurav, CEO of Llamasoft. Razat had some interesting takes on the outbreak, especially as it relates to the automotive and pharmaceutical supply chains. On average it takes 30,000 parts to make a finished automobile.

Due to the virus, production facilities have already indicated that they will have lower than normal parts volumes. This has left companies scrambling to make contingency plans. During my conversation with Razat, he mentioned that inventories for most of these automotive parts are managed on a lean just-in-time basis.

This means that, on average, companies have anywhere between two and twelve weeks of buffer inventory on-hand for automotive parts. As production volumes are decreasing, this has the potential to cause quite the global shortage of parts. The buffer inventory will only last so long, and once the pre-holiday supply runs dry, the industry is going to be in serious trouble. According to Gaurav: " Most OEMs single source components for new vehicles and China is a large supplier of those."

( Source – Logistics Viewpoints )

"Single sourcing" is exactly what it implies. There's a single factory somewhere churning out a single component that is absolutely vital to make a motorized vehicle. If that factory goes away for any length of time, a new source has to be identified or – worse, from a time and cost standpoint – built from scratch.

But this vulnerability to China-dependent supply chains is by no means unique to the auto industry:

Last month, the U.S.-China Economic and Security Review Commission held a hearing on the United States' growing reliance on China's pharmaceutical products. The topic reminded me of a spirited discussion described in Bob Woodward's book, Fear: Trump in the White House.

In the discussion, Gary Cohn, then chief economic advisor to President Trump, argued against a trade war with China by invoking a Department of Commerce study that found that 97 percent of all antibiotics in the United States came from China.

( Source – CFR )

That's as close to a 'sole source' as you can get.

And to put the cherry on top: guess the name of the region in China responsible for producing all if these antibiotics? Yep, Hubei province. With Wuhan its most important production hub.

Can we find another source for our generic drugs and antibiotics? India, possibly. But here again we run into the same global interdependency issue:

Another industry that is feeling the impact of the coronavirus is the pharmaceutical industry. The average buffer inventory for the pharmaceutical industry is between three and six months. However, this does not tell the full story. Gaurav mentioned that China is responsible for producing 40 percent of the active pharmaceutical ingredients (APIs) for the pharmaceutical world.

Additionally, China supplies 80 percent of key starting materials (KSM's), which are the chemicals in APIs, to India . Put together, this represents 70 percent of all APIs across the world.

( Source – Logistics Viewpoints )

India's production is directly tied to uninterrupted supply from China:

Indian generic drugmakers may face supply shortages from China if coronavirus drags on

Feb 13 (Reuters) – Shortages and potential price increases of generic drugs from India loom if the coronavirus outbreak disrupts suppliers of pharmaceutical ingredients in China past April , according to industry experts.

An important supplier of generic drugs to the world, Indian companies procure almost 70% of the active pharmaceutical ingredients (APIs) for their medicines from China.

India's generic drugmakers say they currently have enough API supplies from China to cover their operations for up to about three months.

"We are comfortably placed with eight to 10 weeks of key inventory in place," said Debabrata Chakravorty, head of global sourcing and supply chain for Lupin Ltd, adding that the company does have some local suppliers for ingredients.

Sun Pharmaceuticals Industries Ltd said it has sufficient inventory of API and raw materials for the short term and has not seen any major disruption in supplies at the moment.

The Indian drugmaker, however, said supply has been impacted for a few API products and the company is closely monitoring the situation. It did not identify the products.

India supplies nearly a third of medicines sold in the United States , the world's largest and most lucrative healthcare market.

( Source )

Is this a huge concern? Of course it is.

If you're dependent in any way on prescription drugs, it would be entirely rational to chase down whether those come from China or India and, if they are, begin talks with your doctor about alternatives or what to do if supplies get pinched.

A Fast-Moving Situation

Look, we entirely get why the authorities and media are downplaying the covid-19 pandemic. We really do. They feel the need to manage the crisis, which means managing the public narrative.

But c'mon. Does it make any sense for Apple's stock price to be up while its main Foxconn manufacturing facility is all but completely shuttered?

Fewer iPhones and Airpods being made should equate with lower future earnings and thus a lower stock price. But no, AAPL is up handily over the past month:

And this is even crazier. Does it make ANY sense for Boeing's stock to be up $12 over the past month? As it reported its first year (2019) of NEGATIVE orders and a completely order-free January (2020)? No, of course not.

But those are the sorts of 'signals' that the officials believe have to be sent in order to keep the masses from catching on that something really concerning is happening.

Unfortunately, such signals work on the masses. Higher stock prices send a powerful comforting message that "all is well".

But prudent critical thinkers, which defines those in the Peak Prosperity tribe, can readily see through the ruse and get busy preparing themselves for what's coming.

It's Time For Action

The situation with covid-19 is fluid, and fast-moving. Staying on top of the breaking developments and making sense of them for you is our primary job.

But information without informed action is useless.

After all, knowing something concerning but then doing nothing about it is merely cause for anxiety if not alarm.

The only ways to remain calm and protect your loved ones from the threat of this pandemic are rooted in taking smart action.

Yes, we can all hope this blows over. We sincerely wish the macro-planners all the best in shaping the narrative and keeping the macro economy somehow functioning and glued together.

But we're going to prepare as best we can, here at our micro level because that's our duty to ourselves, to our families, and to our communities.

Creating A Resilient Defense Against The Coronavirus

This is a huge moment in history. The first global pandemic at a time when the world economy is sole-sourced and completely interdependent.

Nobody can predict what will happen next. Autos, drugs who knows what the next industry to stumble will be?

Given the ridiculously high rate of infectivity of covid-19 there's really no chance of stopping its spread. The rate is now just a equation of time, luck, and official actions to aggressively isolate and quarantine infected individuals and communities.

Our position affords us many experienced contacts with experts throughout the world, and those we know with deep medical training are preparing the most aggressively right now. This outbreak has their full attention; and that informs us that it should have ours, too.

Which is why our advice is to get busy preparing yourself now.

Last week we issued the guide How We're Personally Preparing For The Coronavirus to our premium subscribers. It's a great resource providing specific recommendations for prevention and treatment.

Today, we're releasing an expanded companion guide A Resilient Defense Against The Coronavirus , again for our premium members.

Particularly useful for those who have recently found their way to PeakProsperity.com, it offers both a valuable framework to use in preparing for any disaster (including pandemics) and then details out specific action steps to take today across all aspects of your life (i.e., not just health & hygiene) against a coronavirus outbreak in your local area.

Click here to read this report (free executive summary, enrollment required for full access).

[Feb 14, 2020] US Warms Up Its Own Old Spy Stories To Bash Putative Chinese Espionage

Feb 14, 2020 | www.moonofalabama.org

That such cynicism was wholly justified became evident when Edward Snowden revealed the NSA machinations. Soon thereafter Juniper Networks, a provider of large backbone equipment, was found to have at least two NSA backdoors in its operation system. Other 'western' telecommunication equipment companies were similarly manipulated :

Even neutral countries firms are not off-limits to NSA manipulations. A former Crypto AG employee confirmed that high-level US officials approached neutral European countries and argued that their cooperation was essential to the Cold War struggle against the Soviets. The NSA allegedly received support from cryptographic companies Crypto AG and Gretag AG in Switzerland, Transvertex in Sweden, Nokia in Finland, and even newly-privatized firms in post-Communist Hungary. In 1970, according to a secret German BND intelligence paper, supplied to the author, the Germans planned to "fuse" the operations of three cryptographic firms-Crypto AG, Grattner AG (another Swiss cipher firm), and Ericsson of Sweden.

So why was the allegedly secret CIA history of an already known story leaked right now? And why was it also leaked to a German TV station?

Sanho Tree points to the likely reason:

If you want to understand why the US intelligence community is so freaked out about Huawei, it's because they've been playing the same game for decades.

The WaPo story itself also makes that connection :

There are also echoes of Crypto in the suspicions swirling around modern companies with alleged links to foreign governments, including the Russian anti-virus firm Kaspersky , a texting app tied to the United Arab Emirates and the Chinese telecommunications giant Huawei .

The warmed up Crypto AG story is a subtle smear piece against Huawei and Kapersky.

The U.S. wants to convince European countries to not buy Huawei products for their 5G networks. It wants to remind them that telecommunication products can be manipulated. It wants to instill fear that China would use Huawei to spy on foreign countries just like the U.S. used Crypto AG.

This is also the reason for this recent misleading Reuters headline which the story itself debunked:

Germany has proof that Huawei worked with Chinese intelligence: Handelsblatt

"At the end of 2019, intelligence was passed to us by the U.S., according to which Huawei is proven to have been cooperating with China's security authorities," the newspaper quoted a confidential foreign ministry document as saying.

'U.S. intelligence' that is handed over to manipulate someone is of course not 'proof' for anything.

The U.S. is pressing its allies on a very high level:

Secretary of State Mike Pompeo declared the Chinese Communist Party "the central threat of our times" on Thursday, even as he sought to talk up the prospects of a United States trade deal with Britain, which rebuffed American pressure to ban a Chinese company from future telecommunications infrastructure.

The scathing criticism of the Chinese government was the strongest language Mr. Pompeo has used as the Trump administration seeks to convince American allies of the risks posed by using equipment from Huawei, a Chinese technology giant.

A week after Pompeo's panic message Trump took to the phone to convince Boris Johnson who was not impressed :

Donald Trump's previously close relationship with UK Prime Minister Boris Johnson looks close to collapse, following new revelations that the president slammed down the phone on him.

Trump's behaviour during last week's call was described by officials as „apoplectic," and Johnson has now reportedly shelved plans for an imminent visit to Washington.
...
The call, which one source described to the Financial Times as „very difficult," came after Johnson defied Trump and allowed Chinese telecoms company Huawei the rights to develop the UK's 5G network.

Trump's fury was triggered by Johnson backing Huawei despite multiple threats by Trump and his allies that the United States would withdraw security co-operation with the UK if the deal went ahead.

Trump's threats reportedly „irritated" the UK government, with Johnson frustrated at the president's failure to suggest any alternatives to the deal.

Huawei products are pretty good, relatively cheap and readily available. They are just as buggy as the products of other equipment providers. The real reason why the U.S. does not want anyone to buy Huawei products is that it is the one large network company the U.S. can not convince to provide it with backdoors.

European countries do not fear China or even Chinese spying. They know that the U.S. is doing similar on a much larger scale. Europeans do not see China as a threat and they do not want to get involved in the escalating U.S.-China spat:

"Whose side should your country take in a conflict between the US and China?"

Source - bigger

The U.S. just indicted four Chinese military officers for the 2017 hacking of Equifax during which millions of addresses and financial data were stolen. The former CIA Director General Michael Hayden had defended such pilfering as "honorable espionage" and Equifax had made it laughably easy to get into its systems :

[J]ust five days after Equifax went public with its breach -- KrebsOnSecurity broke the news that the administrative account for a separate Equifax dispute resolution portal catering to consumers in Argentina was wide open, protected by perhaps the most easy-to-guess password combination ever: "admin/admin."

To indict foreign military officers for spying when they simply pilfered barely protected servers is seen as offensive. What will the U.S. do when China does likewise?

Every nation spies. It is one of the oldest trades in this world. That the U.S. is making such a fuss about putative Chinese spying when it itself is the biggest sinner is unbecoming.

Posted by b on February 11, 2020 at 18:52 UTC | Permalink

[Feb 14, 2020] Why the USA is fighting Huawei without offering any super alternative

Feb 14, 2020 | www.moonofalabama.org

james , Feb 11 2020 20:13 utc | 13

thanks b...no shortage of hypocrisy in all this...

regarding @ 4 mike r which @8 ian2 linked properly to, i enjoyed the last paragraph which i think sums it up well.. here it is..

"I continue to believe that the United States cannot effectively restrict the spread of a technology under Chinese leadership without offering a superior product of its own. The fact that the United States has attempted to suppress Huawei's market leadership in the absence of any American competitor in this field is one of the oddest occurrences in the history of US foreign policy. If the US were to announce something like a Manhattan Project for 5G broadband and solicit the cooperation of its European and Asian allies, it probably would get an enthusiastic response. As matters stand, America's efforts to stop Huawei have become an embarrassment."


Petri Krohn , Feb 11 2020 20:38 utc | 16

The reason European customers trust Huawei is because Huawei uses open-source software or at least makes their code available for inspection by customers.

Closed-source software cannot provide secrecy or security. This was vividly demonstrated last month when NSA revealed a critical vulnerability in Windows 10 that rendered any cryptographic security worthless.

Critical Windows 10 vulnerability used to Rickroll the NSA and Github

Rashid's simulated attack exploits CVE-2020-0601, the critical vulnerability that Microsoft patched on Tuesday after receiving a private tipoff from the NSA. As Ars reported, the flaw can completely break certificate validation for websites, software updates, VPNs, and other security-critical computer uses. It affects Windows 10 systems, including server versions Windows Server 2016 and Windows Server 2019. Other versions of Windows are unaffected.

The flaw involves the way the new versions of Windows check the validity of certificates that use elliptic-curve cryptography. While the vulnerable Windows versions check three ECC parameters, they fail to verify a fourth, crucial one, which is known as a base point generator and is often represented in algorithms as 'G.' This failure is a result of Microsoft's implementation of ECC rather than any flaw or weakness in the ECC algorithms themselves.

The attacker examines the specific ECC algorithm used to generate the root-certificate public key and proceeds to craft a private key that copies all of the certificate parameters for that algorithm except for the point generator. Because vulnerable Windows versions fail to check that parameter, they accept the private key as valid. With that, the attacker has spoofed a Windows-trusted root certificate that can be used to mint any individual certificate used for authentication of websites, software, and other sensitive properties.

I do not believe this vulnerability was a bug. It is more likely a backdoor intentionally left in the code for NSA to utilize. Whatever the case, NSA must have known about it for years. Why did they reveal it now? Most likely someone else had discovered the back door and may have been about to publish it.

(I commented on these same issues on Sputnik a few weeks ago.)

Piotr Berman , Feb 11 2020 23:04 utc | 25
The other possible US objection is that Huawei will only let their customers spy, not third countries.

Posted by: Paul Cockshott | Feb 11 2020 21:57 utc | 24

It reminds me a joke about Emperor Napoleon arriving in a town. The population, the notables and the mayor are greeting him, and the Emperor says "No gun salute, hm?". Mayor replies "Sire, we have twenty reasons. Fist, we have canons", "Enough", replied Napoleon.

Isn't the "other possible US objection" exactly "Enough"? Of course, USA is not a mere "third country", USA is the rule maker of rule based international order.

[Feb 07, 2020] The Consequence Of Globalism Is World Instability by Paul Craig Roberts

Highly recommended!
Yes, more complex systems are less stable.
Notable quotes:
"... The thoughtless people who constructed " globalism " overlooked that interdependence is dangerous and can have massive unintended consequences . With or without an epidemic, supplies can be cut off for a number of reasons. For example, strikes, political instability, natural catastrophes, sanctions and other hostilities such as wars, and so forth. Clearly, these dangers to the system are not justified by the lower labor cost and consequent capital gains to shareholders and bonuses to corporate executives. Only the one percent benefits from globalism. ..."
"... Globalism was constructed by people motivated by short-term greed. None of the promises of globalism have been delivered. Globalism is a massive mistake. Yet, almost everywhere political leaders and economists are protective of globalism. So much for human intelligence. ..."
Feb 07, 2020 | www.zerohedge.com

If the coronavirus proves to be serious, as it does not appear to be at the present time, many economies could be adversely affected. China is the source of many parts supplied to producers in other countries, and China is the source of the finished products of many US firms such as Apple. If shipments cannot be made, sales and production outside of China are affected. Without revenues, employees cannot be paid. Unlike the financial crisis of 2008, this would be an unemployment crisis and bankruptcy of large manufacturing and marketing corporations.

This is the danger to which globalism makes us vulnerable. If US corporations produced in the US the products that they market in the US and the world, an epidemic in China would affect only their Chinese sales, not threaten the companies' revenues.

The thoughtless people who constructed " globalism " overlooked that interdependence is dangerous and can have massive unintended consequences . With or without an epidemic, supplies can be cut off for a number of reasons. For example, strikes, political instability, natural catastrophes, sanctions and other hostilities such as wars, and so forth. Clearly, these dangers to the system are not justified by the lower labor cost and consequent capital gains to shareholders and bonuses to corporate executives. Only the one percent benefits from globalism.

Globalism was constructed by people motivated by short-term greed. None of the promises of globalism have been delivered. Globalism is a massive mistake. Yet, almost everywhere political leaders and economists are protective of globalism. So much for human intelligence.

At this point of time, it is difficult to understand the hysteria over coronavirus and predictions of global pandemic. In China there are about 24,000 infections and 500 deaths in a population of 1.3 billion people. This is an inconsequential illness. Compared to the ordinary seasonal flu that infects millions of people worldwide and kills 600,000, the coronavirus so far amounts to nothing. Infections outside of China are miniscule and appear to be limited to Chinese people. It is difficult to know for certain, because of the reluctance to identify people by race.

Yet China has huge areas in quarantine, and travel to and from the country is restricted. Nothing like these precautions are taken against seasonal flu. So far this flu season in the US alone 19 million people have been sickened, 180,000 hospitalized, and 10,000 have died. The latest report is that 16 people in the US (possibly all Chinese) have come down with coronavirus, and none have died.

Perhaps the coronavirus is just warming up and much worse is to come. If so, world Gross Domestic Product (GDP) will take a hit. Quarantines prevent work. Finished products and parts cannot be made and shipped. Sales cannot take place without products to sell. Without revenues companies cannot pay employees and other expenses. Incomes decline across the world. Companies go bankrupt.

You can take it from here.

If a deadly coronavirus pandemic or some other one does erupt and there is a world depression, we should be very clear in our mind that globalism was the cause. Countries whose governments are so thoughtless or corrupt as to make their populations vulnerable to disruptive events abroad are medically, economically, socially, and politically unstable.

The consequence of globalism is world instability.


yerfej , 47 minutes ago link

It makes sense for rich countries elites to leverage poor backwards shithole countries to manufacture the things they need because the elites then don't have to worry about anyone but themselves. Globalism is wonder as it bypasses all that crazy western nonsense like jobs and wages and society and hope and such.

Coram Justice , 1 hour ago link

"Bolshevism is globalism according to Lenin."
Prof. V. G. Liulevicius, Utopia & Terror in the 20th Century

Street Chief Martin , 2 hours ago link

Globalism is nothing more than the major central banks finding ways to dump off their inflation which is the deflation of an ever increasing number countries which the major cb's used to deflate their currencies. The older the cb you are the worse off yo are. From a since A.D. perspective only the Sterling is what you have to worry. From my last fiat currency perspective its the Venisthaler that is un doing everything.

To get more zero's you have to add more nine's. They can not be added as nausem like people think zero's are. The compensation pool has been shrinking for centuries on end now. Globalism is an attempt to keep the pool growing at all cost which results relentless asset appreciation. We are out of nine's. The end result of that is hyper deflation for the man and hyper reflation for the people. Easily provable at a store named Vons owned by the treasury retired.

That ladies and gents is your simplified street fed explanation. I am not trying to even remotely write out the longer technical version.

Having said that meet me at what is known as the small walmart around here, which is the home of what does MU do, what does MU do at walmart it never gets old fame for a real life walk thru of what globalism is and looks like. We will then progress to the "Big Walmart" not even a mile away and I will show you what an out of control system looks like.

So we are clear of what I just said. I live in the only place in the world where when a tourist ask you where Wal Mart is, you get your choice of size. Whats the difference you ask??? The small Wal Mart has one main entrance, the big one has three. The lady almost smacked the **** out of the guy I got that from when she asked what the difference was. The hand came up. You really had to be there.

rtb61 , 2 hours ago link

Regional trade blocks with relatively balanced resource and production capabilities make more sense. Globalisation just lead to one country seeking to 'DOMINATE' in every sphere of global activity, raising the threats of economic and military conflict, as clearly demonstrated and this with the aim of global enslavement to multinational corporations, the aim of Globalism, really sick psychopathic stuff.

Regional trade blocks relatively balanced for resource and production, provide stability within each block and lesson competition for outside resource and commercial competitiveness, and represents a far more long term stable structure.

Within each trade block, as it is economic rather than socio-political the original identities of each distinct region can be preserved for the long term, so that future generations can enjoy and share in the different cultures. Race ******** is race ********, there is only one race and all of it's people are free to share in which ever culture they choose or combinations there of. Whether you get to move to those regions and enjoy those cultures will be done to your personal worth, character and ability to contribute to those societies, just the way it will be.

Some economic blocks will be far more preferable to others and will attract higher worth individuals (character and ability to contribute to society), the least and most desirable will become more so as higher worth individuals move to the most preferable away from the least preferable and make the most preferable more preferable by their active presence.

I would tip the Japan Australia one to be the most preferable for this century, the next hard to tell (there are real deep problems in the Americas caused by the USA, the EU had an bad immigrant problem as in they let in too many bad unvetted immigrants, Africa will be what Africa will be corrupt and Russia China it depends upon how quickly the modernise and socially advance, the middle of the middles south east to mid east it depends how long it takes them to come together and religion is a real problem for them).

free corn , 2 hours ago link

Competing MAD capable nations need communication/cooperation to keep the world somewat stable, that's one reason for Globalism. Author sucks.

headless blogger , 4 hours ago link

I've been wondering if this might be some kind of Globalist Drill. It doesn't make sense, although there is always the potential it could become worse than it is.

uhland62 , 3 hours ago link

I thought so, too. Strangely enough, Wuhan Chinese are now repatriated from Bali back to Wuhan?!

Instability is a necessary condition to get more conflicts and then wars going. Weapons production must be kept up; peace and stability would make make weapons production an expensive hobby.

Shifter_X , 4 hours ago link

Globalism is the shredding of nations, peoples, traditions, culture and religion.

It is failing and will continue to fail for two reasons:

1. Good fences make good neighbors

2. When in Rome, do as the Romans do.

People are not going to stand for these destructive invasions any more. Bottom-of-the-barrel wages, crap jobs, high crime -- it's coming to a head.

I hope every nation in the EU exits.

Every idiot in Congress who supports this ridiculous bill that would make illegal immigration legal, require that the US NOT deport criminals and that we taxpayers pay to bring CRIMINALS we've deported, back to the USA, should be stripped of citizenship and kicked off the planet.
https://www.congress.gov/bill/116th-congress/house-bill/5383/text?q=%7B%22search%22%3A%5B%22chamberActionDateCode%3A%5C%222019-12-10%7C116%7C1000%5C%22+AND+billIsReserved%3A%5C%22N%5C%22%22%5D%7D&r=10&s=4

Have you SEEN this **** pending in Congress???

surf@jm , 5 hours ago link

Globalism was outlawed forever at the Tower of Babel.....

That law has never been revoked....

[Jan 18, 2020] The US China Phase 1 Deal Interpeted: Break Thing, Claim to Fix Thing, Repeat

Highly recommended!
Jan 18, 2020 | econbrowser.com

...if nothing had happened in the US-China trade war. Well, me might have gotten to where we are supposed to be with the deal

..a honest question. In terms of the environment and global climate, is it a good thing that farmers will be producing more monoculture grains, dairy, beef and pork for export?

[Oct 20, 2019] Putin sarcastic remark on Western neoliberal multiculturalism

Highly recommended!
Oct 17, 2019 | www.unz.com

"If minorities prefer Sharia Law, then we advise them to go to those places where that's the state law.

Russia does not need minorities. Minorities need Russia, and we will not grant them special privileges, or try to change our laws to fit their desires, no matter how loud they yell "discrimination"

-Vladimir Putin

[Sep 10, 2019] Neoliberal Capitalism at a Dead End by Utsa Patnaik and Prabhat Patnaik

Highly recommended!
This is a Marxist critique of neoliberalism. Not necessary right but they his some relevant points.
Notable quotes:
"... The ideology of neoliberal capitalism was the promise of growth. But with neoliberal capitalism reaching a dead end, this promise disappears and so does this ideological prop. ..."
"... The ex ante tendency toward overproduction arises because the vector of real wages across countries does not increase noticeably over time in the world economy, while the vector of labor productivities does, typically resulting in a rise in the share of surplus in world output. ..."
"... While the rise in the vector of labor productivities across countries, a ubiquitous phenomenon under capitalism that also characterizes neoliberal capitalism, scarcely requires an explanation, why does the vector of real wages remain virtually stagnant in the world economy? The answer lies in the sui generis character of contemporary globalization that, for the first time in the history of capitalism, has led to a relocation of activity from the metropolis to third world countries in order to take advantage of the lower wages prevailing in the latter and meet global demand. ..."
"... The current globalization broke with this. The movement of capital from the metropolis to the third world, especially to East, South, and Southeast Asia to relocate plants there and take advantage of their lower wages for meeting global demand, has led to a desegmentation of the world economy, subjecting metropolitan wages to the restraining effect exercised by the third world's labor reserves. Not surprisingly, as Joseph Stiglitz has pointed out, the real-wage rate of an average male U.S. worker in 2011 was no higher -- indeed, it was marginally lower -- than it had been in 1968. 5 ..."
"... This ever-present opposition becomes decisive within a regime of globalization. As long as finance capital remains national -- that is, nation-based -- and the state is a nation-state, the latter can override this opposition under certain circumstances, such as in the post-Second World War period when capitalism was facing an existential crisis. But when finance capital is globalized, meaning, when it is free to move across country borders while the state remains a nation-state, its opposition to fiscal deficits becomes decisive. If the state does run large fiscal deficits against its wishes, then it would simply leave that country en masse , causing a financial crisis. ..."
"... The state therefore capitulates to the demands of globalized finance capital and eschews direct fiscal intervention for increasing demand. It resorts to monetary policy instead since that operates through wealth holders' decisions, and hence does not undermine their social position. But, precisely for this reason, monetary policy is an ineffective instrument, as was evident in the United States in the aftermath of the 2007–09 crisis when even the pushing of interest rates down to zero scarcely revived activity. 6 ..."
"... If Trump's protectionism, which recalls the Smoot-Hawley tariff of 1931 and amounts to a beggar-my-neighbor policy, does lead to a significant export of unemployment from the United States, then it will invite retaliation and trigger a trade war that will only worsen the crisis for the world economy as a whole by dampening global investment. Indeed, since the United States has been targeting China in particular, some retaliatory measures have already appeared. But if U.S. protectionism does not invite generalized retaliation, it would only be because the export of unemployment from the United States is insubstantial, keeping unemployment everywhere, including in the United States, as precarious as it is now. However we look at it, the world would henceforth face higher levels of unemployment. ..."
"... The second implication of this dead end is that the era of export-led growth is by and large over for third world economies. The slowing down of world economic growth, together with protectionism in the United States against successful third world exporters, which could even spread to other metropolitan economies, suggests that the strategy of relying on the world market to generate domestic growth has run out of steam. Third world economies, including the ones that have been very successful at exporting, would now have to rely much more on their home market ..."
"... In other words, we shall now have an intensification of the imperialist stranglehold over third world economies, especially those pushed into unsustainable balance-of-payments deficits in the new situation. By imperialism , here we do not mean the imperialism of this or that major power, but the imperialism of international finance capital, with which even domestic big bourgeoisies are integrated, directed against their own working people ..."
"... In short, the ideology of neoliberal capitalism was the promise of growth. But with neoliberal capitalism reaching a dead end, this promise disappears and so does this ideological prop. To sustain itself, neoliberal capitalism starts looking for some other ideological prop and finds fascism. ..."
"... The first is the so-called spontaneous method of capital flight. Any political formation that seeks to take the country out of the neoliberal regime will witness capital flight even before it has been elected to office, bringing the country to a financial crisis and thereby denting its electoral prospects. And if perchance it still gets elected, the outflow will only increase, even before it assumes office. The inevitable difficulties faced by the people may well make the government back down at that stage. The sheer difficulty of transition away from a neoliberal regime could be enough to bring even a government based on the support of workers and peasants to its knees, precisely to save them short-term distress or to avoid losing their support. ..."
"... The third weapon consists in carrying out so-called democratic or parliamentary coups of the sort that Latin America has been experiencing. Coups in the old days were effected through the local armed forces and necessarily meant the imposition of military dictatorships in lieu of civilian, democratically elected governments. Now, taking advantage of the disaffection generated within countries by the hardships caused by capital flight and imposed sanctions, imperialism promotes coups through fascist or fascist-sympathizing middle-class political elements in the name of restoring democracy, which is synonymous with the pursuit of neoliberalism. ..."
"... And if all these measures fail, there is always the possibility of resorting to economic warfare (such as destroying Venezuela's electricity supply), and eventually to military warfare. Venezuela today provides a classic example of what imperialist intervention in a third world country is going to look like in the era of decline of neoliberal capitalism, when revolts are going to characterize such countries more and more. ..."
"... Despite this opposition, neoliberal capitalism cannot ward off the challenge it is facing for long. It has no vision for reinventing itself. Interestingly, in the period after the First World War, when capitalism was on the verge of sinking into a crisis, the idea of state intervention as a way of its revival had already been mooted, though its coming into vogue only occurred at the end of the Second World War. 11 Today, neoliberal capitalism does not even have an idea of how it can recover and revitalize itself. And weapons like domestic fascism in the third world and direct imperialist intervention cannot for long save it from the anger of the masses that is building up against it. ..."
Aug 25, 2019 | portside.org
Originally from: Monthly Review printer friendly
The ideology of neoliberal capitalism was the promise of growth. But with neoliberal capitalism reaching a dead end, this promise disappears and so does this ideological prop.

Harry Magdoff's The Age of Imperialism is a classic work that shows how postwar political decolonization does not negate the phenomenon of imperialism. The book has two distinct aspects. On the one hand, it follows in V. I. Lenin's footsteps in providing a comprehensive account of how capitalism at the time operated globally. On the other hand, it raises a question that is less frequently discussed in Marxist literature -- namely, the need for imperialism. Here, Magdoff not only highlighted the crucial importance, among other things, of the third world's raw materials for metropolitan capital, but also refuted the argument that the declining share of raw-material value in gross manufacturing output somehow reduced this importance, making the simple point that there can be no manufacturing at all without raw materials. 1

Magdoff's focus was on a period when imperialism was severely resisting economic decolonization in the third world, with newly independent third world countries taking control over their own resources. He highlighted the entire armory of weapons used by imperialism. But he was writing in a period that predated the onset of neoliberalism. Today, we not only have decades of neoliberalism behind us, but the neoliberal regime itself has reached a dead end. Contemporary imperialism has to be discussed within this setting.

Globalization and Economic Crisis

There are two reasons why the regime of neoliberal globalization has run into a dead end. The first is an ex ante tendency toward global overproduction; the second is that the only possible counter to this tendency within the regime is the formation of asset-price bubbles, which cannot be conjured up at will and whose collapse, if they do appear, plunges the economy back into crisis. In short, to use the words of British economic historian Samuel Berrick Saul, there are no "markets on tap" for contemporary metropolitan capitalism, such as had been provided by colonialism prior to the First World War and by state expenditure in the post-Second World War period of dirigisme . 2

The ex ante tendency toward overproduction arises because the vector of real wages across countries does not increase noticeably over time in the world economy, while the vector of labor productivities does, typically resulting in a rise in the share of surplus in world output. As Paul Baran and Paul Sweezy argued in Monopoly Capital , following the lead of Michał Kalecki and Josef Steindl, such a rise in the share of economic surplus, or a shift from wages to surplus, has the effect of reducing aggregate demand since the ratio of consumption to income is higher on average for wage earners than for those living off the surplus. 3 Therefore, assuming a given level of investment associated with any period, such a shift would tend to reduce consumption demand and hence aggregate demand, output, and capacity utilization. In turn, reduced capacity utilization would lower investment over time, further aggravating the demand-reducing effect arising from the consumption side.

While the rise in the vector of labor productivities across countries, a ubiquitous phenomenon under capitalism that also characterizes neoliberal capitalism, scarcely requires an explanation, why does the vector of real wages remain virtually stagnant in the world economy? The answer lies in the sui generis character of contemporary globalization that, for the first time in the history of capitalism, has led to a relocation of activity from the metropolis to third world countries in order to take advantage of the lower wages prevailing in the latter and meet global demand.

Historically, while labor has not been, and is still not, free to migrate from the third world to the metropolis, capital, though juridically free to move from the latter to the former, did not actually do so , except to sectors like mines and plantations, which only strengthened, rather than broke, the colonial pattern of the international division of labor. 4 This segmentation of the world economy meant that wages in the metropolis increased with labor productivity, unrestrained by the vast labor reserves of the third world, which themselves had been caused by the displacement of manufactures through the twin processes of deindustrialization (competition from metropolitan goods) and the drain of surplus (the siphoning off of a large part of the economic surplus, through taxes on peasants that are no longer spent on local artisan products but finance gratis primary commodity exports to the metropolis instead).

The current globalization broke with this. The movement of capital from the metropolis to the third world, especially to East, South, and Southeast Asia to relocate plants there and take advantage of their lower wages for meeting global demand, has led to a desegmentation of the world economy, subjecting metropolitan wages to the restraining effect exercised by the third world's labor reserves. Not surprisingly, as Joseph Stiglitz has pointed out, the real-wage rate of an average male U.S. worker in 2011 was no higher -- indeed, it was marginally lower -- than it had been in 1968. 5

At the same time, such relocation of activities, despite causing impressive growth rates of gross domestic product (GDP) in many third world countries, does not lead to the exhaustion of the third world's labor reserves. This is because of another feature of contemporary globalization: the unleashing of a process of primitive accumulation of capital against petty producers, including peasant agriculturists in the third world, who had earlier been protected, to an extent, from the encroachment of big capital (both domestic and foreign) by the postcolonial dirigiste regimes in these countries. Under neoliberalism, such protection is withdrawn, causing an income squeeze on these producers and often their outright dispossession from their land, which is then used by big capital for its various so-called development projects. The increase in employment, even in countries with impressive GDP growth rates in the third world, falls way short of the natural growth of the workforce, let alone absorbing the additional job seekers coming from the ranks of displaced petty producers. The labor reserves therefore never get used up. Indeed, on the contrary, they are augmented further, because real wages continue to remain tied to a subsistence level, even as metropolitan wages too are restrained. The vector of real wages in the world economy as a whole therefore remains restrained.

Although contemporary globalization thus gives rise to an ex ante tendency toward overproduction, state expenditure that could provide a counter to this (and had provided a counter through military spending in the United States, according to Baran and Sweezy) can no longer do so under the current regime. Finance is usually opposed to direct state intervention through larger spending as a way of increasing employment. This opposition expresses itself through an opposition not just to larger taxes on capitalists, but also to a larger fiscal deficit for financing such spending. Obviously, if larger state spending is financed by taxes on workers, then it hardly adds to aggregate demand, for workers spend the bulk of their incomes anyway, so the state taking this income and spending it instead does not add any extra demand. Hence, larger state spending can increase employment only if it is financed either through a fiscal deficit or through taxes on capitalists who keep a part of their income unspent or saved. But these are precisely the two modes of financing state expenditure that finance capital opposes.

Its opposing larger taxes on capitalists is understandable, but why is it so opposed to a larger fiscal deficit? Even within a capitalist economy, there are no sound economic theoretical reasons that should preclude a fiscal deficit under all circumstances. The root of the opposition therefore lies in deeper social considerations: if the capitalist economic system becomes dependent on the state to promote employment directly , then this fact undermines the social legitimacy of capitalism. The need for the state to boost the animal spirits of the capitalists disappears and a perspective on the system that is epistemically exterior to it is provided to the people, making it possible for them to ask: If the state can do the job of providing employment, then why do we need the capitalists at all? It is an instinctive appreciation of this potential danger that underlies the opposition of capital, especially of finance, to any direct effort by the state to generate employment.

This ever-present opposition becomes decisive within a regime of globalization. As long as finance capital remains national -- that is, nation-based -- and the state is a nation-state, the latter can override this opposition under certain circumstances, such as in the post-Second World War period when capitalism was facing an existential crisis. But when finance capital is globalized, meaning, when it is free to move across country borders while the state remains a nation-state, its opposition to fiscal deficits becomes decisive. If the state does run large fiscal deficits against its wishes, then it would simply leave that country en masse , causing a financial crisis.

The state therefore capitulates to the demands of globalized finance capital and eschews direct fiscal intervention for increasing demand. It resorts to monetary policy instead since that operates through wealth holders' decisions, and hence does not undermine their social position. But, precisely for this reason, monetary policy is an ineffective instrument, as was evident in the United States in the aftermath of the 2007–09 crisis when even the pushing of interest rates down to zero scarcely revived activity. 6

It may be thought that this compulsion on the part of the state to accede to the demand of finance to eschew fiscal intervention for enlarging employment should not hold for the United States. Its currency being considered by the world's wealth holders to be "as good as gold" should make it immune to capital flight. But there is an additional factor operating in the case of the United States: that the demand generated by a bigger U.S. fiscal deficit would substantially leak abroad in a neoliberal setting, which would increase its external debt (since, unlike Britain in its heyday, it does not have access to any unrequited colonial transfers) for the sake of generating employment elsewhere. This fact deters any fiscal effort even in the United States to boost demand within a neoliberal setting. 7

Therefore, it follows that state spending cannot provide a counter to the ex ante tendency toward global overproduction within a regime of neoliberal globalization, which makes the world economy precariously dependent on occasional asset-price bubbles, primarily in the U.S. economy, for obtaining, at best, some temporary relief from the crisis. It is this fact that underlies the dead end that neoliberal capitalism has reached. Indeed, Donald Trump's resort to protectionism in the United States to alleviate unemployment is a clear recognition of the system having reached this cul-de-sac. The fact that the mightiest capitalist economy in the world has to move away from the rules of the neoliberal game in an attempt to alleviate its crisis of unemployment/underemployment -- while compensating capitalists adversely affected by this move through tax cuts, as well as carefully ensuring that no restraints are imposed on free cross-border financial flows -- shows that these rules are no longer viable in their pristine form.

Some Implications of This Dead End

There are at least four important implications of this dead end of neoliberalism. The first is that the world economy will now be afflicted by much higher levels of unemployment than it was in the last decade of the twentieth century and the early years of the twenty-first, when the dot-com and the housing bubbles in the United States had, sequentially, a pronounced impact. It is true that the U.S. unemployment rate today appears to be at a historic low, but this is misleading: the labor-force participation rate in the United States today is lower than it was in 2008, which reflects the discouraged-worker effect . Adjusting for this lower participation, the U.S. unemployment rate is considerable -- around 8 percent. Indeed, Trump would not be imposing protection in the United States if unemployment was actually as low as 4 percent, which is the official figure. Elsewhere in the world, of course, unemployment post-2008 continues to be evidently higher than before. Indeed, the severity of the current problem of below-full-employment production in the U.S. economy is best illustrated by capacity utilization figures in manufacturing. The weakness of the U.S. recovery from the Great Recession is indicated by the fact that the current extended recovery represents the first decade in the entire post-Second World War period in which capacity utilization in manufacturing has never risen as high as 80 percent in a single quarter, with the resulting stagnation of investment. 8

If Trump's protectionism, which recalls the Smoot-Hawley tariff of 1931 and amounts to a beggar-my-neighbor policy, does lead to a significant export of unemployment from the United States, then it will invite retaliation and trigger a trade war that will only worsen the crisis for the world economy as a whole by dampening global investment. Indeed, since the United States has been targeting China in particular, some retaliatory measures have already appeared. But if U.S. protectionism does not invite generalized retaliation, it would only be because the export of unemployment from the United States is insubstantial, keeping unemployment everywhere, including in the United States, as precarious as it is now. However we look at it, the world would henceforth face higher levels of unemployment.

There has been some discussion on how global value chains would be affected by Trump's protectionism. But the fact that global macroeconomics in the early twenty-first century will look altogether different compared to earlier has not been much discussed.

In light of the preceding discussion, one could say that if, instead of individual nation-states whose writ cannot possibly run against globalized finance capital, there was a global state or a set of major nation-states acting in unison to override the objections of globalized finance and provide a coordinated fiscal stimulus to the world economy, then perhaps there could be recovery. Such a coordinated fiscal stimulus was suggested by a group of German trade unionists, as well as by John Maynard Keynes during the Great Depression in the 1930s. 9 While it was turned down then, in the present context it has not even been discussed.

The second implication of this dead end is that the era of export-led growth is by and large over for third world economies. The slowing down of world economic growth, together with protectionism in the United States against successful third world exporters, which could even spread to other metropolitan economies, suggests that the strategy of relying on the world market to generate domestic growth has run out of steam. Third world economies, including the ones that have been very successful at exporting, would now have to rely much more on their home market.

Such a transition will not be easy; it will require promoting domestic peasant agriculture, defending petty production, moving toward cooperative forms of production, and ensuring greater equality in income distribution, all of which need major structural shifts. For smaller economies, it would also require their coming together with other economies to provide a minimum size to the domestic market. In short, the dead end of neoliberalism also means the need for a shift away from the so-called neoliberal development strategy that has held sway until now.

The third implication is the imminent engulfing of a whole range of third world economies in serious balance-of-payments difficulties. This is because, while their exports will be sluggish in the new situation, this very fact will also discourage financial inflows into their economies, whose easy availability had enabled them to maintain current account deficits on their balance of payments earlier. In such a situation, within the existing neoliberal paradigm, they would be forced to adopt austerity measures that would impose income deflation on their people, make the conditions of their people significantly worse, lead to a further handing over of their national assets and resources to international capital, and prevent precisely any possible transition to an alternative strategy of home market-based growth.

In other words, we shall now have an intensification of the imperialist stranglehold over third world economies, especially those pushed into unsustainable balance-of-payments deficits in the new situation. By imperialism , here we do not mean the imperialism of this or that major power, but the imperialism of international finance capital, with which even domestic big bourgeoisies are integrated, directed against their own working people.

The fourth implication is the worldwide upsurge of fascism. Neoliberal capitalism even before it reached a dead end, even in the period when it achieved reasonable growth and employment rates, had pushed the world into greater hunger and poverty. For instance, the world per-capita cereal output was 355 kilograms for 1980 (triennium average for 1979–81 divided by mid–triennium population) and fell to 343 in 2000, leveling at 344.9 in 2016 -- and a substantial amount of this last figure went into ethanol production. Clearly, in a period of growth of the world economy, per-capita cereal absorption should be expanding, especially since we are talking here not just of direct absorption but of direct and indirect absorption, the latter through processed foods and feed grains in animal products. The fact that there was an absolute decline in per-capita output, which no doubt caused a decline in per-capita absorption, suggests an absolute worsening in the nutritional level of a substantial segment of the world's population.

But this growing hunger and nutritional poverty did not immediately arouse any significant resistance, both because such resistance itself becomes more difficult under neoliberalism (since the very globalization of capital makes it an elusive target) and also because higher GDP growth rates provided a hope that distress might be overcome in the course of time. Peasants in distress, for instance, entertained the hope that their children would live better in the years to come if given a modicum of education and accepted their fate.

In short, the ideology of neoliberal capitalism was the promise of growth. But with neoliberal capitalism reaching a dead end, this promise disappears and so does this ideological prop. To sustain itself, neoliberal capitalism starts looking for some other ideological prop and finds fascism. This changes the discourse away from the material conditions of people's lives to the so-called threat to the nation, placing the blame for people's distress not on the failure of the system, but on ethnic, linguistic, and religious minority groups, the other that is portrayed as an enemy. It projects a so-called messiah whose sheer muscularity can somehow magically overcome all problems; it promotes a culture of unreason so that both the vilification of the other and the magical powers of the supposed leader can be placed beyond any intellectual questioning; it uses a combination of state repression and street-level vigilantism by fascist thugs to terrorize opponents; and it forges a close relationship with big business, or, in Kalecki's words, "a partnership of big business and fascist upstarts." 10

Fascist groups of one kind or another exist in all modern societies. They move center stage and even into power only on certain occasions when they get the backing of big business. And these occasions arise when three conditions are satisfied: when there is an economic crisis so the system cannot simply go on as before; when the usual liberal establishment is manifestly incapable of resolving the crisis; and when the left is not strong enough to provide an alternative to the people in order to move out of the conjuncture.

This last point may appear odd at first, since many see the big bourgeoisie's recourse to fascism as a counter to the growth of the left's strength in the context of a capitalist crisis. But when the left poses a serious threat, the response of the big bourgeoisie typically is to attempt to split it by offering concessions. It uses fascism to prop itself up only when the left is weakened. Walter Benjamin's remark that "behind every fascism there is a failed revolution" points in this direction.

Fascism Then and Now

Contemporary fascism, however, differs in crucial respects from its 1930s counterpart, which is why many are reluctant to call the current phenomenon a fascist upsurge. But historical parallels, if carefully drawn, can be useful. While in some aforementioned respects contemporary fascism does resemble the phenomenon of the 1930s, there are serious differences between the two that must also be noted.

First, we must note that while the current fascist upsurge has put fascist elements in power in many countries, there are no fascist states of the 1930s kind as of yet. Even if the fascist elements in power try to push the country toward a fascist state, it is not clear that they will succeed. There are many reasons for this, but an important one is that fascists in power today cannot overcome the crisis of neoliberalism, since they accept the regime of globalization of finance. This includes Trump, despite his protectionism. In the 1930s, however, this was not the case. The horrors associated with the institution of a fascist state in the 1930s had been camouflaged to an extent by the ability of the fascists in power to overcome mass unemployment and end the Depression through larger military spending, financed by government borrowing. Contemporary fascism, by contrast, lacks the ability to overcome the opposition of international finance capital to fiscal activism on the part of the government to generate larger demand, output, and employment, even via military spending.

Such activism, as discussed earlier, required larger government spending financed either through taxes on capitalists or through a fiscal deficit. Finance capital was opposed to both of these measures and it being globalized made this opposition decisive . The decisiveness of this opposition remains even if the government happens to be one composed of fascist elements. Hence, contemporary fascism, straitjacketed by "fiscal rectitude," cannot possibly alleviate even temporarily the economic crises facing people and cannot provide any cover for a transition to a fascist state akin to the ones of the 1930s, which makes such a transition that much more unlikely.

Another difference is also related to the phenomenon of the globalization of finance. The 1930s were marked by what Lenin had earlier called "interimperialist rivalry." The military expenditures incurred by fascist governments, even though they pulled countries out of the Depression and unemployment, inevitably led to wars for "repartitioning an already partitioned world." Fascism was the progenitor of war and burned itself out through war at, needless to say, great cost to humankind.

Contemporary fascism, however, operates in a world where interimperialist rivalry is far more muted. Some have seen in this muting a vindication of Karl Kautsky's vision of an "ultraimperialism" as against Lenin's emphasis on the permanence of interimperialist rivalry, but this is wrong. Both Kautsky and Lenin were talking about a world where finance capital and the financial oligarchy were essentially national -- that is, German, French, or British. And while Kautsky talked about the possibility of truces among the rival oligarchies, Lenin saw such truces only as transient phenomena punctuating the ubiquity of rivalry.

In contrast, what we have today is not nation-based finance capitals, but international finance capital into whose corpus the finance capitals drawn from particular countries are integrated. This globalized finance capital does not want the world to be partitioned into economic territories of rival powers ; on the contrary, it wants the entire globe to be open to its own unrestricted movement. The muting of rivalry between major powers, therefore, is not because they prefer truce to war, or peaceful partitioning of the world to forcible repartitioning, but because the material conditions themselves have changed so that it is no longer a matter of such choices. The world has gone beyond both Lenin and Kautsky, as well as their debates.

Not only are we not going to have wars between major powers in this era of fascist upsurge (of course, as will be discussed, we shall have other wars), but, by the same token, this fascist upsurge will not burn out through any cataclysmic war. What we are likely to see is a lingering fascism of less murderous intensity , which, when in power, does not necessarily do away with all the forms of bourgeois democracy, does not necessarily physically annihilate the opposition, and may even allow itself to get voted out of power occasionally. But since its successor government, as long as it remains within the confines of the neoliberal strategy, will also be incapable of alleviating the crisis, the fascist elements are likely to return to power as well. And whether the fascist elements are in or out of power, they will remain a potent force working toward the fascification of the society and the polity, even while promoting corporate interests within a regime of globalization of finance, and hence permanently maintaining the "partnership between big business and fascist upstarts."

Put differently, since the contemporary fascist upsurge is not likely to burn itself out as the earlier one did, it has to be overcome by transcending the very conjuncture that produced it: neoliberal capitalism at a dead end. A class mobilization of working people around an alternative set of transitional demands that do not necessarily directly target neoliberal capitalism, but which are immanently unrealizable within the regime of neoliberal capitalism, can provide an initial way out of this conjuncture and lead to its eventual transcendence.

Such a class mobilization in the third world context would not mean making no truces with liberal bourgeois elements against the fascists. On the contrary, since the liberal bourgeois elements too are getting marginalized through a discourse of jingoistic nationalism typically manufactured by the fascists, they too would like to shift the discourse toward the material conditions of people's lives, no doubt claiming that an improvement in these conditions is possible within the neoliberal economic regime itself. Such a shift in discourse is in itself a major antifascist act . Experience will teach that the agenda advanced as part of this changed discourse is unrealizable under neoliberalism, providing the scope for dialectical intervention by the left to transcend neoliberal capitalism.

Imperialist Interventions

Even though fascism will have a lingering presence in this conjuncture of "neoliberalism at a dead end," with the backing of domestic corporate-financial interests that are themselves integrated into the corpus of international finance capital, the working people in the third world will increasingly demand better material conditions of life and thereby rupture the fascist discourse of jingoistic nationalism (that ironically in a third world context is not anti-imperialist).

In fact, neoliberalism reaching a dead end and having to rely on fascist elements revives meaningful political activity, which the heyday of neoliberalism had precluded, because most political formations then had been trapped within an identical neoliberal agenda that appeared promising. (Latin America had a somewhat different history because neoliberalism arrived in that continent through military dictatorships, not through its more or less tacit acceptance by most political formations.)

Such revived political activity will necessarily throw up challenges to neoliberal capitalism in particular countries. Imperialism, by which we mean the entire economic and political arrangement sustaining the hegemony of international finance capital, will deal with these challenges in at least four different ways.

The first is the so-called spontaneous method of capital flight. Any political formation that seeks to take the country out of the neoliberal regime will witness capital flight even before it has been elected to office, bringing the country to a financial crisis and thereby denting its electoral prospects. And if perchance it still gets elected, the outflow will only increase, even before it assumes office. The inevitable difficulties faced by the people may well make the government back down at that stage. The sheer difficulty of transition away from a neoliberal regime could be enough to bring even a government based on the support of workers and peasants to its knees, precisely to save them short-term distress or to avoid losing their support.

Even if capital controls are put in place, where there are current account deficits, financing such deficits would pose a problem, necessitating some trade controls. But this is where the second instrument of imperialism comes into play: the imposition of trade sanctions by the metropolitan states, which then cajole other countries to stop buying from the sanctioned country that is trying to break away from thralldom to globalized finance capital. Even if the latter would have otherwise succeeded in stabilizing its economy despite its attempt to break away, the imposition of sanctions becomes an additional blow.

The third weapon consists in carrying out so-called democratic or parliamentary coups of the sort that Latin America has been experiencing. Coups in the old days were effected through the local armed forces and necessarily meant the imposition of military dictatorships in lieu of civilian, democratically elected governments. Now, taking advantage of the disaffection generated within countries by the hardships caused by capital flight and imposed sanctions, imperialism promotes coups through fascist or fascist-sympathizing middle-class political elements in the name of restoring democracy, which is synonymous with the pursuit of neoliberalism.

And if all these measures fail, there is always the possibility of resorting to economic warfare (such as destroying Venezuela's electricity supply), and eventually to military warfare. Venezuela today provides a classic example of what imperialist intervention in a third world country is going to look like in the era of decline of neoliberal capitalism, when revolts are going to characterize such countries more and more.

Two aspects of such intervention are striking. One is the virtual unanimity among the metropolitan states, which only underscores the muting of interimperialist rivalry in the era of hegemony of global finance capital. The other is the extent of support that such intervention commands within metropolitan countries, from the right to even the liberal segments.

Despite this opposition, neoliberal capitalism cannot ward off the challenge it is facing for long. It has no vision for reinventing itself. Interestingly, in the period after the First World War, when capitalism was on the verge of sinking into a crisis, the idea of state intervention as a way of its revival had already been mooted, though its coming into vogue only occurred at the end of the Second World War. 11 Today, neoliberal capitalism does not even have an idea of how it can recover and revitalize itself. And weapons like domestic fascism in the third world and direct imperialist intervention cannot for long save it from the anger of the masses that is building up against it.

Notes
  1. Harry Magdoff, The Age of Imperialism (New York: Monthly Review Press, 1969).
  2. Samuel Berrick Saul, Studies in British Overseas Trade, 1870–1914 (Liverpool: Liverpool University Press, 1960).
  3. Paul A. Baran and Paul M. Sweezy, Monopoly Capital (New York: Monthly Review Press, 1966).
  4. One of the first authors to recognize this fact and its significance was Paul Baran in The Political Economy of Growth (New York: Monthly Review Press, 1957).
  5. Joseph E. Stiglitz, " Inequality is Holding Back the Recovery ," New York Times , January 19, 2013.
  6. For a discussion of how even the recent euphoria about U.S. growth is vanishing, see C. P. Chandrasekhar and Jayati Ghosh, " Vanishing Green Shoots and the Possibility of Another Crisis ," The Hindu Business Line , April 8, 2019.
  7. For the role of such colonial transfers in sustaining the British balance of payments and the long Victorian and Edwardian boom, see Utsa Patnaik, "Revisiting the 'Drain,' or Transfers from India to Britain in the Context of Global Diffusion of Capitalism," in Agrarian and Other Histories: Essays for Binay Bhushan Chaudhuri , ed. Shubhra Chakrabarti and Utsa Patnaik (Delhi: Tulika, 2017), 277-317.
  8. Federal Reserve Board of Saint Louis Economic Research, FRED, "Capacity Utilization: Manufacturing," February 2019 (updated March 27, 2019), http://fred.stlouisfed.org .
  9. This issue is discussed by Charles P. Kindleberger in The World in Depression, 1929–1939 , 40th anniversary ed. (Oakland: University of California Press, 2013).
  10. Michał Kalecki, " Political Aspects of Full Employment ," Political Quarterly (1943), available at mronline.org.
  11. Joseph Schumpeter had seen Keynes's The Economic Consequences of the Peace as essentially advocating such state intervention in the new situation. See his essay, "John Maynard Keynes (1883–1946)," in Ten Great Economists (London: George Allen & Unwin, 1952).

Utsa Patnaik is Professor Emerita at the Centre for Economic Studies and Planning, Jawaharlal Nehru University, New Delhi. Her books include Peasant Class Differentiation (1987), The Long Transition (1999), and The Republic of Hunger and Other Essays (2007). Prabhat Patnaik is Professor Emeritus at the Centre for Economic Studies and Planning, Jawaharlal Nehru University, New Delhi. His books include Accumulation and Stability Under Capitalism (1997), The Value of Money(2009), and Re-envisioning Socialism(2011).

[Jul 29, 2019] Michael Hudson Trump s Brilliant Strategy to Dismember US Dollar Hegemony by Michael Hudson

Highly recommended!
Looks like the world order established after WWIII crumbed with the USSR and now it is again the law if jungles with the US as the biggest predator.
Notable quotes:
"... The root cause is clear: After the crescendo of pretenses and deceptions over Iraq, Libya and Syria, along with our absolution of the lawless regime of Saudi Arabia, foreign political leaders are coming to recognize what world-wide public opinion polls reported even before the Iraq/Iran-Contra boys turned their attention to the world's largest oil reserves in Venezuela: The United States is now the greatest threat to peace on the planet. ..."
"... Calling the U.S. coup being sponsored in Venezuela a defense of democracy reveals the Doublethink underlying U.S. foreign policy. It defines "democracy" to mean supporting U.S. foreign policy, pursuing neoliberal privatization of public infrastructure, dismantling government regulation and following the direction of U.S.-dominated global institutions, from the IMF and World Bank to NATO. For decades, the resulting foreign wars, domestic austerity programs and military interventions have brought more violence, not democracy ..."
"... A point had to come where this policy collided with the self-interest of other nations, finally breaking through the public relations rhetoric of empire. Other countries are proceeding to de-dollarize and replace what U.S. diplomacy calls "internationalism" (meaning U.S. nationalism imposed on the rest of the world) with their own national self-interest. ..."
"... For the past half-century, U.S. strategists, the State Department and National Endowment for Democracy (NED) worried that opposition to U.S. financial imperialism would come from left-wing parties. It therefore spent enormous resources manipulating parties that called themselves socialist (Tony Blair's British Labour Party, France's Socialist Party, Germany's Social Democrats, etc.) to adopt neoliberal policies that were the diametric opposite to what social democracy meant a century ago. But U.S. political planners and Great Wurlitzer organists neglected the right wing, imagining that it would instinctively support U.S. thuggishness. ..."
"... Perhaps the problem had to erupt as a result of the inner dynamics of U.S.-sponsored globalism becoming impossible to impose when the result is financial austerity, waves of population flight from U.S.-sponsored wars, and most of all, U.S. refusal to adhere to the rules and international laws that it itself sponsored seventy years ago in the wake of World War II. ..."
"... Here's the first legal contradiction in U.S. global diplomacy: The United States always has resisted letting any other country have any voice in U.S. domestic policies, law-making or diplomacy. That is what makes America "the exceptional nation." But for seventy years its diplomats have pretended that its superior judgment promoted a peaceful world (as the Roman Empire claimed to be), which let other countries share in prosperity and rising living standards. ..."
"... Inevitably, U.S. nationalism had to break up the mirage of One World internationalism, and with it any thought of an international court. Without veto power over the judges, the U.S. never accepted the authority of any court, in particular the United Nations' International Court in The Hague. Recently that court undertook an investigation into U.S. war crimes in Afghanistan, from its torture policies to bombing of civilian targets such as hospitals, weddings and infrastructure. "That investigation ultimately found 'a reasonable basis to believe that war crimes and crimes against humanity." ..."
"... This showed that international finance was an arm of the U.S. State Department and Pentagon. But that was a generation ago, and only recently did foreign countries begin to feel queasy about leaving their gold holdings in the United States, where they might be grabbed at will to punish any country that might act in ways that U.S. diplomacy found offensive. So last year, Germany finally got up the courage to ask that some of its gold be flown back to Germany. U.S. officials pretended to feel shocked at the insult that it might do to a civilized Christian country what it had done to Iran, and Germany agreed to slow down the transfer. ..."
"... England refused to honor the official request, following the direction of Bolton and U.S. Secretary of State Michael Pompeo. As Bloomberg reported: "The U.S. officials are trying to steer Venezuela's overseas assets to [Chicago Boy Juan] Guaido to help bolster his chances of effectively taking control of the government. The $1.2 billion of gold is a big chunk of the $8 billion in foreign reserves held by the Venezuelan central bank." ..."
"... But now, cyber warfare has become a way of pulling out the connections of any economy. And the major cyber connections are financial money-transfer ones, headed by SWIFT, the acronym for the Society for Worldwide Interbank Financial Telecommunication, which is centered in Belgium. ..."
"... On January 31 the dam broke with the announcement that Europe had created its own bypass payments system for use with Iran and other countries targeted by U.S. diplomats. Germany, France and even the U.S. poodle Britain joined to create INSTEX -- Instrument in Support of Trade Exchanges. The promise is that this will be used only for "humanitarian" aid to save Iran from a U.S.-sponsored Venezuela-type devastation. But in view of increasingly passionate U.S. opposition to the Nord Stream pipeline to carry Russian gas, this alternative bank clearing system will be ready and able to become operative if the United States tries to direct a sanctions attack on Europe ..."
"... The U.S. overplaying its position is leading to the Mackinder-Kissinger-Brzezinski Eurasian nightmare that I mentioned above. In addition to driving Russia and China together, U.S. diplomacy is adding Europe to the heartland, independent of U.S. ability to bully into the state of dependency toward which American diplomacy has aimed to achieve since 1945. ..."
"... By following U.S. advice, countries have left themselves open to food blackmail – sanctions against providing them with grain and other food, in case they step out of line with U.S. diplomatic demands. ..."
"... It is worthwhile to note that our global imposition of the mythical "efficiencies" of forcing Latin American countries to become plantations for export crops like coffee and bananas rather than growing their own wheat and corn has failed catastrophically to deliver better lives, especially for those living in Central America. The "spread" between the export crops and cheaper food imports from the U.S. that was supposed to materialize for countries following our playbook failed miserably – witness the caravans and refugees across Mexico. Of course, our backing of the most brutal military dictators and crime lords has not helped either. ..."
"... But a few years ago Ukraine defaulted on $3 billion owed to Russia. The IMF said, in effect, that Ukraine and other countries did not have to pay Russia or any other country deemed to be acting too independently of the United States. The IMF has been extending credit to the bottomless it of Ukrainian corruption to encourage its anti-Russian policy rather than standing up for the principle that inter-government debts must be paid. ..."
"... It is as if the IMF now operates out of a small room in the basement of the Pentagon in Washington. ..."
"... Anticipating just such a double-cross, President Chavez acted already in 2011 to repatriate 160 tons of gold to Caracas from the United States and Europe. ..."
"... It would be good for Americans, but the wrong kind of Americans. For the Americans that would populate the Global Executive Suite, a strong US$ means that the stipends they would pay would be worth more to the lackeys, and command more influence. ..."
"... Dumping the industrial base really ruined things. America is now in a position where it can shout orders, and drop bombs, but doesn't have the capacity to do anything helpful. They have to give up being what Toynbee called a creative minority, and settle for being a dominant minority. ..."
"... Having watched the 2016 election closely from afar, I was left with the impression that many of the swing voters who cast their vote for Trump did so under the assumption that he would act as a catalyst for systemic change. ..."
"... Now we know. He has ripped the already transparent mask of altruism off what is referred to as the U.S.-led liberal international order and revealed its true nature for all to see, and has managed to do it in spite of the liberal international establishment desperately trying to hold it in place in the hope of effecting a seamless post-Trump return to what they refer to as "norms". Interesting times. ..."
"... Exactly. He hasn't exactly lived up to advanced billing so far in all respects, but I suspect there's great deal of skulduggery going on behind the scenes that has prevented that. ..."
"... To paraphrase the infamous Rummy, you don't go to war with the change agent and policies you wished you had, you go to war with the ones you have. That might be the best thing we can say about Trump after the historic dust of his administration finally settles. ..."
"... Yet we find out that Venezuela didn't managed to do what they wanted to do, the Europeans, the Turks, etc bent over yet again. Nothing to see here, actually. ..."
"... So what I'm saying is he didn't make his point. I wish it were true. But a bit of grumbling and (a tiny amount of) foot-dragging by some pygmy leaders (Merkel) does not signal a global change. ..."
"... Currency regime change can take decades, and small percentage differences are enormous because of the flows involved. USD as reserve for 61% of global sovereigns versus 64% 15 years ago is a massive move. ..."
"... I discovered his Super Imperialism while looking for an explanation for the pending 2003 US invasion of Iraq. If you haven't read it yet, move it to the top of your queue if you want to have any idea of how the world really works. ..."
"... If it isn't clear to the rest of the world by now, it never will be. The US is incapable of changing on its own a corrupt status quo dominated by a coalition of its military industrial complex, Wall Street bankers and fossil fuels industries. As long as the world continues to chase the debt created on the keyboards of Wall Street banks and 'deficits don't matter' Washington neocons – as long as the world's 1% think they are getting 'richer' by adding more "debts that can't be repaid (and) won't be" to their portfolios, the global economy can never be put on a sustainable footing. ..."
"... In other words, after 2 World Wars that produced the current world order, it is still in a state of insanity with the same pretensions to superiority by the same people, to get number 3. ..."
"... Few among Washington's foreign policy elite seem to fully grasp the complex system that made U.S. global power what it now is, particularly its all-important geopolitical foundations. As Trump travels the globe, tweeting and trashing away, he's inadvertently showing us the essential structure of that power, the same way a devastating wildfire leaves the steel beams of a ruined building standing starkly above the smoking rubble." ..."
"... He's draining the swamp in an unpredicted way, a swamp that's founded on the money interest. I don't care what NYT and WaPo have to say, they are not reporting events but promoting agendas. ..."
"... The financial elites are only concerned about shaping society as they see fit, side of self serving is just a historical foot note, Trumps past indicates a strong preference for even more of the same through authoritarian memes or have some missed the OT WH reference to dawg both choosing and then compelling him to run. ..."
"... Highly doubt Trump is a "witting agent", most likely is that he is just as ignorant as he almost daily shows on twitter. On US role in global affairs he says the same today as he did as a media celebrity in the late 80s. Simplistic household "logics" on macroeconomics. If US have trade deficit it loses. Countries with surplus are the winners. ..."
"... Anyhow frightening, the US hegemony have its severe dark sides. But there is absolutely nothing better on the horizon, a crash will throw the world in turmoil for decades or even a century. A lot of bad forces will see their chance to elevate their influence. There will be fierce competition to fill the gap. ..."
"... On could the insane economic model of EU/Germany being on top of global affairs, a horribly frightening thought. Misery and austerity for all globally, a permanent recession. Probably not much better with the Chinese on top. I'll take the USD hegemony any day compared to that prospect. ..."
"... Former US ambassador, Chas Freeman, gets to the nub of the problem. "The US preference for governance by elected and appointed officials, uncontaminated by experience in statecraft and diplomacy, or knowledge of geography, history and foreign affairs" https://www.youtube.com/watch?annotation_id=annotation_882041135&feature=iv&src_vid=Ge1ozuXN7iI&v=gkf2MQdqz-o ..."
"... Michael Hudson, in Super Imperialism, went into how the US could just create the money to run a large trade deficit with the rest of the world. It would get all these imports effectively for nothing, the US's exorbitant privilege. I tied this in with this graph from MMT. ..."
"... The Government was running a surplus as the economy blew up in the early 1990s. It's the positive and negative, zero sum, nature of the monetary system. A big trade deficit needs a big Government deficit to cover it. A big trade deficit, with a balanced budget, drives the private sector into debt and blows up the economy. ..."
Feb 01, 2019 | www.nakedcapitalism.com

The end of America's unchallenged global economic dominance has arrived sooner than expected, thanks to the very same Neocons who gave the world the Iraq, Syria and the dirty wars in Latin America. Just as the Vietnam War drove the United States off gold by 1971, its sponsorship and funding of violent regime change wars against Venezuela and Syria – and threatening other countries with sanctions if they do not join this crusade – is now driving European and other nations to create their alternative financial institutions.

This break has been building for quite some time, and was bound to occur. But who would have thought that Donald Trump would become the catalytic agent? No left-wing party, no socialist, anarchist or foreign nationalist leader anywhere in the world could have achieved what he is doing to break up the American Empire. The Deep State is reacting with shock at how this right-wing real estate grifter has been able to drive other countries to defend themselves by dismantling the U.S.-centered world order. To rub it in, he is using Bush and Reagan-era Neocon arsonists, John Bolton and now Elliott Abrams, to fan the flames in Venezuela. It is almost like a black political comedy. The world of international diplomacy is being turned inside-out. A world where there is no longer even a pretense that we might adhere to international norms, let alone laws or treaties.

The Neocons who Trump has appointed are accomplishing what seemed unthinkable not long ago: Driving China and Russia together – the great nightmare of Henry Kissinger and Zbigniew Brzezinski. They also are driving Germany and other European countries into the Eurasian orbit, the "Heartland" nightmare of Halford Mackinder a century ago.

The root cause is clear: After the crescendo of pretenses and deceptions over Iraq, Libya and Syria, along with our absolution of the lawless regime of Saudi Arabia, foreign political leaders are coming to recognize what world-wide public opinion polls reported even before the Iraq/Iran-Contra boys turned their attention to the world's largest oil reserves in Venezuela: The United States is now the greatest threat to peace on the planet.

Calling the U.S. coup being sponsored in Venezuela a defense of democracy reveals the Doublethink underlying U.S. foreign policy. It defines "democracy" to mean supporting U.S. foreign policy, pursuing neoliberal privatization of public infrastructure, dismantling government regulation and following the direction of U.S.-dominated global institutions, from the IMF and World Bank to NATO. For decades, the resulting foreign wars, domestic austerity programs and military interventions have brought more violence, not democracy.

In the Devil's Dictionary that U.S. diplomats are taught to use as their "Elements of Style" guidelines for Doublethink, a "democratic" country is one that follows U.S. leadership and opens its economy to U.S. investment, and IMF- and World Bank-sponsored privatization. The Ukraine is deemed democratic, along with Saudi Arabia, Israel and other countries that act as U.S. financial and military protectorates and are willing to treat America's enemies are theirs too.

A point had to come where this policy collided with the self-interest of other nations, finally breaking through the public relations rhetoric of empire. Other countries are proceeding to de-dollarize and replace what U.S. diplomacy calls "internationalism" (meaning U.S. nationalism imposed on the rest of the world) with their own national self-interest.

This trajectory could be seen 50 years ago (I described it in Super Imperialism [1972] and Global Fracture [1978].) It had to happen. But nobody thought that the end would come in quite the way that is happening. History has turned into comedy, or at least irony as its dialectical path unfolds.

For the past half-century, U.S. strategists, the State Department and National Endowment for Democracy (NED) worried that opposition to U.S. financial imperialism would come from left-wing parties. It therefore spent enormous resources manipulating parties that called themselves socialist (Tony Blair's British Labour Party, France's Socialist Party, Germany's Social Democrats, etc.) to adopt neoliberal policies that were the diametric opposite to what social democracy meant a century ago. But U.S. political planners and Great Wurlitzer organists neglected the right wing, imagining that it would instinctively support U.S. thuggishness.

The reality is that right-wing parties want to get elected, and a populist nationalism is today's road to election victory in Europe and other countries just as it was for Donald Trump in 2016.

Trump's agenda may really be to break up the American Empire, using the old Uncle Sucker isolationist rhetoric of half a century ago. He certainly is going for the Empire's most vital organs. But it he a witting anti-American agent? He might as well be – but it would be a false mental leap to use "quo bono" to assume that he is a witting agent.

After all, if no U.S. contractor, supplier, labor union or bank will deal with him, would Vladimir Putin, China or Iran be any more naïve? Perhaps the problem had to erupt as a result of the inner dynamics of U.S.-sponsored globalism becoming impossible to impose when the result is financial austerity, waves of population flight from U.S.-sponsored wars, and most of all, U.S. refusal to adhere to the rules and international laws that it itself sponsored seventy years ago in the wake of World War II.

Dismantling International Law and Its Courts

Any international system of control requires the rule of law. It may be a morally lawless exercise of ruthless power imposing predatory exploitation, but it is still The Law. And it needs courts to apply it (backed by police power to enforce it and punish violators).

Here's the first legal contradiction in U.S. global diplomacy: The United States always has resisted letting any other country have any voice in U.S. domestic policies, law-making or diplomacy. That is what makes America "the exceptional nation." But for seventy years its diplomats have pretended that its superior judgment promoted a peaceful world (as the Roman Empire claimed to be), which let other countries share in prosperity and rising living standards.

At the United Nations, U.S. diplomats insisted on veto power. At the World Bank and IMF they also made sure that their equity share was large enough to give them veto power over any loan or other policy. Without such power, the United States would not join any international organization. Yet at the same time, it depicted its nationalism as protecting globalization and internationalism. It was all a euphemism for what really was unilateral U.S. decision-making.

Inevitably, U.S. nationalism had to break up the mirage of One World internationalism, and with it any thought of an international court. Without veto power over the judges, the U.S. never accepted the authority of any court, in particular the United Nations' International Court in The Hague. Recently that court undertook an investigation into U.S. war crimes in Afghanistan, from its torture policies to bombing of civilian targets such as hospitals, weddings and infrastructure. "That investigation ultimately found 'a reasonable basis to believe that war crimes and crimes against humanity." [1]

Donald Trump's National Security Adviser John Bolton erupted in fury, warning in September that: "The United States will use any means necessary to protect our citizens and those of our allies from unjust prosecution by this illegitimate court," adding that the UN International Court must not be so bold as to investigate "Israel or other U.S. allies."

That prompted a senior judge, Christoph Flügge from Germany, to resign in protest. Indeed, Bolton told the court to keep out of any affairs involving the United States, promising to ban the Court's "judges and prosecutors from entering the United States." As Bolton spelled out the U.S. threat: "We will sanction their funds in the U.S. financial system, and we will prosecute them in the U.S. criminal system. We will not cooperate with the ICC. We will provide no assistance to the ICC. We will not join the ICC. We will let the ICC die on its own. After all, for all intents and purposes, the ICC is already dead to us."

What this meant, the German judge spelled out was that: "If these judges ever interfere in the domestic concerns of the U.S. or investigate an American citizen, [Bolton] said the American government would do all it could to ensure that these judges would no longer be allowed to travel to the United States – and that they would perhaps even be criminally prosecuted."

The original inspiration of the Court – to use the Nuremburg laws that were applied against German Nazis to bring similar prosecution against any country or officials found guilty of committing war crimes – had already fallen into disuse with the failure to indict the authors of the Chilean coup, Iran-Contra or the U.S. invasion of Iraq for war crimes.

Dismantling Dollar Hegemony from the IMF to SWIFT

Of all areas of global power politics today, international finance and foreign investment have become the key flashpoint. International monetary reserves were supposed to be the most sacrosanct, and international debt enforcement closely associated.

Central banks have long held their gold and other monetary reserves in the United States and London. Back in 1945 this seemed reasonable, because the New York Federal Reserve Bank (in whose basement foreign central bank gold was kept) was militarily safe, and because the London Gold Pool was the vehicle by which the U.S. Treasury kept the dollar "as good as gold" at $35 an ounce. Foreign reserves over and above gold were kept in the form of U.S. Treasury securities, to be bought and sold on the New York and London foreign-exchange markets to stabilize exchange rates. Most foreign loans to governments were denominated in U.S. dollars, so Wall Street banks were normally name as paying agents.

That was the case with Iran under the Shah, whom the United States had installed after sponsoring the 1953 coup against Mohammed Mosaddegh when he sought to nationalize Anglo-Iranian Oil (now British Petroleum) or at least tax it. After the Shah was overthrown, the Khomeini regime asked its paying agent, the Chase Manhattan bank, to use its deposits to pay its bondholders. At the direction of the U.S. Government Chase refused to do so. U.S. courts then declared Iran to be in default, and froze all its assets in the United States and anywhere else they were able.

This showed that international finance was an arm of the U.S. State Department and Pentagon. But that was a generation ago, and only recently did foreign countries begin to feel queasy about leaving their gold holdings in the United States, where they might be grabbed at will to punish any country that might act in ways that U.S. diplomacy found offensive. So last year, Germany finally got up the courage to ask that some of its gold be flown back to Germany. U.S. officials pretended to feel shocked at the insult that it might do to a civilized Christian country what it had done to Iran, and Germany agreed to slow down the transfer.

But then came Venezuela. Desperate to spend its gold reserves to provide imports for its economy devastated by U.S. sanctions – a crisis that U.S. diplomats blame on "socialism," not on U.S. political attempts to "make the economy scream" (as Nixon officials said of Chile under Salvador Allende) – Venezuela directed the Bank of England to transfer some of its $11 billion in gold held in its vaults and those of other central banks in December 2018. This was just like a bank depositor would expect a bank to pay a check that the depositor had written.

England refused to honor the official request, following the direction of Bolton and U.S. Secretary of State Michael Pompeo. As Bloomberg reported: "The U.S. officials are trying to steer Venezuela's overseas assets to [Chicago Boy Juan] Guaido to help bolster his chances of effectively taking control of the government. The $1.2 billion of gold is a big chunk of the $8 billion in foreign reserves held by the Venezuelan central bank."

Turkey seemed to be a likely destination, prompting Bolton and Pompeo to warn it to desist from helping Venezuela, threatening sanctions against it or any other country helping Venezuela cope with its economic crisis. As for the Bank of England and other European countries, the Bloomberg report concluded: "Central bank officials in Caracas have been ordered to no longer try contacting the Bank of England. These central bankers have been told that Bank of England staffers will not respond to them."

This led to rumors that Venezuela was selling 20 tons of gold via a Russian Boeing 777 – some $840 million. The money probably would have ended up paying Russian and Chinese bondholders as well as buying food to relieve the local famine. [4] Russia denied this report, but Reuters has confirmed is that Venezuela has sold 3 tons of a planned 29 tones of gold to the United Arab Emirates, with another 15 tones are to be shipped on Friday, February 1. [5] The U.S. Senate's Batista-Cuban hardliner Rubio accused this of being "theft," as if feeding the people to alleviate the U.S.-sponsored crisis was a crime against U.S. diplomatic leverage.

If there is any country that U.S. diplomats hate more than a recalcitrant Latin American country, it is Iran. President Trump's breaking of the 2015 nuclear agreements negotiated by European and Obama Administration diplomats has escalated to the point of threatening Germany and other European countries with punitive sanctions if they do not also break the agreements they have signed. Coming on top of U.S. opposition to German and other European importing of Russian gas, the U.S. threat finally prompted Europe to find a way to defend itself.

Imperial threats are no longer military. No country (including Russia or China) can mount a military invasion of another major country. Since the Vietnam Era, the only kind of war a democratically elected country can wage is atomic, or at least heavy bombing such as the United States has inflicted on Iraq, Libya and Syria. But now, cyber warfare has become a way of pulling out the connections of any economy. And the major cyber connections are financial money-transfer ones, headed by SWIFT, the acronym for the Society for Worldwide Interbank Financial Telecommunication, which is centered in Belgium.

Russia and China have already moved to create a shadow bank-transfer system in case the United States unplugs them from SWIFT. But now, European countries have come to realize that threats by Bolton and Pompeo may lead to heavy fines and asset grabs if they seek to continue trading with Iran as called for in the treaties they have negotiated.

On January 31 the dam broke with the announcement that Europe had created its own bypass payments system for use with Iran and other countries targeted by U.S. diplomats. Germany, France and even the U.S. poodle Britain joined to create INSTEX -- Instrument in Support of Trade Exchanges. The promise is that this will be used only for "humanitarian" aid to save Iran from a U.S.-sponsored Venezuela-type devastation. But in view of increasingly passionate U.S. opposition to the Nord Stream pipeline to carry Russian gas, this alternative bank clearing system will be ready and able to become operative if the United States tries to direct a sanctions attack on Europe.

I have just returned from Germany and seen a remarkable split between that nation's industrialists and their political leadership. For years, major companies have seen Russia as a natural market, a complementary economy needing to modernize its manufacturing and able to supply Europe with natural gas and other raw materials. America's New Cold War stance is trying to block this commercial complementarity. Warning Europe against "dependence" on low-price Russian gas, it has offered to sell high-priced LNG from the United States (via port facilities that do not yet exist in anywhere near the volume required). President Trump also is insisting that NATO members spend a full 2 percent of their GDP on arms – preferably bought from the United States, not from German or French merchants of death.

The U.S. overplaying its position is leading to the Mackinder-Kissinger-Brzezinski Eurasian nightmare that I mentioned above. In addition to driving Russia and China together, U.S. diplomacy is adding Europe to the heartland, independent of U.S. ability to bully into the state of dependency toward which American diplomacy has aimed to achieve since 1945.

The World Bank, for instance, traditionally has been headed by a U.S. Secretary of Defense. Its steady policy since its inception is to provide loans for countries to devote their land to export crops instead of giving priority to feeding themselves. That is why its loans are only in foreign currency, not in the domestic currency needed to provide price supports and agricultural extension services such as have made U.S. agriculture so productive. By following U.S. advice, countries have left themselves open to food blackmail – sanctions against providing them with grain and other food, in case they step out of line with U.S. diplomatic demands.

It is worthwhile to note that our global imposition of the mythical "efficiencies" of forcing Latin American countries to become plantations for export crops like coffee and bananas rather than growing their own wheat and corn has failed catastrophically to deliver better lives, especially for those living in Central America. The "spread" between the export crops and cheaper food imports from the U.S. that was supposed to materialize for countries following our playbook failed miserably – witness the caravans and refugees across Mexico. Of course, our backing of the most brutal military dictators and crime lords has not helped either.

Likewise, the IMF has been forced to admit that its basic guidelines were fictitious from the beginning. A central core has been to enforce payment of official inter-government debt by withholding IMF credit from countries under default. This rule was instituted at a time when most official inter-government debt was owed to the United States. But a few years ago Ukraine defaulted on $3 billion owed to Russia. The IMF said, in effect, that Ukraine and other countries did not have to pay Russia or any other country deemed to be acting too independently of the United States. The IMF has been extending credit to the bottomless it of Ukrainian corruption to encourage its anti-Russian policy rather than standing up for the principle that inter-government debts must be paid.

It is as if the IMF now operates out of a small room in the basement of the Pentagon in Washington. Europe has taken notice that its own international monetary trade and financial linkages are in danger of attracting U.S. anger. This became clear last autumn at the funeral for George H. W. Bush, when the EU's diplomat found himself downgraded to the end of the list to be called to his seat. He was told that the U.S. no longer considers the EU an entity in good standing. In December, "Mike Pompeo gave a speech on Europe in Brussels -- his first, and eagerly awaited -- in which he extolled the virtues of nationalism, criticised multilateralism and the EU, and said that "international bodies" which constrain national sovereignty "must be reformed or eliminated." [5]

Most of the above events have made the news in just one day, January 31, 2019. The conjunction of U.S. moves on so many fronts, against Venezuela, Iran and Europe (not to mention China and the trade threats and moves against Huawei also erupting today) looks like this will be a year of global fracture.

It is not all President Trump's doing, of course. We see the Democratic Party showing the same colors. Instead of applauding democracy when foreign countries do not elect a leader approved by U.S. diplomats (whether it is Allende or Maduro), they've let the mask fall and shown themselves to be the leading New Cold War imperialists. It's now out in the open. They would make Venezuela the new Pinochet-era Chile. Trump is not alone in supporting Saudi Arabia and its Wahabi terrorists acting, as Lyndon Johnson put it, "Bastards, but they're our bastards."

Where is the left in all this? That is the question with which I opened this article. How remarkable it is that it is only right-wing parties, Alternative for Deutschland (AFD), or Marine le Pen's French nationalists and those of other countries that are opposing NATO militarization and seeking to revive trade and economic links with the rest of Eurasia.

The end of our monetary imperialism, about which I first wrote in 1972 in Super Imperialism, stuns even an informed observer like me. It took a colossal level of arrogance, short-sightedness and lawlessness to hasten its decline -- something that only crazed Neocons like John Bolton, Elliot Abrams and Mike Pompeo could deliver for Donald Trump.

Footnotes

[1] "It Can't be Fixed: Senior ICC Judge Quits in Protest of US, Turkish Meddling," January 31, 2019.

[2] Patricia Laya, Ethan Bronner and Tim Ross, "Maduro Stymied in Bid to Pull $1.2 Billion of Gold From U.K.," Bloomberg, January 25, 2019. Anticipating just such a double-cross, President Chavez acted already in 2011 to repatriate 160 tons of gold to Caracas from the United States and Europe.

[3] ibid

[4] Corina Pons, Mayela Armas, "Exclusive: Venezuela plans to fly central bank gold reserves to UAE – source," Reuters, January 31, 2019.

[5] Constanze Stelzenmüller, "America's policy on Europe takes a nationalist turn," Financial Times, January 31, 2019.

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< Jointly posted with Hudson's website


doug , February 1, 2019 at 8:03 am

We see the Democratic Party showing the same colors. Yes we do. no escape? that I see

drumlin woodchuckles , February 1, 2019 at 9:43 am

Well, if the StormTrumpers can tear down all the levers and institutions of international US dollar strength, perhaps they can also tear down all the institutions of Corporate Globalonial Forced Free Trade. That itself may BE our escape . . . if there are enough millions of Americans who have turned their regionalocal zones of habitation into economically and politically armor-plated Transition Towns, Power-Down Zones, etc. People and places like that may be able to crawl up out of the rubble and grow and defend little zones of semi-subsistence survival-economics.

If enough millions of Americans have created enough such zones, they might be able to link up with eachother to offer hope of a movement to make America in general a semi-autarchik, semi-secluded and isolated National Survival Economy . . . . much smaller than today, perhaps likelier to survive the various coming ecosystemic crash-cramdowns, and no longer interested in leading or dominating a world that we would no longer have the power to lead or dominate.

We could put an end to American Exceptionalism. We could lay this burden down. We could become American Okayness Ordinarians. Make America an okay place for ordinary Americans to live in.

drumlin woodchuckles , February 1, 2019 at 2:27 pm

I read somewhere that the Czarist Imperial Army had a saying . . . "Quantity has a Quality all its own".

... ... ...

Cal2 , February 1, 2019 at 2:54 pm

Drumlin,

If Populists, I assume that's what you mean by "Storm Troopers", offer me M4A and revitalized local economies, and deliver them, they have my support and more power to them.

That's why Trump was elected, his promises, not yet delivered, were closer to that then the Democrats' promises. If the Democrats promised those things and delivered, then they would have my support.

If the Democrats run a candidate, who has a no track record of delivering such things, we stay home on election day. Trump can have it, because it won't be any worse.

I don't give a damn about "social issues." Economics, health care and avoiding WWIII are what motivates my votes, and I think more and more people are going to vote the same way.

drumlin woodchuckles , February 1, 2019 at 8:56 pm

Good point about Populist versus StormTrumper. ( And by the way, I said StormTRUMper, not StormTROOper). I wasn't thinking of the Populists. I was thinking of the neo-etc. vandals and arsonists who want us to invade Venezuela, leave the JCPOA with Iran, etc. Those are the people who will finally drive the other-country governments into creating their own parallel payment systems, etc.

And the midpoint of those efforts will leave wreckage and rubble for us to crawl up out of. But we will have a chance to crawl up out of it.

My reason for voting for Trump was mainly to stop the Evil Clinton from getting elected and to reduce the chance of near immediate thermonuclear war with Russia and to save the Assad regime in Syria from Clintonian overthrow and replacement with an Islamic Emirate of Jihadistan.

Much of what will be attempted " in Trump's name" will be de-regulationism of all kinds delivered by the sorts of basic Republicans selected for the various agencies and departments by Pence and Moore and the Koch Brothers. I doubt the Populist Voters wanted the Koch-Pence agenda. But that was a risky tradeoff in return for keeping Clinton out of office.

The only Dems who would seek what you want are Sanders or maybe Gabbard or just barely Warren. The others would all be Clinton or Obama all over again.

Quanka , February 1, 2019 at 8:29 am

I couldn't really find any details about the new INSTEX system – have you got any good links to brush up on? I know they made an announcement yesterday but how long until the new payment system is operational?

The Rev Kev , February 1, 2019 at 8:43 am

Here is a bit more info on it but Trump is already threatening Europe if they use it. That should cause them to respect him more:

https://www.dw.com/en/instex-europe-sets-up-transactions-channel-with-iran/a-47303580

LP , February 1, 2019 at 9:14 am

The NYT and other have coverage.

https://www.google.com/amp/s/www.nytimes.com/2019/01/31/world/europe/europe-trade-iran-nuclear-deal.amp.html

Louis Fyne , February 1, 2019 at 8:37 am

arguably wouldn't it be better if for USD hegemony to be dismantled? A strong USD hurts US exports, subsidizes American consumption (by making commodities cheaper in relative terms), makes international trade (aka a 8,000-mile+ supply chain) easier.

For the sake of the environment, you want less of all three. Though obviously I don't like the idea of expensive gasoline, natural gas or tube socks either.

Mel , February 1, 2019 at 9:18 am

It would be good for Americans, but the wrong kind of Americans. For the Americans that would populate the Global Executive Suite, a strong US$ means that the stipends they would pay would be worth more to the lackeys, and command more influence.

Dumping the industrial base really ruined things. America is now in a position where it can shout orders, and drop bombs, but doesn't have the capacity to do anything helpful. They have to give up being what Toynbee called a creative minority, and settle for being a dominant minority.

integer , February 1, 2019 at 8:43 am

Having watched the 2016 election closely from afar, I was left with the impression that many of the swing voters who cast their vote for Trump did so under the assumption that he would act as a catalyst for systemic change.

What this change would consist of, and how it would manifest, remained an open question. Would he pursue rapprochement with Russia and pull troops out of the Middle East as he claimed to want to do during his 2016 campaign, would he doggedly pursue corruption charges against Clinton and attempt to reform the FBI and CIA, or would he do both, neither, or something else entirely?

Now we know. He has ripped the already transparent mask of altruism off what is referred to as the U.S.-led liberal international order and revealed its true nature for all to see, and has managed to do it in spite of the liberal international establishment desperately trying to hold it in place in the hope of effecting a seamless post-Trump return to what they refer to as "norms". Interesting times.

James , February 1, 2019 at 10:34 am

Exactly. He hasn't exactly lived up to advanced billing so far in all respects, but I suspect there's great deal of skulduggery going on behind the scenes that has prevented that. Whether or not he ever had or has a coherent plan for the havoc he has wrought, he has certainly been the agent for change many of us hoped he would be, in stark contrast to the criminal duopoly parties who continue to oppose him, where the daily no news is always bad news all the same. To paraphrase the infamous Rummy, you don't go to war with the change agent and policies you wished you had, you go to war with the ones you have. That might be the best thing we can say about Trump after the historic dust of his administration finally settles.

drumlin woodchuckles , February 1, 2019 at 2:39 pm

Look on some bright sides. Here is just one bright side to look on. President Trump has delayed and denied the Clinton Plan to topple Assad just long enough that Russia has been able to help Assad preserve legitimate government in most of Syria and defeat the Clinton's-choice jihadis.

That is a positive good. Unless you are pro-jihadi.

integer , February 1, 2019 at 8:09 pm

Clinton wasn't going to "benefit the greater good" either, and a very strong argument, based on her past behavior, can be made that she represented the greater threat. Given that the choice was between her and Trump, I think voters made the right decision.

Stephen Gardner , February 1, 2019 at 9:02 am

Excellent article but I believe the expression is "cui bono": who benefits.

hemeantwell , February 1, 2019 at 9:09 am

Hudson's done us a service in pulling these threads together. I'd missed the threats against the ICC judges. One question: is it possible for INSTEX-like arrangements to function secretly? What is to be gained by announcing them publicly and drawing the expected attacks? Does that help sharpen conflicts, and to what end?

Oregoncharles , February 1, 2019 at 3:23 pm

Maybe they're done in secret already – who knows? The point of doing it publicly is to make a foreign-policy impact, in this case withdrawing power from the US. It's a Declaration of Independence.

whine country , February 1, 2019 at 9:15 am

It certainly seems as though the 90 percent (plus) are an afterthought in this journey to who knows where? Like George C.Scott said while playing Patton, "The whole world at economic war and I'm not part of it. God will not let this happen." Looks like we're on the Brexit track (without the vote). The elite argue with themselves and we just sit and watch. It appears to me that the elite just do not have the ability to contemplate things beyond their own narrow self interest. We are all deplorables now.

a different chris , February 1, 2019 at 9:30 am

Unfortunately this

The end of America's unchallenged global economic dominance has arrived sooner than expected

Is not supported by this (or really the rest of the article). The past tense here, for example, is unwarranted:

At the United Nations, U.S. diplomats insisted on veto power. At the World Bank and IMF they also made sure that their equity share was large enough to give them veto power over any loan or other policy.

And this

So last year, Germany finally got up the courage to ask that some of its gold be flown back to Germany. Germany agreed to slow down the transfer.

Doesn't show Germany as breaking free at all, and worse it is followed by the pregnant

But then came Venezuela.

Yet we find out that Venezuela didn't managed to do what they wanted to do, the Europeans, the Turks, etc bent over yet again. Nothing to see here, actually.

So what I'm saying is he didn't make his point. I wish it were true. But a bit of grumbling and (a tiny amount of) foot-dragging by some pygmy leaders (Merkel) does not signal a global change.

orange cats , February 1, 2019 at 11:22 am

"So what I'm saying is he didn't make his point. I wish it were true. But a bit of grumbling and (a tiny amount of) foot-dragging by some pygmy leaders (Merkel) does not signal a global change."

I'm surprised more people aren't recognizing this. I read the article waiting in vain for some evidence of "the end of our monetary imperialism" besides some 'grumbling and foot dragging' as you aptly put it. There was some glimmer of a buried lede with INTEX, created to get around U.S. sanctions against Iran ─ hardly a 'dam-breaking'. Washington is on record as being annoyed.

OpenThePodBayDoorsHAL , February 1, 2019 at 1:41 pm

Currency regime change can take decades, and small percentage differences are enormous because of the flows involved. USD as reserve for 61% of global sovereigns versus 64% 15 years ago is a massive move. World bond market flows are 10X the size of world stock market flows even though the price of the Dow and Facebook shares etc get all of the headlines.

And foreign exchange flows are 10-50X the flows of bond markets, they're currently on the order of $5 *trillion* per day. And since forex is almost completely unregulated it's quite difficult to get the data and spot reserve currency trends. Oh, and buy gold. It's the only currency that requires no counterparty and is no one's debt obligation.

orange cats , February 1, 2019 at 3:47 pm

That's not what Hudson claims in his swaggering final sentence:

"The end of our monetary imperialism, about which I first wrote in 1972 in Super Imperialism, stuns even an informed observer like me."

Which is risible as not only did he fail to show anything of the kind, his opening sentence stated a completely different reality: "The end of America's unchallenged global economic dominance has arrived sooner than expected" So if we hold him to his first declaration, his evidence is feeble, as I mentioned. As a scholar, his hyperbole is untrustworthy.

No, gold is pretty enough lying on the bosom of a lady-friend but that's about its only usefulness in the real world.

skippy , February 1, 2019 at 8:09 pm

Always bemusing that gold bugs never talk about gold being in a bubble . yet when it goes south of its purchase price speak in tongues about ev'bal forces.

timbers , February 1, 2019 at 12:26 pm

I don't agree, and do agree. The distinction is this:

If you fix a few of Hudson's errors, and take him as making the point that USD is losing it's hegemony, IMO he is basically correct.

Brian (another one they call) , February 1, 2019 at 9:56 am

thanks Mr. Hudson. One has to wonder what has happened when the government (for decades) has been shown to be morally and otherwise corrupt and self serving. It doesn't seem to bother anyone but the people, and precious few of them. Was it our financial and legal bankruptcy that sent us over the cliff?

Steven , February 1, 2019 at 10:23 am

Great stuff!

Indeed! It is to say the least encouraging to see Dr. Hudson return so forcefully to the theme of 'monetary imperialism'. I discovered his Super Imperialism while looking for an explanation for the pending 2003 US invasion of Iraq. If you haven't read it yet, move it to the top of your queue if you want to have any idea of how the world really works. You can find any number of articles on his web site that return periodically to the theme of monetary imperialism. I remember one in particular that described how the rest of the world was brought on board to help pay for its good old-fashioned military imperialism.

If it isn't clear to the rest of the world by now, it never will be. The US is incapable of changing on its own a corrupt status quo dominated by a coalition of its military industrial complex, Wall Street bankers and fossil fuels industries. As long as the world continues to chase the debt created on the keyboards of Wall Street banks and 'deficits don't matter' Washington neocons – as long as the world's 1% think they are getting 'richer' by adding more "debts that can't be repaid (and) won't be" to their portfolios, the global economy can never be put on a sustainable footing.

Until the US returns to the path of genuine wealth creation, it is past time for the rest of the world to go its own way with its banking and financial institutions.

Oh , February 1, 2019 at 3:52 pm

The use of the stick will only go so far. What's the USG going to do if they refuse?

Summer , February 1, 2019 at 10:46 am

In other words, after 2 World Wars that produced the current world order, it is still in a state of insanity with the same pretensions to superiority by the same people, to get number 3.

Yikes , February 1, 2019 at 12:07 pm

UK withholding Gold may start another Brexit? IE: funds/gold held by BOE for other countries in Africa, Asian, South America, and the "stans" with start to depart, slowly at first, perhaps for Switzerland?

Ian Perkins , February 1, 2019 at 12:21 pm

Where is the left in all this? Pretty much the same place as Michael Hudson, I'd say. Where is the US Democratic Party in all this? Quite a different question, and quite a different answer. So far as I can see, the Democrats for years have bombed, invaded and plundered other countries 'for their own good'. Republicans do it 'for the good of America', by which the ignoramuses mean the USA. If you're on the receiving end, it doesn't make much difference.

Michael A Gualario , February 1, 2019 at 12:49 pm

Agreed! South America intervention and regime change, Syria ( Trump is pulling out), Iraq, Middle East meddling, all predate Trump. Bush, Clinton and Obama have nothing to do with any of this.

Oregoncharles , February 1, 2019 at 2:12 pm

" So last year, Germany finally got up the courage to ask that some of its gold be flown back to Germany. "

What proof is there that the gold is still there? Chances are it's notional. All Germany, Venezuela, or the others have is an IOU – and gold cannot be printed. Incidentally, this whole discussion means that gold is still money and the gold standard still exists.

Oregoncharles , February 1, 2019 at 3:41 pm

Wukchumni beat me to the suspicion that the gold isn't there.

The Rev Kev , February 1, 2019 at 7:40 pm

What makes you think that the gold in Fort Knox is still there? If I remember right, there was a Potemkin visit back in the 70s to assure everyone that the gold was still there but not since then. Wait, I tell a lie. There was another visit about two years ago but look who was involved in that visit-

https://www.whas11.com/article/news/local/after-40-years-fort-knox-opens-vault-to-civilians/466441331

And I should mention that it was in the 90s that between 1.3 and 1.5 million 400 oz tungsten blanks were manufactured in the US under Clinton. Since then gold-coated tungsten bars have turned up in places like Germany, China, Ethiopia, the UK, etc so who is to say if those gold bars in Fort Knox are gold all the way through either. More on this at -- http://viewzone2.com/fakegoldx.html

Summer , February 1, 2019 at 5:44 pm

A non-accountable standard. It's more obvious BS than what is going on now.

jochen , February 2, 2019 at 6:46 am

It wasn't last year that Germany brought back its Gold. It has been ongoing since 2013, after some political and popular pressure build up. They finished the transaction in 2017. According to an article in Handelblatt (but it was widely reported back then) they brought back pretty much everything they had in Paris (347t), left what they had in London (perhaps they should have done it in reverse) and took home another 300t from the NY Fed. That still leaves 1236t in NY. But half of their Gold (1710t) is now in Frankfurt. That is 50% of the Bundesbanks holdings.

They made a point in saying that every bar was checked and weighed and presented some bars in Frankfurt. I guess they didn't melt them for assaying, but I'd expect them to be smart enough to check the density.

Their reason to keep Gold in NY and London is to quickly buy USD in case of a crisis. That's pretty much a cold war plan, but that's what they do right now.

Regarding Michal Hudsons piece, I enjoyed reading through this one. He tends to write ridiculously long articles and in the last few years with less time and motivation at hand I've skipped most of his texts on NC as they just drag on.

When I'm truly fascinated I like well written, long articles but somehow he lost me at some point. But I noticed that some long original articles in US magazines, probably research for a long time by the journalist, can just drag on for ever as well I just tune out.

Susan the Other , February 1, 2019 at 2:19 pm

This is making sense. I would guess that tearing up the old system is totally deliberate. It wasn't working so well for us because we had to practice too much social austerity, which we have tried to impose on the EU as well, just to stabilize "king dollar" – otherwise spread so thin it was a pending catastrophe.

Now we can get out from under being the reserve currency – the currency that maintains its value by financial manipulation and military bullying domestic deprivation. To replace this old power trip we are now going to mainline oil. The dollar will become a true petro dollar because we are going to commandeer every oil resource not already nailed down.

When we partnered with SA in Aramco and the then petro dollar the dollar was only backed by our military. If we start monopolizing oil, the actual commodity, the dollar will be an apex competitor currency without all the foreign military obligations which will allow greater competitive advantages.

No? I'm looking at PdVSA, PEMEX and the new "Energy Hub for the Eastern Mediterranean" and other places not yet made public. It looks like a power play to me, not a hapless goofball president at all.

skippy , February 2, 2019 at 2:44 am

So sand people with sociological attachment to the OT is a compelling argument based on antiquarian preferences with authoritarian patriarchal tendencies for their non renewable resource . after I might add it was deemed a strategic concern after WWII .

Considering the broader geopolitical realities I would drain all the gold reserves to zero if it was on offer . here natives have some shiny beads for allowing us to resource extract we call this a good trade you maximize your utility as I do mine .

Hay its like not having to run C-corp compounds with western 60s – 70s esthetics and letting the locals play serf, blow back pay back, and now the installed local chiefs can own the risk and refocus the attention away from the real antagonists.

ChrisAtRU , February 1, 2019 at 6:02 pm

Indeed. Thanks so much for this. Maybe the RICS will get serious now – can no longer include Brazil with Bolsonaro. There needs to be an alternate system or systems in place, and to see US Imperialism so so blatantly and bluntly by Trump admin – "US gives Juan Guaido control over some Venezuelan assets" – should sound sirens on every continent and especially in the developing world. I too hope there will be fracture to the point of breakage. Countries of the world outside the US/EU/UK/Canada/Australia confraternity must now unite to provide a permanent framework outside the control of imperial interests. The be clear, this must not default to alternative forms of imperialism germinating by the likes of China.

mikef , February 1, 2019 at 6:07 pm

" such criticism can't begin to take in the full scope of the damage the Trump White House is inflicting on the system of global power Washington built and carefully maintained over those 70 years. Indeed, American leaders have been on top of the world for so long that they no longer remember how they got there.

Few among Washington's foreign policy elite seem to fully grasp the complex system that made U.S. global power what it now is, particularly its all-important geopolitical foundations. As Trump travels the globe, tweeting and trashing away, he's inadvertently showing us the essential structure of that power, the same way a devastating wildfire leaves the steel beams of a ruined building standing starkly above the smoking rubble."

http://www.tomdispatch.com/blog/176373/tomgram%3A_alfred_mccoy%2C_tweeting_while_rome_burns

Rajesh K , February 1, 2019 at 7:23 pm

I read something like this and I am like, some of these statements need to be qualified. Like: "Driving China and Russia together". Like where's the proof? Is Xi playing telephone games more often now with Putin? I look at those two and all I see are two egocentric people who might sometimes say the right things but in general do not like the share the spotlight. Let's say they get together to face America and for some reason the later gets "defeated", it's not as if they'll kumbaya together into the night.

This website often points out the difficulties in implementing new banking IT initiatives. Ok, so Europe has a new "payment system". Has it been tested thoroughly? I would expect a couple of weeks or even months of chaos if it's not been tested, and if it's thorough that probably just means that it's in use right i.e. all the kinks have been worked out. In that case the transition is already happening anyway. But then the next crisis arrives and then everyone would need their dollar swap lines again which probably needs to cleared through SWIFT or something.

Anyway, does this all mean that one day we'll wake up and a slice of bacon is 50 bucks as opposed to the usual 1 dollar?

Keith Newman , February 2, 2019 at 1:12 am

Driving Russia and China together is correct. I recall them signing a variety of economic and military agreement a few years ago. It was covered in the media. You should at least google an issue before making silly comments. You might start with the report of Russia and China signing 30 cooperation agreements three years ago. See https://www.rbth.com/international/2016/06/27/russia-china-sign-30-cooperation-agreements_606505 . There are lots and lots of others.

RBHoughton , February 1, 2019 at 9:16 pm

He's draining the swamp in an unpredicted way, a swamp that's founded on the money interest. I don't care what NYT and WaPo have to say, they are not reporting events but promoting agendas.

skippy , February 2, 2019 at 1:11 am

The financial elites are only concerned about shaping society as they see fit, side of self serving is just a historical foot note, Trumps past indicates a strong preference for even more of the same through authoritarian memes or have some missed the OT WH reference to dawg both choosing and then compelling him to run.

Whilst the far right factions fight over the rudder the only new game in town is AOC, Sanders, Warren, et al which Trumps supporters hate with Ideological purity.

/lasse , February 2, 2019 at 7:50 am

Highly doubt Trump is a "witting agent", most likely is that he is just as ignorant as he almost daily shows on twitter. On US role in global affairs he says the same today as he did as a media celebrity in the late 80s. Simplistic household "logics" on macroeconomics. If US have trade deficit it loses. Countries with surplus are the winners.

On a household level it fits, but there no "loser" household that in infinity can print money that the "winners" can accumulate in exchange for their resources and fruits of labor.

One wonder what are Trumps idea of US being a winner in trade (surplus)? I.e. sending away their resources and fruits of labor overseas in exchange for what? A pile of USD? That US in the first place created out of thin air. Or Chinese Yuan, Euros, Turkish liras? Also fiat-money. Or does he think US trade surplus should be paid in gold?

When the US political and economic hegemony will unravel it will come "unexpected". Trump for sure are undermining it with his megalomaniac ignorance. But not sure it's imminent.

Anyhow frightening, the US hegemony have its severe dark sides. But there is absolutely nothing better on the horizon, a crash will throw the world in turmoil for decades or even a century. A lot of bad forces will see their chance to elevate their influence. There will be fierce competition to fill the gap.

On could the insane economic model of EU/Germany being on top of global affairs, a horribly frightening thought. Misery and austerity for all globally, a permanent recession. Probably not much better with the Chinese on top. I'll take the USD hegemony any day compared to that prospect.

Sound of the Suburbs , February 2, 2019 at 10:26 am

Former US ambassador, Chas Freeman, gets to the nub of the problem. "The US preference for governance by elected and appointed officials, uncontaminated by experience in statecraft and diplomacy, or knowledge of geography, history and foreign affairs" https://www.youtube.com/watch?annotation_id=annotation_882041135&feature=iv&src_vid=Ge1ozuXN7iI&v=gkf2MQdqz-o

Sound of the Suburbs , February 2, 2019 at 10:29 am

When the delusion takes hold, it is the beginning of the end.

The British Empire will last forever
The thousand year Reich
American exceptionalism

As soon as the bankers thought they thought they were "Master of the Universe" you knew 2008 was coming. The delusion had taken hold.

Sound of the Suburbs , February 2, 2019 at 10:45 am

Michael Hudson, in Super Imperialism, went into how the US could just create the money to run a large trade deficit with the rest of the world. It would get all these imports effectively for nothing, the US's exorbitant privilege. I tied this in with this graph from MMT.

This is the US (46.30 mins.) https://www.youtube.com/watch?v=ba8XdDqZ-Jg

The trade deficit required a large Government deficit to cover it and the US government could just create the money to cover it.

Then ideological neoliberals came in wanting balanced budgets and not realising the Government deficit covered the trade deficit.

The US has been destabilising its own economy by reducing the Government deficit. Bill Clinton didn't realize a Government surplus is an indicator a financial crisis is about to hit. The last US Government surplus occurred in 1927 – 1930, they go hand-in-hand with financial crises.

Richard Koo shows the graph central bankers use and it's the flow of funds within the economy, which sums to zero (32-34 mins.).

https://www.youtube.com/watch?v=8YTyJzmiHGk

The Government was running a surplus as the economy blew up in the early 1990s. It's the positive and negative, zero sum, nature of the monetary system. A big trade deficit needs a big Government deficit to cover it. A big trade deficit, with a balanced budget, drives the private sector into debt and blows up the economy.

skippy , February 2, 2019 at 5:28 pm

It should be remembered Bill Clinton's early meeting with Rubin, where in he was informed that wages and productivity had diverged – Rubin did not blink an eye.

[Jul 12, 2019] Nine Consequences of the Upcoming US-China Trade War by Renaud Anjoran

Highly recommended!
This author really knows what he is talking about
Notable quotes:
"... When tariffs went up from 0 to 10% on some product categories last year, many suppliers agreed to absorb half that amount (5%) in exchange for larger orders. The logic was as follows: higher orders lead to better deals with component suppliers and to higher production efficiencies, which means lower costs. ..."
"... Do you ship American wood for processing in China and re-exporting to the US? You might have issues getting that material into China as smoothly as before. And then, the US Customs office might give you a hard time when you bring the goods in, too! ..."
"... Who knows what non-monetary barriers the Chinese will erect. One can count on their creativity ..."
"... Several US companies asked our company to look for assembly plants in Vietnam and, in those cases where we found some options, they were much more expensive than China. There is a reason why China's share of hard goods production in Asia has kept growing in recent years -- competition is often non-existent. ..."
"... Now, with China's products suddenly much more expensive, what are these competing countries going to do? Won't they take advantage of it and push wages further up, at least for the export manufacturing sector? ..."
"... Mexico should be the clear winner of this trade war. They are next to the US, their labor cost is comparable to that of China, and many American companies have long had extensive operations there. ..."
May 09, 2019 | qualityinspection.org

https://qualityinspection.org/9-consequences-us-china-trade-war/

Based on all the articles I have read about the current geopolitical situation, I am not optimistic about the affect of the US-China trade war on American importers. Dan Harris, who wrote " the US-China Cold War start now, " announced that a "mega-storm" might be coming, and he may be right.

Now, if things turn out as bad as predicted, and if tariffs apply on more goods imported from China to the US -- and at higher rates -- what does it mean for US importers?

What will the damage from the US-China trade war look like?

These are my thoughts about who or what is going to be hit hard by the ongoing 'trade war:'

1. Small importers will be hit much harder than larger ones

If you work with very large Chinese manufacturers, many of them have already started to set up operations outside of mainland China, for the simple reason that most of their customers have been pushing for that.

They are in Vietnam, Malaysia, etc. And this is true in most industries -- from apparel to electronics.

Do they still have to import most of their components from China? It depends on their footprints. As I wrote before :

You set up a mammoth plant and you don't want your high-value component suppliers to be more than 1 hour away from you, for just-in-time inventory replenishment? They can be requested to set up a new manufacturing facility next to you.

2. A higher total cost of goods purchased from China

This one is obvious. If you have orders already in production, they will cost you more than expected.

The RMB might slide quite a bit, and that might alleviate the total cost. I hope you have followed my advice and started paying your suppliers in RMB , to benefit from it automatically.

Beijing might also give other forms of subsidies to their exporters. They might be quite visible (e.g. a higher VAT rebate) or totally 'under the table'.

3. Difficult negotiations with Chinese suppliers

Can you say the tariffs are Beijing's fault, and so your suppliers should absorb the tariffs? That's not going to work.

When tariffs went up from 0 to 10% on some product categories last year, many suppliers agreed to absorb half that amount (5%) in exchange for larger orders. The logic was as follows: higher orders lead to better deals with component suppliers and to higher production efficiencies, which means lower costs.

When tariffs go from 10% to 35%, what else can US buyers give their counter-parties? Payments in advance? Lower quality standards? I don't believe that.

4. Difficulties at several levels in the supply chain

Do you ship American wood for processing in China and re-exporting to the US? You might have issues getting that material into China as smoothly as before. And then, the US Customs office might give you a hard time when you bring the goods in, too!

Who knows what non-monetary barriers the Chinese will erect. One can count on their creativity

5. Short-term non-elasticity of alternative sources

There are a finite number of Vietnamese export-ready manufacturers that can make your orders. And, chances are, their capacity is already full. If you haven't prepared this move for months (or years), other US companies have. The early bird gets the worm

Same thing with Thailand, Indonesia, India, and so on, with the exception of apparel and (maybe) footwear.

Several US companies asked our company to look for assembly plants in Vietnam and, in those cases where we found some options, they were much more expensive than China. There is a reason why China's share of hard goods production in Asia has kept growing in recent years -- competition is often non-existent.

6. Faster cost increases in other low-cost Asian countries

As I wrote before, since China announced their 5-year plan to increase wages, other Asian countries adopted similar plans . That's how we got to this upward trend across the board:

Minimum wage comparison

Now, with China's products suddenly much more expensive, what are these competing countries going to do? Won't they take advantage of it and push wages further up, at least for the export manufacturing sector?

There could be some 'silver linings' due to the trade war

It is not all bad news though. We may see these benefits caused by China and the USA slugging it out too:

7. Many opportunities for Mexico

Mexico should be the clear winner of this trade war. They are next to the US, their labor cost is comparable to that of China, and many American companies have long had extensive operations there.

8. Rapid consolidation in the Chinese manufacturing sector

The fittest will survive. Many uncompetitive manufacturers and traders will fold. Consolidation will accelerate. I often look at what happened in Japan and South Korea . Each of these countries developed very fast and, when the going got tough, the export manufacturing sector got devastated. Only the most competitive survived.

9. Relaxed enforcement of anti-pollution regulations in China?

I'd bet that, if the tariffs hit hard, far fewer operations will get closed for environmental reasons. Preserving employment and social peace will prevail.

[Jul 05, 2019] Globalisation- the rise and fall of an idea that swept the world - World news by Nikil Saval

Highly recommended!
Globalization was simply the politically correct term for neocolonialism.
Jul 14, 2017 | www.theguardian.com

... ... ...

Over the last two years, a different, in some ways unrecognizable Larry Summers has been appearing in newspaper editorial pages. More circumspect in tone, this humbler Summers has been arguing that economic opportunities in the developing world are slowing, and that the already rich economies are finding it hard to get out of the crisis. Barring some kind of breakthrough, Summers says, an era of slow growth is here to stay.

In Summers's recent writings, this sombre conclusion has often been paired with a surprising political goal: advocating for a "responsible nationalism". Now he argues that politicians must recognise that "the basic responsibility of government is to maximise the welfare of citizens, not to pursue some abstract concept of the global good".

One curious thing about the pro-globalisation consensus of the 1990s and 2000s, and its collapse in recent years, is how closely the cycle resembles a previous era. Pursuing free trade has always produced displacement and inequality – and political chaos, populism and retrenchment to go with it. Every time the social consequences of free trade are overlooked, political backlash follows. But free trade is only one of many forms that economic integration can take. History seems to suggest, however, that it might be the most destabilising one.

... ... ...

The international systems that chastened figures such as Keynes helped produce in the next few years – especially the Bretton Woods agreement and the General Agreement on Tariffs and Trade (Gatt) – set the terms under which the new wave of globalisation would take place.

The key to the system's viability, in Rodrik's view, was its flexibility – something absent from contemporary globalisation, with its one-size-fits-all model of capitalism. Bretton Woods stabilised exchange rates by pegging the dollar loosely to gold, and other currencies to the dollar. Gatt consisted of rules governing free trade – negotiated by participating countries in a series of multinational "rounds" – that left many areas of the world economy, such as agriculture, untouched or unaddressed. "Gatt's purpose was never to maximise free trade," Rodrik writes. "It was to achieve the maximum amount of trade compatible with different nations doing their own thing. In that respect, the institution proved spectacularly successful."

Partly because Gatt was not always dogmatic about free trade, it allowed most countries to figure out their own economic objectives, within a somewhat international ambit. When nations contravened the agreement's terms on specific areas of national interest, they found that it "contained loopholes wide enough for an elephant to pass", in Rodrik's words. If a nation wanted to protect its steel industry, for example, it could claim "injury" under the rules of Gatt and raise tariffs to discourage steel imports: "an abomination from the standpoint of free trade". These were useful for countries that were recovering from the war and needed to build up their own industries via tariffs – duties imposed on particular imports. Meanwhile, from 1948 to 1990, world trade grew at an annual average of nearly 7% – faster than the post-communist years, which we think of as the high point of globalisation. "If there was a golden era of globalisation," Rodrik has written, "this was it."

Gatt, however, failed to cover many of the countries in the developing world. These countries eventually created their own system, the United Nations conference on trade and development (UNCTAD). Under this rubric, many countries – especially in Latin America, the Middle East, Africa and Asia – adopted a policy of protecting homegrown industries by replacing imports with domestically produced goods. It worked poorly in some places – India and Argentina, for example, where the trade barriers were too high, resulting in factories that cost more to set up than the value of the goods they produced – but remarkably well in others, such as east Asia, much of Latin America and parts of sub-Saharan Africa, where homegrown industries did spring up. Though many later economists and commentators would dismiss the achievements of this model, it theoretically fit Larry Summers's recent rubric on globalisation: "the basic responsibility of government is to maximise the welfare of citizens, not to pursue some abstract concept of the global good."

The critical turning point – away from this system of trade balanced against national protections – came in the 1980s. Flagging growth and high inflation in the west, along with growing competition from Japan, opened the way for a political transformation. The elections of Margaret Thatcher and Ronald Reagan were seminal, putting free-market radicals in charge of two of the world's five biggest economies and ushering in an era of "hyperglobalisation". In the new political climate, economies with large public sectors and strong governments within the global capitalist system were no longer seen as aids to the system's functioning, but impediments to it.

Not only did these ideologies take hold in the US and the UK; they seized international institutions as well. Gatt renamed itself as the World Trade Organization (WTO), and the new rules the body negotiated began to cut more deeply into national policies. Its international trade rules sometimes undermined national legislation. The WTO's appellate court intervened relentlessly in member nations' tax, environmental and regulatory policies, including those of the United States: the US's fuel emissions standards were judged to discriminate against imported gasoline, and its ban on imported shrimp caught without turtle-excluding devices was overturned. If national health and safety regulations were stricter than WTO rules necessitated, they could only remain in place if they were shown to have "scientific justification".

The purest version of hyperglobalisation was tried out in Latin America in the 1980s. Known as the "Washington consensus", this model usually involved loans from the IMF that were contingent on those countries lowering trade barriers and privatising many of their nationally held industries. Well into the 1990s, economists were proclaiming the indisputable benefits of openness. In an influential 1995 paper, Jeffrey Sachs and Andrew Warner wrote: "We find no cases to support the frequent worry that a country might open and yet fail to grow."

But the Washington consensus was bad for business: most countries did worse than before. Growth faltered, and citizens across Latin America revolted against attempted privatisations of water and gas. In Argentina, which followed the Washington consensus to the letter, a grave crisis resulted in 2002 , precipitating an economic collapse and massive street protests that forced out the government that had pursued privatising reforms. Argentina's revolt presaged a left-populist upsurge across the continent: from 1999 to 2007, leftwing leaders and parties took power in Brazil, Venezuela, Bolivia and Ecuador, all of them campaigning against the Washington consensus on globalisation. These revolts were a preview of the backlash of today.


Rodrik – perhaps the contemporary economist whose views have been most amply vindicated by recent events – was himself a beneficiary of protectionism in Turkey. His father's ballpoint pen company was sheltered under tariffs, and achieved enough success to allow Rodrik to attend Harvard in the 1970s as an undergraduate. This personal understanding of the mixed nature of economic success may be one of the reasons why his work runs against the broad consensus of mainstream economics writing on globalisation.

"I never felt that my ideas were out of the mainstream," Rodrik told me recently. Instead, it was that the mainstream had lost touch with the diversity of opinions and methods that already existed within economics. "The economics profession is strange in that the more you move away from the seminar room to the public domain, the more the nuances get lost, especially on issues of trade." He lamented the fact that while, in the classroom, the models of trade discuss losers and winners, and, as a result, the necessity of policies of redistribution, in practice, an "arrogance and hubris" had led many economists to ignore these implications. "Rather than speaking truth to power, so to speak, many economists became cheerleaders for globalisation."

In his 2011 book The Globalization Paradox , Rodrik concluded that "we cannot simultaneously pursue democracy, national determination, and economic globalisation." The results of the 2016 elections and referendums provide ample testimony of the justness of the thesis, with millions voting to push back, for better or for worse, against the campaigns and institutions that promised more globalisation. "I'm not at all surprised by the backlash," Rodrik told me. "Really, nobody should have been surprised."

But what, in any case, would "more globalisation" look like? For the same economists and writers who have started to rethink their commitments to greater integration, it doesn't mean quite what it did in the early 2000s. It's not only the discourse that's changed: globalisation itself has changed, developing into a more chaotic and unequal system than many economists predicted. The benefits of globalisation have been largely concentrated in a handful of Asian countries. And even in those countries, the good times may be running out.

Statistics from Global Inequality , a 2016 book by the development economist Branko Milanović, indicate that in relative terms the greatest benefits of globalisation have accrued to a rising "emerging middle class", based preponderantly in China. But the cons are there, too: in absolute terms, the largest gains have gone to what is commonly called "the 1%" – half of whom are based in the US. Economist Richard Baldwin has shown in his recent book, The Great Convergence, that nearly all of the gains from globalisation have been concentrated in six countries.

Barring some political catastrophe, in which rightwing populism continued to gain, and in which globalisation would be the least of our problems – Wolf admitted that he was "not at all sure" that this could be ruled out – globalisation was always going to slow; in fact, it already has. One reason, says Wolf, was that "a very, very large proportion of the gains from globalisation – by no means all – have been exploited. We have a more open world economy to trade than we've ever had before." Citing The Great Convergence, Wolf noted that supply chains have already expanded, and that future developments, such as automation and the use of robots, looked to undermine the promise of a growing industrial workforce. Today, the political priorities were less about trade and more about the challenge of retraining workers , as technology renders old jobs obsolete and transforms the world of work.

Rodrik, too, believes that globalisation, whether reduced or increased, is unlikely to produce the kind of economic effects it once did. For him, this slowdown has something to do with what he calls "premature deindustrialisation". In the past, the simplest model of globalisation suggested that rich countries would gradually become "service economies", while emerging economies picked up the industrial burden. Yet recent statistics show the world as a whole is deindustrialising. Countries that one would have expected to have more industrial potential are going through the stages of automation more quickly than previously developed countries did, and thereby failing to develop the broad industrial workforce seen as a key to shared prosperity.

For both Rodrik and Wolf, the political reaction to globalisation bore possibilities of deep uncertainty. "I really have found it very difficult to decide whether what we're living through is a blip, or a fundamental and profound transformation of the world – at least as significant as the one that brought about the first world war and the Russian revolution," Wolf told me. He cited his agreement with economists such as Summers that shifting away from the earlier emphasis on globalisation had now become a political priority; that to pursue still greater liberalisation was like showing "a red rag to a bull" in terms of what it might do to the already compromised political stability of the western world.

Rodrik pointed to a belated emphasis, both among political figures and economists, on the necessity of compensating those displaced by globalisation with retraining and more robust welfare states. But pro-free-traders had a history of cutting compensation: Bill Clinton passed Nafta, but failed to expand safety nets. "The issue is that the people are rightly not trusting the centrists who are now promising compensation," Rodrik said. "One reason that Hillary Clinton didn't get any traction with those people is that she didn't have any credibility."

Rodrik felt that economics commentary failed to register the gravity of the situation: that there were increasingly few avenues for global growth, and that much of the damage done by globalisation – economic and political – is irreversible. "There is a sense that we're at a turning point," he said. "There's a lot more thinking about what can be done. There's a renewed emphasis on compensation – which, you know, I think has come rather late."

[Jul 05, 2019] The UK public finally realized that the Globalist/Open Frontiers/ Neoliberal crowd are not their friends

Highly recommended!
Notable quotes:
"... The key point, is that this happened in the 1980's – 90's. Vast profit possibilities were opening up through digitalization, corporate outsourcing, globalization and the internet. The globalists urgently wanted that money, and had to have political compliance. They found it in Neoliberalism and hijacked both the Conservative Party and the Labour Party, creating "New Labour" (leader Tony Blair) through classless "modernization" following Margaret Thatcher's lead. ..."
"... Great blast by Jonathan Cook – I feel as if he has read my thoughts about the political system keeping the proles in an Orwellian state of serfdom for plunder and abuse under the guise of “democracy” and “freedom”. ..."
"... But the ideas of the Chicago School in cohorts with the Frankfurters and Tavistockers were already undermining our hopeful vision of the world while the think tanks at the foundations, councils and institutes were flooding the academies with the doctrines of hardhead uncompromising Capitalism to suck the blood off the proles into anaemic immiseration and apathetic insouciance. ..."
"... With the working class defeated and gone, where is the spirit of resistance to spring from? Not from the selfishness of the new generation of smartphone addicts whose world has shrunk to the atomic MEism and who refuse to open their eyes to what is staring in their face: debt slavery, for life. Maybe the French can do it again. Allez Gilets Jaunes! ..."
Jul 05, 2019 | www.unz.com

Miro23 says: July 5, 2019 at 11:09 am GMT 400 Words

This is a very good article on UK politics, but I would have put more emphasis on the background. Where we are today has everything to do with how we got here.

The UK has this basic left/right split (Labour/Conservative) reaching far back into its class based history. Sad to say, but within 5 seconds a British person can determine the class of the person they are dealing with (working/ middle/ upper) and act accordingly – referencing their own social background.

Margaret Thatcher was a lower middle class grocer's daughter who gained a rare place at Oxford University (on her own high intellectual merits), and took on the industrial wreckers of the radical left (Arthur Scargill etc.). She consolidated her power with the failure of the 1984-85 Miner's Strike. She introduced a new kind of Conservatism that was more classless and open to the talents, adopting free market Neoliberalism along with Ronald Reagan. A large section of the aspirational working class went for this (many already had middle class salaries) and wanted that at least their children could join the middle class through the university system.

The key point, is that this happened in the 1980's – 90's. Vast profit possibilities were opening up through digitalization, corporate outsourcing, globalization and the internet. The globalists urgently wanted that money, and had to have political compliance. They found it in Neoliberalism and hijacked both the Conservative Party and the Labour Party, creating "New Labour" (leader Tony Blair) through classless "modernization" following Margaret Thatcher's lead.

The story now, is that the UK public realize that the Globalist/Zionist/SJW/Open Frontiers/ Neoliberal crowd are not their friends . So they (the public) are backtracking fast to find solid ground. In practice this means 1) Leave the Neoliberal/Globalist EU (which has also been hijacked) using Brexit 2) Recover the traditional Socialist Labour Party of working people through Jeremy Corbyn 3) Recover the traditional Conservative Party ( Britain First) through Nigel Farage and his Brexit movement.

Hence the current and growing gulf that is separating the British public from its Zio-Globalist elite + their media propagandists (BBC, Guardian etc.).


Digital Samizdat , says: July 5, 2019 at 12:43 pm GMT

@Miro23

She introduced a new kind of Conservatism that was more classless …

Or just plain anti-working class.

It was actually Thatcher who started the neo-liberal revolution in Britain. To the extent that she refused to finish it, the elites had Tony Blair in the wings waiting to go.

Parfois1 , says: July 5, 2019 at 1:18 pm GMT

Great blast by Jonathan Cook – I feel as if he has read my thoughts about the political system keeping the proles in an Orwellian state of serfdom for plunder and abuse under the guise of “democracy” and “freedom”. Under this system if anyone steps out of line is indeed sidelined for the “anti-semitic” treatment, demonized, vilified and, virtually hanged and quartered on the public square of the mendacious media.

In the good old days, when there was a militant working class and revolting (!) unionism, we would get together at meetings, organize protests and strikes and confront bosses and officialdom. There was camaraderie, solidarity, loyalty and confident defiance that we were fighting for a better world for ourselves and our children – and also for people less fortunate than us in other countries.

But the ideas of the Chicago School in cohorts with the Frankfurters and Tavistockers were already undermining our hopeful vision of the world while the think tanks at the foundations, councils and institutes were flooding the academies with the doctrines of hardhead uncompromising Capitalism to suck the blood off the proles into anaemic immiseration and apathetic insouciance.

... ... ... .

With the working class defeated and gone, where is the spirit of resistance to spring from? Not from the selfishness of the new generation of smartphone addicts whose world has shrunk to the atomic MEism and who refuse to open their eyes to what is staring in their face: debt slavery, for life. Maybe the French can do it again. Allez Gilets Jaunes!

Harbinger , says: July 5, 2019 at 1:47 pm GMT
@Miro23 ic get pissed off and vote in the conservatives who then privatise everything. And this game continues on and on. The British public are literally headless chickens running around not knowing what on earth is going on. They’re not interested in getting to the bottom of why society is the way it is. They’re all too comfortable with their mortgages, cars, holidays twice a year, mobile phones, TV shows and football.

When all of this disappears, then certainly, they will start asking questions, but when that time comes they will be utterly powerless to do anything, as a minority in their own land. Greater Israel will be built when that time comes.

Miro23 , says: July 5, 2019 at 3:05 pm GMT
@Digital Samizdat itants and win – which she did.

No one at the time had much idea about Neoliberalism and none at all about Globalization. This was all in the future.

And it was the British working class who were really cutting their own throats, by wrecking British industry (their future employment), with constant political radicalism and strikes.

https://www.amazon.co.uk/Goodbye-Great-Britain-1976-Crisis/dp/0300057288

[Jun 09, 2019] The looming 100-year US-China conflict by Martin Wolf

Highly recommended!
Notable quotes:
"... Across-the-board rivalry with China is becoming an organising principle of US economic, foreign and security policies. ..."
"... An effort to halt China's economic and technological rise is almost certain to fail. Worse, it will foment deep hostility in the Chinese people. In the long run, the demands of an increasingly prosperous and well-educated people for control over their lives might still win out. But that is far less likely if China's natural rise is threatened. ..."
"... The tragedy in what is now happening is that the administration is simultaneously launching a conflict between the two powers, attacking its allies and destroying the institutions of the postwar US-led order. ..."
Jun 04, 2019 | archive.fo
The disappearance of the Soviet Union left a big hole. The "war on terror" was an inadequate replacement. But China ticks all boxes. For the US, it can be the ideological, military and economic enemy many need. Here at last is a worthwhile opponent. That was the main conclusion I drew from this year's Bilderberg meetings.

Across-the-board rivalry with China is becoming an organising principle of US economic, foreign and security policies.

Whether it is Donald Trump's organizing principle is less important. The US president has the gut instincts of a nationalist and protectionist. Others provide both framework and details. The aim is US domination. The means is control over China, or separation from China.

Anybody who believes a rules-based multilateral order, our globalised economy, or even harmonious international relations, are likely to survive this conflict is deluded. The astonishing white paper on the trade conflict , published on Sunday by China, is proof. The -- to me, depressing -- fact is that on many points Chinese positions are right.

The US focus on bilateral imbalances is economically illiterate. The view that theft of intellectual property has caused huge damage to the US is questionable . The proposition that China has grossly violated its commitments under its 2001 accession agreement to the World Trade Organization is hugely exaggerated.

Martin Wolf chart on US/China

Accusing China of cheating is hypocritical when almost all trade policy actions taken by the Trump administration are in breach of WTO rules, a fact implicitly conceded by its determination to destroy the dispute settlement system .

The US negotiating position vis-à-vis China is that "might makes right". This is particularly true of insisting that the Chinese accept the US role as judge, jury and executioner of the agreement .

A dispute over the terms of market opening or protection of intellectual property might be settled with careful negotiation. Such a settlement might even help China, since it would lighten the heavy hand of the state and promote market-oriented reform.

But the issues are now too vexed for such a resolution. This is partly because of the bitter breakdown in negotiation. It is still more because the US debate is increasingly over whether integration with China's state-led economy is desirable. The fear over Huawei focuses on national security and technological autonomy.

[Neo]liberal commerce is increasingly seen as "trading with the enemy".

Martin Wolf chart on US/China

A framing of relations with China as one of zero-sum conflict is emerging. Recent remarks by Kiron Skinner, the US state department's policy planning director (a job once held by cold war strategist George Kennan) are revealing. Rivalry with Beijing, she suggested at a forum organised by New America , is "a fight with a really different civilisation and a different ideology, and the United States hasn't had that before".

She added that this would be "the first time that we will have a great power competitor that is not Caucasian". The war with Japan is forgotten.

But the big point is her framing of this as a civilizational and racial war and so as an insoluble conflict. This cannot be accidental. She is also still in her job. Others present the conflict as one over ideology and power.

Those emphasising the former point to President Xi Jinping's Marxist rhetoric and the reinforced role of the Communist party . Those emphasising the latter point to China's rising economic might. Both perspectives suggest perpetual conflict.

Martin Wolf chart on US/China

This is the most important geopolitical development of our era. Not least, it will increasingly force everybody else to take sides or fight hard for neutrality. But it is not only important. It is dangerous. It risks turning a manageable, albeit vexed, relationship into all-embracing conflict, for no good reason. China's ideology is not a threat to liberal democracy in the way the Soviet Union's was. Rightwing demagogues are far more dangerous.

An effort to halt China's economic and technological rise is almost certain to fail. Worse, it will foment deep hostility in the Chinese people. In the long run, the demands of an increasingly prosperous and well-educated people for control over their lives might still win out. But that is far less likely if China's natural rise is threatened.

Moreover, the rise of China is not an important cause of western malaise. That reflects far more the indifference and incompetence of domestic elites. What is seen as theft of intellectual property reflects, in large part, the inevitable attempt of a rising economy to master the technologies of the day. Above all, an attempt to preserve the domination of 4 per cent of humanity over the rest is illegitimate.

Martin Wolf chart on US/China

This certainly does not mean accepting everything China does or says. On the contrary, the best way for the west to deal with China is to insist on the abiding values of freedom, democracy, rules-based multilateralism and global co-operation. These ideas made many around the globe supporters of the US in the past.

They still captivate many Chinese people today. It is quite possible to uphold these ideas, indeed insist upon them far more strongly, while co-operating with a rising China where that is essential, as over protecting the natural environment, commerce and peace.

Martin Wolf chart on US/China

A blend of competition with co-operation is the right way forward. Such an approach to managing China's rise must include co-operating closely with like-minded allies and treating China with respect.

The tragedy in what is now happening is that the administration is simultaneously launching a conflict between the two powers, attacking its allies and destroying the institutions of the postwar US-led order.

Today's attack on China is the wrong war, fought in the wrong way, on the wrong terrain. Alas, this is where we now are.

martin.wolf@ft.com

[May 14, 2019] Trump desperately needs a trade deal with China as he gears up for his re-election bid in 2020.

Highly recommended!
It has become a cliché to quote William Butler Yeats’s poem “The Second Coming,” written almost 100 years ago in the aftermath of World War I. But no one has said it better: “Things fall apart; the centre cannot hold; / Mere anarchy is loosed upon the world . . . And what rough beast, its hour come round at last, / Slouches toward Bethlehem to be born?”
Donald Trump's decision to raise duties on Chinese goods from ten to 25 percent of additional $200 billion of China exports came into force. It is unclear how this will work and how much the US consumers will pay. Probably half of this raise so from 5% to 10% which might be not very noticeable outside such items as shoes and clothing. The cost of Chinese's shoes already is quite high -- plastic regular $60-30 with discounts on holiday. Leather -- $100-$50 and almost no discounts.
Trump uses his favorite "bully in the schoolyard" style, a typical the American foreign policy tactic to direct, lawless pressure. First, they accuse partners of violations, to introduce restrictions on this basis (and at the same time to plunge world markets into panic), and then to agree on the resumption of negotiations. But the previous decisions about tariffs were left, of course, in force.
May 14, 2019 | www.asiatimes.com
His gambit to conclude a deal with North Korea collapsed in failure in Hanoi in February, and it is a huge blow to his self-styled image of a master dealmaker. Trump also faces a flurry of congressional subpoenas at home from Democrats who now control the House of Representatives. Hence with mounting legal and political troubles, Trump is cornered and desperately needs a conclusion to the prolonged trade war with China, which has netted zero benefits for him.

The prospect of a trade deal with China remains as elusive as ever, despite Trump's increased tariffs to pressure China to come to the negotiating table with the list of concession that he wants. It is highly unlikely that China will grant Trump the concessions he wants. China remembers clearly the deal that Tokyo concluded with Washington in the 1990s that caused Japan to slip into economic stagnation for many years. That period has now been dubbed Japan's "lost decade."

China is not dumb and it will not concede to Trump.

Worse still, the move to increase tariffs took place while Chinese Vice-Premier Liu He was in Washington to negotiate with the Trump administration.

It is a blunder by Trump and will be perceived by the Chinese as a cheap shot against President Xi Jinping. The tariffs hike came despite Xi's "beautiful letter" to Trump, and it is a massive loss of face for the Chinese leader to see his group of officials return home from Washington with no deal to conclude the trade war.

Xi could not afford to look weak in front of his people and he knows that millions of Chinese netizens access information about the outside world by using virtual private networks (VPNs) to circumvent the Great Firewall. Many ordinary Chinese know about the trade war's latest developments and should any deal with Trump infringe on China's core interests, it will be political suicide for Xi.

One of the main reasons the US-China trade talks broke down was that Washington's demands were unpalatable to China. Some of the demands from the US, such as an end to government support for state companies in specific industries and a streamlined approval process for genetically engineered US crops, are a direct challenge to the Communist Party of China's control of the economy.

Since Xi took office, he has extended the party's reach into every corner of Chinese society, and every businessman in China who aspires to reach the top of the hierarchy knows that they must receive the blessing of the party. It is not surprising that even Jack Ma, who is one of China's most internationally recognizable figures, has been revealed to be a member of the CPC after years of denial.

Hence in the face of renewed pressure from Trump, Xi and the Chinese government have reached the conclusion that it is better to bear the consequences of increased tariffs than to concede to US demands.

Xi is in for the long haul and can well afford to ride out the storm. And based on Trump's past negotiations such as his failed bid to pressure House Democrats to fund his wall on the Mexican border, which led to the longest government shutdown in US history, Xi knows that the chances are good that Trump will blink first.

[Mar 31, 2019] Because of the immediate arrival of the Russia collusion theory, neither MSM honchos nor any US politician ever had to look into the camera and say, I guess people hated us so much they were even willing to vote for Donald Trump

Highly recommended!
Notable quotes:
"... Russiagate became a convenient replacement explanation absolving an incompetent political establishment for its complicity in what happened in 2016, and not just the failure to see it coming. ..."
"... Because of the immediate arrival of the collusion theory, neither Wolf Blitzer nor any politician ever had to look into the camera and say, "I guess people hated us so much they were even willing to vote for Donald Trump ..."
Mar 31, 2019 | www.moonofalabama.org

psychohistorian , Mar 30, 2019 7:51:28 PM | link

Here is an insightful read on Trump's (s)election and Russiagate that I think is not OT

Taibbi: On Russiagate and Our Refusal to Face Why Trump Won

The take away quote

" Russiagate became a convenient replacement explanation absolving an incompetent political establishment for its complicity in what happened in 2016, and not just the failure to see it coming.

Because of the immediate arrival of the collusion theory, neither Wolf Blitzer nor any politician ever had to look into the camera and say, "I guess people hated us so much they were even willing to vote for Donald Trump ."

As a peedupon all I can see is that the elite seem to be fighting amongst themselves or (IMO) providing cover for ongoing elite power/control efforts. It might not be about private/public finance in a bigger picture but I can't see anything else that makes sense

[Mar 15, 2019] Patriots Turning To #YangGang In Response To Trump, Conservatism Inc. Failure by James Kirkpatrick

Highly recommended!
Notable quotes:
"... Yang promises a universal entitlement, not dependent on income, that he calls a "freedom dividend." To be funded through a value added tax , Yang claims that it would reduce the strain on "health care, incarceration, homeless services, and the like" and actually save billions of dollars. Yang also notes that "current welfare and social program beneficiaries would be given a choice between their current benefits or $1,000 cash unconditionally." ..."
"... Yang is justifying the need for such a program because of automation . Again, VDARE.com has been exploring how automation may necessitate such a program for many years . Yang also discussed this problem on Tucker Carlson's show , which alone shows he is more open to real discussion than many progressive activists. ..."
"... Indeed, journalists, hall monitors that they are, have recognized that President Trump's online supporters are flocking to Yang, bringing him a powerful weapon in the meme wars. ..."
"... it is ominous for Trump that many of the more creative and dedicated people who formed his vanguard are giving up on him. ..."
Mar 15, 2019 | www.unz.com

The dark horse candidate of the 2020 Democratic primary is entrepreneur Andrew Yang , who just qualified for the first round of debates by attracting over 65,000 unique donors. [ Andrew Yang qualifies for first DNC debate with 65,000 unique donors , by Orion Rummler, Axios, March 12, 2019]

Yang is a businessman who has worked in several fields, but was best known for founding Venture for America , which helps college graduates become entrepreneurs. However, he is now gaining recognition for his signature campaign promise -- $1,000 a month for every American.

Yang promises a universal entitlement, not dependent on income, that he calls a "freedom dividend." To be funded through a value added tax , Yang claims that it would reduce the strain on "health care, incarceration, homeless services, and the like" and actually save billions of dollars. Yang also notes that "current welfare and social program beneficiaries would be given a choice between their current benefits or $1,000 cash unconditionally."

As Yang himself notes, this is not a new idea, nor one particularly tied to the Left. Indeed, it's been proposed by several prominent libertarians because it would replace the far more inefficient welfare system. Charles Murray called for this policy in 2016. [ A guaranteed income for every American , AEI, June 3, 2016] Milton Friedman suggested a similar policy in a 1968 interview with William F. Buckley, though Friedman called it a "negative income tax."

He rejected arguments that it would cause indolence. F.A. Hayek also supported such a policy; he essentially took it for granted . [ Friedrich Hayek supported a guaranteed minimum income , by James Kwak, Medium, July 20, 2015]

It's also been proposed by many nationalists, including, well, me. At the January 2013 VDARE.com Webinar, I called for a "straight-up minimum income for citizens only" among other policies that would build a new nationalist majority and deconstruct Leftist power. I've retained that belief ever since and argued for it here for years.

However, I've also made the argument that it only works if it is for citizens only and is combined with a restrictive immigration policy. As I previously argued in a piece attacking Jacobin's disingenuous complaints about the "reserve army of the unemployed," you simply can't support high wages, workers' rights, and a universal basic income while still demanding mass immigration.

Yang is justifying the need for such a program because of automation . Again, VDARE.com has been exploring how automation may necessitate such a program for many years . Yang also discussed this problem on Tucker Carlson's show , which alone shows he is more open to real discussion than many progressive activists.

Yang is also directly addressing the crises that the Trump Administration has seemly forgotten. Unlike Donald Trump himself, with his endless boasting about "low black and Hispanic unemployment," Yang has directly spoken about the demographic collapse of white people because of "low birth rates and white men dying from substance abuse and suicide ."

Though even the viciously anti-white Dylan Matthews called the tweet "innocuous," there is little doubt if President Trump said it would be called racist. [ Andrew Yang, the 2020 long-shot candidate running on a universal basic income, explained , Vox, March 11, 2019]

Significantly, President Trump himself has never once specifically recognized the plight of white Americans.

...He wants to make Puerto Rico a state . He supports a path to citizenship for illegal aliens, albeit with an 18-year waiting period and combined with pledges to secure the border and deport illegals who don't enroll in the citizenship program. He wants to create a massive bureaucratic system to track gun owners, restrict gun ownership , and require various "training" programs for licenses. He wants to subsidize local journalists with taxpayer dollars...

... ... ...

Indeed, journalists, hall monitors that they are, have recognized that President Trump's online supporters are flocking to Yang, bringing him a powerful weapon in the meme wars. (Sample meme at right.) And because many of these online activists are "far right" by Main Stream Media standards, or at least Politically Incorrect, there is much hand-waving and wrist-flapping about the need for Yang to decry "white nationalists." So of course, the candidate has dutifully done so, claiming "racism and white nationalism [are] a threat to the core ideals of what it means to be an American". [ Presidential candidate Andrew Yang has a meme problem , by Russell Brandom, The Verge, March 9, 2019]

But what does it mean to be an American? As more and more of American history is described as racist, and even national symbols and the national anthem are targets for protest, "America" certainly doesn't seem like a real country with a real identity. Increasingly, "America" resembles a continent-sized shopping mall, with nothing holding together the warring tribes that occupy it except money.

President Trump, of course, was elected because many people thought he could reverse this process, especially by limiting mass immigration and taking strong action in the culture wars, for example by promoting official English. Yet in recent weeks, he has repeatedly endorsed more legal immigration. Rather than fighting, the president is content to brag about the economy and whine about unfair press coverage and investigations. He already seems like a lame duck.

The worst part of all of this is that President Trump was elected as a response not just to the Left, but to the failed Conservative Establishment. During the 2016 campaign, President Trump specifically pledged to protect entitlements , decried foreign wars, and argued for a massive infrastructure plan. However, once in office, his main legislative accomplishment is a tax cut any other Republican president would have pushed. Similarly, his latest budget contains the kinds of entitlement cuts that are guaranteed to provoke Democrat attack ads. [ Trump said he wouldn't cut Medicaid, Social Security, and Medicare . His 2020 budget cuts all 3 , by Tara Golshan, Vox, March 12, 2019] And the president has already backed down on withdrawing all troops from Syria, never mind Afghanistan.

Conservatism Inc., having learned nothing from candidate Donald Trump's scorched-earth path to the Republican nomination, now embraces Trump as a man but ignores his campaign message. Instead, the conservative movement is still promoting the same tired slogans about "free markets" even as they have appear to have lost an entire generation to socialism. The most iconic moment was Charlie Kirk, head of the free market activist group Turning Point USA, desperately trying to tell his followers not to cheer for Tucker Carlson because Carlson had suggested a nation should be treated like a family, not simply a marketplace .

President Trump himself is now trying to talk like a fiscal conservative [ Exclusive -- Donald Trump: 'Seductive' Socialism Would Send Country 'Down The Tubes' In a Decade Or Less , by Alexander Marlow, Matt Boyle, Amanda House, and Charlie Spierling, Breitbart, March 11, 2019]. Such a pose is self-discrediting given how the deficit swelled under united Republican control and untold amounts of money are seemingly still available for foreign aid to Israel, regime change in Iran and Venezuela, and feminist programs abroad to make favorite daughter Ivanka Trump feel important. [ Trump budget plans to give $100 million to program for women that Ivanka launched , by Nathalie Baptiste, Mother Jones, March 9, 2019]

Thus, especially because of his cowardice on immigration, many of President Trump's most fervent online supporters have turned on him in recent weeks. And the embrace of Yang seems to come out of a great place of despair, a sense that the country really is beyond saving.

Yang has Leftist policies on many issues, but many disillusioned Trump supporters feel like those policies are coming anyway. If America is just an economy, and if everyone in the world is a simply an American-in-waiting, white Americans might as well get something out of this System before the bones are picked clean.

National Review ' s Theodore Kupfer just claimed the main importance of Yang's candidacy is that it will prove meme-makers ability to affect the vote count "has been overstated" [ Rise of the pink hats , March 12, 2019].

Time will tell, but it is ominous for Trump that many of the more creative and dedicated people who formed his vanguard are giving up on him.

[Mar 02, 2019] The Trump presidency From the Manhattan underworld to the White House by Patrick Martin

Highly recommended!
Notable quotes:
"... Trump's "opposition" in the Democratic Party is no less hostile to democratic rights. They have focused their anti-Trump campaign on bogus allegations that he is a Russian agent, while portraying the emergence of social divisions within the United States as the consequence of Russian "meddling," not the crisis of capitalism, and pushing for across-the-board internet censorship. ..."
Mar 01, 2019 | www.wsws.org

"The finance aristocracy, in its mode of acquisition as well as in its pleasures, is nothing but the rebirth of the lumpenproletariat on the heights of bourgeois society ." -- Karl Marx, The Class Struggles in France

What Marx described, in his analysis of the corruption of the bourgeoisie in France leading up to the 1848 revolution, applies with even greater force to the United States of 2019, where the bourgeoisie faces its own rendezvous with social upheaval and explosive class battles.

That is how a Marxist understands the spectacle of Wednesday's hearing before the House Oversight Committee, in which Michael Cohen, the former attorney and "fixer" for Donald Trump for more than a decade, testified for six hours about how he and his boss worked to defraud business partners and tax collectors, intimidate critics and suppress opposition to Trump's acitvities in real estate, casino gambling, reality television and, eventually, electoral politics.

What Cohen described was a seedier version of an operation that most Americans would recognize from viewing films like The Godfather: Trump as the capo di tutti capi, the unquestioned authority who must be consulted on every decision ; the children, Donald Jr., Ivanka and Eric, each now playing significant roles in the ongoing family criminal enterprise; Allen Weisselberg, CFO of the Trump Organization, the consigliere in charge of finance, mentioned by Cohen more than 20 times in the course of six hours of testimony as the man who facilitated Trump's schemes to evade taxes, deceive banks or stiff business partners.

Cohen himself was an enforcer. By his own account, he threatened people on Trump's behalf at least 500 times in a ten-year period, including business associates, politicians, journalists and anyone seeking to file complaints or gain reimbursement after being defrauded by one or another Trump venture. The now-disbarred lawyer admitted to tape recording clients -- including Trump among many others -- more than 100 times during this period.

The incidents recounted by Cohen range from the farcical (Trump browbeating colleges and even his military prep school not to release his grades or test scores), to the shabby (Trump having his own "charitable" foundation buy a portrait of himself for $60,000), to the brazenly criminal (deliberately inflating the value of properties when applying for bank loans while deflating the value of the same properties as much as twenty-fold in order to evade taxation).

One of the most remarkable revelations was Cohen's flat assertion that Trump himself did not enter the presidential race with the expectation that he could win either the Republican nomination or the presidency. Instead, the billionaire reality television "star" regularly told his closest aides, the campaign would be the "greatest infomercial in political history," good for promoting his brand and opening up business opportunities in previously closed markets.

These unflattering details filled the pages of the daily newspapers Thursday and occupied many hours on the cable television news. But in all that vast volume of reporting and commentary, one would look in vain for any serious assessment of what it means, in terms of the historical development and future trajectory of American society, that a family like the Trumps now occupies the highest rung in the US political system.

The World Socialist Web Site rejects efforts by the Democrats and the corporate media to dismiss Trump as an aberration, an accidental figure whose unexpected elevation to the presidency in 2016 will be "corrected" through impeachment, forced resignation or electoral defeat in 2020. We insist that the Trump administration is a manifestation of a protracted crisis and breakdown of American democracy, whose course can be traced back at least two decades to the failed impeachment of Bill Clinton in 1998-99, followed by the stolen presidential election of 2000.

The US political system, always dominated by the interests of the capitalist ruling class that controls both of the major parties, the Democrats as much as the Republicans, is breaking down under the burden of mounting social tensions, driven above all by skyrocketing economic inequality. It is impossible to sustain the pretense that elections at two-year and four-year intervals provide genuine popular influence over the functioning of a government so completely subordinated to the financial aristocracy.

The figures are familiar but require restating: over the past three decades, virtually all the increase in wealth in American society has gone to a tiny layer at the top. Three mega-billionaires -- Jeff Bezos, Warren Buffett and Bill Gates -- now control more wealth than half the American population. This process of social polarization is global: according to the most recent Oxfam report, 26 billionaires control more wealth than the poorer half of the human race.

These billionaires did not accumulate their riches by devising new technologies or making new scientific discoveries that increased the wealth and happiness of humanity as a whole. On the contrary, their enrichment has come at the expense of society. Bezos has become the world's richest man through the emergence of Amazon as the greatest sweatshop enterprise in history, where every possible second of labor power is extracted from a brutally exploited workforce.

The class of billionaires as a whole, having precipitated the global financial collapse of 2008 through reckless speculation and swindling in the sale of derivatives and other obscure financial "products," was bailed out, first by the Republican Bush, then by the Democrat Obama, to the tune of trillions of dollars. Meanwhile, the jobs, living standards and social conditions for the great mass of working people sharply declined.

As for Donald Trump, the real estate swindler, casino con man and reality television mogul is a living demonstration of the truth of Balzac's aphorism: "Behind every great fortune is a great crime."

Trump toyed with running for president on the ultra-right Reform Party ticket in 2000 after a long stint as a registered Democrat and donor to both capitalist parties. When he decided to run for president as a Republican in 2016, however, he had shifted drastically to the right. His candidacy marked the emergence of a distinctly fascistic movement, as he spewed anti-immigrant prejudice and racism more generally, while making a right-wing populist appeal to working people, particularly in de-industrialized areas in the Midwest and Appalachia, on the basis of economic nationalism.

As World Socialist Web Site editorial board Chairman David North explained even before the 2016 elections:

The Republican nominee for the presidency of the United States did not emerge from an American version of a Munich beer hall. Donald Trump is a billionaire, who made his money in Manhattan real estate swindles, the semi-criminal operations of casino gambling, and the bizarre world of "reality television," which entertains and stupefies its audience by manufacturing absurd, disgusting and essentially fictional "real life" situations. The candidacy of Donald Trump could be described as the transfer of the techniques of reality television to politics.

The main development in the two years since Trump entered the White House is the emergence of the American working class into major struggles, beginning with the wave of teachers' strikes in 2018, initiated by the rank and file in defiance of the bureaucratic unions. The reaction in the American ruling elite is a panic-stricken turn to authoritarian methods of rule.

The billionaire in the White House is now engaged in a systematic assault on the foundations of American democracy. He has declared a national emergency in order to bypass Congress, which holds the constitutional "power of the purse," and divert funds from the military and other federal departments to build a wall along the US-Mexico border.

Whether or not he is immediately successful in this effort, it is clear that Trump is moving towards the establishment of an authoritarian regime, with or without the sanction of the ballot box. As Cohen observed in his closing statement -- in remarks generally downplayed by the media and ignored by the Democrats -- he is worried that if Trump loses the 2020 election, "there will never be a peaceful transition of power."

Trump's "opposition" in the Democratic Party is no less hostile to democratic rights. They have focused their anti-Trump campaign on bogus allegations that he is a Russian agent, while portraying the emergence of social divisions within the United States as the consequence of Russian "meddling," not the crisis of capitalism, and pushing for across-the-board internet censorship.

The defense of democratic rights and genuine resistance to Trump's drive toward authoritarian rule must come through the development of an independent political movement of the working class, directed against both big business parties, the Democrats as much as the Republicans, and against the profit system which they both defend.

[Jan 12, 2019] Tucker Carlson Mitt Romney supports the status quo. But for everyone else, it's infuriating Fox News

Highly recommended!
Notable quotes:
"... Adapted from Tucker Carlson's monologue from "Tucker Carlson Tonight" on January 2, 2019. ..."
Jan 02, 2019 | www.foxnews.com
Tucker: America's goal is happiness, but leaders show no obligation to voters

Voters around the world revolt against leaders who won't improve their lives.

Newly-elected Utah senator Mitt Romney kicked off 2019 with an op-ed in the Washington Post that savaged Donald Trump's character and leadership. Romney's attack and Trump's response Wednesday morning on Twitter are the latest salvos in a longstanding personal feud between the two men. It's even possible that Romney is planning to challenge Trump for the Republican nomination in 2020. We'll see.

But for now, Romney's piece is fascinating on its own terms. It's well-worth reading. It's a window into how the people in charge, in both parties, see our country.

Romney's main complaint in the piece is that Donald Trump is a mercurial and divisive leader. That's true, of course. But beneath the personal slights, Romney has a policy critique of Trump. He seems genuinely angry that Trump might pull American troops out of the Syrian civil war. Romney doesn't explain how staying in Syria would benefit America. He doesn't appear to consider that a relevant question. More policing in the Middle East is always better. We know that. Virtually everyone in Washington agrees.

Corporate tax cuts are also popular in Washington, and Romney is strongly on board with those, too. His piece throws a rare compliment to Trump for cutting the corporate rate a year ago.

That's not surprising. Romney spent the bulk of his business career at a firm called Bain Capital. Bain Capital all but invented what is now a familiar business strategy: Take over an existing company for a short period of time, cut costs by firing employees, run up the debt, extract the wealth, and move on, sometimes leaving retirees without their earned pensions. Romney became fantastically rich doing this.

Meanwhile, a remarkable number of the companies are now bankrupt or extinct. This is the private equity model. Our ruling class sees nothing wrong with it. It's how they run the country.

Mitt Romney refers to unwavering support for a finance-based economy and an internationalist foreign policy as the "mainstream Republican" view. And he's right about that. For generations, Republicans have considered it their duty to make the world safe for banking, while simultaneously prosecuting ever more foreign wars. Modern Democrats generally support those goals enthusiastically.

There are signs, however, that most people do not support this, and not just in America. In countries around the world -- France, Brazil, Sweden, the Philippines, Germany, and many others -- voters are suddenly backing candidates and ideas that would have been unimaginable just a decade ago. These are not isolated events. What you're watching is entire populations revolting against leaders who refuse to improve their lives.

Something like this has been in happening in our country for three years. Donald Trump rode a surge of popular discontent all the way to the White House. Does he understand the political revolution that he harnessed? Can he reverse the economic and cultural trends that are destroying America? Those are open questions.

But they're less relevant than we think. At some point, Donald Trump will be gone. The rest of us will be gone, too. The country will remain. What kind of country will be it be then? How do we want our grandchildren to live? These are the only questions that matter.

The answer used to be obvious. The overriding goal for America is more prosperity, meaning cheaper consumer goods. But is that still true? Does anyone still believe that cheaper iPhones, or more Amazon deliveries of plastic garbage from China are going to make us happy? They haven't so far. A lot of Americans are drowning in stuff. And yet drug addiction and suicide are depopulating large parts of the country. Anyone who thinks the health of a nation can be summed up in GDP is an idiot.

The goal for America is both simpler and more elusive than mere prosperity. It's happiness. There are a lot of ingredients in being happy: Dignity. Purpose. Self-control. Independence. Above all, deep relationships with other people. Those are the things that you want for your children. They're what our leaders should want for us, and would want if they cared.

But our leaders don't care. We are ruled by mercenaries who feel no long-term obligation to the people they rule. They're day traders. Substitute teachers. They're just passing through. They have no skin in this game, and it shows. They can't solve our problems. They don't even bother to understand our problems.

One of the biggest lies our leaders tell us that you can separate economics from everything else that matters. Economics is a topic for public debate. Family and faith and culture, meanwhile, those are personal matters. Both parties believe this.

Members of our educated upper-middle-classes are now the backbone of the Democratic Party who usually describe themselves as fiscally responsible and socially moderate. In other words, functionally libertarian. They don't care how you live, as long as the bills are paid and the markets function. Somehow, they don't see a connection between people's personal lives and the health of our economy, or for that matter, the country's ability to pay its bills. As far as they're concerned, these are two totally separate categories.

Social conservatives, meanwhile, come to the debate from the opposite perspective, and yet reach a strikingly similar conclusion. The real problem, you'll hear them say, is that the American family is collapsing. Nothing can be fixed before we fix that. Yet, like the libertarians they claim to oppose, many social conservatives also consider markets sacrosanct. The idea that families are being crushed by market forces seems never to occur to them. They refuse to consider it. Questioning markets feels like apostasy.

Both sides miss the obvious point: Culture and economics are inseparably intertwined. Certain economic systems allow families to thrive. Thriving families make market economies possible. You can't separate the two. It used to be possible to deny this. Not anymore. The evidence is now overwhelming. How do we know? Consider the inner cities.

Thirty years ago, conservatives looked at Detroit or Newark and many other places and were horrified by what they saw. Conventional families had all but disappeared in poor neighborhoods. The majority of children were born out of wedlock. Single mothers were the rule. Crime and drugs and disorder became universal.

What caused this nightmare? Liberals didn't even want to acknowledge the question. They were benefiting from the disaster, in the form of reliable votes. Conservatives, though, had a ready explanation for inner-city dysfunction and it made sense: big government. Decades of badly-designed social programs had driven fathers from the home and created what conservatives called a "culture of poverty" that trapped people in generational decline.

There was truth in this. But it wasn't the whole story. How do we know? Because virtually the same thing has happened decades later to an entirely different population. In many ways, rural America now looks a lot like Detroit.

This is striking because rural Americans wouldn't seem to have much in common with anyone from the inner city. These groups have different cultures, different traditions and political beliefs. Usually they have different skin colors. Rural people are white conservatives, mostly.

Yet, the pathologies of modern rural America are familiar to anyone who visited downtown Baltimore in the 1980s: Stunning out of wedlock birthrates. High male unemployment. A terrifying drug epidemic. Two different worlds. Similar outcomes. How did this happen? You'd think our ruling class would be interested in knowing the answer. But mostly they're not. They don't have to be interested. It's easier to import foreign labor to take the place of native-born Americans who are slipping behind.

But Republicans now represent rural voters. They ought to be interested. Here's a big part of the answer: male wages declined. Manufacturing, a male-dominated industry, all but disappeared over the course of a generation. All that remained in many places were the schools and the hospitals, both traditional employers of women. In many places, women suddenly made more than men.

Now, before you applaud this as a victory for feminism, consider the effects. Study after study has shown that when men make less than women, women generally don't want to marry them. Maybe they should want to marry them, but they don't. Over big populations, this causes a drop in marriage, a spike in out-of-wedlock births, and all the familiar disasters that inevitably follow -- more drug and alcohol abuse, higher incarceration rates, fewer families formed in the next generation.

This isn't speculation. This is not propaganda from the evangelicals. It's social science. We know it's true. Rich people know it best of all. That's why they get married before they have kids. That model works. But increasingly, marriage is a luxury only the affluent in America can afford.

And yet, and here's the bewildering and infuriating part, those very same affluent married people, the ones making virtually all the decisions in our society, are doing pretty much nothing to help the people below them get and stay married. Rich people are happy to fight malaria in Congo. But working to raise men's wages in Dayton or Detroit? That's crazy.

This is negligence on a massive scale. Both parties ignore the crisis in marriage. Our mindless cultural leaders act like it's still 1961, and the biggest problem American families face is that sexism is preventing millions of housewives from becoming investment bankers or Facebook executives.

For our ruling class, more investment banking is always the answer. They teach us it's more virtuous to devote your life to some soulless corporation than it is to raise your own kids.

Sheryl Sandberg of Facebook wrote an entire book about this. Sandberg explained that our first duty is to shareholders, above our own children. No surprise there. Sandberg herself is one of America's biggest shareholders. Propaganda like this has made her rich.

We are ruled by mercenaries who feel no long-term obligation to the people they rule. They're day traders. Substitute teachers. They're just passing through. They have no skin in this game, and it shows.

What's remarkable is how the rest of us responded to it. We didn't question why Sandberg was saying this. We didn't laugh in her face at the pure absurdity of it. Our corporate media celebrated Sandberg as the leader of a liberation movement. Her book became a bestseller: "Lean In." As if putting a corporation first is empowerment. It is not. It is bondage. Republicans should say so.

They should also speak out against the ugliest parts of our financial system. Not all commerce is good. Why is it defensible to loan people money they can't possibly repay? Or charge them interest that impoverishes them? Payday loan outlets in poor neighborhoods collect 400 percent annual interest.

We're OK with that? We shouldn't be. Libertarians tell us that's how markets work -- consenting adults making voluntary decisions about how to live their lives. OK. But it's also disgusting. If you care about America, you ought to oppose the exploitation of Americans, whether it's happening in the inner city or on Wall Street.

And by the way, if you really loved your fellow Americans, as our leaders should, if it would break your heart to see them high all the time. Which they are. A huge number of our kids, especially our boys, are smoking weed constantly. You may not realize that, because new technology has made it odorless. But it's everywhere.

And that's not an accident. Once our leaders understood they could get rich from marijuana, marijuana became ubiquitous. In many places, tax-hungry politicians have legalized or decriminalized it. Former Speaker of the House John Boehner now lobbies for the marijuana industry. His fellow Republicans seem fine with that. "Oh, but it's better for you than alcohol," they tell us.

Maybe. Who cares? Talk about missing the point. Try having dinner with a 19-year-old who's been smoking weed. The life is gone. Passive, flat, trapped in their own heads. Do you want that for your kids? Of course not. Then why are our leaders pushing it on us? You know the reason. Because they don't care about us.

When you care about people, you do your best to treat them fairly. Our leaders don't even try. They hand out jobs and contracts and scholarships and slots at prestigious universities based purely on how we look. There's nothing less fair than that, though our tax code comes close.

Under our current system, an American who works for a salary pays about twice the tax rate as someone who's living off inherited money and doesn't work at all. We tax capital at half of what we tax labor. It's a sweet deal if you work in finance, as many of our rich people do.

In 2010, for example, Mitt Romney made about $22 million dollars in investment income. He paid an effective federal tax rate of 14 percent. For normal upper-middle-class wage earners, the federal tax rate is nearly 40 percent. No wonder Mitt Romney supports the status quo. But for everyone else, it's infuriating.

Our leaders rarely mention any of this. They tell us our multi-tiered tax code is based on the principles of the free market. Please. It's based on laws that the Congress passed, laws that companies lobbied for in order to increase their economic advantage. It worked well for those people. They did increase their economic advantage. But for everyone else, it came at a big cost. Unfairness is profoundly divisive. When you favor one child over another, your kids don't hate you. They hate each other.

That happens in countries, too. It's happening in ours, probably by design. Divided countries are easier to rule. And nothing divides us like the perception that some people are getting special treatment. In our country, some people definitely are getting special treatment. Republicans should oppose that with everything they have.

What kind of country do you want to live in? A fair country. A decent country. A cohesive country. A country whose leaders don't accelerate the forces of change purely for their own profit and amusement. A country you might recognize when you're old.

A country that listens to young people who don't live in Brooklyn. A country where you can make a solid living outside of the big cities. A country where Lewiston, Maine seems almost as important as the west side of Los Angeles. A country where environmentalism means getting outside and picking up the trash. A clean, orderly, stable country that respects itself. And above all, a country where normal people with an average education who grew up in no place special can get married, and have happy kids, and repeat unto the generations. A country that actually cares about families, the building block of everything.

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What will it take a get a country like that? Leaders who want it. For now, those leaders will have to be Republicans. There's no option at this point.

But first, Republican leaders will have to acknowledge that market capitalism is not a religion. Market capitalism is a tool, like a staple gun or a toaster. You'd have to be a fool to worship it. Our system was created by human beings for the benefit of human beings. We do not exist to serve markets. Just the opposite. Any economic system that weakens and destroys families is not worth having. A system like that is the enemy of a healthy society.

Internalizing all this will not be easy for Republican leaders. They'll have to unlearn decades of bumper sticker-talking points and corporate propaganda. They'll likely lose donors in the process. They'll be criticized. Libertarians are sure to call any deviation from market fundamentalism a form of socialism.

That's a lie. Socialism is a disaster. It doesn't work. It's what we should be working desperately to avoid. But socialism is exactly what we're going to get, and very soon unless a group of responsible people in our political system reforms the American economy in a way that protects normal people.

If you want to put America first, you've got to put its families first.

Adapted from Tucker Carlson's monologue from "Tucker Carlson Tonight" on January 2, 2019.

[Jan 12, 2019] Tucker Carlson has sparked the most interesting debate in conservative politics by Jane Coaston

Highly recommended!
Tucker Carlson sounds much more convincing then Trump: See Tucker Leaders show no obligation to American voters and Tucker The American dream is dying
Notable quotes:
"... America's "ruling class," Carlson says, are the "mercenaries" behind the failures of the middle class -- including sinking marriage rates -- and "the ugliest parts of our financial system." He went on: "Any economic system that weakens and destroys families is not worth having. A system like that is the enemy of a healthy society." ..."
"... He concluded with a demand for "a fair country. A decent country. A cohesive country. A country whose leaders don't accelerate the forces of change purely for their own profit and amusement." ..."
"... The monologue and its sweeping anti-elitism drove a wedge between conservative writers. The American Conservative's Rod Dreher wrote of Carlson's monologue, "A man or woman who can talk like that with conviction could become president. Voting for a conservative candidate like that would be the first affirmative vote I've ever cast for president. ..."
"... The Two-Income Trap: Why Middle-Class Parents Are Growing Broke ..."
"... Carlson wanted to be clear: He's just asking questions. "I'm not an economic adviser or a politician. I'm not a think tank fellow. I'm just a talk show host," he said, telling me that all he wants is to ask "the basic questions you would ask about any policy." But he wants to ask those questions about what he calls the "religious faith" of market capitalism, one he believes elites -- "mercenaries who feel no long-term obligation to the people they rule" -- have put ahead of "normal people." ..."
"... "What does [free market capitalism] get us?" he said in our call. "What kind of country do you want to live in? If you put these policies into effect, what will you have in 10 years?" ..."
"... Carlson is hardly the first right-leaning figure to make a pitch for populism, even tangentially, in the third year of Donald Trump, whose populist-lite presidential candidacy and presidency Carlson told me he views as "the smoke alarm ... telling you the building is on fire, and unless you figure out how to put the flames out, it will consume it." ..."
"... Trump borrowed some of that approach for his 2016 campaign but in office has governed as a fairly orthodox economic conservative, thus demonstrating the demand for populism on the right without really providing the supply and creating conditions for further ferment. ..."
"... Ocasio-Cortez wants a 70-80% income tax on the rich. I agree! Start with the Koch Bros. -- and also make it WEALTH tax. ..."
"... "I'm just saying as a matter of fact," he told me, "a country where a shrinking percentage of the population is taking home an ever-expanding proportion of the money is not a recipe for a stable society. It's not." ..."
"... Carlson told me he wanted to be clear: He is not a populist. But he believes some version of populism is necessary to prevent a full-scale political revolt or the onset of socialism. Using Theodore Roosevelt as an example of a president who recognized that labor needs economic power, he told me, "Unless you want something really extreme to happen, you need to take this seriously and figure out how to protect average people from these remarkably powerful forces that have been unleashed." ..."
"... But Carlson's brand of populism, and the populist sentiments sweeping the American right, aren't just focused on the current state of income inequality in America. Carlson tackled a bigger idea: that market capitalism and the "elites" whom he argues are its major drivers aren't working. The free market isn't working for families, or individuals, or kids. In his monologue, Carlson railed against libertarian economics and even payday loans, saying, "If you care about America, you ought to oppose the exploitation of Americans, whether it's happening in the inner city or on Wall Street" -- sounding very much like Sanders or Warren on the left. ..."
"... Capitalism/liberalism destroys the extended family by requiring people to move apart for work and destroying any sense of unchosen obligations one might have towards one's kin. ..."
"... Hillbilly Elegy ..."
"... Carlson told me that beyond changing our tax code, he has no major policies in mind. "I'm not even making the case for an economic system in particular," he told me. "All I'm saying is don't act like the way things are is somehow ordained by God or a function or raw nature." ..."
Jan 10, 2019 | www.vox.com

"All I'm saying is don't act like the way things are is somehow ordained by God."

Last Wednesday, the conservative talk show host Tucker Carlson started a fire on the right after airing a prolonged monologue on his show that was, in essence, an indictment of American capitalism.

America's "ruling class," Carlson says, are the "mercenaries" behind the failures of the middle class -- including sinking marriage rates -- and "the ugliest parts of our financial system." He went on: "Any economic system that weakens and destroys families is not worth having. A system like that is the enemy of a healthy society."

He concluded with a demand for "a fair country. A decent country. A cohesive country. A country whose leaders don't accelerate the forces of change purely for their own profit and amusement."

The monologue was stunning in itself, an incredible moment in which a Fox News host stated that for generations, "Republicans have considered it their duty to make the world safe for banking, while simultaneously prosecuting ever more foreign wars." More broadly, though, Carlson's position and the ensuing controversy reveals an ongoing and nearly unsolvable tension in conservative politics about the meaning of populism, a political ideology that Trump campaigned on but Carlson argues he may not truly understand.

Moreover, in Carlson's words: "At some point, Donald Trump will be gone. The rest of us will be gone too. The country will remain. What kind of country will be it be then?"

The monologue and its sweeping anti-elitism drove a wedge between conservative writers. The American Conservative's Rod Dreher wrote of Carlson's monologue, "A man or woman who can talk like that with conviction could become president. Voting for a conservative candidate like that would be the first affirmative vote I've ever cast for president." Other conservative commentators scoffed. Ben Shapiro wrote in National Review that Carlson's monologue sounded far more like Sens. Bernie Sanders or Elizabeth Warren than, say, Ronald Reagan.

I spoke with Carlson by phone this week to discuss his monologue and its economic -- and cultural -- meaning. He agreed that his monologue was reminiscent of Warren, referencing her 2003 book The Two-Income Trap: Why Middle-Class Parents Are Growing Broke . "There were parts of the book that I disagree with, of course," he told me. "But there are parts of it that are really important and true. And nobody wanted to have that conversation."

Carlson wanted to be clear: He's just asking questions. "I'm not an economic adviser or a politician. I'm not a think tank fellow. I'm just a talk show host," he said, telling me that all he wants is to ask "the basic questions you would ask about any policy." But he wants to ask those questions about what he calls the "religious faith" of market capitalism, one he believes elites -- "mercenaries who feel no long-term obligation to the people they rule" -- have put ahead of "normal people."

But whether or not he likes it, Carlson is an important voice in conservative politics. His show is among the most-watched television programs in America. And his raising questions about market capitalism and the free market matters.

"What does [free market capitalism] get us?" he said in our call. "What kind of country do you want to live in? If you put these policies into effect, what will you have in 10 years?"

Populism on the right is gaining, again

Carlson is hardly the first right-leaning figure to make a pitch for populism, even tangentially, in the third year of Donald Trump, whose populist-lite presidential candidacy and presidency Carlson told me he views as "the smoke alarm ... telling you the building is on fire, and unless you figure out how to put the flames out, it will consume it."

Populism is a rhetorical approach that separates "the people" from elites. In the words of Cas Mudde, a professor at the University of Georgia, it divides the country into "two homogenous and antagonistic groups: the pure people on the one end and the corrupt elite on the other." Populist rhetoric has a long history in American politics, serving as the focal point of numerous presidential campaigns and powering William Jennings Bryan to the Democratic nomination for president in 1896. Trump borrowed some of that approach for his 2016 campaign but in office has governed as a fairly orthodox economic conservative, thus demonstrating the demand for populism on the right without really providing the supply and creating conditions for further ferment.

When right-leaning pundit Ann Coulter spoke with Breitbart Radio about Trump's Tuesday evening Oval Office address to the nation regarding border wall funding, she said she wanted to hear him say something like, "You know, you say a lot of wild things on the campaign trail. I'm speaking to big rallies. But I want to talk to America about a serious problem that is affecting the least among us, the working-class blue-collar workers":

Coulter urged Trump to bring up overdose deaths from heroin in order to speak to the "working class" and to blame the fact that working-class wages have stalled, if not fallen, in the last 20 years on immigration. She encouraged Trump to declare, "This is a national emergency for the people who don't have lobbyists in Washington."

Ocasio-Cortez wants a 70-80% income tax on the rich. I agree! Start with the Koch Bros. -- and also make it WEALTH tax.

-- Ann Coulter (@AnnCoulter) January 4, 2019

These sentiments have even pitted popular Fox News hosts against each other.

Sean Hannity warned his audience that New York Rep. Alexandria Ocasio-Cortez's economic policies would mean that "the rich people won't be buying boats that they like recreationally, they're not going to be taking expensive vacations anymore." But Carlson agreed when I said his monologue was somewhat reminiscent of Ocasio-Cortez's past comments on the economy , and how even a strong economy was still leaving working-class Americans behind.

"I'm just saying as a matter of fact," he told me, "a country where a shrinking percentage of the population is taking home an ever-expanding proportion of the money is not a recipe for a stable society. It's not."

Carlson told me he wanted to be clear: He is not a populist. But he believes some version of populism is necessary to prevent a full-scale political revolt or the onset of socialism. Using Theodore Roosevelt as an example of a president who recognized that labor needs economic power, he told me, "Unless you want something really extreme to happen, you need to take this seriously and figure out how to protect average people from these remarkably powerful forces that have been unleashed."

"I think populism is potentially really disruptive. What I'm saying is that populism is a symptom of something being wrong," he told me. "Again, populism is a smoke alarm; do not ignore it."

But Carlson's brand of populism, and the populist sentiments sweeping the American right, aren't just focused on the current state of income inequality in America. Carlson tackled a bigger idea: that market capitalism and the "elites" whom he argues are its major drivers aren't working. The free market isn't working for families, or individuals, or kids. In his monologue, Carlson railed against libertarian economics and even payday loans, saying, "If you care about America, you ought to oppose the exploitation of Americans, whether it's happening in the inner city or on Wall Street" -- sounding very much like Sanders or Warren on the left.

Carlson's argument that "market capitalism is not a religion" is of course old hat on the left, but it's also been bubbling on the right for years now. When National Review writer Kevin Williamson wrote a 2016 op-ed about how rural whites "failed themselves," he faced a massive backlash in the Trumpier quarters of the right. And these sentiments are becoming increasingly potent at a time when Americans can see both a booming stock market and perhaps their own family members struggling to get by.

Capitalism/liberalism destroys the extended family by requiring people to move apart for work and destroying any sense of unchosen obligations one might have towards one's kin.

-- Jeremy McLallan (@JeremyMcLellan) January 8, 2019

At the Federalist, writer Kirk Jing wrote of Carlson's monologue, and a response to it by National Review columnist David French:

Our society is less French's America, the idea, and more Frantz Fanon's "Wretched of the Earth" (involving a very different French). The lowest are stripped of even social dignity and deemed unworthy of life . In Real America, wages are stagnant, life expectancy is crashing, people are fleeing the workforce, families are crumbling, and trust in the institutions on top are at all-time lows. To French, holding any leaders of those institutions responsible for their errors is "victimhood populism" ... The Right must do better if it seeks to govern a real America that exists outside of its fantasies.

J.D. Vance, author of Hillbilly Elegy , wrote that the [neoliberal] economy's victories -- and praise for those wins from conservatives -- were largely meaningless to white working-class Americans living in Ohio and Kentucky: "Yes, they live in a country with a higher GDP than a generation ago, and they're undoubtedly able to buy cheaper consumer goods, but to paraphrase Reagan: Are they better off than they were 20 years ago? Many would say, unequivocally, 'no.'"

Carlson's populism holds, in his view, bipartisan possibilities. In a follow-up email, I asked him why his monologue was aimed at Republicans when many Democrats had long espoused the same criticisms of free market economics. "Fair question," he responded. "I hope it's not just Republicans. But any response to the country's systemic problems will have to give priority to the concerns of American citizens over the concerns of everyone else, just as you'd protect your own kids before the neighbor's kids."

Who is "they"?

And that's the point where Carlson and a host of others on the right who have begun to challenge the conservative movement's orthodoxy on free markets -- people ranging from occasionally mendacious bomb-throwers like Coulter to writers like Michael Brendan Dougherty -- separate themselves from many of those making those exact same arguments on the left.

When Carlson talks about the "normal people" he wants to save from nefarious elites, he is talking, usually, about a specific group of "normal people" -- white working-class Americans who are the "real" victims of capitalism, or marijuana legalization, or immigration policies.

In this telling, white working-class Americans who once relied on a manufacturing economy that doesn't look the way it did in 1955 are the unwilling pawns of elites. It's not their fault that, in Carlson's view, marriage is inaccessible to them, or that marijuana legalization means more teens are smoking weed ( this probably isn't true ). Someone, or something, did this to them. In Carlson's view, it's the responsibility of politicians: Our economic situation, and the plight of the white working class, is "the product of a series of conscious decisions that the Congress made."

The criticism of Carlson's monologue has largely focused on how he deviates from the free market capitalism that conservatives believe is the solution to poverty, not the creator of poverty. To orthodox conservatives, poverty is the result of poor decision making or a lack of virtue that can't be solved by government programs or an anti-elite political platform -- and they say Carlson's argument that elites are in some way responsible for dwindling marriage rates doesn't make sense .

But in French's response to Carlson, he goes deeper, writing that to embrace Carlson's brand of populism is to support "victimhood populism," one that makes white working-class Americans into the victims of an undefined "they:

Carlson is advancing a form of victim-politics populism that takes a series of tectonic cultural changes -- civil rights, women's rights, a technological revolution as significant as the industrial revolution, the mass-scale loss of religious faith, the sexual revolution, etc. -- and turns the negative or challenging aspects of those changes into an angry tale of what they are doing to you .

And that was my biggest question about Carlson's monologue, and the flurry of responses to it, and support for it: When other groups (say, black Americans) have pointed to systemic inequities within the economic system that have resulted in poverty and family dysfunction, the response from many on the right has been, shall we say, less than enthusiastic .

Really, it comes down to when black people have problems, it's personal responsibility, but when white people have the same problems, the system is messed up. Funny how that works!!

-- Judah Maccabeets (@AdamSerwer) January 9, 2019

Yet white working-class poverty receives, from Carlson and others, far more sympathy. And conservatives are far more likely to identify with a criticism of "elites" when they believe those elites are responsible for the expansion of trans rights or creeping secularism than the wealthy and powerful people who are investing in private prisons or an expansion of the militarization of police . Carlson's network, Fox News, and Carlson himself have frequently blasted leftist critics of market capitalism and efforts to fight inequality .

I asked Carlson about this, as his show is frequently centered on the turmoils caused by " demographic change ." He said that for decades, "conservatives just wrote [black economic struggles] off as a culture of poverty," a line he includes in his monologue .

He added that regarding black poverty, "it's pretty easy when you've got 12 percent of the population going through something to feel like, 'Well, there must be ... there's something wrong with that culture.' Which is actually a tricky thing to say because it's in part true, but what you're missing, what I missed, what I think a lot of people missed, was that the economic system you're living under affects your culture."

Carlson said that growing up in Washington, DC, and spending time in rural Maine, he didn't realize until recently that the same poverty and decay he observed in the Washington of the 1980s was also taking place in rural (and majority-white) Maine. "I was thinking, 'Wait a second ... maybe when the jobs go away the culture changes,'" he told me, "And the reason I didn't think of it before was because I was so blinded by this libertarian economic propaganda that I couldn't get past my own assumptions about economics." (For the record, libertarians have critiqued Carlson's monologue as well.)

Carlson told me that beyond changing our tax code, he has no major policies in mind. "I'm not even making the case for an economic system in particular," he told me. "All I'm saying is don't act like the way things are is somehow ordained by God or a function or raw nature."

And clearly, our market economy isn't driven by God or nature, as the stock market soars and unemployment dips and yet even those on the right are noticing lengthy periods of wage stagnation and dying little towns across the country. But what to do about those dying little towns, and which dying towns we care about and which we don't, and, most importantly, whose fault it is that those towns are dying in the first place -- those are all questions Carlson leaves to the viewer to answer.

[Jan 11, 2019] Blowback from the neoliberal policy is coming

Highly recommended!
Seeing Tucker Leaders show no obligation to American voters suggest that the collapse of neoliberalism is coming...
Notable quotes:
"... Excessive financialization is the Achilles' heel of neoliberalism. It inevitably distorts everything, blows the asset bubble, which then pops. With each pop, the level of political support of neoliberalism shrinks. Hillary defeat would have been impossible without 2008 events. ..."
Jan 11, 2019 | www.nakedcapitalism.com

bruce wilder, January 11, 2019 at 2:17 pm

Barkley insists on a left-right split for his analysis of political parties and their attachment to vague policy tendencies and that insistence makes a mess of the central issue: why the rise of right-wing populism in a "successful" economy?

Naomi Klein's book is about how and why centrist neoliberals got control of policy. The rise of right-wing populism is often supposed (see Mark Blyth) to be about the dissatisfaction bred by the long-term shortcomings of or blowback from neoliberal policy.

Barkley Rosser treats neoliberal policy as implicitly successful and, therefore, the reaction from the populist right appears mysterious, something to investigate. His thesis regarding neoliberal success in Poland is predicated on policy being less severe, less "shocky".

In his left-right division of Polish politics, the centrist neoliberals -- in the 21st century, Civic Platform -- seem to disappear into the background even though I think they are still the second largest Party in Parliament, though some seem to think they will sink in elections this year.

Electoral participation is another factor that receives little attention in this analysis. Politics is shaped in part by the people who do NOT show up. And, in Poland that has sometimes been a lot of people, indeed.

Finally, there's the matter of the neoliberal straitjacket -- the flip-side of the shock in the one-two punch of "there's no alternative". What the policy options for a Party representing the interests of the angry and dissatisfied? If you make policy impossible for a party of the left, of course that breeds parties of the right. duh.

Likbez,

Bruce,

Blowback from the neoliberal policy is coming. I would consider the current situation in the USA as the starting point of this "slow-motion collapse of the neoliberal garbage truck against the wall." Neoliberalism like Bolshevism in 1945 has no future, only the past. That does not mean that it will not limp forward in zombie (and pretty bloodthirsty ) stage for another 50 years. But it is doomed, notwithstanding recently staged revenge in countries like Ukraine, Argentina, and Brazil.

Excessive financialization is the Achilles' heel of neoliberalism. It inevitably distorts everything, blows the asset bubble, which then pops. With each pop, the level of political support of neoliberalism shrinks. Hillary defeat would have been impossible without 2008 events.

At least half of Americans now hate soft neoliberals of Democratic Party (Clinton wing of Bought by Wall Street technocrats), as well as hard neoliberal of Republican Party, which created the " crisis of confidence" toward governing neoliberal elite in countries like the USA, GB, and France. And that probably why the intelligence agencies became the prominent political players and staged the color revolution against Trump (aka Russiagate ) in the USA.

The situation with the support of neoliberalism now is very different than in 1994 when Bill Clinton came to power. Of course, as Otto von Bismarck once quipped "God has a special providence for fools, drunkards, and the United States of America." and another turn of the technological spiral might well save the USA. But the danger of never-ending secular stagnation is substantial and growing. This fact was admitted even by such dyed- in-the-wool neoliberals as Summers.

This illusion that advances in statistics gave neoliberal access to such fine-grained and timely economic data, that now it is possible to regulate economy indirectly, by strictly monetary means is pure religious hubris. Milton Friedman would now be laughed out the room if he tried to repeat his monetarist junk science now. Actually he himself discarded his monetarist illusions before he died.

We probably need to the return of strong direct investments in the economy by the state and nationalization of some assets, if we want to survive and compete with China. Australian politicians are already openly discussing this, we still are lagging because of "walking dead" neoliberals in Congress like Pelosi, Schumer, and company.

But we have another huge problem, which Australia and other countries (other than GB) do not have: neoliberalism in the USA is the state religion which completely displaced Christianity (and is hostile to Christianity), so it might be that the lemming will go off the cliff. I hope not.

The only thing that still keeps neoliberalism from being thrown out to the garbage bin of history is that it is unclear what would the alternative. And that means that like in 1920th far-right nationalism and fascism have a fighting chance against decadent neoliberal oligarchy.

Previously financial oligarchy was in many minds associated with Jewish bankers. Now people are more educated and probably can hang from the lampposts Anglo-Saxon and bankers of other nationalities as well ;-)

I think that in some countries neoliberal oligarchs might soon feel very uncomfortable, much like Soros in Hungary.

As far as I understood the level of animosity and suppressed anger toward financial oligarchy and their stooges including some professors in economics departments of the major universities might soon be approaching the level which existed in the Weimar Republic. And as Lenin noted, " the ideas could become a material force if they got mass support." This is true about anger as well.

[Dec 08, 2018] Neocons Sabotage Trump s Trade Talks - Huawei CFO Taken Hostage To Blackmail China

Highly recommended!
Notable quotes:
"... It was Bolton who a week ago intentionally damaged U.S. relations with China. ..."
"... Meng Wanzhou is a daughter of the founder and main owner of Huawei, Ren Zhengfei, and was groomed to be his successor. The company is extremely well regarded in China. It is one its jewel pieces and, with 170,000 employees and $100 billion in revenues, an important political actor. ..."
"... The arrest on December 1 happened while president Trump was negotiating with president Xi of China about trade relations. Trump did not know about the upcoming arrest but Bolton was informed of it ..."
"... It was a trap. The arrest is a public slap in the face of China and to Xi personally. It will not be left unanswered. Whatever Trump may have agreed upon with Xi is now worthless. John Bolton intentionally sabotaged the talks and the U.S. relations with China. ..."
"... Having read this in context with the comments (especially those by Denk and others) previous on this topic, I would ask if anyone can provide a time line of US clandestine negative (and sometimes fatal) actions against high level Chinese engineers and telecoms. Again, the above summary is outstanding. ..."
"... The terrifying aspect is Bolton, Pompeo - puppets both for shadow power players - have no constraints whatsoever, and obviously operate without any constraint or regard for our severely (cognitively and emotionally) challenged president ..."
"... The timing of this arrest - while Trump and Xi are dining and Sabrina Meng is on her way to the G-20 conference gives a loud message that Trump is serves at the pleasure of his neocon staff - and son in law, the latter being instrumental in the firing of Rex Tillerson, the hiring of Bolton, Pompeo and the impending firing of Gen. Kelly. ..."
"... Trump is a global front for a different approach to maintaining global hegemony but make no mistake, Trump is not fronting for you ..."
"... Arresting US business execs by China is a mistake that would be cheered by Bolton and Navarro. The provocation of arresting Meng is designed by the Trump team to provoke China to arrest US business leaders and thus destroy their direct investment into China. ..."
"... The enemy of China is not US businesses but rather the neocon dominated US govt. To impact this group, China needs to cut off their drug supply(their financing) thru no longer buying their USTs to finance and enable their massive military spending and financial aggression. ..."
"... Canada's role in this is shocking. It is all of a piece with the surrender to the USA in the Trade negotiations whereby, inter alia, Canada is not allowed to enter into Trade agreements with 'non-market' economies. The non-market formulation being code for unapproved by Uncle Sam. No doubt the Nazi Freeland is running this show. In this she is ably seconded by the 'opposition' Tories and the social fascist NDP which is as enthusiastic for war against China as it is for an attack on the Donbas. ..."
"... Those who talk about Trump, Pompeo, Bolton, Kelly, etc. direct our attention to a shell game. They are all in on the scam. How better to say it? There is one party: the war party. Trump is a member of TEAM USA. US political maestros dance to the tune of the Deep State/neolibcon. ..."
"... With respect to Foreign Policy, how much real difference is there between Clinton, Bush, Obama, and Trump? They have all supported MIC, Israel, and expanding the Empire - aka Job #1 ..."
"... Bolton works for Adelson probably Pompeo does too. So Trump can't fire their crazy asses any time he chooses. ..."
"... Adelson has made millions with his gambling dens. In some ways it's a bit like what the East India Company did with opium. ..."
"... I think we can assume that the arrest was not an unwelcome surprise for Trump, or he would have reversed it. He knew, and accepts it. It's total asymmetric war on China. The arrest was on December 1. Trump twitter, Dec 7 China talks are going very well! here ..."
"... Does the fact that Huawei recently passed Apple for the number 2 phone sales have anything to do with this ..."
"... CNN: A judge in the US District Court for the Eastern District of New York issued a warrant for Meng's arrest on August 22, it was revealed at the hearing Friday here . She was arrested on December 1. Meng didn't know about this "issued warrant?" How does this 'system of laws' work, anyhow? Perhaps the warrant issue was classified secret, for US national security? ..."
"... The problem with Iran is (as was with Iraq, Libya, Venezuela, and even Syria) that a country with an independent/non-aligned foreign policy has control of a large quantity of valuable natural resources for which there is a constant and relatively insatiable demand. If they cannot be controlled they they should be destroyed so they cannot pursue their own agenda and ignore the dictates of the west. China and Russia are this problem writ large, and they have nukes and a means of delivery to all corners of the globe... ..."
Dec 08, 2018 | www.moonofalabama.org

Neocons Sabotage Trump's Trade Talks - Huawei CFO Taken Hostage To Blackmail China Willy2 , Dec 7, 2018 2:30:00 PM | link

CNN reports that White House chief of staff John Kelly is expected to resign soon . There have been similar rumors before, but this time the news may actually be true. That is bad for Trump and U.S. policies. Kerry is one a the few counterweights to national security advisor John Bolton. His replacement will likely be whoever Bolton chooses. That will move control over Trump policies further into the hands of the neo-conservatives.

It was Bolton who a week ago intentionally damaged U.S. relations with China.

The U.S. Justice Department arranged for Canada to arrest the chief financial officer of Huawei, Meng Wanzhou, over alleged U.S. sanctions violations with regards to Iran. The case is not over the sanction Trump recently imposed, but over an alleged collision with the sanction regime before the nuclear deal with Iran. The details are still unknown.

Meng Wanzhou is a daughter of the founder and main owner of Huawei, Ren Zhengfei, and was groomed to be his successor. The company is extremely well regarded in China. It is one its jewel pieces and, with 170,000 employees and $100 billion in revenues, an important political actor.

The arrest on December 1 happened while president Trump was negotiating with president Xi of China about trade relations. Trump did not know about the upcoming arrest but Bolton was informed of it :

While the Justice Department did brief the White House about the impending arrest, Mr. Trump was not told about it. And the subject did not come up at the dinner with Mr. Xi. Mr. Trump's national security adviser, John R. Bolton, said on NPR that he knew about the arrest in advance, ..

Bolton surely should have informed Trump before his dinner with Xi, in which Bolton took part, but he didn't.

It was a trap. The arrest is a public slap in the face of China and to Xi personally. It will not be left unanswered. Whatever Trump may have agreed upon with Xi is now worthless. John Bolton intentionally sabotaged the talks and the U.S. relations with China.

Cont. reading: Neocons Sabotage Trump's Trade Talks - Huawei CFO Taken Hostage To Blackmail China

Posted by b at 02:00 PM | Comments (76) - I almost starting to feel sorry for D.A.A.D. Trump.
- We have seen in the last years that the US has been (deliberately) ratcheting up tensions in the Far East. And the summit between Trump & Kim Jung Un was a severe threat for that (deliberate) increase of tensions. But the US & european media have told their readers/listener/watchers that China was to blame for the increase of tensions.


Jen , Dec 7, 2018 2:34:44 PM | link

The death of Shoucheng Zhang, by falling from a building, supposedly due to depression, reminded me of an incident I had read about years ago, of another scientist's death in 1953 in vaguely similar circumstances. I had forgotten the fellow's name but I remembered the incident had something to do with the CIA and the administration of LSD so I used those two terms along with "fall" and "window" and was able to dig up the details.

In 1953, CIA researcher Frank Olson was administered LSD without his consent by researchers working in the Project MK Ultra program. Olson became severely depressed and resigned from the CIA. He was later found dead, apparently after falling out of a motel building through a window, and his death was ruled a suicide. In the 1970s, his family ordered an autopsy and the autopsy showed that Olson had died from head injury trauma before falling through the window. A CIA agent was found to have been staying at the same motel in a separate room at the time Olson died. The family sued the US government and received $750,000 in compensation and an apology from the CIA.
https://thoughtcatalog.com/jeremy-london/2018/08/mkultra-conspiracy/

One wonders if Zhang's death had been, ahem, "arranged" according to that template. The description of Zhang from the Stanford University News website's obituary that B linked to in his post does not sound like a profile of someone who suffered depression on and off.

PavewayIV , Dec 7, 2018 2:35:17 PM | link
This has to be embarrassing as hell to Trump - he should be absolutely furious with Bolton and Pompeo. And all this for violating sanctions on Iran? I feel like on crazy pills. We live in interesting times.
Richard , Dec 7, 2018 2:38:20 PM | link
So, if Bolton sabotaged Trump's efforts to do some sort of deal with China, in whose interest is Bolton working. You'd think that a trade deal with China would be good for the US. Is Bolton working against US interest.

If we accept the Globalist/Nationalist framework, then does this not mean that Bolton is helping the nationalists against US interests. And what are the implications of that.

jayc , Dec 7, 2018 2:38:29 PM | link
Trump's rapid departure from Argentina may well have been motivated by receiving the information about the arrest after the well hyped dinner. If that is the case, Bolton should have been fired on the spot. The lack of any statement about this affair from Trump is curious. There may be an element of blackmail at play here too, related to Mueller's machinations ahead of the G20. A malignancy is loose, no doubt.
abierno , Dec 7, 2018 2:52:06 PM | link
Thank you for this excellent column. Having read this in context with the comments (especially those by Denk and others) previous on this topic, I would ask if anyone can provide a time line of US clandestine negative (and sometimes fatal) actions against high level Chinese engineers and telecoms. Again, the above summary is outstanding.

The terrifying aspect is Bolton, Pompeo - puppets both for shadow power players - have no constraints whatsoever, and obviously operate without any constraint or regard for our severely (cognitively and emotionally) challenged president, as this report makes clear.

The timing of this arrest - while Trump and Xi are dining and Sabrina Meng is on her way to the G-20 conference gives a loud message that Trump is serves at the pleasure of his neocon staff - and son in law, the latter being instrumental in the firing of Rex Tillerson, the hiring of Bolton, Pompeo and the impending firing of Gen. Kelly.

psychohistorian , Dec 7, 2018 2:56:18 PM | link
I can't believe that Trump did not know about the detention of Meng Wanzhou before hand. Trump is a TV actor and he is apprenticing for a higher spot for himself and family is the elite pecking order.

While we might want to give Trump credit for being who he is, the elite that fronted him know exactly what his style and penchants are. Trump is a global front for a different approach to maintaining global hegemony but make no mistake, Trump is not fronting for you nor I

freetrade , Dec 7, 2018 3:11:30 PM | link
From the perspective of China, their most appropriate response in this complicated situation IMO, should be to accelerate their gradual reduction of USTs.

All those articles about how China will hurt itself if it gradually sells down USTs are nonsense articles placed into the media to throw off attention to what is already happening. Russia and Turkey have alrdy done it on a smaller scale, it's a no-brainer that China can do it also. Why should China finance the US govt to wage war on itself?

If China and other countries gradually stop buying USTs, actual demand will collapse and many other holders will sell or reduce likewise. Mnuchin is fantasizing when he says there will still be strong demand. Any demand will be from the US Treasury buying its own USTs, like a dog licking its own rear quarters.

Arresting US business execs by China is a mistake that would be cheered by Bolton and Navarro. The provocation of arresting Meng is designed by the Trump team to provoke China to arrest US business leaders and thus destroy their direct investment into China.

The enemy of China is not US businesses but rather the neocon dominated US govt. To impact this group, China needs to cut off their drug supply(their financing) thru no longer buying their USTs to finance and enable their massive military spending and financial aggression.

How to do that without crashing the markets n decreasing China's own assets? Sell and reduce USTs gradually. And pretend u r not doing it. Eventually the lack of buying will force the Fed to raise rates or force the US Treasury to buy its own USTs, further debasing the US dollar.

In history, all empires fall this way, they keep on printing or taking out the silver content until their currency gets debased into nothing, and nobody wants it.

dh , Dec 7, 2018 3:14:42 PM | link
Looks like Bolton wants war with China. I recall he was hired during the North Korea talks to add a bit of muscle and now Trump is stuck with him whether he likes it or not.

Re. Meng....apparently she faces fraud charges related to the Skycom affair. Of course that is just what we're told. Who knows what kind of pressure she will come under once they get her in the US.

"Meng Wanzhou -- the chief financial officer for the Chinese tech giant Huawei -- is wanted in the U.S. on allegations of fraud, a bail hearing has been told." https://www.cbc.ca/news/canada/british-columbia/bail-hearing-huawei-cfo-1.4936150

chu teh , Dec 7, 2018 3:24:15 PM | link
1959, CIA disobeyed Pres Eisenhower's ban on further overflights of USSR until after his summit meeting with Khrushchev. Then the U-2 was brought down over USSR and the live pilot captured. The US officially denied it happened.

The USSR cancelled the summit meeting.

At first, Eisenhower claimed to have no knowledge of the operation and was outraged when the truth revealed. UN Ambassador Stevenson made a vehement speech at the UN denying it happened, followed immediately with USSR producing both the plane's wreckage and its pilot.

Then USSR showed the pilot and wreckage was publicly displayed. Pilot F G Powers had safely bailed-out and was put on-trial in Moscow, convicted and then allowed to return to the US.

Mission Accomplished! by the unelected leaders of the US [who were certain their man Nixon would be the next President, followed by quick re-capture of Cuba and then war in Vietnam. Both those operations already directly involved Nixon, who was fully "in" on The Bay of Pigs and, earlier, plans for US "support" of Saigon leaders in "South" Vietnam with whom he established communications during his 1953 visit as Ike's new Vice-President.]

james , Dec 7, 2018 3:30:06 PM | link

...that data on this is more shocking then i realized.. the death of prof zhang - apparent suicide, is bizarre here..

i agree that the usa has been taken over by small minded neo cons that would try to use meng wanzhou as leverage.. the fact Bolton knew and Trump didn't.. i am not buying that, or Bolton is more manipulative then i realized.. they are all that stupid though.. i hope Canada doesn't allow this, but under the wuss Justin Trudeau, i am not holding my breath..

@ 12 dh... wanted for ignoring us sanctions on iran from 2009 to 2014... what the fuck has that to do with canada?? is canada now doing book keeping, and everything else for the usa? the usa can go fuck themselves.. if Canada wasn't a 2 bit vassal state, that is what we would tell the usa..

Uncle $cam , Dec 7, 2018 3:31:59 PM | link
Flashback Friday

Oh, and what happened to the head of interpol, Meng Hongwei recently???

A. Person , Dec 7, 2018 3:46:11 PM | link
OT, but just to a degree.

Today is Dec.7, a day in 1941 that Pres. Roosevelt aptly called "A Day of Infamy," as the Japanese military attacked Pearl Harbor.

We now know that the very top echelons of US government first correctly anticipated and then knew precisely when and how the attack would occur. The 3,000 (+/-) GI's who were sacrificed were considered "acceptable losses." (The 3,000 civilians who were sacrificed on 9/11 were also considered "acceptable losses.") "Infamy" is an accurate word for US .gov conduct.

(Pls, do not comment to this OT. Wait for the next open thread, if you must.)

John Gilberts , Dec 7, 2018 4:28:57 PM | link
Trudeau says he knew about the arrest in advance.

https://www.theglobeandmail.com/politics/article-canada-prepared-for-possible-chinese-cyber-retaliation-over-arrest-of/

Looks like Trump was out of the loop. Trudeau is mainly photo-op material only. This would have been Chrystia Freeland, the Nazi grand-daughter's file.

ashley albanese , Dec 7, 2018 5:29:38 PM | link
In Australia - endless media trumpeting the closed door to Chinese telcos from Australia and New Zealand but one has to go out of one's way to discover our neighbor Papua New GUINEA has continued using HuaHwei products albeit under U S pressure not to do so
bevin , Dec 7, 2018 5:32:00 PM | link
1/ "... the rise first of Communism and then of Islam as world forces opposing imperialism."

Has Islam, in fact, been in opposition to imperialism? For the most part, as in India/Pakistan, it has been a very useful imperialist foil against nationalism and socialism. There have been sincere and effective muslim campaigns against imperialism but equally there have been imperialist financed 'islamic' campaigns against enemies of the Empire.

2/ Canada's role in this is shocking. It is all of a piece with the surrender to the USA in the Trade negotiations whereby, inter alia, Canada is not allowed to enter into Trade agreements with 'non-market' economies. The non-market formulation being code for unapproved by Uncle Sam. No doubt the Nazi Freeland is running this show. In this she is ably seconded by the 'opposition' Tories and the social fascist NDP which is as enthusiastic for war against China as it is for an attack on the Donbas.

I used to be a member of this, once mildly socialist party. I am proud to say that I was expelled.

Rolf , Dec 7, 2018 5:38:42 PM | link
Five Eyes Against Huawei

7 DECEMBER 2018, http://www.voltairenet.org/article204264.html

Washington has asked Ottawa to arrest Meng Wanzhou and to extradite her. The motive for the war undertaken by Washington against Huawei is deep-rooted and spurious are the justifications.

The heart of the problem is that the Chinese firm uses a system of encryption that prevents the NSA from intercepting its communications. A number of governments and secret services in the non-Western world have begun to equip themselves exclusively with Huawei materials, and are doing so to protect the confidentiality of their communications.

The covers/excuses for this war are theft of intellectual property or in the alternative, trade with Iran and North Korea, and violating rules of competition by benefitting from national subsidies.

The Five Eyes is a system of electronic espionage by Australia, Canada, the United States, New Zealand and the United Kingdom. They have begun to exclude Huawei from their auctions.

Jackrabbit , Dec 7, 2018 5:46:11 PM | link

Those who talk about Trump, Pompeo, Bolton, Kelly, etc. direct our attention to a shell game. They are all in on the scam. How better to say it? There is one party: the war party. Trump is a member of TEAM USA. US political maestros dance to the tune of the Deep State/neolibcon.

Fine distinctions between senior US govt officials make me want to tear my hair out. In US govt only whistle-blowers are white knights. Everyone else is engaging in good guy/bad guy bullshit and controlled opposition.

With respect to Foreign Policy, how much real difference is there between Clinton, Bush, Obama, and Trump? They have all supported MIC, Israel, and expanding the Empire - aka Job #1.

Willy2 , Dec 7, 2018 5:46:51 PM | link
- Bolton was appointed under pressure from one Sheldon Adelson, who was a (large) donor to the Trump campaign. In that regard, it was (nearly) impossible for Trump to fire Bolton.
Castellio , Dec 7, 2018 5:50:25 PM | link
Jen @2

In terms of Frank Olsen, there is a very good six part documentary series on Netflix called "Wormwood". Most important are the interviews with Olsen's son. His search for the truth took many years (too many years) and he finally uncovered the final levels of deceit. Worth the time.

dh , Dec 7, 2018 5:53:10 PM | link
@14 ".. wanted for ignoring us sanctions on iran from 2009 to 2014... what the fuck has that to do with canada?? "

Absolutely nothing james. I suspect they are using that charge, rather than getting into 5G backdoor whatever, to make the extradition process go faster. They don't want it to drag on for years.

dh , Dec 7, 2018 5:56:39 PM | link
@32 Right. Bolton works for Adelson probably Pompeo does too. So Trump can't fire their crazy asses any time he chooses.
CDWaller , Dec 7, 2018 6:18:32 PM | link
Surely it's Bolton who must go. That was an enormous betrayal. The one thing that Trump had going for him was the performance of the stock market. His neocon enemies in the form of Bolton, managed to strike two blows simultaneously; increase conflict with China and tank the market.
Daniel , Dec 7, 2018 6:32:55 PM | link
Too many posters letting Trump off the hook here. He's a brilliant 4D chess master but at the same time he's also a vulnerable naif who lets neocons, ziofascists and other hostile entities keep hijacking his administration for their own ends? Bit of a problem there. You can't have it both ways.

Occam's Razor says the Trump administration's foreign policy, possibly with Russia as an exception, is run with the full approval of Donald John Trump. He's no friend of China, remember, and Steve Bannon's plan to befriend Russia was designed to keep it from partnering with China against the United States.

It's almost 2019 and like the Obots of 2010 it's time to accept that your man is a busted flush, a fraud, an American exceptionalist through and through.

jayc , Dec 7, 2018 6:37:39 PM | link
The "fraud" charge goes back to 2009/10, and concerns an alleged misrepresentation over the relationship between a company called SkyComm and Huawei. The alleged sanction violation by SkyComm had nothing to do with Iran's nuclear or military programs, and may not have even proceeded beyond a negotiation phase. The alleged "fraud", or misrepresentation, rests on a technical interpretation of complicated interlocking corporate structures. The prosecutors and the defence will likely both be correct in their presentations, as it is a muddle, but the well has already been poisoned by the now well-publicized accusations that Huawei is a Communist trojan horse. It's very thin gruel to proceed with such a high profile arrest.
Sasha , Dec 7, 2018 8:22:10 PM | link
@Posted by: Rolf | Dec 7, 2018 5:38:42 PM | 30
The heart of the problem is that the Chinese firm uses a system of encryption that prevents the NSA from intercepting its communications. A number of governments and secret services in the non-Western world have begun to equip themselves exclusively with Huawei materials, and are doing so to protect the confidentiality of their communications.

And not only the governments and secret services, Huawei is widely popular all along EU amongst the common working class user ( which means millions and millions of users....) especially because of its advantageous price and great capabilities.... I myself own a Huawei device, my friends own Huaweis....Glad to hear that "Five Eyes" can not spy on us....I am very fidel to marks/services who do not deceive me, but after knowing this new "capability", I am thinking in keeping Huawei as my header mark....Just waiting for them to launch the laptop "Five Eyes" waterproof and I will be throwing this old one to the trash bin....

dh , Dec 7, 2018 8:58:58 PM | link
Well it seems we have to wait until Monday to see if Meng gets bail or not. That's a long time for Trump to keep his mouth shut on anything.
Glenn Brown , Dec 7, 2018 9:03:38 PM | link
@32,36
I wonder how Adelson would react to a Chinese boycott of his casinos in Macau and Singapore? A lot of his wealth has come from Chinese gamblers. Given Adelson's connections to Bolton and Trump, it would seem like an obvious pressure point.
james , Dec 7, 2018 9:29:36 PM | link
@38 lili... denk was discussing this on the open thread yesterday.. see his links @68 / 76 and etc on this page.. no one is discussing this..

@48 peter au.. it certainly appears that way.. funny thing how trump sold himself on a number of topics, but not that one.. meanwhile, i guess the loot from adelson is quite good... stick with me and you don't need any stickin russian oligarch.. what is quite amazing is how blind the average amerikkkan is to all this.. they are still stuck on the mueller investigation which has been running on empty for some time... they would never do an investigation on isreal, or zionists influence on us elections, as it is too friggin' obvious for anyone looking... better to skip that and continue to serve israel.. thus the constant fixation with iran..

james , Dec 7, 2018 9:30:59 PM | link
or russia and china, as the case may be... the top 3 evil countries, according to obama, or was that north korea.. i guess trump will have to revise it.. the usa is pathetic.. canada is not far behind..
Don Bacon , Dec 7, 2018 9:38:22 PM | link
Trump didn't know b/c the NYTimes said so?
I've got this bridge....
China's response may not be immediate, but it will come.
I'm reminded of the sudden death of Vice Adm. Scott Stearney, commander of the Navy's 5th Fleet, Persian Gulf, discovered inside his home in Bahrain last weekend, a "suspected suicide."
Iran always gets even.
psychohistorian , Dec 7, 2018 9:41:09 PM | link
To those of us that understand that all/most of the politicians are working for the same team, it should be easy to see the good cop/bad cop dynamic being used here.

If b thinks Trump is a good cop, as he presents him here (yes, b has written that he disagrees with all/most of what Trump does) as do other commenters that post here, I would posit that "they" are being successful in working that meme at this time.

China will not back down and now will play hardball back, but in a globalist sense I expect them to continue to take the high road as the West mires itself further in the muck of its religion of private finance.

Another commenter mentioned the strategy of China dumping its massive amount of US Treasuries. I think we are getting to that moment and the response of the US is to default on whomever is holding its debt...............

and then the war we have been in for some time turns serious.

The problem the elite have is making the public have the fervor to slaughter themselves for the purpose of continuing a society run by and only servicing the elite. I don't understand how they have managed all these centuries but here we are, a bit still in the dark ages of a thousand years ago.

dh , Dec 7, 2018 9:57:33 PM | link
@55. Very interesting idea. Adelson has made millions with his gambling dens. In some ways it's a bit like what the East India Company did with opium.
Don Bacon , Dec 7, 2018 10:14:47 PM | link
I think we can assume that the arrest was not an unwelcome surprise for Trump, or he would have reversed it. He knew, and accepts it. It's total asymmetric war on China. The arrest was on December 1. Trump twitter, Dec 7 China talks are going very well! here
Anunnaki , Dec 7, 2018 10:21:01 PM | link
Does the fact that Huawei recently passed Apple for the number 2 phone sales have anything to do with this
Hoarsewhisperer , Dec 7, 2018 10:21:55 PM | link
This is a 100% neocon clusterfuck. It is vital to the success of Trump's Drain The Swamp strategy that The Swampers be given every opportunity to put their anti-US influence on public display. At least now we know which weirdos are responsible for the US policy of "Let's do SOMETHING, even it it's stupid."

I've been scouring the 'News' and the www for evidence that China agreed to uphold US sanctions on Iran to an extent that would invite the US to punish China for disregarding US whims. No luck, so far.

What makes this story entertaining is that the US has not only surrendered its lead in Military Tech, from the Good Old Days, but Computer and Communications Tech too. You have to be pretty desperate to admit a blunder of that magnitude, albeit obliquely, as in this case.

slit , Dec 7, 2018 10:24:07 PM | link
Unlikely that few in Trump's cabinet or Senate Foreign Relations committee could even pass the physics section of a college entrance exam, and have little idea what quantum encryption even is (Chinese published on it first a couple of years ago).

That presumption alone suggests Pompeo Bolton etc are just finger puppets ... which oligarch has all those cia contracts again?

They are in well over their heads. They can't even keep up with the Russians. They will likely get stung by Chinese scorpions without even knowing what hit them!

dh , Dec 7, 2018 10:28:27 PM | link
@63 Indirectly yes. According to Jim Cramer....whose objectivity I am increasingly coming to respect....Apple will lose out because of the arrest.

"Top tech players like Apple, Micron, Intel and Qualcomm are all "worth less today than yesterday," says the "Mad Money" host."

https://www.cnbc.com/2018/12/06/cramer-huawei-cfo-arrest-just-made-companies-like-apple-less-valuable.html

Hoarsewhisperer , Dec 7, 2018 10:52:40 PM | link
Another 'unintended consequence' of the neocon gambit to embarrass Trump by by-passing him, will be renewed interest in something Vlad said in one of Oliver Stone's Putin's Interviews.

In the context of Vlad's feelings about POTUS Trump, Vlad said words to the effect that it's too soon to say. Everyone knows that AmeriKKKa has been run by the Permanent Bureaucracy (not the POTUS). A lot of people would have been 'too busy' to watch the Putin Interviews but World Leaders, everywhere, would not have been among them. So as of December 1, 2018, that cat is well and truly out of the bag and all eyes, as usual, are on Trump. Again.

Don Bacon , Dec 7, 2018 10:54:09 PM | link
CNN: A judge in the US District Court for the Eastern District of New York issued a warrant for Meng's arrest on August 22, it was revealed at the hearing Friday here . She was arrested on December 1. Meng didn't know about this "issued warrant?" How does this 'system of laws' work, anyhow? Perhaps the warrant issue was classified secret, for US national security?

Actually, I fear, it's a conspiracy of intel agencies, security advisors and courts to conduct domestic and foreign policy. It's a non-elected "government" which elected politicians can't touch. For those that doubt it, check out this important interview with intel whistleblowers Shipp, Binney and Kiriakou which describes Washington corruption is here . (h/t Carlton Meyer)
Politicians can't touch this secret government lest their security clearances be removed.

Don Bacon , Dec 7, 2018 11:03:36 PM | link
@70
In the two-hour interview John Kiriakou points out that the intel agencies have their favorite courts. His delayed case, resurrected by Obama, was heard by a court in eastern Virginia, which had a 98% conviction rate. They got him for a couple years in prison. General Petraeus, however, who did much worse, had his case heard in a court in western Virginia, and he got probation. It appears that the US District Court for the Eastern District of New York is good for anti-China warrants.
the pessimist , Dec 7, 2018 11:48:53 PM | link
D B@70 I read that she was aware of the warrant and avoided traveling to the USA because of it as she had been doing to ?" visit her son who was in school here"? but likely thought Canada safe. Wrong.

So China seems fearful to me - detaining the head of INTERPOL for instance and re-educating the Uyghurs en mass, plus the heavy internet censorship. But they cannot disengage from the west economically without risking social upheaval. Nor can the US afford to disengage from China for roughly the same reason (unlike Russia from whom the US gets rocket engines but little else they cannot obtain from other sources).

In a few years time (2, or perhaps 3) both Russia and China will have deployed weapons that can deter anything but a full on nuclear attack, and their military capability will continue to advance. US strategy seems to be to disrupt, slow, and sabotage both to the extent it is able using economic and political weapons and military posturing. I don't believe it can catch up and this creates extra danger - the longer it waits the greater the gap will be - economic and military. Many of the responses seem borderline hysterical to me - not a good thing.

The problem with Iran is (as was with Iraq, Libya, Venezuela, and even Syria) that a country with an independent/non-aligned foreign policy has control of a large quantity of valuable natural resources for which there is a constant and relatively insatiable demand. If they cannot be controlled they they should be destroyed so they cannot pursue their own agenda and ignore the dictates of the west. China and Russia are this problem writ large, and they have nukes and a means of delivery to all corners of the globe...

[Dec 07, 2018] Brexit Theresa May Goes Greek! by Brett Redmayne

Highly recommended!
" The Fleeting Illusion of Election Night Victory." that phrase sums up the situation very succinctly
Notable quotes:
"... " A Brexit Lesson In Greek: Hopes and Votes Dashed on Parliamentary Floors," ..."
"... "Brexit means Brexit!" ..."
Dec 07, 2018 | www.unz.com

It has become all too easy for democracy to be turned on its head and popular nationalist mandates, referenda and elections negated via instant political hypocrisy by leaders who show their true colours only after the public vote. So it has been within the two-and-a-half year unraveling of the UK Brexit referendum of 2016 that saw the subsequent negotiations now provide the Brexit voter with only three possibilities. All are a loss for Britain.

One possibility, Brexit, is the result of Prime Minister, Theresa May's negotiations- the "deal"- and currently exists in name only. Like the PM herself, the original concept of Brexit may soon lie in the dust of an upcoming UK Parliament floor vote in exactly the same manner as the failed attempt by the Greeks barely three years ago. One must remember that Greece on June 27, 2015 once voted to leave the EU as well and to renegotiate its EU existence as well in their own "Grexit" referendum. Thanks to their own set of underhanded and treasonous politicians, this did not go well for Greece. Looking at the Greek result, and understanding divisive UK Conservative Party control that exists in the hearts of PMs on both sides of the House of Commons, this new parliamentary vote is not looking good for Britain. Brexit: Theresa May Goes Greek! "deal" -- would thus reveal the life-long scars of their true national allegiance gnawed into their backs by the lust of their masters in Brussels. Brexit: Theresa May Goes Greek!, by Brett Redmayne-Titley - The Unz Review

Ironically, like a cluster bomb of white phosphorous over a Syrian village, Cameron's Brexit vote blew up spectacularly in his face. Two decades of ongoing political submission to the EU by the Cons and "new" labour had them arrogantly misreading the minds of the UK voter.

So on that incredible night, it happened. Prime Minister David Cameron the Cons New Labour The Lib- Dems and even the UK Labour Party itself, were shocked to their core when the unthinkable nightmare that could never happen, did happen . Brexit had passed by popular vote!

David Cameron has been in hiding ever since.

After Brexit passed the same set of naïve UK voters assumed, strangely, that Brexit would be finalized in their national interest as advertised. This belief had failed to read Article 50 - the provisos for leaving the EU- since, as much as it was mentioned, it was very rarely linked or referenced by a quotation in any of the media punditry. However, an article published four days after the night Brexit passed, " A Brexit Lesson In Greek: Hopes and Votes Dashed on Parliamentary Floors," provided anyone thus reading Article 50, which is only eight pages long and double-spaced, the info to see clearly that this never before used EU by-law would be the only route to a UK exit. Further, Article 50 showed that Brussels would control the outcome of exit negotiations along with the other twenty-seven member nations and that effectively Ms May and her Tories would be playing this game using the EU's ball and rules, while going one-on-twenty-seven during the negotiations.

In the aftermath of Brexit, the real game began in earnest. The stakes: bigger than ever.

Forgotten are the hypocritical defections of political expediency that saw Boris Johnson and then Home Secretary Theresa May who were, until that very moment, both vociferously and very publicly against the intent of Brexit. Suddenly they claimed to be pro- Brexit in their quest to sleep in Cameron's now vacant bed at No. 10 Downing Street. Boris strategically dropped out to hopefully see, Ms May, fall on her sword- a bit sooner. Brexit: Theresa May Goes Greek!, by Brett Redmayne-Titley - The Unz Review

So, the plucky PM was left to convince the UK public, daily, as the negotiations moved on, that "Brexit means Brexit!" A UK media that is as pro-EU as their PM chimed in to help her sell distortions of proffered success at the negotiating table, while the rise of "old" Labour, directed by Jeremy Corbyn, exposed her "soft" Brexit negotiations for the litany of failures that ultimately equaled the "deal" that was strangely still called "Brexit."

Too few, however, examined this reality once these political Chameleons changed their colours just as soon as the very first results shockingly came in from Manchester in the wee hours of the morning on that seemingly hopeful night so long ago: June 23, 2016. For thus would begin a quiet, years-long defection of many more MPs than merely these two opportunists.

What the British people also failed to realize was that they and their Brexit victory would also be faced with additional adversaries beyond the EU members: those from within their own government. From newly appointed PM May to Boris Johnson, from the Conservative Party to the New Labour sellouts within the Labour Party and the Friends of Israel , the quiet internal political movement against Brexit began. As the House of Lords picked up their phones, too, for very quiet private chats within House of Commons, their minions in the British press began their work as well.

Brexit: Theresa May Goes Greek!, by Brett Redmayne-Titley - The Unz Review

jim jones , says: December 5, 2018 at 4:55 am GMT

Government found guilty of Contempt of Parliament:

https://www.breitbart.com/europe/2018/12/04/uk-govt-forced-to-publish-full-brexit-legal-documents-after-losing-key-vote/

Brabantian , says: December 5, 2018 at 7:17 am GMT
This article by Brett Redmayne is certainly right re the horrific sell-out by the Greek government of Tsipras the other year, that has left the Greek citizenry in enduring political despair the betrayal of Greek voters indeed a model for UK betrayal of Brexit voters

But Redmayne is likely very mistaken in the adulation of Jeremy Corbyn as the 'genuine real deal' for British people

Ample evidence points to Corbyn as Trojan horse sell-out, as covered by UK researcher Aangirfan on her blogs, the most recent of which was just vapourised by Google in their censorship insanity

Jeremy Corbyn was a childhood neighbour of the Rothschilds in Wiltshire; with Jeremy's father David Corbyn working for ultra-powerful Victor Rothschild on secret UK gov scientific projects during World War 2

Jeremy Corbyn is tied to child violation scandals & child-crime convicted individuals including Corbyn's Constituency Agent; Corbyn tragically ignoring multiple earnest complaints from child abuse victims & whistleblowers over years, whilst "child abuse rings were operating within all 12 of the borough's children's homes" in Corbyn's district not very decent of him

And of course Corbyn significantly cucked to the Israel lobby in their demands for purge of the Labour party alleged 'anti-semites'

The Trojan Horse 'fake opposition', or fake 'advocate for the people', is a very classic game of the Powers That Be, and sadly Corbyn is likely yet one more fake 'hero'

niceland , says: December 6, 2018 at 9:13 am GMT
My theory is, give "capitalism" and financial interests enough time, they will consume any democracy. Meaning: the wealth flows upwards, giving the top class opportunity to influence politics and the media, further improving their situation v.s. the rest, resulting in ever stronger position – until they hold all the power. Controlling the media and therefore the narrative, capable to destroy any and all opposition. Ministers and members of parliaments, most bought and paid for one way or the other. Thankfully, the 1% or rather the 0.1% don't always agree so the picture can be a bit blurred.

You can guess what country inspired this "theory" of mine. The second on the list is actually the U.K. If a real socialist becomes the prime minister of the U.K. I will be very surprised. But Brexit is a black swan like they say in the financial sector, and they tend to disrupt even the best of theories. Perhaps Corbin is genuine and will become prime minister! I am not holding my breath.

However, if he is a real socialist like the article claims. And he becomes prime minister of the U.K the situation will get really interesting. Not only from the EU side but more importantly from U.K. best friend – the U.S. Uncle Sam will not be happy about this development and doesn't hesitate to crush "bad ideas" he doesn't like.

Case in point – Ireland's financial crisis in 2009;

After massive expansion and spectacular housing bubble the Irish banks were in deep trouble early into the crisis. The EU, ECB and the IMF (troika?) met with the Irish government to discuss solutions. From memory – the question was how to save the Irish banks? They were close to agreement that bondholders and even lenders to the Irish banks should take a "haircut" and the debt load should be cut down to manageable levels so the banks could survive (perhaps Michael Hudson style if you will). One short phone call from the U.S Secretary of the treasury then – Timothy Geithner – to the troika-Irish meeting ended these plans. He said: there will be no haircut! That was the end of it. Ireland survived but it's reasonable to assume this "guideline" paved the road for the Greece debacle.

I believe Mr. Geithner spoke on behalf of the financial power controlling – more or less-our hemisphere. So if the good old socialist Corbin comes to power in the U.K. and intends to really change something and thereby set examples for other nations – he is taking this power head on. I think in case of "no deal" the U.K. will have it's back against the wall and it's bargaining position against the EU will depend a LOT on U.S. response. With socialist in power there will be no meaningful support from the U.S. the powers that be will to their best to destroy Corbin as soon as possible.

I hope I am wrong.

niceland , says: December 6, 2018 at 10:07 am GMT
My right wing friends can't understand the biggest issue of our times is class war. This article mentions the "Panama papers" where great many corporations and wealthy individuals (even politicians) in my country were exposed. They run their profits through offshore tax havens while using public infrastructure (paid for by taxpayers) to make their money. It's estimated that wealth amounting to 1,5 times our GDP is stored in these accounts!

There is absolutely no way to get it through my right wing friends thick skull that off-shore accounts are tax frauds. Resulting in they paying higher taxes off their wages because the big corporations and the rich don't pay anything. Nope. They simply hate taxes (even if they get plenty back in services) and therefore all taxes are bad. Ergo tax evasions by the 1% are fine – socialism or immigrants must be the root of our problems. MIGA!

Come to think of it – few of them would survive the "law of the jungle" they so much desire. And none of them would survive the "law of the jungle" if the rules are stacked against them. Still, all their political energy is aimed against the ideas and people that struggle against such reality.

I give up – I will never understand the right. No more than the pure bread communist. Hopeless ideas!

jilles dykstra , says: December 6, 2018 at 11:27 am GMT
" This is because the deal has a provision that would still keep the UK in the EU Customs Union (the system setting common trade rules for all EU members) indefinitely. This is an outrageous inclusion and betrayal of a real Brexit by Ms May since this one topic was the most contentious in the debate during the ongoing negotiations because the Customs Union is the tie to the EU that the original Brexit vote specifically sought to terminate. "

Here I stopped reading, maybe later more.
Nonsense.

What USA MSM told in the USA about what ordinary British people said, those who wanted to leave the EU, I do not know, one of the most often heard reasons was immigration, especially from E European countries, the EU 'free movement of people'.
"Real' Britons refusing to live in Poland.
EP member Verhofstadt so desperate that he asked on CNN help by Trump to keep this 'one of the four EU freedoms'.
This free movement of course was meant to destroy the nation states

What Boris Johnson said, many things he said were true, stupid EU interference for example with products made in Britain, for the home market, (he mentioned forty labels in one piece of clothing), no opportunity to seek trade without EU interference.
There was irritation about EU interference 'they even make rules about vacuum cleaners', and, already long ago, closure, EU rules, of village petrol pumps that had been there since the first cars appeared in Britain, too dangerous.
In France nonsensical EU rules are simply ignored, such as countryside private sewer installations.

But the idea that GB could leave, even without Brussels obstruction, the customs union, just politicians, and other nitwits in economy, could have such ideas.
Figures are just in my head, too lazy to check.
But British export to what remains of the EU, some € 60 billion, French export to GB, same order of magnitude, German export to GB, far over 100 billion.
Did anyone imagine that Merkel could afford closing down a not negligible part of Bayern car industry, at he same time Bayern being the Land most opposed to Merkel, immigration ?

This Brexit in my view is just the beginning of the end of the illusion EU falling apart.
In politics anything is connected with anything.
Britons, again in my opinion, voted to leave because of immigration, inside EU immigration.
What GB will do with Marrakech, I do not know.

Marrakech reminds me of many measures that were ready to be implemented when the reason to make these measures no longer existed.
Such as Dutch job guarantees when enterprises merged, these became law when when the merger idiocy was over.
The negative aspects of immigration now are clear to many in the countries with the imagined flesh pots, one way or another authorities will be obliged to stop immigration, but at that very moment migration rules, not legally binding, are presented.

As a Belgian political commentator said on Belgian tv 'no communication is possible between French politicians and French yellow coat demonstrators, they live in completely different worlds'.
These different worlds began, to pinpoint a year, in 2005, when the negative referenda about the EU were ignored. As Farrage reminded after the Brexit referendum, in EP, you said 'they do not know what they're doing'
But now Macron and his cronies do not know what to do, now that police sympathises with yellow coat demonstrators.

For me THE interesting question remains 'how was it possible that the Renaissance cultures manoevred themselves into the present mess ?'.

jilles dykstra , says: December 6, 2018 at 11:40 am GMT
@Digital Samizdat Corbyn, in my opinion one of the many not too bright socialists, who are caught in their own ideological prison: worldwide socialism is globalisation, globalisation took power away from politicians, and gave it to multinationals and banks.
jilles dykstra , says: December 6, 2018 at 12:27 pm GMT
@niceland The expression class war is often used without realising what the issue is, same with tax evasion.
The rich of course consume more, however, there is a limit to what one can consume, it takes time to squander money.
So the end of the class war may make the rich poor, but alas the poor hardly richer.

About tax evasion, some economist, do not remember his name, did not read the article attentively, analysed wealth in the world, and concluded that eight % of this wealth had originated in evading taxes.
Over what period this evasion had taken place, do not remember this economist had reached a conclusion, but anyone understands that ending tax evasion will not make all poor rich.

There is quite another aspect of class war, evading taxes, wealth inequality, that is quite worrying: the political power money can yield.
Soros is at war with Hungary, his Open University must leave Hungary.
USA MSM furious, some basic human right, or rights, have been violated, many in Brussels furious, the 226 Soros followers among them, I suppose.
But since when is it allowed, legally and/or morally, to try to change the culture of a country, in this case by a foreigner, just by pumping money into a country ?
Soros advertises himself as a philantropist, the Hungarian majority sees him as some kind of imperialist, I suppose.

Tyrion 2 , says: December 6, 2018 at 12:49 pm GMT
@Simon in London 90% Labour party members supported remain, as did 65% of their voters and 95% of their MPs.
Anon [424] Disclaimer , says: December 6, 2018 at 12:53 pm GMT
For me THE interesting question remains 'how was it possible that the Renaissance cultures manoevred themselves into the present mess ?'.

Well , I am reading " The occult renaissance church of Rome " by Michael Hoffman , Independent History and research . Coeur d`Alene , Idaho . http://www.RevisionistHistory.org
I saw about this book in this Unz web .

I used to think than the rot started with protestantism , but Hoffman says it started with catholic Renaissance in Rome itself in the XV century , the Medici , the Popes , usury

Mike P , says: December 6, 2018 at 1:20 pm GMT
This whole affair illustrates beautifully the real purpose of the sham laughingly known as "representative democracy," namely, not to "empower" the public but to deprive it of its power.

With modern means of communication, direct democracy would be technically feasible even in large countries. Nevertheless, practically all "democratic" countries continue to delegate all legislative powers to elected "representatives." These are nothing more than consenting hostages of those with the real power, who control and at the same time hide behind those "representatives." The more this becomes obvious, the lower the calibre of the people willing to be used in this manner – hence, the current crop of mental gnomes and opportunist shills in European politics.

Wizard of Oz , says: December 6, 2018 at 1:48 pm GMT
I would only shout this rambling ignoramus a beer in the pub to stop his mouth for a while. Some of his egregious errors have been noted. and Greece, anyway, is an irrelevance to the critical decisions on Brexit.

Once Article 50 was invoked the game was over. All the trump cards were on the EU side. Now we know that, even assuming Britain could muster a competent team to plan and negotiate for Brexit that all the work of proving up the case and negotiating or preparing the ground has to be done over years leading up to the triggering of Article 50. And that's assuming that recent events leave you believing that the once great Britain is fit to be a sovereign nation without adult supervision.

As it is one has to hope that Britain will not be constrained by the total humbug which says that a 51 per cent vote of those choosing to vote in that very un British thing, a referendum, is some sort of reason for not giving effect to a more up to date and better informed view.

Stebbing Heuer , says: Website December 6, 2018 at 1:57 pm GMT
@Digital Samizdat Erm Varoufakis didn't knuckle under. He resigned in protest at Tsipras' knuckling under.
anon [108] Disclaimer , says: December 6, 2018 at 2:28 pm GMT
@Digital Samizdat Hypothesis: The British masses would fare better without a privatized government.

"Corbyn may prove to be real .. .. old-time Labour platform [leadership, capable to].. return [political, social and financial] control back to the hands of the UK worker".. [but the privateers will use the government itself and mass media to defeat such platforms and to suppress labor with new laws and domestic armed warfare]. Why would a member of the British masses allow [the Oligarch elite and the[ir] powerful business and foreign political interests restrain democracy and waste the victims of privately owned automation revolution? .. ..

[Corbyn's Labour platform challenges ] privatized capitalist because the PCs use the British government to keep imprisoned in propaganda and suppressed in opportunity, the masses. The privateers made wealthy by their monopolies, are using their resources to maintain rule making and enforcement control (via the government) over the masses; such privateers have looted the government, and taken by privatization a vast array of economic monopolies that once belonged to the government. If the British government survives, the Privateers (monopoly thieves) will continue to use the government to replace humanity, in favor of corporate owned Robots and super capable algorithms.

Corbyn's threat to use government to represent the masses and to suppress or reduce asymmetric power and wealth, and to provide sufficient for everyone extends to, and alerts the masses in every capitalist dominated place in the world. He (Corbyn) is a very dangerous man, so too was Jesus Christ."

There is a similar call in France, but it is not yet so well led.

Michael Kenny , says: December 6, 2018 at 2:29 pm GMT
This sounds like a halfway house between hysterical panic and sour grapes. The author clearly believes that Brexit is going to fail.
T.T , says: December 6, 2018 at 2:32 pm GMT
Every working Dutch person is "owed" 50k euro from the bailout of Greece, not that Greece will ever pay this back, and not as if Greece ever really got the money as it just went straight to northern European banks to bail them out. Then we have the fiscal policy creating more money by the day to stimulate the economy, which also doesn't reach the countries or people just the banks. Then we have the flirting with East-European mobsters to pull them in the EU sphere corrupting top EU bureaucrats. Then we have all of south Europe being extremely unstable, including France, both its populations and its economy.

It's sad to see the British government doesn't see the disaster ahead, any price would be cheaper then future forced EU integration. And especially at this point, the EU is so unstable, that they can't go to war on the UK without also committing A kamikaze attack.

Brett Redmayne-Titley , says: Website December 6, 2018 at 2:36 pm GMT
@Brabantian Thank you for your comment and addition to my evaluation of Corbyn. I do agree with you that Corbyn has yet to be tested for sincerity and effectiveness as PM, but he will likely get his chance and only then will we and the Brits find out for sure. The main point I was hoping to make was that: due to the perceived threat of Labour socialist reform under Corbyn, he has been an ulterior motive in the negotiations and another reason that the EU wants PM May to get her deal passed. Yes, I too am watching Corbyn with jaundiced optimism. Thank you.

[Aug 19, 2018] End of "classic neoliberalism": to an extent hardly imaginable in 2008, all the world's leading economies are locked in a perpetually escalating cycle of economic warfare.

Highly recommended!
Notable quotes:
"... But to an extent hardly imaginable in 2008, all the world's leading economies are locked in a perpetually escalating cycle of economic warfare. This global trade war is spearheaded by the Trump White House, which sees trade sanctions and tariffs, such as the onslaught it launched against Turkey, as an integral component of its drive to secure the United States' geopolitical and economic interests at the expense of friend and foe alike. ..."
"... But while they are deeply divided as to their economic and geo-political objectives, the capitalist ruling classes are united on one essential question. However the next stage of the ongoing breakdown of world capitalism proceeds, they will all strive by whatever means considered necessary to make the working class the world over pay for it. ..."
"... In 2008, capitalist governments around the world, above all in the US, derived enormous benefit from the decades-long suppression of the class struggle by the trade unions and the parties of the political establishment. The rescue operation they carried out on behalf of parasitic and criminal finance capital would not have been possible without it ..."
Aug 19, 2018 | thenewkremlinstooge.wordpress.com

Northern Star August 16, 2018 at 3:07 pm

http://www.wsws.org/en/articles/2018/08/16/pers-a16.html

"But to an extent hardly imaginable in 2008, all the world's leading economies are locked in a perpetually escalating cycle of economic warfare. This global trade war is spearheaded by the Trump White House, which sees trade sanctions and tariffs, such as the onslaught it launched against Turkey, as an integral component of its drive to secure the United States' geopolitical and economic interests at the expense of friend and foe alike.

The character of world economy has undergone a major transformation in the past decade in which economic growth, to the extent it that it occurs, is not driven by the development of production and new investments but by the flow of money from one source of speculative and parasitic activity to the next."

"But while they are deeply divided as to their economic and geo-political objectives, the capitalist ruling classes are united on one essential question. However the next stage of the ongoing breakdown of world capitalism proceeds, they will all strive by whatever means considered necessary to make the working class the world over pay for it.

This is the lesson from the past decade which, in every country, has seen a deepening attack on wages, social conditions and living standards as wealth is redistributed up the income scale, raising social inequality to unprecedented heights.

In 2008, capitalist governments around the world, above all in the US, derived enormous benefit from the decades-long suppression of the class struggle by the trade unions and the parties of the political establishment. The rescue operation they carried out on behalf of parasitic and criminal finance capital would not have been possible without it."

[Jun 17, 2018] The Necessity of a Trump-Putin Summit by Stephen F. Cohen

Highly recommended!
Decimation of anti-war forces and flourishing of Russophobia are two immanent features of the US neoliberalism. As long as the maintinace fo the US global neoliberal empire depends of weakening and, possibly, dismembering Russia it is naive to expect any change. Russian version of soft "national neoliberalism" is not that different, in principle form Trump version of hard "netional neoliberalism" so those leaders might have something to talk about. In other words as soon as the USA denounce neoliberal globalization that might be some openings.
Notable quotes:
"... The New York Times ..."
Jun 06, 2018 | www.thenation.com

Ten ways the new US-Russian Cold War is increasingly becoming more dangerous than the one we survived.

  1. The political epicenter of the new Cold War is not in far-away Berlin, as it was from the late 1940s on, but directly on Russia's borders, from the Baltic states and Ukraine to the former Soviet republic of Georgia. Each of these new Cold War fronts is, or has recently been, fraught with the possibly of hot war. US-Russian military relations are especially tense today in the Baltic region, where a large-scale NATO buildup is under way, and in Ukraine, where a US-Russian proxy war is intensifying. The "Soviet Bloc" that once served as a buffer between NATO and Russia no longer exists. And many imaginable incidents on the West's new Eastern Front, intentional or unintentional, could easily trigger actual war between the United States and Russia. What brought about this unprecedented situation on Russia's borders -- at least since the Nazi German invasion in 1941 -- was, of course, the exceedingly unwise decision, in the late 1990s, to expand NATO eastward. Done in the name of "security," it has made all the states involved only more insecure.

  2. Proxy wars were a feature of the old Cold War, but usually small ones in what was called the "Third World" -- in Africa, for example -- and they rarely involved many, if any, Soviet or American personnel, mostly only money and weapons. Today's US-Russian proxy wars are different, located in the center of geopolitics and accompanied by too many American and Russian trainers, minders, and possibly fighters. Two have already erupted: in Georgia in 2008, where Russian forces fought a Georgian army financed, trained, and minded by American funds and personnel; and in Syria, where in February scores of Russians were killed by US-backed anti-Assad forces . Moscow did not retaliate, but it has pledged to do so if there is "a next time," as there very well may be. If so, this would in effect be war directly between Russia and America. Meanwhile, the risk of such a direct conflict continues to grow in Ukraine, where the country's US-backed but politically failing President Petro Poroshenko seems increasingly tempted to launch another all-out military assault on rebel-controlled Donbass, backed by Moscow. If he does so, and the assault does not quickly fail as previous ones have, Russia will certainly intervene in eastern Ukraine with a truly tangible "invasion." Washington will then have to make a fateful war-or-peace decision. Having already reneged on its commitments to the Minsk Accords, which are the best hope for ending the four-year Ukrainian crisis peacefully, Kiev seems to have an unrelenting impulse to be a tail wagging the dog of war. Certainly, its capacity for provocations and disinformation are second to none, as evidenced again last week by the faked "assassination and resurrection" of the journalist Arkady Babchenko.

  3. The Western, but especially American, years-long demonization of the Kremlin leader, Putin, is also unprecedented. Too obvious to reiterate here, no Soviet leader, at least since Stalin, was ever subjected to such prolonged, baseless, crudely derogatory personal vilification. Whereas Soviet leaders were generally regarded as acceptable negotiating partners for American presidents, including at major summits, Putin has been made to seem to be an illegitimate national leader -- at best "a KGB thug," at worst a murderous "mafia boss."

  4. Still more, demonizing Putin has generated a widespread Russophobic vilification of Russia itself , or what The New York Times and other mainstream-media outlets have taken to calling " Vladimir Putin's Russia ." Yesterday's enemy was Soviet Communism. Today it is increasingly Russia, thereby also delegitimizing Russia as a great power with legitimate national interests. "The Parity Principle," as Cohen termed it during the preceding Cold War -- the principle that both sides had legitimate interests at home and abroad, which was the basis for diplomacy and negotiations, and symbolized by leadership summits -- no longer exists, at least on the American side. Nor does the acknowledgment that both sides were to blame, at least to some extent, for that Cold War. Among influential American observers who at least recognize the reality of the new Cold War , "Putin's Russia" alone is to blame. When there is no recognized parity and shared responsibility, there is little space for diplomacy -- only for increasingly militarized relations, as we are witnessing today.
  5. Meanwhile, most of the Cold War safeguards -- cooperative mechanisms and mutually observed rules of conduct that evolved over decades in order to prevent superpower hot war -- have been vaporized or badly frayed since the Ukrainian crisis in 2014, as the UN General Secretary António Guterres, almost alone, has recognized : "The Cold War is back -- with a vengeance but with a difference. The mechanisms and the safeguards to manage the risks of escalation that existed in the past no longer seem to be present." Trump's recent missile strike on Syria carefully avoided killing any Russians there, but here too Moscow has vowed to retaliate against US launchers or other forces involved if there is a "next time," as, again, there may be. Even the decades-long process of arms control may, we are told by an expert , be coming to an "end." If so, it will mean an unfettered new nuclear-arms race but also the termination of an ongoing diplomatic process that buffered US-Soviet relations during very bad political times. In short, if there are any new Cold War rules of conduct, they are yet to be formulated and mutually accepted. Nor does this semi-anarchy take into account the new warfare technology of cyber-attacks. What are its implications for the secure functioning of existential Russian and American nuclear command-and-control and early-warning systems that guard against an accidental launching of missiles still on high alert?

  6. Russiagate allegations that the American president has been compromised by -- or is even an agent of -- the Kremlin are also without precedent. These allegations have had profoundly dangerous consequences, among them the nonsensical but mantra-like warfare declaration that "Russia attacked America" during the 2016 presidential election; crippling assaults on President Trump every time he speaks with Putin in person or by phone; and making both Trump and Putin so toxic that even most politicians, journalists, and professors who understand the present-day dangers are reluctant to speak out against US contributions to the new Cold War.

  7. Mainstream-media outlets have, of course, played a woeful role in all of this. Unlike in the past, when pro-détente advocates had roughly equal access to mainstream media, today's new Cold War media enforce their orthodox narrative that Russia is solely to blame. They practice not diversity of opinion and reporting but "confirmation bias." Alternative voices (with, yes, alternative or opposing facts) rarely appear any longer in the most influential mainstream newspapers or on television or radio broadcasts. One alarming result is that "disinformation" generated by or pleasing to Washington and its allies has consequences before it can be corrected. The fake Babchenko assassination (allegedly ordered by Putin, of course) was quickly exposed, but not the alleged Skripal assassination attempt in the UK, which led to the largest US expulsion of Russian diplomats in history before London's official version of the story began to fall apart. This too is unprecedented: Cold War without debate, which in turn precludes the frequent rethinking and revising of US policy that characterized the preceding 40-year Cold War -- in effect, an enforced dogmatization of US policy that is both exceedingly dangerous and undemocratic.

  8. Equally unsurprising, and also very much unlike during the 40-year Cold War, there is virtually no significant opposition in the American mainstream to the US role in the new Cold War -- not in the media, not in Congress, not in the two major political parties, not in the universities, not at grassroots levels. This too is unprecedented, dangerous, and contrary to real democracy. Consider only the thunderous silence of scores of large US corporations that have been doing profitable business in post-Soviet Russia for years, from fast-food chains and automobile manufacturers to pharmaceutical and energy giants. And contrast their behavior to that of CEOs of PepsiCo, Control Data, IBM, and other major American corporations seeking entry to the Soviet market in the 1970s and 1980s, when they publicly supported and even funded pro-détente organizations and politicians. How to explain the silence of their counterparts today, who are usually so profit-motivated? Are they too fearful of being labeled "pro-Putin" or possibly "pro-Trump"? If so, will this Cold War continue to unfold with only very rare profiles of courage in any high places? 9. And then there is the widespread escalatory myth that today's Russia, unlike the Soviet Union, is too weak -- its economy too small and fragile, its leader too "isolated in international affairs" -- to wage a sustained Cold War, and that eventually Putin, who is "punching above his weight," as the cliché has it, will capitulate. This too is a dangerous delusion. As Cohen has shown previously , "Putin's Russia" is hardly isolated in world affairs, and is becoming even less so, even in Europe, where at least five governments are tilting away from Washington and Brussels and perhaps from their economic sanctions on Russia. Indeed, despite the sanctions, Russia's energy industry and agricultural exports are flourishing. Geopolitically, Moscow has many military and related advantages in regions where the new Cold War has unfolded. And no state with Russia's modern nuclear and other weapons is "punching above its weight." Above all, the great majority of Russian people have rallied behind Putin because t hey believe their country is under attack by the US-led West . Anyone with a rudimentary knowledge of Russia's history understands it is highly unlikely to capitulate under any circumstances.

  9. Finally (at least as of now), there is the growing war-like "hysteria" often commented on in both Washington and Moscow. It is driven by various factors, but television talk/"news" broadcasts, which are as common in Russia as in the United States, play a major role. Perhaps only an extensive quantitative study could discern which plays a more lamentable role in promoting this frenzy -- MSNBC and CNN or their Russian counterparts. For Cohen, the Russian dark witticism seems apt: "Both are worst" ( Oba khuzhe ). Again, some of this American broadcast extremism existed during the preceding Cold War, but almost always balanced, even offset, by truly informed, wiser opinions, which are now largely excluded.

Is this analysis of the dangers inherent in the new Cold War itself extremist or alarmist? Even SOME usually reticent specialists would seem to agree with Cohen's general assessment. Experts gathered by a centrist Washington think tank thought that on a scale of 1 to 10, there is a 5 to 7 chance of actual war with Russia. A former head of British M16 is reported as saying that "for the first time in living memory, there's a realistic chance of a superpower conflict." And a respected retired Russian general tells the same think tank that any military confrontation "will end up with the use of nuclear weapons between the United States and Russia."

In today's dire circumstances, one Trump-Putin summit cannot eliminate the new Cold War dangers. But US-Soviet summits traditionally served three corollary purposes. They created a kind of security partnership -- not a conspiracy -- that involved each leader's limited political capital at home, which the other should recognize and not heedlessly jeopardize. They sent a clear message to the two leaders' respective national-security bureaucracies, which often did not favor détente-like cooperation, that the "boss" was determined and that they must end their foot-dragging, even sabotage. And summits, with their exalted rituals and intense coverage, usually improved the media-political environment needed to enhance cooperation amid Cold War conflicts. If a Trump-Putin summit achieves even some of those purposes, it might result in a turning away from the precipice that now looms

[Mar 30, 2018] The Death Of The Liberal World Order by Leonid Savin

Highly recommended!
Notable quotes:
"... And, quoting his colleague Archon Fung from the Harvard Kennedy School, " American politics is no longer characterized by the rule of the median voter, if it ever was. Instead, in contemporary America the median capitalist rules as both the Democratic and Republican parties adjust their policies to attract monied interests." And finally Mr. Ringen adds, "American politicians are aware of having sunk into a murky bog of moral corruption but are trapped." ..."
"... Trump merely reflects the dysfunctionality and internal contradictions of American politics. He is the American Gorbachev, who kicked off perestroika at the wrong time. ..."
"... Global financial services exercise monopolistic power over national policies, unchecked by any semblance of global political power. Trust is haemorrhaging. The European Union, the greatest ever experiment in super-national democracy, is imploding ..."
"... Probably this is because the Western model of neoliberalism does not provide any real freedom of commerce, speech, or political activity, but rather imposes a regime of submission within a clearly defined framework. ..."
"... america is going through withdraw from 30 years of trickledown crap. the young are realizing that the shithole they inherit does not have to be a shithole, and the old pathetic white old men who run the show will be dead soon. ..."
"... The liberal order is dying because it is led by criminally depraved Predators who have pauperized the labor force and created political strife, though the populists don't pose much threat to the liberal-order Predators. ..."
"... However by shipping the productive Western economies overseas to Asia, the US in particular cannot finance and physically support a military empire or the required R&D to stay competitive on the commercial and military front. ..."
"... So the US Imperialists are being eclipsed by the Sino-Russo Alliance and wants us to believe this is a great tragedy. Meanwhile the same crew of Liberal -neoCon Deep Staters presses on with wars and tensions that are slipping out of control. ..."
Mar 30, 2018 | www.zerohedge.com

Authored Leonid Savin via Oriental Review,

A few days ago the president of the Council on Foreign Relations, Richard Haass, published an article, titled "Liberal World Order, R.I.P." In it, he states that the current threat to the liberal world order is coming not from rogue states, totalitarian regimes, religious fanatics, or obscurantist governments (special terms used by liberals when referring to other nations and countries that have not pursued the Western capitalist path of development), but from its primary architect -- the United States of America.

Haass writes: " Liberalism is in retreat. Democracies are feeling the effects of growing populism. Parties of the political extremes have gained ground in Europe. The vote in the United Kingdom in favor of leaving the EU attested to the loss of elite influence. Even the US is experiencing unprecedented attacks from its own president on the country's media, courts, and law-enforcement institutions. Authoritarian systems, including China, Russia, and Turkey, have become even more top-heavy. Countries such as Hungary and Poland seem uninterested in the fate of their young democracies

"We are seeing the emergence of regional orders. Attempts to build global frameworks are failing."

Haass has previously made alarmist statements , but this time he is employing his rhetoric to point to the global nature of this phenomenon. Although between the lines one can easily read, first of all, a certain degree of arrogance -- the idea that only we liberals and globalists really know how to administer foreign policy -- and second, the motifs of conspiracy.

"Today's other major powers, including the EU, Russia, China, India, and Japan, could be criticized for what they are doing, not doing, or both."

Probably this list could be expanded by adding a number of Latin American countries, plus Egypt, which signs arms deals with North Korea while denying any violation of UN sanctions, and the burgeoning Shiite axis of Iran-Iraq-Syria-Lebanon.

But Haass is crestfallen over the fact that it is Washington itself that is changing the rules of the game and seems completely uninterested in what its allies, partners, and clients in various corners of the world will do.

" America's decision to abandon the role it has played for more than seven decades thus marks a turning point. The liberal world order cannot survive on its own, because others lack either the interest or the means to sustain it. The result will be a world that is less free, less prosperous, and less peaceful, for Americans and others alike."

Richard Haass's colleague at the CFR, Stewart Patrick, quite agrees with the claim that it is the US itself that is burying the liberal world order . However, it's not doing it on its own, but alongside China. If the US had previously been hoping that the process of globalization would gradually transform China (and possibly destroy it, as happened to the Soviet Union earlier), then the Americans must have been quite surprised by how it has actually played out. That country modernized without being Westernized, an idea that had once been endorsed by the leader of the Islamic revolution in Iran, Ayatollah Khomeini.

Now China is expanding its influence in Eurasia in its own way, and this is for the most part welcomed by its partner countries.

But this has been a painful process for the US, as it is steadily and irrevocably undermining its hegemony.

"Its long-term ambition is to dismantle the U.S. alliance system in Asia, replacing it with a more benign (from Beijing's perspective) regional security order in which it enjoys pride of place, and ideally a sphere of influence commensurate with its power.

China's Belt and Road initiative is part and parcel of this effort, offering not only (much-needed) infrastructure investments in neighboring countries but also the promise of greater political influence in Southeast, South, and Central Asia. More aggressively, China continues to advance outrageous jurisdictional claims over almost the entirety of the South China Sea , where it continues its island-building activities, as well as engaging in provocative actions against Japan in the East China Sea," writes Patrick.

And as for the US:

"The United States, for its part, is a weary titan, no longer willing to bear the burdens of global leadership, either economically or geopolitically.

Trump treats alliances as a protection racket, and the world economy as an arena of zero-sum competition. The result is a fraying liberal international order without a champion willing to invest in the system itself. "

One can agree with both authors' assessments of the changed behavior of one sector of the US establishment, but this is about more than just Donald Trump (who is so unpredictable that he has staffed his own team with a member of the very swamp he was preparing to drain) and North American populism. One needs to look much deeper.

In his book, Nation of Devils: Democratic Leadership and the Problem of Obedience , Stein Ringen, a Norwegian statesman with a history of service in international institutions, notes:

"Today, American democratic exceptionalism is defined by a system that is dysfunctional in all the conditions that are needed for settlement and loyalty...

Capitalism has collapsed into crisis in an orgy of deregulation. Money is transgressing into politics and undermining democracy itself ."

And, quoting his colleague Archon Fung from the Harvard Kennedy School, " American politics is no longer characterized by the rule of the median voter, if it ever was. Instead, in contemporary America the median capitalist rules as both the Democratic and Republican parties adjust their policies to attract monied interests." And finally Mr. Ringen adds, "American politicians are aware of having sunk into a murky bog of moral corruption but are trapped."

Trump merely reflects the dysfunctionality and internal contradictions of American politics. He is the American Gorbachev, who kicked off perestroika at the wrong time. Although it must be conceded that if Hillary Clinton had become president, the US collapse would have been far more painful, particularly for the citizens of that country. We would have seen yet more calamitous reforms, a swelling influx of migrants, a further decline in the nation's manufacturing base, and the incitement of new conflicts. Trump is trying to keep the body of US national policy somewhat alive through hospice care, but what's really needed is a major restructuring, including far-reaching political reforms that would allow the country's citizens to feel that they can actually play a role in its destiny.

These developments have spread to many countries in Europe, a continent that, due to its transatlantic involvement, was already vulnerable and susceptible to the current geopolitical turbulence. The emergence of which, by the way, was largely a consequence of that very policy of neoliberalism.

Stein Ringen continues on that score:

"Global financial services exercise monopolistic power over national policies, unchecked by any semblance of global political power. Trust is haemorrhaging. The European Union, the greatest ever experiment in super-national democracy, is imploding "

It is interesting that panic has seized Western Europe and the US -- the home of transatlanticism, although different versions of this recipe for liberalism have been employed in other regions -- suffice it to recall the experience of Singapore or Brazil. But they don't seem as panicked there as in the West.

Probably this is because the Western model of neoliberalism does not provide any real freedom of commerce, speech, or political activity, but rather imposes a regime of submission within a clearly defined framework. Therefore, the destruction of the current system entails the loss of all those dividends previously enjoyed by the liberal political elites of the West that were obtained by speculating in the stock market, from the mechanisms of international foreign-exchange payments (the dollar system), and through the instruments of supranational organizations (the UN, WTO, and World Bank). And, of course, there are the fundamental differences in the cultural varieties of societies.

In his book The Hidden God, Lucien Goldmann draws some interesting conclusions, suggesting that the foundations of Western culture have rationalistic and tragic origins, and that a society immersed in these concepts that have "abolish[ed] both God and the community [soon sees] the disappearance of any external norm which might guide the individual in his life and actions." And because by its very nature liberalism must carry on, in its mechanical fashion, "liberating" the individual from any form of structure (social classes, the Church, family, society, and gender, ultimately liberating man from his very self), in the absence of any standards of deterrence, it is quite logical that the Western world was destined to eventually find itself in crisis. And the surge of populist movements, protectionist measures, and conservative policies of which Haass and other liberal globalists speak are nothing more than examples of those nations' instinct for self-preservation. One need not concoct conspiracy theories about Russia or Putin interfering in the US election (which Donald Trump has also denied, noting only that support was seen for Hillary Clinton, and it is entirely true that a portion of her financial backing did come from Russia). The baseline political decisions being made in the West are in step with the current crisis that is evident on so many levels. It's just that, like always, the Western elites need their ritual whipping boy(although it would be more accurate to call it a human sacrifice). This geopolitical shake-up began in the West as a result of the implicit nature of the very project of the West itself.

But since alternative development scenarios exist, the current system is eroding away. And other political projects are starting to fill the resultant ideological void -- in both form as well as content.

Thus it's fairly likely that the current crisis of liberalism will definitively bury the unipolar Western system of hegemony.

And the budding movements of populism and regional protectionism can serve as the basis for a new, multipolar world order.

J S Bach Fri, 03/30/2018 - 22:48 Permalink

Oh, Wicked Witch of the West Wing, the cleansing fire awaits thy demise! Those meds can only keep you standing for so long. Keep tripping. Keep stumbling. Satan calls you to him. The day approacheth. Tick tock tick tock. 👹😂

beepbop -> TeamDepends Fri, 03/30/2018 - 23:01 Permalink

The Death Of The Liberal World Order

The Re-Birth Of the Neocon World Disorder

Neocons=Bolsheviks=Zionists. Over 100 years of bloodshed and mayhem.

dogsandhoney2 -> J S Bach Fri, 03/30/2018 - 23:05 Permalink

hillery-cfr neoliberalism is a right-wing politic, actually.

HedgeJunkie -> carbonmutant Fri, 03/30/2018 - 23:04 Permalink

Democracy ultimately melts down into chaos. We have a perfectly good US Constitution, why don't we go back to using it as written? That said, I am for anything that makes the elites become common.

curbjob -> carbonmutant Fri, 03/30/2018 - 23:26 Permalink

Democracy is a form of government. Populism is a movement. Populist movements come about when the current form of government is failing ... historically it seems they seldom choose wisely.

Dilluminati Fri, 03/30/2018 - 22:58 Permalink

Ridiculous cunt Hillary thinks after getting REJECTED by the voters in the USA that somehow being asked to "go the fuck away and shut the fuck up" makes her a women's leader. The cocksucker Soros and some of these other non-elected globalist should keep in mind that while everybody has a right to an opinion: it took the Clinton Crime Family and lots of corruption to create the scandals that sets a Clinton Crime Family member aside, and why Soros was given a free pass on election meddling and not others requires congressional investigation and a special prosecutor. And then there is that special kind of legal and ignorant opinion like David Hogg who I just disagree with, making him in my opinion and many fellow NRA members a cocksucker and a cunt. I'd wish shingles on David Hogg, Hillary Clinton, and Soros.

Theos Fri, 03/30/2018 - 23:02 Permalink

bullshit

america is going through withdraw from 30 years of trickledown crap. the young are realizing that the shithole they inherit does not have to be a shithole, and the old pathetic white old men who run the show will be dead soon.

all i see is a bunch of fleeting old people who found facebook 10 years late are temporarily empowered since they can now connect with other equally impotent old people.

Posa Fri, 03/30/2018 - 23:10 Permalink

The usual self-serving swill from the Best and the Brightest of the Predator Class out of the CFR via Haas.

The liberal order aka the New British Empire, was born 70 years ago by firebombing and nuking undefended civilian targets. It proceeded to launch serial genocidal rampages in the Koreas, SE Asia, Latin America until finally burning down a large portion of the Middle East.

The fact that there has not been a catastrophic nuclear war is pure dumb luck. The Deep State came within seconds of engineering a nuclear cataclysm off the waters of Cuba in 1962. When JFK started dismantling the CIA Deep State and ending the Cold War with the USSR, Dulles dispatched a CIA hit-squad to gun down the President. (RFK and Nixon immediately understood the assassination was a CIA-led wet-works operation since they chaired the assassination committees themselves in the past).

The liberal order is dying because it is led by criminally depraved Predators who have pauperized the labor force and created political strife, though the populists don't pose much threat to the liberal-order Predators.

However by shipping the productive Western economies overseas to Asia, the US in particular cannot finance and physically support a military empire or the required R&D to stay competitive on the commercial and military front.

So the US Imperialists are being eclipsed by the Sino-Russo Alliance and wants us to believe this is a great tragedy. Meanwhile the same crew of Liberal -neoCon Deep Staters presses on with wars and tensions that are slipping out of control.

Yen Cross Fri, 03/30/2018 - 23:17 Permalink

I'll pay extra for a ticket to the George Soros funeral. That's like Game-7 at the Libtard world series!

devnickle Fri, 03/30/2018 - 23:22 Permalink

Death to globalism. It is the Satan World Order.

Grandad Grumps Fri, 03/30/2018 - 23:30 Permalink

Liberalism is anything but liberal... and I suppose that is the problem with it. It aims to do to the western world what Mao did to China and Stalin did to Russia. Many people were murdered or imprisoned and people had no rights, just obligations to dictators and their cronies.

I think this world is past the point where any benefit is gained from having "owners of the people", benevolent or otherwise. And we certainly do not benefit from perverted demonic entities even if they come bearing technology. The price is too high.

Populism goes along with essential freedoms for the human race.-

Yogizuna Fri, 03/30/2018 - 23:30 Permalink

As I told the idiotic retards who argued with me on Prodigy fucking 27 years ago, China will not change because of increased trading and the West making them wealthier. In fact, just the opposite. I wonder if they have caught on yet?

SuzerainGreyMole Fri, 03/30/2018 - 23:40 Permalink

One can understand the demise of the West of many levels. Downfall and then Renewal!

... ... ...

[Mar 11, 2018] Washington s Century-long War on Russia by Mike Whitney

Highly recommended!
The crisis of neoliberalism is at the core of current anti-Russian campaign.
Notable quotes:
"... So, as long as Russia remained open to the West's political maneuvering and wholesale thievery, every thing was hunky-dory. But as soon as Vladimir Putin got his bearings (during his second term as President) and started reassembling the broken state, then western elites became very concerned and denounced Putin as an "autocrat" and a "KGB thug." ..."
"... As the Western countries' elites were implementing a policy of political and economic containment of Russia, old threats were growing and new ones were emerging in the world, and the efforts to do away with them have failed. I think that the main reason for that is that the model of "West-centric" globalization, which developed following the dismantling of the bipolar architecture and was aimed at ensuring the prosperity of one-seventh of the world's population at the expense of the rest, proved ineffective. It is becoming more and more obvious that a narrow group of "chosen ones" is unable to ensure the sustainable growth of the global economy on their own and solve such major challenges as poverty, climate change, shortage of food and other vital resources . ..."
"... The American people need to look beyond the propaganda and try to grasp what's really going on. Russia is not Washington's enemy, it's a friend that's trying to nudge the US in adirection that will increase its opportunities for peace and prosperity in the future. Lavrov is simply pointing out that a multipolar world is inevitable as economic power becomes more widespread. This emerging reality means the US will have to modify its behavior, cooperate with other sovereign nations, comply with international law, and seek a peaceful settlement to disputes. It means greater parity between the states, fairer representation in global decision-making, and a narrower gap between the world's winners and losers. ..."
"... Admit it: The imperial model has failed. It's time to move on. ..."
www.nakedcapitalism.com

The United States has launched a three-pronged offensive on Russia. First, it's attacking Russia's economy via sanctions and oil-price manipulation. Second, it's increasing the threats to Russia's national security by arming and training militant proxies in Syria and Ukraine, and by encircling Russia with NATO forces and missile systems. And, third, it's conducting a massive disinformation campaign aimed at convincing the public that Russia is a 'meddling aggressor' that wants to destroy the foundation of American democracy. (Elections)

In response to Washington's hostility, Moscow has made every effort to extend the olive branch. Russia does not want to fight the world's biggest superpower any more than it wants to get bogged down in a bloody and protracted conflict in Syria. What Russia wants is normal, peaceful relations based on respect for each others interests and for international law. What Russia will not tolerate, however, is another Iraq-type scenario where the sovereign rights of a strategically-located state are shunted off so the US can arbitrarily topple the government, decimate the society and plunge the region deeper into chaos. Russia won't allow that, which is why it has put its Airforce at risk in Syria, to defend the foundational principle of state sovereignty upon which the entire edifice of global security rests.

The majority of Americans believe that Russia is the perpetrator of hostilities against the United States, mainly because the media and the political class have faithfully disseminated the spurious claims that Russia meddled in the 2016 elections. But the allegations are ridiculous and without merit. Russia-gate is merely the propaganda component of Washington's Full Spectrum Dominance theory, that is, disinformation is being used to make it appear as though the US is the victim when, in fact, it is the perpetrator of hostilities against Russia. Simply put, the media has turned reality on its head. Washington wants to inflict as much pain as possible on Russia because Russia has frustrated its plan to control critical resources and pipeline corridors in Central Asia and the Middle East. The Trump administration's new National Defense Strategy is quite clear on this point. Russia's opposition to Washington's destabilizing interventions has earned it the top spot on the Pentagon's "emerging rivals" list. Moscow is now Public Enemy#1.

Washington's war on Russia has a long history dating back at least 100 years to the Bolshevik Revolution of 1917. Despite the fact that the US was engaged in a war with Germany at the time (WW1), Washington and its allies sent 150,000 men from 15 nations to intervene on behalf of the "Whites" hoping to staunch the spread of communism into Europe. In the words of British Prime Minister Winston Churchill, the goal was "to strangle the Bolshevik baby in its crib."

According to Vasilis Vourkoutiotis from the University of Ottawa:

" the Allied intervention in the Russian Civil War.. was a failed attempt to eradicate Bolshevism while it was still weak .As early as February 1918 Britain supported intervention in the civil war on behalf of the Whites, and in March it landed troops in Murmansk. They were soon joined by forces from France, Italy, Japan, the United States, and ten other nations. Eventually, more than 150,000 Allied soldiers served in Russia

The scale of the war between the Russian Reds and Whites, however, was such that the Allies soon realized they would have little, if any, direct impact on the course of the Civil War unless they were prepared to intervene on a far grander scale. By the end of April 1919 the French had withdrawn their soldiers .British and American troops saw some action in November 1918 on the Northern Front but this campaign was of limited significance in the outcome of the Civil War. The last British and American soldiers were withdrawn in 1920. The main Allied contributions to the White cause thereafter were supplies and money, mostly from Britain .

The chief purpose of Allied intervention in Soviet Russia was to help the Whites defeat the Reds and destroy Bolshevism." (Allied Intervention in the Russian Revolution", portalus.ru)

The reason we bring up this relatively unknown bit of history is because it helps to put current events into perspective. First, it helps readers to see that Washington has been sticking its nose in Russia's business more than a century. Second, it shows that– while Washington's war on Russia has ebbed and flowed depending on the political situation in Moscow– it has never completely ended. The US has always treated Russia with suspicion, contempt and brutality. During the Cold War, when Russia's global activities put a damper on Washington's depredations around the world, relations remained stretched to the breaking point. But after the Soviet Union collapsed in December, 1991, relations gradually thawed, mainly because the buffoonish Boris Yeltsin opened the country up to a democratization program that allowed the state's most valuable strategic assets to be transferred to voracious oligarchs for pennies on the dollar. The plundering of Russia pleased Washington which is why it sent a number of prominent US economists to Moscow to assist in the transition from communism to a free-market system. These neoliberal miscreants subjected the Russian economy to "shock therapy" which required the auctioning off of state-owned resources and industries even while hyperinflation continued to rage and the minuscule life savings of ordinary working people were wiped out almost over night. The upshot of this Washington-approved looting-spree was a dramatic uptick in extreme poverty which intensified the immiseration of tens of millions of people. Economist Joseph Stiglitz followed events closely in Russia at the time and summed it up like this:

"In Russia, the people were told that capitalism was going to bring new, unprecedented prosperity. In fact, it brought unprecedented poverty, indicated not only by a fall in living standards, not only by falling GDP, but by decreasing life spans and enormous other social indicators showing a deterioration in the quality of life ..

(Due to) the tight monetary policies that were pursued firms didn't have the money to even pay their employees . they didn't have enough money to pay their pensioners, to pay their workers .Then, with the government not having enough revenue, other aspects of life started to deteriorate. They didn't have enough money for hospitals, schools. Russia used to have one of the good school systems in the world; the technical level of education was very high. (But they no longer had) enough money for that. So it just began to affect people in every dimension of their lives .

The number of people in poverty in Russia, for instance, increased from 2 percent to somewhere between 40 and 50 percent, with more than one out of two children living in families below poverty. The market economy was a worse enemy for most of these people than the Communists had said it would be. It brought Gucci bags, Mercedes, the fruits of capitalism to a few .But you had a shrinking (economy). The GDP in Russia fell by 40 percent. In some (parts) of the former Soviet Union, the GDP, the national income, fell by over 70 percent. And with that smaller pie it was more and more unequally divided, so a few people got bigger and bigger slices, and the majority of people wound up with less and less and less . (PBS interview with Joseph Stiglitz, Commanding Heights)

So, as long as Russia remained open to the West's political maneuvering and wholesale thievery, every thing was hunky-dory. But as soon as Vladimir Putin got his bearings (during his second term as President) and started reassembling the broken state, then western elites became very concerned and denounced Putin as an "autocrat" and a "KGB thug." At the same time, Washington continued its maniacal push eastward using its military catspaw, NATO, to achieve its geopolitical ambitions to control vital resources and industries in the most populous and prosperous region of the coming century, Eurasia. After promising Russian President Gorbachev that NATO would never "expand one inch to the east", the US-led military alliance added 13 new countries to its membership, all of them straddling Russia's western flank, all of them located, like Hitler, on Russia's doorstep, all of them posing an existential threat to Russia's survival. NATO forces now routinely conduct provocative military drills just miles from the Russian border while state-of-the-art missile systems surround Russia on all sides. (Imagine Russia conducting similar drills in the Gulf of Mexico or on the Canadian border. How would Washington respond?)

Russian Foreign Minister Sergey Lavrov gave an excellent summary of post Cold War history at a gathering of the Korber Foundation in Berlin in 2017. Brainwashed Americans who foolishly blame Russia for meddling in the 2016 elections, should pay attention to what he said.

LAVROV– "Ever since the fall of the Berlin Wall we have shown our cards, trying to do our best to assert the values of equal partnership in international affairs .Back in the early 1990s, we withdrew our troops from Eastern and Central Europe and the Baltic states and dramatically downsized our military capacity near our western borders

When the cold war era came to an end, Russia was hoping that this would become our common victory – the victory of both the former Communist bloc countries and the West. The dreams of ushering in shared peace and cooperation seemed near to fruition. However, the United States and its allies decided to declare themselves the sole winners, refusing to work together to create the architecture of equal and indivisible security. They made their choice in favor of shifting the dividing lines to our borders – through expanding NATO and then through the implementation of the EU's Eastern Partnership program

As the Western countries' elites were implementing a policy of political and economic containment of Russia, old threats were growing and new ones were emerging in the world, and the efforts to do away with them have failed. I think that the main reason for that is that the model of "West-centric" globalization, which developed following the dismantling of the bipolar architecture and was aimed at ensuring the prosperity of one-seventh of the world's population at the expense of the rest, proved ineffective. It is becoming more and more obvious that a narrow group of "chosen ones" is unable to ensure the sustainable growth of the global economy on their own and solve such major challenges as poverty, climate change, shortage of food and other vital resources .

The latest events are clear evidence that the persistent attempts to form a unipolar world order have failed .The new centers of economic growth and concomitant political influence are assuming responsibility for the state of affairs in their regions. Let me reiterate that the emergence of multipolar world order is a fact and a reality. Seeking to hold back this process and keep the unfairly gained privileged positions is going to lead nowhere. We see increasing examples of nations raising their voice in defense of their right to decide their own destiny ." (Sergey Lavrov, Russian Foreign Minister)

The American people need to look beyond the propaganda and try to grasp what's really going on. Russia is not Washington's enemy, it's a friend that's trying to nudge the US in adirection that will increase its opportunities for peace and prosperity in the future. Lavrov is simply pointing out that a multipolar world is inevitable as economic power becomes more widespread. This emerging reality means the US will have to modify its behavior, cooperate with other sovereign nations, comply with international law, and seek a peaceful settlement to disputes. It means greater parity between the states, fairer representation in global decision-making, and a narrower gap between the world's winners and losers.

Who doesn't want this? Who doesn't want to see an end of the bloody US-led invasions, the countless drone assassinations, the vast destruction of ancient civilizations, and the senseless slaughter of innocent men, women and children? Who doesn't want to see Washington's wings clipped so the bloodletting stops and the millions of refugees and internally displaced can return to their homes?

Lavrov offers a vision of the future that all peace-loving people should welcome with open arms.

Admit it: The imperial model has failed. It's time to move on.

[Jan 02, 2018] Who Is the Real Enemy by Philip Giraldi

Highly recommended!
Money quote: "And even given that, I would have to qualify the nature of the threats. Russia and China are best described as adversaries or competitors rather than enemies as they have compelling interests to avoid war, even if Washington is doing its best to turn them hostile. Neither has anything to gain and much to lose by escalating a minor conflict into something that might well start World War 3. Indeed, both have strong incentives to avoid doing so, which makes the actual threat that they represent more speculative than real. And, on the plus side, both can be extremely useful in dealing with international issues where Washington has little or no leverage, to include resolving the North Korea problem and Syria, so the US has considerable benefits to be gained by cultivating their cooperation."
Notable quotes:
"... And even given that, I would have to qualify the nature of the threats. Russia and China are best described as adversaries or competitors rather than enemies as they have compelling interests to avoid war, even if Washington is doing its best to turn them hostile. Neither has anything to gain and much to lose by escalating a minor conflict into something that might well start World War 3. Indeed, both have strong incentives to avoid doing so, which makes the actual threat that they represent more speculative than real. And, on the plus side, both can be extremely useful in dealing with international issues where Washington has little or no leverage, to include resolving the North Korea problem and Syria, so the US has considerable benefits to be gained by cultivating their cooperation. ..."
"... Cohen-Watnick is thirty years old and has little relevant experience for the position he holds, senior director for intelligence on the National Security Council. But his inexperience counts for little as he is good friend of son-in-law Jared Kushner. He has told the New York Times ..."
"... Both Cohen-Watnick and Harvey share the neoconservative belief that the Iranians and their proxies in Syria and Iraq need to be confronted by force, an opportunity described by Foreign Policy ..."
"... What danger to the U.S. or its actual treaty allies an Iranian influenced land corridor would constitute remains a mystery but there is no shortage of Iran haters in the White House. Former senior CIA analyst Paul Pillar sees "unrelenting hostility from the Trump administration" towards Iran and notes "cherry-picking" of the intelligence to make a case for war, similar to what occurred with Iraq in 2002-3. And even though Secretary of Defense James Mattis and National Security Advisor H.R. McMaster have pushed back against the impulsive Cohen-Watnick and Harvey, their objections are tactical as they do not wish to make U.S. forces in the region vulnerable to attacks coming from a new direction. Otherwise they too consider Iran as America's number one active enemy and believe that war is inevitable. Donald Trump has unfortunately also jumped directly into the argument on the side of Saudi Arabia and Israel, both of which would like to see Washington go to war with Tehran on their behalf. ..."
"... You forgot the third significant potential threat from a friendly nation, i.e. Israel. Israel will sabotage any effort to normallize relations with Russia or even Iran. They will resort to false flag operations to start a war with Iran. ..."
"... The problem with this White House, as well as the previous ones, is that none of the so-called experts really understand the Middle East. The US is not interested in having friendly relations with all nations. All her efforts are towards one goal, the world domination. Even if President Trump wanted to normalize relations with Russia, the MSM, the democrats, as well as, his republican opponents will not let him. ..."
"... That is why the constan drumbeat of Russia's meddling in the 2016 election despite the fact that no proof has been given so far. Similarly, the "Iran has nuclear weapons" narrative is constantly repeated, the reports by IAEA and the 17 Intelligence Agencies to the contrary not withstanding. ..."
"... The elevation of Muhammad bin Salman to the Crown Prince position will only make the Middle East situation worse. Israel will be able to manipulate him much more easily than the old guard. ..."
"... The titanic elephant in the room -- that US foreign policy is not governed by "rationality" but by "special interests" seems .missing ..."
"... Trump has no control of most government functions, particularly foreign affairs. The Deep State takes care of that for him. The Deep State has been calling the shots for decades and all Presidents who weren't assassinated have complied. Democracies never work and ours quit long ago. ..."
"... I fully agree that attacking Iran would be yet another disaster but I don't understand why Saudi Arabia is portrayed as an 'enemy', the 'real' one, no less, in alt-media circles like this. I mean let's be honest with ourselves. KSA is the definition of a vassal state. Has been so since the state established established relations with the USA in the 1940s and the status was confirmed during the 1960s under King Faisal. Oil for security. Why pretend that they have any operational clearance from the US? ..."
"... The BIGGEST threat to the USA is from within, as we are nothing more than an occupied colony of Apartheid Israel, paying that bastard state tributes each year in the form of free money and weapons, political backing at the UN, and never tire of fighting her wars of conquest. ..."
"... The also have a choke-hold on Congress, which is always eager to wag their tail and hope their Yid Overlord gives them a treat and not a dressing-down in the Jew MSM, which is a career killer. ..."
"... Israel's current "agreements" and its "kowtowing" to Saudi Arabia speaks VOLUMES. Once again, Israel is about to get others to do their "dirty work" for them. ..."
"... There's no alternative to Saudi royal family rule of the peninsula. Who's there to replace them? Any other group, assuming there might be one somewhere waiting in the wings, would probably be anti-American and not as compliant as the Saudis. They've spent gigantic sums in the endless billions buying military equipment from the US, weapons they can't even fully use, as a way of making themselves indispensable customers. Many other billions of petrodollars find their way westward into our financial systems. They collaborate with the US in various schemes throughout the Muslim world using their intelligence services and money in furtherance of US goals. ..."
"... Mattis still seems stuck with his Iran obsession. Shame I thought he had the intellectual curiosity to adapt. Trump has good instincts, I hope Tillerson comes to the fore, and Bannon stays influential. ..."
"... Iran is US enemy #1 not only because it is against that country smaller than New Jersey with less people (Israel) but also because Iran has been a model for other countries to follow because of its intransigence to US oppression and attacks, financial political and cyber. As the world becomes multi-polar, Iran's repeated wise reactions to the world hegemon have been an inspiration to China and others to go their own way. The US can't stand that. ..."
"... Contrary to the popular view, Wahabism is necessary to keep the local population under control. Particularly the minority Shia population who live along the eastern coast, an area, which incidentally also has the all the oil reserves. USA fully understands this. Which is why they not only tolerated Wahabism, but strongly promoted it during Afghan jihad. The operation was by and large very successful btw. It was only during the '90s when religion became the new ideology for the resistance against the empire across the Muslim world. Zero surprise there because the preceding ideology, radical left wing politics was completely defeated. Iran became the first country in this pattern. The Iranian left was decimated by the Shah, another vassal. So the religious right became the new resistance. ..."
"... And as far as the KSA is considered, Wahabi preachers aren't allowed to attack the USA anyway. If any individual preacher so much as makes a squeak, he will be bent over a barrel. There won't be any "coming down very hard on Saudi Arabia" because USA already owns that country. ..."
"... The British Empire 'made' the House of Saud. Thinking it wise to use Wahhabism to control Shia Islam is like thinking it wise to use blacks to control the criminal tendencies of Mexicans. ..."
Jul 11, 2017 | www.unz.com

It is one of the great ironies that the United States, a land mass protected by two broad oceans while also benefitting from the world's largest economy and most powerful military, persists in viewing itself as a potential victim, vulnerable and surrounded by enemies. In reality, there are only two significant potential threats to the U.S. The first consists of the only two non-friendly countries – Russia and China – that have nuclear weapons and delivery systems that could hit the North American continent and the second is the somewhat more amorphous danger represented by international terrorism.

And even given that, I would have to qualify the nature of the threats. Russia and China are best described as adversaries or competitors rather than enemies as they have compelling interests to avoid war, even if Washington is doing its best to turn them hostile. Neither has anything to gain and much to lose by escalating a minor conflict into something that might well start World War 3. Indeed, both have strong incentives to avoid doing so, which makes the actual threat that they represent more speculative than real. And, on the plus side, both can be extremely useful in dealing with international issues where Washington has little or no leverage, to include resolving the North Korea problem and Syria, so the US has considerable benefits to be gained by cultivating their cooperation.

Also, I would characterize international terrorism as a faux threat at a national level, though one that has been exaggerated through the media and fearmongering to such an extent that it appears much more dangerous than it actually is. It has been observed that more Americans are killed by falling furniture than by terrorists in a year but terrorism has a particularly potency due to its unpredictability and the fear that it creates. Due to that fear, American governments and businesses at all levels have been willing to spend a trillion dollars per annum to defeat what might rationally be regarded as a relatively minor problem.

So if the United States were serious about dealing with or deflecting the actual threats against the American people it could first of all reduce its defense expenditures to make them commensurate with the actual threat before concentrating on three things. First, would be to establish a solid modus vivendi with Russia and China to avoid conflicts of interest that could develop into actual tit-for-tat escalation. That would require an acceptance by Washington of the fact that both Moscow and Beijing have regional spheres of influence that are defined by their interests. You don't have to like the governance of either country, but their national interests have to be appreciated and respected just as the United States has legitimate interests within its own hemisphere that must be respected by Russia and China.

Second, Washington must, unfortunately, continue to spend on the Missile Defense Agency, which supports anti-missile defenses if the search for a modus vivendi for some reason fails. Mutual assured destruction is not a desirable strategic doctrine but being able to intercept incoming missiles while also having some capability to strike back if attacked is a realistic deterrent given the proliferation of nations that have both ballistic missiles and nukes.

Third and finally, there would be a coordinated program aimed at international terrorism based equally on where the terror comes from and on physically preventing the terrorist attacks from taking place. This is the element in national defense that is least clear cut. Dealing with Russia and China involves working with mature regimes that have established diplomatic and military channels. Dealing with terrorist non-state players is completely different as there are generally speaking no such channels.

It should in theory be pretty simple to match threats and interests with actions since there are only a handful that really matter, but apparently it is not so in practice. What is Washington doing? First of all, the White House is deliberately turning its back on restoring a good working relationship with Russia by insisting that Crimea be returned to Kiev, by blaming Moscow for the continued unrest in Donbas, and by attacking Syrian military targets in spite of the fact that Russia is an ally of the legitimate government in Damascus and the United States is an interloper in the conflict. Meanwhile congress and the media are poisoning the waters through their dogged pursuit of Russiagate for political reasons even though nearly a year of investigation has produced no actual evidence of malfeasance on the part of U.S. officials and precious little in terms of Moscow's alleged interference.

Playing tough to the international audience has unfortunately become part of the American Exceptionalism DNA. Upon his arrival in Warsaw last week, Donald Trump doubled down on the Russia-bashing, calling on Moscow to "cease its destabilizing activities in Ukraine and elsewhere and its support for hostile regimes including Syria and Iran." He then recommended that Russia should "join the community of responsible nations in our fight against common enemies and in defense of civilization itself."

The comments in Warsaw were unnecessary, even if the Poles wanted to hear them, and were both highly insulting and ignorant. It was not a good start for Donald's second overseas trip, even though the speech has otherwise been interpreted as a welcome defense of Western civilization and European values. Trump also followed up with a two hour plus discussion with President Vladimir Putin in which the two apparently agreed to differ on the alleged Russian hacking of the American election. The Trump-Putin meeting indicated that restoring some kind of working relationship with Russia is still possible, as it is in everyone's interest to do so.

Fighting terrorism is quite another matter and the United States approach is the reverse of what a rational player would be seeking to accomplish. The U.S. is rightly assisting in the bid to eradicate ISIS in Syria and Iraq but it is simultaneously attacking the most effective fighters against that group, namely the Syrian government armed forces and the Shiite militias being provided by Iran and Hezbollah. Indeed, it is becoming increasingly clear that at least some in the Trump Administration are seeking to use the Syrian engagement as a stepping stone to war with Iran.

As was the case in the months preceding the ill-fated invasion of Iraq in 2003, all buttons are being pushed to vilify Iran. Recent reports suggest that two individuals in the White House in particular have been pressuring the Trump administration's generals to escalate U.S. involvement in Syria to bring about a war with Tehran sooner rather than later. They are Ezra Cohen-Watnick and Derek Harvey, reported to be holdovers from the team brought into the White House by the virulently anti-Iranian former National Security Adviser Michael Flynn.

Cohen-Watnick is thirty years old and has little relevant experience for the position he holds, senior director for intelligence on the National Security Council. But his inexperience counts for little as he is good friend of son-in-law Jared Kushner. He has told the New York Times that "wants to use American spies to help oust the Iranian government," a comment that reflects complete ignorance, both regarding Iran and also concerning spy agency capabilities. His partner in crime Harvey, a former military officer who advised General David Petraeus when he was in Iraq, is the NSC advisor on the Middle East.

Both Cohen-Watnick and Harvey share the neoconservative belief that the Iranians and their proxies in Syria and Iraq need to be confronted by force, an opportunity described by Foreign Policy magazine as having developed into "a pivotal moment that will determine whether Iran or the United States exerts influence over Iraq and Syria." Other neocon promoters of conflict with Iran have described their horror at a possible Shiite "bridge" or "land corridor" through the Arab heartland, running from Iran itself through Iraq and Syria and connecting on the Mediterranean with Hezbollah in Lebanon.

What danger to the U.S. or its actual treaty allies an Iranian influenced land corridor would constitute remains a mystery but there is no shortage of Iran haters in the White House. Former senior CIA analyst Paul Pillar sees "unrelenting hostility from the Trump administration" towards Iran and notes "cherry-picking" of the intelligence to make a case for war, similar to what occurred with Iraq in 2002-3. And even though Secretary of Defense James Mattis and National Security Advisor H.R. McMaster have pushed back against the impulsive Cohen-Watnick and Harvey, their objections are tactical as they do not wish to make U.S. forces in the region vulnerable to attacks coming from a new direction. Otherwise they too consider Iran as America's number one active enemy and believe that war is inevitable. Donald Trump has unfortunately also jumped directly into the argument on the side of Saudi Arabia and Israel, both of which would like to see Washington go to war with Tehran on their behalf.

The problem with the Trump analysis is that he has his friends and enemies confused. He is actually supporting Saudi Arabia, the source of most of the terrorism that has convulsed Western Europe and the United States while also killing hundreds of thousands of fellow Muslims. Random terrorism to kill as many "infidels and heretics" as possible to create fear is a Sunni Muslim phenomenon, supported financially and doctrinally by the Saudis. To be sure, Iran has used terror tactics to eliminate opponents and select targets overseas, to include several multiple-victim bombings, but it has never engaged in anything like the recent series of attacks in France and Britain. So the United States is moving seemingly inexorably towards war with a country that itself constitutes no actual terrorist threat, unless it is attacked, in support of a country that very much is part of the threat and also on behalf of Israel, which for its part would prefer to see Americans die in a war against Iran rather that sacrificing its own sons and daughters.

Realizing who the real enemy actually is and addressing the actual terrorism problem would not only involve coming down very hard on Saudi Arabia rather than Iran, it would also require some serious thinking in the White House about the extent to which America's armed interventions all over Asia and Africa have made many people hate us enough to strap on a suicide vest and have a go. Saudi financing and Washington's propensity to go to war and thereby create a deep well of hatred just might be the principal causative elements in the rise of global terrorism. Do I think that Donald Trump's White House has the courage to take such a step and change direction? Unfortunately, no.

Jake, July 11, 2017 at 4:12 am GMT

The title of the article tells it all.

Saudi Arabia is THE worst nation in the Middle East.

Why does the US follow along blindly? Well, it is a WASP thing. We are the new Brit Empire. By the height of the Victorian era, virtually all English Elites were philoSemitic. Roughly half of the UK WASP Elite philoSemitism was pro-Jewish and half was pro-Arabic/Islamic. And by the time of WW1, the English Elite pro-Arabic/Islamic faction came to adore the house of Saud. So, our foreign policy is merely WASP culture continuing to ruin most of the rest of the world, including all the whites ruled by WASP Elites.

Priss Factor, Website , July 11, 2017 at 4:41 am GMT
US foreign policy is simple. Zionist Emperor goes thumbs up or thumbs down on whatever nation based on his own interests. That's about it.

Priss Factor, July 11, 2017 at 4:49 am GMT

In reality, there are only two significant potential threats to the U.S. The first consists of the only two non-friendly countries – Russia and China – that have nuclear weapons and delivery systems that could hit the North American continent and the second is the somewhat more amorphous danger represented by international terrorism.

No, the only threats are the following three:

Too many Meso-Americans invading from the border. These people have totally changed the SW and may drastically alter parts of US as well. This is an invasion. Meso-Americans are lackluster, but Too Many translates into real power, especially in elections.

The other threat is Hindu-Indian. Indians are just itching to unload 100s of millions of their kind to Anglo nations. Unlike Chinese population that is plummeting, Indian population is still growing.

The other threat, biggest of all, is the Negro. It's not Russian missiles or Chinese troops that turned Detroit into a hellhole. It is Negroes. And look at Baltimore, New Orleans, Selma, Memphis, Oakland, St. Louis, South Side Chicago, etc.

Afromic Bomb is more hellish than atomic bomb. Compare Detroit and Hiroshima.

Also, even though nukes are deadly, they will likely never be used. They are for defensive purposes only. The real missiles that will destroy the West is the Afro penis. US has nukes to destroy the world, but they haven't been used even during peak of cold war. But millions of Negro puds have impregnanted and colonized white wombs to kill white-babies-that-could-have-been and replaced them with mulatto Negro kids who will turn out like Colin Kapernick.

http://stuffblackpeopledontlike.blogspot.com/2017/07/pattern-recognition-great-sin-than.html

The real missile gap is the threat posed by negro dong on white dong. The negro dong is so potent that even Japanese women are going Negroid and having kids with Negro men and raising these kids as 'Japanese' to beat up real Japanese. So, if Japan with few blacks is turning like this, imagine the threat posed by Negroes on whites in the West.

Look at YouTube of street life and club life in Paris and London. Negro missiles are conquering the white race and spreading the savage genes.

Look how Polish women welcomed the Negro missile cuz they are infected with jungle fever. ACOWW will be the real undoing of the West.

Replies: @Z-man

Besides what Priss Factor said above the following is to be reinforced with every real American man, woman and child.

Israel , which for its part would prefer to see Americans die in a war against Iran rather that sacrificing its own sons and daughters.
Israel, the REAL enemy! , @K India is looking to unload hindus to U.S? Quite the opposite. India is 'losing' its best brains to the U.S so its trying to attract them back to their country. For eg: The chief- architect of IBM's Watson is a Hindu Indian and so is the head of IBM's neuro-morphic computing. These people are advancing western technology.... civilian and also defense (IBM is collaborating with the American defense organization DARPA) instead of helping India achieve technological competence. And most of other super intelligent Indians also India is losing them to the west.

(i dont hate the west for doing that. Any country in amercia's place would have done the same. It is india's job to keep its best brains working for it and not for others. And india is trying its best to do that albeit unsuccessfully.)

Wally, July 11, 2017 at 5:02 am GMT

The US govt. does what "that shitty little country" tells them to do.

The True Cost of Parasite Israel. Forced US taxpayers money to Israel goes far beyond the official numbers. http://www.theamericanconservative.com/articles/the-true-cost-of-israel/

How to Bring Down the Elephant in the Room: http://www.unz.com/tsaker/how-to-bring-down-the-elephant-in-the-room/

RobinG, July 11, 2017 at 5:49 am GMT

100 Words #UNRIG adds AMERICA FIRST, NOT ISRAEL to Agenda. ."A.I.P.A.C.. you're outta business!"

Due to slanderous attacks by a Mossad internet psy-op, Steele now prioritizes Israeli malign influence on US. Also, check out Cynthia McKinney's twitter.

#UNRIG – Robert David Steele Weekly Update

@Durruti Nice action approach to cure ills of society.

Enclosing copy of flier we have distributed - with a similar approach at a cure.

*Flier distributed is adjusted & a bit more attractive (1 sheet - both sides).

The key is to Restore the Republic, which was definitively destroyed on November 22, 1963.

Feel free to contact.

Use this, or send me a note by way of a response.

For THE RESTORATION OF THE REPUBLIC

"We hold these truths to be self-evident: that all men are created equal governments are instituted among men, deriving their just powers from the consent of the governed; that whenever any form of government becomes destructive of these ends, it is the right of the people to alter or abolish it and to institute new government, laying its foundation on such principles "

The above is a portion of the Declaration of Independence, written by Thomas Jefferson.

We submit the following facts to the citizens of the United States.

The government of the United States has been a Totalitarian Oligarchy since the military financial aristocracy destroyed the Democratic Republic on November 22, 1963 , when they assassinated the last democratically elected president, John Fitzgerald Kennedy , and overthrew his government. All following governments have been unconstitutional frauds. Attempts by Robert Kennedy and Martin Luther King to restore the Republic were interrupted by their murder.

A subsequent 12 year colonial war against Vietnam , conducted by the murderers of Kennedy, left 2 million dead in a wake of napalm and burning villages.

In 1965, the U.S. government orchestrated the slaughter of 1 million unarmed Indonesian civilians.

In the decade that followed the CIA murdered 100,000 Native Americans in Guatemala .

In the 1970s, the Oligarchy began the destruction and looting of America's middle class, by encouraging the export of industry and jobs to parts of the world where workers were paid bare subsistence wages. The 2008, Bailout of the Nation's Oligarchs cost American taxpayers $13trillion. The long decline of the local economy has led to the political decline of our hard working citizens, as well as the decay of cities, towns, and infrastructure, such as education.

The impoverishment of America's middle class has undermined the nation's financial stability. Without a productive foundation, the government has accumulated a huge debt in excess of $19trillion. This debt will have to be paid, or suffered by future generations. Concurrently, the top 1% of the nation's population has benefited enormously from the discomfiture of the rest. The interest rate has been reduced to 0, thereby slowly robbing millions of depositors of their savings, as their savings cannot stay even with the inflation rate.

The government spends the declining national wealth on bloody and never ending military adventures, and is or has recently conducted unconstitutional wars against 9 nations. The Oligarchs maintain 700 military bases in 131 countries; they spend as much on military weapons of terror as the rest of the nations of the world combined. Tellingly, more than half the government budget is spent on the military and 16 associated secret agencies.

The nightmare of a powerful centralized government crushing the rights of the people, so feared by the Founders of the United States, has become a reality. The government of Obama/Biden, as with previous administrations such as Bush/Cheney, and whoever is chosen in November 2016, operates a Gulag of dozens of concentration camps, where prisoners are denied trials, and routinely tortured. The Patriot Act and The National Defense Authorizations Act , enacted by both Democratic and Republican factions of the oligarchy, serve to establish a legal cover for their terror.

The nation's media is controlled, and, with the school systems, serve to brainwash the population; the people are intimidated and treated with contempt.

The United States is No longer Sovereign

The United States is no longer a sovereign nation. Its government, The Executive, and Congress, is bought, utterly owned and controlled by foreign and domestic wealthy Oligarchs, such as the Rothschilds, Rockefellers, and Duponts , to name only a few of the best known.

The 2016 Electoral Circus will anoint new actors to occupy the same Unconstitutional Government, with its controlling International Oligarchs. Clinton, Trump, whomever, are willing accomplices for imperialist international murder, and destruction of nations, including ours.

For Love of Country

The Restoration of the Republic will be a Revolutionary Act, that will cancel all previous debts owed to that unconstitutional regime and its business supporters. All debts, including Student Debts, will be canceled. Our citizens will begin, anew, with a clean slate.

As American Founder , Thomas Jefferson wrote, in a letter to James Madison:

"I set out on this ground, which I suppose to be self evident, 'that the earth belongs in usufruct to the living':"

"Then I say the earth belongs to each of these generations, during it's course, fully, and in their own right. The 2d. Generation receives it clear of the debts and incumberances of the 1st. The 3d of the 2d. and so on. For if the 1st. Could charge it with a debt, then the earth would belong to the dead and not the living generation."

Our Citizens must restore the centrality of the constitution, establishing a less powerful government which will ensure President Franklin Roosevelt's Four Freedoms , freedom of speech and expression, freedom to worship God in ones own way, freedom from want "which means economic understandings which will secure to every nation a healthy peace time life for its inhabitants " and freedom from fear "which means a world-wide reduction of armaments "

Once restored: The Constitution will become, once again, the law of the land and of a free people. We will establish a government, hold elections, begin to direct traffic, arrest criminal politicians of the tyrannical oligarchy, and, in short, repair the damage of the previous totalitarian governments.

For the Democratic Republic!
Sons and Daughters of Liberty
florent.defeu@yahoo.com

MEexpert, July 11, 2017 at 5:50 am GMT

In reality, there are only two significant potential threats to the U.S. The first consists of the only two non-friendly countries – Russia and China – that have nuclear weapons and delivery systems that could hit the North American continent and the second is the somewhat more amorphous danger represented by international terrorism.

You forgot the third significant potential threat from a friendly nation, i.e. Israel. Israel will sabotage any effort to normallize relations with Russia or even Iran. They will resort to false flag operations to start a war with Iran.

The problem with this White House, as well as the previous ones, is that none of the so-called experts really understand the Middle East. The US is not interested in having friendly relations with all nations. All her efforts are towards one goal, the world domination. Even if President Trump wanted to normalize relations with Russia, the MSM, the democrats, as well as, his republican opponents will not let him.

That is why the constan drumbeat of Russia's meddling in the 2016 election despite the fact that no proof has been given so far. Similarly, the "Iran has nuclear weapons" narrative is constantly repeated, the reports by IAEA and the 17 Intelligence Agencies to the contrary not withstanding.

The elevation of Muhammad bin Salman to the Crown Prince position will only make the Middle East situation worse. Israel will be able to manipulate him much more easily than the old guard.

jilles dykstra, July 11, 2017 at 6:59 am GMT
The western world is dependent on oil, especially ME oil. Saudi Arabia was made the USA's main oil supplier at the end of 1944. The Saud dynasty depends on the USA. That the Saudis would sponsor terrorism, why would they ? And which terrorism is Muslim terrorism ?

Sept 11 not, Boston not, Madrid and London very questionably. We then are left with minor issues, the Paris shooting the biggest. That Saudi Arabia is waging war in Yemen certainly is with USA support. The Saudi army does what the USA wants them to do.

Ludwig Watzal > Website , July 11, 2017 at 7:01 am GMT
Mr. Giraldi, you forgot to mention Israel as one of America's biggest liabilities besides Saudi Arabia. But with such amateur dramatics in the White House and on the Security Council, the US is destined for war but only against the wrong enemy such as Iran. If the Saudis and the right-wing Netanyahu regime want to get after Iran they should do it alone. They surely will get a bloody nose. Americans have shed enough blood for these rascal regimes. President Trump should continue with his rapprochement towards Russia because both nation states have more in common than expected.
animalogic, July 11, 2017 at 7:32 am GMT
I'm a little disappointed in this article. Not that it's a bad article per se: perfectly rational, reasonable, academic even. But unfortunately, it's simply naive.

"Realizing who the real enemy actually is and addressing the actual terrorism problem would not only involve coming down very hard on Saudi Arabia rather than Iran, it would also require some serious thinking in the White House about the extent to which America's armed interventions all over Asia and Africa have made many people hate us enough to strap on a suicide vest and have a go."

Realize who the real enemy is ? Come down hard on the Saud's ? No -- really ?

The titanic elephant in the room -- that US foreign policy is not governed by "rationality" but by "special interests" seems .missing. Israel, the Saudi's themselves, the MIC & so on & so forth ARE the special interests who literally "realise" US Policy.

Paul, July 11, 2017 at 7:44 am GMT

Well, the real enemy of the people are the real terrorists behind the scenes. Those who planned the 9/11 false flag. Those who sent the Anthrax letters to resisting congress members. Those who pre-planned the wars of aggression in the whole middle east.

So any appeal to the "White House" is almost pointless since the White House is one element of the power structure captured by the war-criminal lunatics.

To change something people in the US should at first stop buying their war criminal lying mass media.

Then they should stop supporting ANY foreign intervention by the US and should stop believing any of the preposterous lies released by the media, the state dept., or any other neocon outlet.

Actually Trump was probably elected because he said he was anti-intervention and anti-media. But did it help?

The US needs mass resistance (demonstrations, strikes, boycotts, non-participation, sit-ins, grass-root information, or whatever) against their neocon/zionist/mafia/cia power groups or nothing will change.

We need demonstrations against NATO, against war, against false flag terrorism, against using terrorists as secret armies, against war propaganda!

B.t.w. Iran has always been one of the main goals. Think of it: Why did the US attack Afghanistan and Iraq? What have those two countries in common? (Hint: a look on the map helps to answer this question.)

Replies:

@Wizard of Oz

I am beginning to get interested in why some people are sure 9/11 was a false flag affair covered up by a lot of lies. So may I try my opening question on you. How much, if any of it, have you read of the official 9/11 commission report? ,

Realist, July 11, 2017 at 8:24 am GMT

"The White House is targeting Iran but should instead focus on Saudi Arabia"

Trump has no control of most government functions, particularly foreign affairs. The Deep State takes care of that for him. The Deep State has been calling the shots for decades and all Presidents who weren't assassinated have complied. Democracies never work and ours quit long ago.

Chad, July 11, 2017 at 8:28 am GMT
I fully agree that attacking Iran would be yet another disaster but I don't understand why Saudi Arabia is portrayed as an 'enemy', the 'real' one, no less, in alt-media circles like this. I mean let's be honest with ourselves. KSA is the definition of a vassal state. Has been so since the state established established relations with the USA in the 1940s and the status was confirmed during the 1960s under King Faisal. Oil for security. Why pretend that they have any operational clearance from the US?

Contrary to the popular view, Wahabism is necessary to keep the local population under control. Particularly the minority Shia population who live along the eastern coast, an area, which incidentally also has the all the oil reserves.

USA fully understands this. Which is why they not only tolerated Wahabism, but strongly promoted it during Afghan jihad. The operation was by and large very successful btw.

It was only during the '90s when religion became the new ideology for the resistance against the empire across the Muslim world. Zero surprise there because the preceding ideology, radical left wing politics was completely defeated. Iran became the first country in this pattern. The Iranian left was decimated by the Shah, another vassal. So the religious right became the new resistance.

And as far as the KSA is considered, Wahabi preachers aren't allowed to attack the USA anyway. If any individual preacher so much as makes a squeak, he will be bent over a barrel. There won't be any "coming down very hard on Saudi Arabia" because USA already owns that country.

So what's the answer? Well, props to Phillip as he understood – "it would also require some serious thinking in the White House about the extent to which America's armed interventions all over Asia and Africa have made many people hate us enough to strap on a suicide vest and have a go."

Bingo.

Replies:

@Jake

Your analysis starts too late. The US supports Wahhabism and the House of Saud because the pro-Arabic/Islamic English Elites of 1910 and 1920 and 1935 supported Wahhabism and the House of Saud.

The British Empire 'made' the House of Saud,

Thinking it wise to use Wahhabism to control Shia Islam is like thinking it wise to use blacks to control the criminal tendencies of Mexicans.

Anonymous, July 11, 2017 at 9:33 am GMT

@Priss Factor

US foreign policy is simple. Zionist Emperor goes thumbs up or thumbs down on whatever nation based on his own interests.

That's about it. That's most of unz.com summed up in a single sentence!

Johnny Smoggins, July 11, 2017 at 10:19 am GMT

The casus belli of America's hostility towards Iran is the 3000 year old grudge that the Jews have been holding against Persia.
Z-man, July 11, 2017 at 11:22 am GMT
@Priss Factor

In reality, there are only two significant potential threats to the U.S. The first consists of the only two non-friendly countries – Russia and China – that have nuclear weapons and delivery systems that could hit the North American continent and the second is the somewhat more amorphous danger represented by international terrorism.

No, the only threats are the following three:

Too many Meso-Americans invading from the border. These people have totally changed the SW and may drastically alter parts of US as well. This is an invasion. Meso-Americans are lackluster, but Too Many translates into real power, especially in elections.

The other threat is Hindu-Indian. Indians are just itching to unload 100s of millions of their kind to Anglo nations. Unlike Chinese population that is plummeting, Indian population is still growing.

The other threat, biggest of all, is the Negro. It's not Russian missiles or Chinese troops that turned Detroit into a hellhole. It is Negroes. And look at Baltimore, New Orleans, Selma, Memphis, Oakland, St. Louis, South Side Chicago, etc.

Afromic Bomb is more hellish than atomic bomb. Compare Detroit and Hiroshima.

Also, even though nukes are deadly, they will likely never be used. They are for defensive purposes only. The real missiles that will destroy the West is the Afro penis. US has nukes to destroy the world, but they haven't been used even during peak of cold war. But millions of Negro puds have impregnanted and colonized white wombs to kill white-babies-that-could-have-been and replaced them with mulatto Negro kids who will turn out like Colin Kapernick.

http://stuffblackpeopledontlike.blogspot.com/2017/07/pattern-recognition-great-sin-than.html

The real missile gap is the threat posed by negro dong on white dong. The negro dong is so potent that even Japanese women are going Negroid and having kids with Negro men and raising these kids as 'Japanese' to beat up real Japanese. So, if Japan with few blacks is turning like this, imagine the threat posed by Negroes on whites in the West.

Look at youtube of street life and club life in Paris and London. Negro missiles are conquering the white race and spreading the savage genes.

Look how Polish women welcomed the Negro missile cuz they are infected with jungle fever. ACOWW will be the real undoing of the West.

https://www.youtube.com/watch?v=8yB69UkJGwk

Besides what Priss Factor said above the following is to be reinforced with every real American man, woman and child.

Israel , which for its part would prefer to see Americans die in a war against Iran rather that sacrificing its own sons and daughters.

Israel, the REAL enemy!

eah, July 11, 2017 at 11:26 am GMT
The WH should focus on the USA.
Replies: @Sowhat And what grudge is that? The only two I can find are connected. The deposing of our puppets, the Assads and the nationalization of their natural resources. I have the impression that it removes around future hegemon and the rich gas reserves off their coast and the decades long desire to run a pipeline west to the Mediterranean.

Greg Bacon > Website , July 11, 2017 at 11:41 am GMT

The BIGGEST threat to the USA is from within, as we are nothing more than an occupied colony of Apartheid Israel, paying that bastard state tributes each year in the form of free money and weapons, political backing at the UN, and never tire of fighting her wars of conquest.

You won't see Israeli troops in the streets, since their confederates control the economy thru their control of the FED and US Treasury and most of those TBTF banks, which we always bail out, no matter the cost.

The also have a choke-hold on Congress, which is always eager to wag their tail and hope their Yid Overlord gives them a treat and not a dressing-down in the Jew MSM, which is a career killer.

The WH is also Israeli territory, especially now with a Jew NYC slumlord now Trump's top adviser and his fashion model faux Jew daughter egging Daddy on to kill more Arab babies, since she can't stand the sight of dead babies

Wizard of Oz, July 11, 2017 at 11:50 am GMT

@Paul Well, the real enemy of the people are the real terrorists behind the scenes. Those who planned the 9/11 false flag. Those who sent the Anthrax letters to resisting congress members. Those who pre-planned the wars of aggression in the whole middle east.

So any appeal to the "White House" is almost pointless since the White House is one element of the power structure captured by the war-criminal lunatics.

To change something people in the US should at first stop buying their war criminal lying mass media.

Then they should stop supporting ANY foreign intervention by the US and should stop believing any of the preposterous lies released by the media, the state dept., or any other neocon outlet.

Actually Trump was probably elected because he said he was anti-intervention and anti-media. But did it help?

The US needs mass resistance (demonstrations, strikes, boycotts, non-participation, sit-ins, grass-root information, or whatever) against their neocon/zionist/mafia/cia power groups or nothing will change.

We need demonstrations against NATO, against war, against false flag terrorism, against using terrorists as secret armies, against war propaganda!

B.t.w. Iran has always been one of the main goals. Think of it: Why did the US attack Afghanistan and Iraq? What have those two countries in common? (Hint: a look on the map helps to answer this question.) I am beginning to get interested in why some people are sure 9/11 was a false flag affair covered up by a lot of lies. So may I try my opening question on you. How much, if any of it, have you read of the official 9/11 commission report?

Replies:

@Sowhat

https://forbiddenknowledgetv.net/former-nist-employee-speaks-out-on-wtc-investigation/

@NoseytheDuke

A better question: Have YOU read The Commission: The Uncensored History of the 9/11 Investigation by Phillip Shenon?

Sowhat, July 11, 2017 at 12:13 pm GMT

@eah The WH should focus on the USA. And what grudge is that? The only two I can find are connected. The deposing of our puppets, the Assads and the nationalization of their natural resources. I have the impression that it removes around future hegemon and the rich gas reserves off their coast and the decades long desire to run a pipeline west to the Mediterranean.
anarchyst, July 11, 2017 at 12:24 pm GMT
Israel's current "agreements" and its "kowtowing" to Saudi Arabia speaks VOLUMES. Once again, Israel is about to get others to do their "dirty work" for them.

The point that everybody seems to miss is the fact that Judaism and Islam are inextricably linked. In fact, one could safely argue that Islam is an arabicized form of Judaism.

1. Both Judaism and Islam promote their own forms of supremacy, relegating non-adherents as "lesser human beings", or in Judaism's take "no better than livestock, albeit with souls, to be used for the advantage of the jew".

2. Both systems proscribe lesser (or no) punishment for those of each respective "tribe" who transgress against "outsiders" -- goyim or infidels. Both systems proscribe much harsher punishments against "outsiders" who transgress against those of each respective "tribe".

3. When it comes to "equality under law", Israel is no better than Saudi Arabia, as a jew who has a disagreement with an "outsider" will always have the advantage of a judicial system which almost always rules for the jew.

4. Both Judaism and Islam have taken it upon themselves to be arbiters of what the rest of the world should follow, demanding that "outsiders" conform to what THEY believe, thinking that they know what is best (for the rest of us). Just look at the demands moslems (who are guests in western Europe) make of local non-moslem populations.

Read the jewish Talmud and islamic Koran you will find virtually identical passages that demonize and marginalize those of us who are "goyim" or "infidels".
A pox on both their houses

Replies:

@ThreeCranes

Now before I say what I'm going to say I want to say that Israel has the right to define and defend her interests just as China, Russia and USA do, as Geraldi says above. No nation or people can be denied this (without force).

Having said that, I am grateful to you, anarchyst, for having pointed out the familial similarities between Islam and Judaism. In addition to what you say there is the fact that the Jewish genome is virtually identical to that of the Palestinians--except for that of Ashkenazi Jews who are more than half European.

As far as I can see, Ashkenazi Jews have an existential choice. They can identify with their European half whereby they acknowledge that the Greeks and not Moses made the greatest contributions to humanity (and more particularly, their humanity) or they can go with their atavistic Semitic side and regress to barbarism. Science, Logic, Math, History, Architecture, Drama and Music or blowing up Buddhas and shrouding your women. Take your pick.

Of course, this is sorta unfair in as much as they were kicked out of Europe and now dwell in the ME where if they try to act like Europeans they will be persecuted by their neighbors as apostates. The Jews do indeed have a tough row to hoe. , @bjondo Jews/Judaism bring death, destruction, misery.

Muslims/Islam (minus Western creation of "Muslim"terrorists) brought golden ages to many areas.

Christianity and Islam elevate the human spirit. Judaism degrades.

bjondo, July 11, 2017 at 12:31 pm GMT

SA is the tail wagged by US. US is the tail wagged by internal Jew. Israel/Jewry the enemy of all.

Terrorism is Israeli weapon to take down Sunnis and Shias.

US is Israel's go-to donkey.

Sauds gone tomorrow if wished. And they may be with Arabia broken into pieces. Yinon still active.

Agent76, July 11, 2017 at 12:54 pm GMT
June 7, 2017 We Have Met the Evil Empire and It Is Us

Life in America was pure injustice, the lash and the iron boot, despite the version of history we have been given by the Ford and Rockefeller Foundations who "re-invented" America and its history through taking control of public education in the late 1940s. You see, the multi-generational ignorance we bask in today is not unplanned. The threat represented by advances in communications and other technology was recognized and dealt with, utterly quashed at birth.

http://www.veteranstoday.com/2017/06/07/we-have-met-the-evil-empire-and-it-is-us/

ThreeCranes, July 11, 2017 at 1:41 pm GMT
@anarchyst Israel's current "agreements" and its "kowtowing" to Saudi Arabia speaks VOLUMES. Once again, Israel is about to get others to do their "dirty work" for them.
The point that everybody seems to miss is the fact that Judaism and Islam are inextricably linked. In fact, one could safely argue that Islam is an arabicized form of Judaism.

1. Both Judaism and Islam promote their own forms of supremacy, relegating non-adherents as "lesser human beings", or in Judaism's take "no better than livestock, albeit with souls, to be used for the advantage of the jew".

2. Both systems proscribe lesser (or no) punishment for those of each respective "tribe" who transgress against "outsiders"--goyim or infidels. Both systems proscribe much harsher punishments against "outsiders" who transgress against those of each respective "tribe".

3. When it comes to "equality under law", Israel is no better than Saudi Arabia, as a jew who has a disagreement with an "outsider" will always have the advantage of a judicial system which almost always rules for the jew.

4. Both Judaism and Islam have taken it upon themselves to be arbiters of what the rest of the world should follow, demanding that "outsiders" conform to what THEY believe, thinking that they know what is best (for the rest of us). Just look at the demands moslems (who are guests in western Europe) make of local non-moslem populations.

Read the jewish Talmud and islamic Koran...you will find virtually identical passages that demonize and marginalize those of us who are "goyim" or "infidels".
A pox on both their houses... Now before I say what I'm going to say I want to say that Israel has the right to define and defend her interests just as China, Russia and USA do, as Geraldi says above. No nation or people can be denied this (without force).

Having said that, I am grateful to you, anarchyst, for having pointed out the familial similarities between Islam and Judaism. In addition to what you say there is the fact that the Jewish genome is virtually identical to that of the Palestinians–except for that of Ashkenazi Jews who are more than half European.

As far as I can see, Ashkenazi Jews have an existential choice. They can identify with their European half whereby they acknowledge that the Greeks and not Moses made the greatest contributions to humanity (and more particularly, their humanity) or they can go with their atavistic Semitic side and regress to barbarism. Science, Logic, Math, History, Architecture, Drama and Music or blowing up Buddhas and shrouding your women. Take your pick.

Of course, this is sorta unfair in as much as they were kicked out of Europe and now dwell in the ME where if they try to act like Europeans they will be persecuted by their neighbors as apostates. The Jews do indeed have a tough row to hoe.

Sowhat, July 11, 2017 at 1:49 pm GMT
@Wizard of Oz I am beginning to get interested in why some people are sure 9/11 was a false flag affair covered up by a lot of lies. So may I try my opening question on you. How much, if any of it, have you read of the official 9/11 commission report? https://forbiddenknowledgetv.net/former-nist-employee-speaks-out-on-wtc-investigation/
virgile, July 11, 2017 at 1:55 pm GMT
Trump is torn between Israel's permanent need to weaken its powerful neighbors (Iraq, Iran) and the necessity to protect the USA from terrorists attacks.

Iran is an hypothetical threat to Israel, Saudi Arabia has proven to be a threat to the world.

SolontoCroesus, July 11, 2017 at 2:07 pm GMT
Saudi Arabian Manal al-Sharif is the latest (((MSM))) media darling; she wrote a book about being imprisoned for driving in Saudi Arabia. She is attempting to expand a movement to strike down the Saudi ban on women driving. https://www.nytimes.com/2017/06/09/opinion/sunday/saudi-arabia-women-driving-ban.html

At the same time, (((MSM))) gleefully focuses on Iranian women who are wearing white hijab in protest of restrictions on women's attire in Iran. http://nytlive.nytimes.com/womenintheworld/2017/05/24/why-women-and-some-men-in-iran-are-wearing-white-headscarves-on-wednesdays/

I think these women ought to get together.

In Iran, women drive.

In Tehran and other Iranian cities including Iran's holiest, that is, most conservative cities like Mashad. there are taxi companies owned and run by women.

http://www.huffingtonpost.com/turnstyle/iranian-women-take-the-wh_b_879041.html

Tehran traffic makes NYC look like Mayberry RFD; many Iranians use small motorcycles to commute and take care of daily chores. It's not at all uncommon to see an Iranian woman in full chador driving a motorcycle with a child and parcels in tow.

Iranian women could offer to teach the women of Saudi Arabia to drive.

What could Saudi women teach Iranian women?

NoseytheDuke, July 11, 2017 at 2:08 pm GMT

@Wizard of Oz I am beginning to get interested in why some people are sure 9/11 was a false flag affair covered up by a lot of lies. So may I try my opening question on you. How much, if any of it, have you read of the official 9/11 commission report? A better question: Have YOU read The Commission: The Uncensored History of the 9/11 Investigation by Phillip Shenon?

siberiancat, July 11, 2017 at 2:08 pm GMT

Why is is so difficult to avoid this ugly term 'regime'? Does it really add anything to the discourse?
anonymous, July 11, 2017 at 2:33 pm GMT
There's no alternative to Saudi royal family rule of the peninsula. Who's there to replace them? Any other group, assuming there might be one somewhere waiting in the wings, would probably be anti-American and not as compliant as the Saudis. They've spent gigantic sums in the endless billions buying military equipment from the US, weapons they can't even fully use, as a way of making themselves indispensable customers. Many other billions of petrodollars find their way westward into our financial systems. They collaborate with the US in various schemes throughout the Muslim world using their intelligence services and money in furtherance of US goals.

They live the royal life thanks to being able to use the money from their nation's resource wealth as their own personal kitty, living in palaces, buying obscene amounts of jewelry and other luxury goods, and so on. They'll never give that up and being a close ally of the US affords them protection which of course they pay for. They may be seen as an enemy by the average person but not at the elite level with whom they all consort and roll around in the money with.

LondonBob, July 11, 2017 at 2:39 pm GMT
http://mihsislander.org/2017/06/full-transcript-james-mattis-interview/

Mattis still seems stuck with his Iran obsession. Shame I thought he had the intellectual curiosity to adapt. Trump has good instincts, I hope Tillerson comes to the fore, and Bannon stays influential.

Don Bacon, July 11, 2017 at 3:02 pm GMT
Iran is US enemy #1 not only because it is against that country smaller than New Jersey with less people (Israel) but also because Iran has been a model for other countries to follow because of its intransigence to US oppression and attacks, financial political and cyber. As the world becomes multi-polar, Iran's repeated wise reactions to the world hegemon have been an inspiration to China and others to go their own way. The US can't stand that.
Corvinus, July 11, 2017 at 3:28 pm GMT
@Paul Well, the real enemy of the people are the real terrorists behind the scenes. Those who planned the 9/11 false flag. Those who sent the Anthrax letters to resisting congress members. Those who pre-planned the wars of aggression in the whole middle east.

So any appeal to the "White House" is almost pointless since the White House is one element of the power structure captured by the war-criminal lunatics.

To change something people in the US should at first stop buying their war criminal lying mass media.

Then they should stop supporting ANY foreign intervention by the US and should stop believing any of the preposterous lies released by the media, the state dept., or any other neocon outlet.

Actually Trump was probably elected because he said he was anti-intervention and anti-media. But did it help?

The US needs mass resistance (demonstrations, strikes, boycotts, non-participation, sit-ins, grass-root information, or whatever) against their neocon/zionist/mafia/cia power groups or nothing will change.

We need demonstrations against NATO, against war, against false flag terrorism, against using terrorists as secret armies, against war propaganda!

B.t.w. Iran has always been one of the main goals. Think of it: Why did the US attack Afghanistan and Iraq? What have those two countries in common? (Hint: a look on the map helps to answer this question.) "Well, the real enemy of the people are the real terrorists behind the scenes. Those who planned the 9/11 false flag."

Adjust tin foil hat accordingly.


Father O'Hara, July 11, 2017 at 3:59 pm GMT
@Jake The title of the article tells it all.

Saudi Arabia is THE worst nation in the Middle East.

Why does the US follow along blindly? Well, it is a WASP thing. We are the new Brit Empire. By the height of the Victorian era, virtually all English Elites were philoSemitic. Roughly half of the UK WASP Elite philoSemitism was pro-Jewish and half was pro-Arabic/Islamic.

And by the time of WW1, the English Elite pro-Arabic/Islamic faction came to adore the house of Saud.

So, our foreign policy is merely WASP culture continuing to ruin most of the rest of the world, including all the whites ruled by WASP Elites. SECOND worst,my friend.

Jake, July 11, 2017 at 4:23 pm GMT
@Chad I fully agree that attacking Iran would be yet another disaster but I don't understand why Saudi Arabia is portrayed as an 'enemy', the 'real' one, no less, in alt-media circles like this.

I mean let's be honest with ourselves. KSA is the definition of a vassal state. Has been so since the state established established relations with the USA in the 1940s and the status was confirmed during the 1960s under King Faisal. Oil for security.

Why pretend that they have any operational clearance from the US?

Contrary to the popular view, Wahabism is necessary to keep the local population under control. Particularly the minority Shia population who live along the eastern coast, an area, which incidentally also has the all the oil reserves. USA fully understands this. Which is why they not only tolerated Wahabism, but strongly promoted it during Afghan jihad. The operation was by and large very successful btw. It was only during the '90s when religion became the new ideology for the resistance against the empire across the Muslim world. Zero surprise there because the preceding ideology, radical left wing politics was completely defeated. Iran became the first country in this pattern. The Iranian left was decimated by the Shah, another vassal. So the religious right became the new resistance.

And as far as the KSA is considered, Wahabi preachers aren't allowed to attack the USA anyway. If any individual preacher so much as makes a squeak, he will be bent over a barrel. There won't be any "coming down very hard on Saudi Arabia" because USA already owns that country.

So what's the answer? Well, props to Phillip as he understood - "it would also require some serious thinking in the White House about the extent to which America's armed interventions all over Asia and Africa have made many people hate us enough to strap on a suicide vest and have a go."

Bingo. Your analysis starts too late. The US supports Wahhabism and the House of Saud because the pro-Arabic/Islamic English Elites of 1910 and 1920 and 1935 supported Wahhabism and the House of Saud.

The British Empire 'made' the House of Saud. Thinking it wise to use Wahhabism to control Shia Islam is like thinking it wise to use blacks to control the criminal tendencies of Mexicans.

Durruti, July 11, 2017 at 4:25 pm GMT

1,000 Words @RobinG #UNRIG adds AMERICA FIRST, NOT ISRAEL to Agenda.
..................."A.I.P.A.C.. you're outta business!"

Due to slanderous attacks by a Mossad internet psy-op, Steele now prioritizes Israeli malign influence on US. Also, check out Cynthia McKinney's twitter.

https://www.youtube.com/watch?v=zxcnaNND4XM

#UNRIG - Robert David Steele Weekly Update Nice action approach to cure ills of society.

Enclosing copy of flier we have distributed – with a similar approach at a cure.

*Flier distributed is adjusted & a bit more attractive (1 sheet – both sides).

The key is to Restore the Republic, which was definitively destroyed on November 22, 1963.

Feel free to contact.

Use this, or send me a note by way of a response.

For THE RESTORATION OF THE REPUBLIC

"We hold these truths to be self-evident: that all men are created equal governments are instituted among men, deriving their just powers from the consent of the governed; that whenever any form of government becomes destructive of these ends, it is the right of the people to alter or abolish it and to institute new government, laying its foundation on such principles "

The above is a portion of the Declaration of Independence, written by Thomas Jefferson.

We submit the following facts to the citizens of the United States.

The government of the United States has been a Totalitarian Oligarchy since the military financial aristocracy destroyed the Democratic Republic on November 22, 1963 , when they assassinated the last democratically elected president, John Fitzgerald Kennedy , and overthrew his government. All following governments have been unconstitutional frauds. Attempts by Robert Kennedy and Martin Luther King to restore the Republic were interrupted by their murder.

A subsequent 12 year colonial war against Vietnam , conducted by the murderers of Kennedy, left 2 million dead in a wake of napalm and burning villages.

In 1965, the U.S. government orchestrated the slaughter of 1 million unarmed Indonesian civilians.

In the decade that followed the CIA murdered 100,000 Native Americans in Guatemala .

In the 1970s, the Oligarchy began the destruction and looting of America's middle class, by encouraging the export of industry and jobs to parts of the world where workers were paid bare subsistence wages. The 2008, Bailout of the Nation's Oligarchs cost American taxpayers $13trillion. The long decline of the local economy has led to the political decline of our hard working citizens, as well as the decay of cities, towns, and infrastructure, such as education.

The impoverishment of America's middle class has undermined the nation's financial stability. Without a productive foundation, the government has accumulated a huge debt in excess of $19trillion. This debt will have to be paid, or suffered by future generations. Concurrently, the top 1% of the nation's population has benefited enormously from the discomfiture of the rest. The interest rate has been reduced to 0, thereby slowly robbing millions of depositors of their savings, as their savings cannot stay even with the inflation rate.

The government spends the declining national wealth on bloody and never ending military adventures, and is or has recently conducted unconstitutional wars against 9 nations. The Oligarchs maintain 700 military bases in 131 countries; they spend as much on military weapons of terror as the rest of the nations of the world combined. Tellingly, more than half the government budget is spent on the military and 16 associated secret agencies.

The nightmare of a powerful centralized government crushing the rights of the people, so feared by the Founders of the United States, has become a reality. The government of Obama/Biden, as with previous administrations such as Bush/Cheney, and whoever is chosen in November 2016, operates a Gulag of dozens of concentration camps, where prisoners are denied trials, and routinely tortured. The Patriot Act and The National Defense Authorizations Act , enacted by both Democratic and Republican factions of the oligarchy, serve to establish a legal cover for their terror.

The nation's media is controlled, and, with the school systems, serve to brainwash the population; the people are intimidated and treated with contempt.

The United States is No longer Sovereign

The United States is no longer a sovereign nation. Its government, The Executive, and Congress, is bought, utterly owned and controlled by foreign and domestic wealthy Oligarchs, such as the Rothschilds, Rockefellers, and Duponts , to name only a few of the best known.

The 2016 Electoral Circus will anoint new actors to occupy the same Unconstitutional Government, with its controlling International Oligarchs. Clinton, Trump, whomever, are willing accomplices for imperialist international murder, and destruction of nations, including ours.

For Love of Country

The Restoration of the Republic will be a Revolutionary Act, that will cancel all previous debts owed to that unconstitutional regime and its business supporters. All debts, including Student Debts, will be canceled. Our citizens will begin, anew, with a clean slate.

As American Founder , Thomas Jefferson wrote, in a letter to James Madison:

"I set out on this ground, which I suppose to be self evident, 'that the earth belongs in usufruct to the living':"

"Then I say the earth belongs to each of these generations, during it's course, fully, and in their own right. The 2d. Generation receives it clear of the debts and incumberances of the 1st. The 3d of the 2d. and so on. For if the 1st. Could charge it with a debt, then the earth would belong to the dead and not the living generation."

Our Citizens must restore the centrality of the constitution, establishing a less powerful government which will ensure President Franklin Roosevelt's Four Freedoms , freedom of speech and expression, freedom to worship God in ones own way, freedom from want "which means economic understandings which will secure to every nation a healthy peace time life for its inhabitants " and freedom from fear "which means a world-wide reduction of armaments "

Once restored: The Constitution will become, once again, the law of the land and of a free people. We will establish a government, hold elections, begin to direct traffic, arrest criminal politicians of the tyrannical oligarchy, and, in short, repair the damage of the previous totalitarian governments.

For the Democratic Republic!
Sons and Daughters of Liberty
florent.defeu@yahoo.com

SolontoCroesus, July 11, 2017 at 4:28 pm GMT

Scholars at Mercatus Center, George Mason Univ. https://www.mercatus.org/statefiscalrankings

are studying US states and ranking them according to financial stability measures. The states with biggest problems -- Illinois, California, New Jersey, Connecticut -- are in the mess they are in largely because of pension liability issues: some pensions are unfunded or underfunded.

I recall that ten years ago about a dozen Jewish organizations formed the "Iran Task Force," ** whose primary activity was to persuade managers of State pension funds to divest from Iran-connected companies; that is, corporations & banks, etc. that did business with Iran. I recall very clearly that Arnold Schwartznegger was the poster child for California's vanguard role in divesting from such nasty nasty companies, in accord with the wishes of Jewish Israel-firsters.

Perhaps the Mercatus scholars could prepare an exercise in alternative financial history: What shape would the US economy, and the various States's economies, be in if the US were NOT so overwhelmingly influenced by Israel firsters, and were NOT persuaded, Against Our Better Judgment, to entangle themselves in Israel's nefarious activities?

____
** The 2007 Iran Task Force is NOT the same as the group formed in 2015 or so, embedded in US House/Senate, with Joe Lieberman and Michael Hayden playing prominent roles in attempting to influence the Iran Deal.

The 2007 initiative was sponsored by groups such as ZOA, RJC, AIPAC, etc., and / or spun off groups such as Foundation for Defense of Democracy, United Against Nuclear Iran.

[Dec 15, 2017] Rise and Decline of the Welfare State, by James Petras

Highly recommended!
Petras did not mention that it was Carter who started neoliberalization of the USA. The subsequent election of Reagan signified the victory of neoliberalism in this country or "quite coup". The death of New Deal from this point was just a matter of time. Labor relations drastically changes and war on union and atomization of workforce are a norm.
Welfare state still exists but only for corporation and MIC. Otherwise the New Deal society is almost completely dismanted.
It is true that "The ' New Deal' was, at best, a de facto ' historical compromise' between the capitalist class and the labor unions, mediated by the Democratic Party elite. It was a temporary pact in which the unions secured legal recognition while the capitalists retained their executive prerogatives." But the key factor in this compromise was the existence of the USSR as a threat to the power of capitalists in the USA. when the USSR disappeared cannibalistic instincts of the US elite prevailed over caution.
Notable quotes:
"... The earlier welfare 'reforms' and the current anti-welfare legislation and austerity practices have been accompanied by a series of endless imperial wars, especially in the Middle East. ..."
"... In the 1940's through the 1960's, world and regional wars (Korea and Indo-China) were combined with significant welfare program – a form of ' social imperialism' , which 'buy off' the working class while expanding the empire. However, recent decades are characterized by multiple regional wars and the reduction or elimination of welfare programs – and a massive growth in poverty, domestic insecurity and poor health. ..."
"... modern welfare state' ..."
"... Labor unions were organized as working class strikes and progressive legislation facilitated trade union organization, elections, collective bargaining rights and a steady increase in union membership. Improved work conditions, rising wages, pension plans and benefits, employer or union-provided health care and protective legislation improved the standard of living for the working class and provided for 2 generations of upward mobility. ..."
"... Social Security legislation was approved along with workers' compensation and the forty-hour workweek. Jobs were created through federal programs (WPA, CCC, etc.). Protectionist legislation facilitated the growth of domestic markets for US manufacturers. Workplace shop steward councils organized 'on the spot' job action to protect safe working conditions. ..."
"... World War II led to full employment and increases in union membership, as well as legislation restricting workers' collective bargaining rights and enforcing wage freezes. Hundreds of thousands of Americans found jobs in the war economy but a huge number were also killed or wounded in the war. ..."
"... So-called ' right to work' ..."
"... Trade union officials signed pacts with capital: higher pay for the workers and greater control of the workplace for the bosses. Trade union officials joined management in repressing rank and file movements seeking to control technological changes by reducing hours (" thirty hours work for forty hours pay ..."
"... Trade union activists, community organizers for rent control and other grassroots movements lost both the capacity and the will to advance toward large-scale structural changes of US capitalism. Living standards improved for a few decades but the capitalist class consolidated strategic control over labor relations. While unionized workers' incomes, increased, inequalities, especially in the non-union sectors began to grow. With the end of the GI bill, veterans' access to high-quality subsidized education declined ..."
"... With the election of President Carter, social welfare in the US began its long decline. The next series of regional wars were accompanied by even greater attacks on welfare via the " Volker Plan " – freezing workers' wages as a means to combat inflation. ..."
"... Guns without butter' became the legislative policy of the Carter and Reagan Administrations. The welfare programs were based on politically fragile foundations. ..."
"... The anti-labor offensive from the ' Oval Office' intensified under President Reagan with his direct intervention firing tens of thousands of striking air controllers and arresting union leaders. Under Presidents Carter, Reagan, George H.W. Bush and William Clinton cost of living adjustments failed to keep up with prices of vital goods and services. Health care inflation was astronomical. Financial deregulation led to the subordination of American industry to finance and the Wall Street banks. De-industrialization, capital flight and massive tax evasion reduced labor's share of national income. ..."
"... The capitalist class followed a trajectory of decline, recovery and ascendance. Moreover, during the earlier world depression, at the height of labor mobilization and organization, the capitalist class never faced any significant political threat over its control of the commanding heights of the economy ..."
"... Hand in bloody glove' with the US Empire, the American trade unions planted the seeds of their own destruction at home. The local capitalists in newly emerging independent nations established industries and supply chains in cooperation with US manufacturers. Attracted to these sources of low-wage, violently repressed workers, US capitalists subsequently relocated their factories overseas and turned their backs on labor at home. ..."
"... President 'Bill' Clinton ravaged Russia, Yugoslavia, Iraq and Somalia and liberated Wall Street. His regime gave birth to the prototype billionaire swindlers: Michael Milken and Bernard 'Bernie' Madoff. ..."
"... Clinton converted welfare into cheap labor 'workfare', exploiting the poorest and most vulnerable and condemning the next generations to grinding poverty. Under Clinton the prison population of mostly African Americans expanded and the breakup of families ravaged the urban communities. ..."
"... President Obama transferred 2 trillion dollars to the ten biggest bankers and swindlers on Wall Street, and another trillion to the Pentagon to pursue the Democrats version of foreign policy: from Bush's two overseas wars to Obama's seven. ..."
"... Obama was elected to two terms. His liberal Democratic Party supporters swooned over his peace and justice rhetoric while swallowing his militarist escalation into seven overseas wars as well as the foreclosure of two million American householders. Obama completely failed to honor his campaign promise to reduce wage inequality between black and white wage earners while he continued to moralize to black families about ' values' . ..."
"... Obama's war against Libya led to the killing and displacement of millions of black Libyans and workers from Sub-Saharan Africa. The smiling Nobel Peace Prize President created more desperate refugees than any previous US head of state – including millions of Africans flooding Europe. ..."
"... Forty-years of anti welfare legislation and pro-business regimes paved the golden road for the election of Donald Trump ..."
"... Trump and the Republicans are focusing on the tattered remnants of the social welfare system: Medicare, Medicaid, Social Security. The remains of FDR's New Deal and LBJ's Great Society -- are on the chopping block. ..."
"... The moribund (but well-paid) labor leadership has been notable by its absence in the ensuing collapse of the social welfare state. The liberal left Democrats embraced the platitudinous Obama/Clinton team as the 'Great Society's' gravediggers, while wailing at Trump's allies for shoving the corpse of welfare state into its grave. ..."
"... Over the past forty years the working class and the rump of what was once referred to as the ' labor movement' has contributed to the dismantling of the social welfare state, voting for ' strike-breaker' Reagan, ' workfare' Clinton, ' Wall Street crash' Bush, ' Wall Street savior' Obama and ' Trickle-down' Trump. ..."
"... Gone are the days when social welfare and profitable wars raised US living standards and transformed American trade unions into an appendage of the Democratic Party and a handmaiden of Empire. The Democratic Party rescued capitalism from its collapse in the Great Depression, incorporated labor into the war economy and the post- colonial global empire, and resurrected Wall Street from the 'Great Financial Meltdown' of the 21 st century. ..."
"... The war economy no longer fuels social welfare. The military-industrial complex has found new partners on Wall Street and among the globalized multi-national corporations. Profits rise while wages fall. Low paying compulsive labor (workfare) lopped off state transfers to the poor. Technology – IT, robotics, artificial intelligence and electronic gadgets – has created the most class polarized social system in history ..."
"... "The collaboration of liberals and unions in promoting endless wars opened the door to Trump's mirage of a stateless, tax-less, ruling class." ..."
"... Corporations [now] are welfare recipients and the bigger they are, the more handouts they suck up ..."
"... Corporations not only continuously seek monopolies (with the aid and sanction of the state) but they steadily fine tune the welfare state for their benefit. In fact, in reality, welfare for prols and peasants wouldn't exist if it didn't act as a money conduit and ultimate profit center for the big money grubbers. ..."
"... The article is dismal reading, and evidence of the failings of the "unregulated" society, where the anything goes as long as you are wealthy. ..."
"... Like the Pentagon. Americans still don't readily call this welfare, but they will eventually. Defense profiteers are unions in a sense, you're either in their club Or you're in the service industry that surrounds it. ..."
Dec 13, 2017 | www.unz.com

Introduction

The American welfare state was created in 1935 and continued to develop through 1973. Since then, over a prolonged period, the capitalist class has been steadily dismantling the entire welfare state.

Between the mid 1970's to the present (2017) labor laws, welfare rights and benefits and the construction of and subsidies for affordable housing have been gutted. ' Workfare' (under President 'Bill' Clinton) ended welfare for the poor and displaced workers. Meanwhile the shift to regressive taxation and the steadily declining real wages have increased corporate profits to an astronomical degree.

What started as incremental reversals during the 1990's under Clinton has snowballed over the last two decades decimating welfare legislation and institutions.

The earlier welfare 'reforms' and the current anti-welfare legislation and austerity practices have been accompanied by a series of endless imperial wars, especially in the Middle East.

In the 1940's through the 1960's, world and regional wars (Korea and Indo-China) were combined with significant welfare program – a form of ' social imperialism' , which 'buy off' the working class while expanding the empire. However, recent decades are characterized by multiple regional wars and the reduction or elimination of welfare programs – and a massive growth in poverty, domestic insecurity and poor health.

New Deals and Big Wars

The 1930's witnessed the advent of social legislation and action, which laid the foundations of what is called the ' modern welfare state' .

Labor unions were organized as working class strikes and progressive legislation facilitated trade union organization, elections, collective bargaining rights and a steady increase in union membership. Improved work conditions, rising wages, pension plans and benefits, employer or union-provided health care and protective legislation improved the standard of living for the working class and provided for 2 generations of upward mobility.

Social Security legislation was approved along with workers' compensation and the forty-hour workweek. Jobs were created through federal programs (WPA, CCC, etc.). Protectionist legislation facilitated the growth of domestic markets for US manufacturers. Workplace shop steward councils organized 'on the spot' job action to protect safe working conditions.

World War II led to full employment and increases in union membership, as well as legislation restricting workers' collective bargaining rights and enforcing wage freezes. Hundreds of thousands of Americans found jobs in the war economy but a huge number were also killed or wounded in the war.

The post-war period witnessed a contradictory process: wages and salaries increased while legislation curtailed union rights via the Taft Hartley Act and the McCarthyist purge of leftwing trade union activists. So-called ' right to work' laws effectively outlawed unionization mostly in southern states, which drove industries to relocate to the anti-union states.

Welfare reforms, in the form of the GI bill, provided educational opportunities for working class and rural veterans, while federal-subsidized low interest mortgages encourage home-ownership, especially for veterans.

The New Deal created concrete improvements but did not consolidate labor influence at any level. Capitalists and management still retained control over capital, the workplace and plant location of production.

Trade union officials signed pacts with capital: higher pay for the workers and greater control of the workplace for the bosses. Trade union officials joined management in repressing rank and file movements seeking to control technological changes by reducing hours (" thirty hours work for forty hours pay "). Dissident local unions were seized and gutted by the trade union bosses – sometimes through violence.

Trade union activists, community organizers for rent control and other grassroots movements lost both the capacity and the will to advance toward large-scale structural changes of US capitalism. Living standards improved for a few decades but the capitalist class consolidated strategic control over labor relations. While unionized workers' incomes, increased, inequalities, especially in the non-union sectors began to grow. With the end of the GI bill, veterans' access to high-quality subsidized education declined.

While a new wave of social welfare legislation and programs began in the 1960's and early 1970's it was no longer a result of a mass trade union or workers' "class struggle". Moreover, trade union collaboration with the capitalist regional war policies led to the killing and maiming of hundreds of thousands of workers in two wars – the Korean and Vietnamese wars.

Much of social legislation resulted from the civil and welfare rights movements. While specific programs were helpful, none of them addressed structural racism and poverty.

The Last Wave of Social Welfarism

The 1960'a witnessed the greatest racial war in modern US history: Mass movements in the South and North rocked state and federal governments, while advancing the cause of civil, social and political rights. Millions of black citizens, joined by white activists and, in many cases, led by African American Viet Nam War veterans, confronted the state. At the same time, millions of students and young workers, threatened by military conscription, challenged the military and social order.

Energized by mass movements, a new wave of social welfare legislation was launched by the federal government to pacify mass opposition among blacks, students, community organizers and middle class Americans. Despite this mass popular movement, the union bosses at the AFL-CIO openly supported the war, police repression and the military, or at best, were passive impotent spectators of the drama unfolding in the nation's streets. Dissident union members and activists were the exception, as many had multiple identities to represent: African American, Hispanic, draft resisters, etc.

Under Presidents Lyndon Johnson and Richard Nixon, Medicare, Medicaid, OSHA, the EPA and multiple poverty programs were implemented. A national health program, expanding Medicare for all Americans, was introduced by President Nixon and sabotaged by the Kennedy Democrats and the AFL-CIO. Overall, social and economic inequalities diminished during this period.

The Vietnam War ended in defeat for the American militarist empire. This coincided with the beginning of the end of social welfare as we knew it – as the bill for militarism placed even greater demands on the public treasury.

With the election of President Carter, social welfare in the US began its long decline. The next series of regional wars were accompanied by even greater attacks on welfare via the " Volker Plan " – freezing workers' wages as a means to combat inflation.

Guns without butter' became the legislative policy of the Carter and Reagan Administrations. The welfare programs were based on politically fragile foundations.

The Debacle of Welfarism

Private sector trade union membership declined from a post-world war peak of 30% falling to 12% in the 1990's. Today it has sunk to 7%. Capitalists embarked on a massive program of closing thousands of factories in the unionized North which were then relocated to the non-unionized low wage southern states and then overseas to Mexico and Asia. Millions of stable jobs disappeared.

Following the election of 'Jimmy Carter', neither Democratic nor Republican Presidents felt any need to support labor organizations. On the contrary, they facilitated contracts dictated by management, which reduced wages, job security, benefits and social welfare.

The anti-labor offensive from the ' Oval Office' intensified under President Reagan with his direct intervention firing tens of thousands of striking air controllers and arresting union leaders. Under Presidents Carter, Reagan, George H.W. Bush and William Clinton cost of living adjustments failed to keep up with prices of vital goods and services. Health care inflation was astronomical. Financial deregulation led to the subordination of American industry to finance and the Wall Street banks. De-industrialization, capital flight and massive tax evasion reduced labor's share of national income.

The capitalist class followed a trajectory of decline, recovery and ascendance. Moreover, during the earlier world depression, at the height of labor mobilization and organization, the capitalist class never faced any significant political threat over its control of the commanding heights of the economy.

The ' New Deal' was, at best, a de facto ' historical compromise' between the capitalist class and the labor unions, mediated by the Democratic Party elite. It was a temporary pact in which the unions secured legal recognition while the capitalists retained their executive prerogatives.

The Second World War secured the economic recovery for capital and subordinated labor through a federally mandated no strike production agreement. There were a few notable exceptions: The coal miners' union organized strikes in strategic sectors and some leftist leaders and organizers encouraged slow-downs, work to rule and other in-plant actions when employers ran roughshod with special brutality over the workers. The recovery of capital was the prelude to a post-war offensive against independent labor-based political organizations. The quality of labor organization declined even as the quantity of trade union membership increased.

Labor union officials consolidated internal control in collaboration with the capitalist elite. Capitalist class-labor official collaboration was extended overseas with strategic consequences.

The post-war corporate alliance between the state and capital led to a global offensive – the replacement of European-Japanese colonial control and exploitation by US business and bankers. Imperialism was later 're-branded' as ' globalization' . It pried open markets, secured cheap docile labor and pillaged resources for US manufacturers and importers.

US labor unions played a major role by sabotaging militant unions abroad in cooperation with the US security apparatus: They worked to coopt and bribe nationalist and leftist labor leaders and supported police-state regime repression and assassination of recalcitrant militants.

' Hand in bloody glove' with the US Empire, the American trade unions planted the seeds of their own destruction at home. The local capitalists in newly emerging independent nations established industries and supply chains in cooperation with US manufacturers. Attracted to these sources of low-wage, violently repressed workers, US capitalists subsequently relocated their factories overseas and turned their backs on labor at home.

Labor union officials had laid the groundwork for the demise of stable jobs and social benefits for American workers. Their collaboration increased the rate of capitalist profit and overall power in the political system. Their complicity in the brutal purges of militants, activists and leftist union members and leaders at home and abroad put an end to labor's capacity to sustain and expand the welfare state.

Trade unions in the US did not use their collaboration with empire in its bloody regional wars to win social benefits for the rank and file workers. The time of social-imperialism, where workers within the empire benefited from imperialism's pillage, was over. Gains in social welfare henceforth could result only from mass struggles led by the urban poor, especially Afro-Americans, community-based working poor and militant youth organizers.

The last significant social welfare reforms were implemented in the early 1970's – coinciding with the end of the Vietnam War (and victory for the Vietnamese people) and ended with the absorption of the urban and anti-war movements into the Democratic Party.

Henceforward the US corporate state advanced through the overseas expansion of the multi-national corporations and via large-scale, non-unionized production at home.

The technological changes of this period did not benefit labor. The belief, common in the 1950's, that science and technology would increase leisure, decrease work and improve living standards for the working class, was shattered. Instead technological changes displaced well-paid industrial labor while increasing the number of mind-numbing, poorly paid, and politically impotent jobs in the so-called 'service sector' – a rapidly growing section of unorganized and vulnerable workers – especially including women and minorities.

Labor union membership declined precipitously. The demise of the USSR and China's turn to capitalism had a dual effect: It eliminated collectivist (socialist) pressure for social welfare and opened their labor markets with cheap, disciplined workers for foreign manufacturers. Labor as a political force disappeared on every count. The US Federal Reserve and President 'Bill' Clinton deregulated financial capital leading to a frenzy of speculation. Congress wrote laws, which permitted overseas tax evasion – especially in Caribbean tax havens. Regional free-trade agreements, like NAFTA, spurred the relocation of jobs abroad. De-industrialization accompanied the decline of wages, living standards and social benefits for millions of American workers.

The New Abolitionists: Trillionaires

The New Deal, the Great Society, trade unions, and the anti-war and urban movements were in retreat and primed for abolition.

Wars without welfare (or guns without butter) replaced earlier 'social imperialism' with a huge growth of poverty and homelessness. Domestic labor was now exploited to finance overseas wars not vice versa. The fruits of imperial plunder were not shared.

As the working and middle classes drifted downward, they were used up, abandoned and deceived on all sides – especially by the Democratic Party. They elected militarists and demagogues as their new presidents.

President 'Bill' Clinton ravaged Russia, Yugoslavia, Iraq and Somalia and liberated Wall Street. His regime gave birth to the prototype billionaire swindlers: Michael Milken and Bernard 'Bernie' Madoff.

Clinton converted welfare into cheap labor 'workfare', exploiting the poorest and most vulnerable and condemning the next generations to grinding poverty. Under Clinton the prison population of mostly African Americans expanded and the breakup of families ravaged the urban communities.

Provoked by an act of terrorism (9/11) President G.W. Bush Jr. launched the 'endless' wars in Afghanistan and Iraq and deepened the police state (Patriot Act). Wages for American workers and profits for American capitalist moved in opposite directions.

The Great Financial Crash of 2008-2011 shook the paper economy to its roots and led to the greatest shakedown of any national treasury in history directed by the First Black American President. Trillions of public wealth were funneled into the criminal banks on Wall Street – which were ' just too big to fail .' Millions of American workers and homeowners, however, were ' just too small to matter' .

The Age of Demagogues

President Obama transferred 2 trillion dollars to the ten biggest bankers and swindlers on Wall Street, and another trillion to the Pentagon to pursue the Democrats version of foreign policy: from Bush's two overseas wars to Obama's seven.

Obama's electoral 'donor-owners' stashed away two trillion dollars in overseas tax havens and looked forward to global free trade pacts – pushed by the eloquent African American President.

Obama was elected to two terms. His liberal Democratic Party supporters swooned over his peace and justice rhetoric while swallowing his militarist escalation into seven overseas wars as well as the foreclosure of two million American householders. Obama completely failed to honor his campaign promise to reduce wage inequality between black and white wage earners while he continued to moralize to black families about ' values' .

Obama's war against Libya led to the killing and displacement of millions of black Libyans and workers from Sub-Saharan Africa. The smiling Nobel Peace Prize President created more desperate refugees than any previous US head of state – including millions of Africans flooding Europe.

'Obamacare' , his imitation of an earlier Republican governor's health plan, was formulated by the private corporate health industry (private insurance, Big Pharma and the for-profit hospitals), to mandate enrollment and ensure triple digit profits with double digit increases in premiums. By the 2016 Presidential elections, ' Obama-care' was opposed by a 45%-43% margin of the American people. Obama's propagandists could not show any improvement of life expectancy or decrease in infant and maternal mortality as a result of his 'health care reform'. Indeed the opposite occurred among the marginalized working class in the old 'rust belt' and in the rural areas. This failure to show any significant health improvement for the masses of Americans is in stark contrast to LBJ's Medicare program of the 1960's, which continues to receive massive popular support.

Forty-years of anti welfare legislation and pro-business regimes paved the golden road for the election of Donald Trump

Trump and the Republicans are focusing on the tattered remnants of the social welfare system: Medicare, Medicaid, Social Security. The remains of FDR's New Deal and LBJ's Great Society -- are on the chopping block.

The moribund (but well-paid) labor leadership has been notable by its absence in the ensuing collapse of the social welfare state. The liberal left Democrats embraced the platitudinous Obama/Clinton team as the 'Great Society's' gravediggers, while wailing at Trump's allies for shoving the corpse of welfare state into its grave.

Conclusion

Over the past forty years the working class and the rump of what was once referred to as the ' labor movement' has contributed to the dismantling of the social welfare state, voting for ' strike-breaker' Reagan, ' workfare' Clinton, ' Wall Street crash' Bush, ' Wall Street savior' Obama and ' Trickle-down' Trump.

Gone are the days when social welfare and profitable wars raised US living standards and transformed American trade unions into an appendage of the Democratic Party and a handmaiden of Empire. The Democratic Party rescued capitalism from its collapse in the Great Depression, incorporated labor into the war economy and the post- colonial global empire, and resurrected Wall Street from the 'Great Financial Meltdown' of the 21 st century.

The war economy no longer fuels social welfare. The military-industrial complex has found new partners on Wall Street and among the globalized multi-national corporations. Profits rise while wages fall. Low paying compulsive labor (workfare) lopped off state transfers to the poor. Technology – IT, robotics, artificial intelligence and electronic gadgets – has created the most class polarized social system in history. The first trillionaire and multi-billionaire tax evaders rose on the backs of a miserable standing army of tens of millions of low-wage workers, stripped of rights and representation. State subsidies eliminate virtually all risk to capital. The end of social welfare coerced labor (including young mother with children) to seek insecure low-income employment while slashing education and health – cementing the feet of generations into poverty. Regional wars abroad have depleted the Treasury and robbed the country of productive investment. Economic imperialism exports profits, reversing the historic relation of the past.

Labor is left without compass or direction; it flails in all directions and falls deeper in the web of deception and demagogy. To escape from Reagan and the strike breakers, labor embraced the cheap-labor predator Clinton; black and white workers united to elect Obama who expelled millions of immigrant workers, pursued 7 wars, abandoned black workers and enriched the already filthy rich. Deception and demagogy of the labor-

Issac , December 11, 2017 at 11:01 pm GMT

"The military-industrial complex has found new partners on Wall Street and among the globalized multi-national corporations."

"The collaboration of liberals and unions in promoting endless wars opened the door to Trump's mirage of a stateless, tax-less, ruling class."

A mirage so real, it even has you convinced.

whyamihere , December 12, 2017 at 4:24 am GMT
If the welfare state in America was abolished, major American cities would burn to the ground. Anarchy would ensue, it would be magnitudes bigger than anything that happened in Ferguson or Baltimore. It would likely be simultaneous.

I think that's one of the only situations where preppers would actually live out what they've been prepping for (except for a natural disaster).

I've been thinking about this a little over the past few years after seeing the race riots. What exactly is the line between our society being civilized and breaking out into chaos. It's probably a lot thinner than most people think.

I don't know who said it but someone long ago said something along the lines of, "Democracy can only work until the people figure out they can vote for themselves generous benefits from the public treasury." We are definitely in this situation today. I wonder how long it can last.

Disordered , December 13, 2017 at 8:41 am GMT
While I agree with Petras's intent (notwithstanding several exaggerations and unnecessary conflations with, for example, racism), I don't agree so much with the method he proposes. I don't mind welfare and unions to a certain extent, but they are not going to save us unless there is full employment and large corporations that can afford to pay an all-union workforce. That happened during WW2, as only wartime demand and those pesky wage freezes solved the Depression, regardless of all the public works programs; while the postwar era benefited from the US becoming the world's creditor, meaning that capital could expand while labor participation did as well.

From then on, it is quite hard to achieve the same success after outsourcing and mechanization have happened all over the world. Both of these phenomena not only create displaced workers, but also displaced industries, meaning that it makes more sense to develop individual workfare (and even then, do it well, not the shoddy way it is done now) rather than giving away checks that probably will not be cashed for entrepreneurial purposes, and rather than giving away money to corrupt unions who depend on trusts to be able to pay for their benefits, while raising the cost of hiring that only encourages more outsourcing.

The amount of welfare given is not necessarily the main problem, the problem is doing it right for the people who truly need it, and efficiently – that is, with the least amount of waste lost between the chain of distribution, which should reach intended targets and not moochers.

Which inevitably means a sound tax system that targets unearned wealth and (to a lesser degree) foreign competition instead of national production, coupled with strict, yet devolved and simple government processes that benefit both business and individuals tired of bureaucracy, while keeping budgets balanced. Best of both worlds, and no military-industrial complex needed to drive up demand.

Wally , Website December 13, 2017 at 8:57 am GMT
"President Obama transferred 2 trillion dollars to the ten biggest bankers and swindlers on Wall Street " That's twice the amount that Bush gave them.
jacques sheete , December 13, 2017 at 10:52 am GMT

The American welfare state was created in 1935 and continued to develop through 1973. Since then, over a prolonged period, the capitalist class has been steadily dismantling the entire welfare state.

Wrong wrong wrong.

Corporations [now] are welfare recipients and the bigger they are, the more handouts they suck up, and welfare for them started before 1935. In fact, it started in America before there was a USA. I do not have time to elaborate, but what were the various companies such as the British East India Company and the Dutch West India Companies but state pampered, welfare based entities? ~200 years ago, Herbert Spencer, if memory serves, pointed out that the British East India Company couldn't make a profit even with all the special, government granted favors showered upon it.

Corporations not only continuously seek monopolies (with the aid and sanction of the state) but they steadily fine tune the welfare state for their benefit. In fact, in reality, welfare for prols and peasants wouldn't exist if it didn't act as a money conduit and ultimate profit center for the big money grubbers.

Den Lille Abe , December 13, 2017 at 11:09 am GMT
Well, the author kind of nails it. I remember from my childhood in the 50-60 ties in Scandinavia that the US was the ultimate goal in welfare. The country where you could make a good living with your two hands, get you kids to UNI, have a house, a telly ECT. It was not consumerism, it was the American dream, a chicken in every pot; we chewed imported American gum and dreamed.

In the 70-80 ties Scandinavia had a tremendous social and economic growth, EQUALLY distributed, an immense leap forward. In the middle of the 80 ties we were equal to the US in standards of living.

Since we have not looked at the US, unless in pity, as we have seen the decline of the general income, social wealth fall way behind our own.
The average US workers income has not increased since 90 figures adjusted for inflation. The Scandinavian workers income in the same period has almost quadrupled. And so has our societies.

The article is dismal reading, and evidence of the failings of the "unregulated" society, where the anything goes as long as you are wealthy.

wayfarer , December 13, 2017 at 1:01 pm GMT

Between the mid 1970's to the present (2017) labor laws, welfare rights and benefits and the construction of and subsidies for affordable housing have been gutted. 'Workfare' (under President 'Bill' Clinton) ended welfare for the poor and displaced workers. Meanwhile the shift to regressive taxation and the steadily declining real wages have increased corporate profits to an astronomical degree.

source: http://www.unz.com/jpetras/rise-and-decline-of-the-welfare-state/

What does Hollywood "elite" JAP and wannabe hack-stand-up-comic Sarah Silverman think about the class struggle and problems facing destitute Americans? "Qu'ils mangent de la bagels!", source: https://en.wikipedia.org/wiki/Let_them_eat_cake

... ... ...

Anonymous , Disclaimer December 13, 2017 at 1:40 pm GMT
@Greg Fraser

Like the Pentagon. Americans still don't readily call this welfare, but they will eventually. Defense profiteers are unions in a sense, you're either in their club Or you're in the service industry that surrounds it.

Anonymous , Disclaimer December 13, 2017 at 2:43 pm GMT
As other commenters have pointed out, it's Petras curious choice of words that sometimes don't make too much sense. We can probably blame the maleable English language for that, but here it's too obvious. If you don't define a union, people might assume you're only talking about a bunch of meat cutters at Safeway.

The welfare state is alive and well for corporate America. Unions are still here – but they are defined by access and secrecy, you're either in the club or not.

The war on unions was successful first by co-option but mostly by the media. But what kind of analysis leaves out the role of the media in the American transformation? The success is mind blowing.

America has barely literate (white) middle aged males trained to spout incoherent Calvinistic weirdness: unabased hatred for the poor (or whoever they're told to hate) and a glorification of hedge fund managers as they get laid off, fired and foreclosed on, with a side of opiates.

There is hardly anything more tragic then seeing a web filled with progressives (management consultants) dedicated to disempowering, disabling and deligitimizing victims by claiming they are victims of biology, disease or a lack of an education rather than a system that issues violence while portending (with the best media money can buy) that they claim the higher ground.

animalogic , December 13, 2017 at 2:57 pm GMT
@Wally

""Democracy can only work until the people figure out they can vote for themselves generous benefits from the public treasury." We are definitely in this situation today."

Quite right: the 0.01% have worked it out & US democracy is a Theatre for the masses.

Reg Cæsar , December 13, 2017 at 3:08 pm GMT

They elected militarists and demagogues as their new presidents.

Wilson and FDR were much more militarist and demagogic than those that followed.

Reg Cæsar , December 13, 2017 at 3:20 pm GMT
@whyamihere

I don't know who said it but someone long ago said something along the lines of, "Democracy can only work until the people figure out they can vote for themselves generous benefits from the public treasury."

Some French aristocrat put it as, once the gates to the treasury have been breached, they can only be closed again with gunpowder. Anyone recognize the author?

phil , December 13, 2017 at 4:48 pm GMT
The author doesn't get it. What we have now IS the welfare state in an intensely diverse society. We have more transfer spending than ever before and Obamacare represents another huge entitlement.

Intellectuals continue to fantasize about the US becoming a Big Sweden, but Sweden has only been successful insofar as it has been a modest nation-state populated by ethnic Swedes. Intense diversity in a huge country with only the remnants of federalism results in massive non-consensual decision-making, fragmentation, increased inequality, and corruption.

HallParvey , December 13, 2017 at 4:57 pm GMT
@Anonymous

The welfare state is alive and well for corporate America. Unions are still here – but they are defined by access and secrecy, you're either in the club or not.

They are largely defined as Doctors, Lawyers, and University Professors who teach the first two. Of course they are not called unions. Access is via credentialing and licensing. Good Day

Anonymous , Disclaimer December 13, 2017 at 4:57 pm GMT
@Linda Green

Bernie Sanders, speaking on behalf of the MIC's welfare bird: "It is the airplane of the United States Air Force, Navy, and of NATO."

Elizabeth Warren, referring to Mossad's Estes Rockets: "The Israeli military has the right to attack Palestinian hospitals and schools in self defense"

Barack Obama, yukking it up with pop stars: "Two words for you: predator drones. You will never see it coming."

It's not the agitprop that confuses the sheep, it's whose blowhole it's coming out of (labled D or R for convenience) that gets them to bare their teeth and speak of poo.

Anonymous , Disclaimer December 13, 2017 at 5:54 pm GMT
@HallParvey

What came first, the credentialing or the idea that it is a necessary part of education? It certainly isn't an accurate indication of what people know or their general intelligence – although that myth has flourished. Good afternoon.

Logan , December 13, 2017 at 9:10 pm GMT
@Realist

For an interesting projection of what might happen in total civilizational collapse, I recommend the Dies the Fire series of novels by SM Stirling.

It has a science-fictiony setup in that all high-energy system (gunpowder, electricity, explosives, internal combustion, even high-energy steam engines) suddenly stop working. But I think it does a good job of extrapolating what would happen if suddenly the cities did not have food, water, power, etc.

Spoiler alert: It ain't pretty. Those who dream of a world without guns have not really thought it through.

Logan , December 13, 2017 at 9:19 pm GMT
@phil

It has been pointed out repeatedly that Sweden does very well relative to the USA. It has also been noted that people of Swedish ancestry in the USA do pretty well also. In fact considerably better than Swedes in Sweden

[Dec 03, 2017] Islamic Mindset Akin to Bolshevism by Srdja Trifkovic

Highly recommended!
Actually it was the West, especially the USA which created political Islam to fight Soviets. They essentially created Osama bin Laden as a political figure. The USA is also the main protector of Saudi Arabia were Wahhabism is the official religion. Then they tried to partition Russia by supporting Chechen islamists and financed the jihadist groups in Russia (especially in Dagestan).
Obama administration flirted with Muslim Brotherhood and unleashed the wars in Lybia and Siria were islamists were trying to take down the legitimate governments.
So Political Islam despite its anti-Western message used as a tool as a patsy for the destabilization of "unfriendly", the dogs that could be unleashed when weapons and money started to flow.
Now it looks like boomerang returns home.
Notable quotes:
"... I'd say that in modern times the main culprit was Zbigniew Brzezynski, who freely admitted in an interview with the French weekly magazine Le Nouvel Observateur in 1998 that he had this, as he called it, "brilliant idea" to let the Islamist genie out of the bottle to fight the Soviets in Afghanistan following the Soviet occupation in 1979. At that time he was President Carter's National Security Advisor. The transmission belt, from the CIA and various other U.S. agencies to the jihadists in Afghanistan, went via Pakistan. The ISI, the all-powerful military Inter-Service Intelligence-an institution which is pro-jihadist to boot-was used by the U.S. to arm elements which later morphed into al-Qaeda. The breeding ground for the modern, one might say postmodern form of jihadism, was Afghanistan-and it was made possible by U.S. policy inputs which helped its development. ..."
"... Instead of utter anarchy, I think we are more likely to see the ever more stringent control of the social media. The German government has already imposed on Google and Twitter which is based on the German draconian "hate speech" legislation, rather than on the universally accepted standards. On the whole we see everywhere in Europe that when you have a political party or a person trying to call a spade by its name, to call for a moratorium on immigration or for a fundamental change in the way of thinking, they will be demonized. ..."
"... The answer is fairly simple, but it would require a fundamental transformation of the mindset of the political decision-makers. It is to start treating Islamic activism not as "religious" but as an eminently political activity -- subversive political activity, in the same way as communist subversion was treated during the Cold War. ..."
"... To start with, every single potential U.S. citizen from the Islamic world needs to be interviewed in great detail about his or her beliefs and commitments. It is simply impossible for a believing Muslim to swear the oath of allegiance to the United States. None of them, if they are true believers, can regard the U.S. Constitution as superior to the Sharia-which is the law of God, while the U.S. Constitution is a man-made document. ..."
"... If there is to be a civil war in Europe, it would be pursued between the elite class which wants to continue pursuing multiculturalism and unlimited immigration --for example Germany, where over a million migrants from the Middle East, North Africa etc. were admitted in 2015 alone-and the majority of the population who have not been consulted, and who feel that their home country is being irretrievably lost. ..."
Feb 01, 2016 | chroniclesmagazine.org
View all posts from this blog

On January 23 Freedom and Prosperity Radio , Virginia's only syndicated political talk radio show, broadcast an interview with Srdja Trifkovic on the subject of Islam and the ongoing Muslim invasion of Europe. Here is the full transcript of the interview. ( Audio )

FPR: Your book The Sword of the Prophet was published back in 2002, yet here we are-15 years later-still scratching our heads over this problem. Defeating Jihad you wrote ten years ago, and yet we are still fumbling around in the dark. It seems like we don't have the ability to say what is right and what is wrong. We've lost the ability we had had during the Cold War to say out way is better than their way . . .

ST: I'm afraid the problem is deeper than that. It is in the unwillingness of the ruling elite in the Western world to come to grips with the nature of Islam-as-such. There is this constant tendency by the politicians, the media and the academia to treat jihadism as some sort of aberration which is alien to "true" Islam. We had an example of that in 2014, when President Obama went so far as to say that ISIS was "un-Islamic"! It is rather curious that the President of the United States assumes the authority of a theologian who can pass definite judgments on whether a certain phenomenon is "Islamic" or not. Likewise we have this constant repetition of the mantra of the "religion of peace and tolerance," which is simply not supported by 14 centuries of historical experience. What I've tried to emphasize in both those books you've mentioned, and in my various other writings and public appearances, is that the problem of Islam resides in the core texts, in the Kuran and the Hadith , the "Traditions" of the prophet of Islam, Muhammed. This is the source from which the historical practice has been derived ever since. The problem is not in the jihadists misinterpreting Islam, but rather in interpreting it all too well. This mythical "moderate Islam," for which everybody seems to be looking these days, is an exception and not the rule.

In answer to your question, I'd say that "scratching one's head" is-by now-only the phenomenon of those who refuse to face reality. Reasonable people who are capable of judging phenomena on their merits and on the basis of ample empirical evidence, are no longer in doubt. They see that the problem is not in the alleged misinterpretation of the Islamic teaching, but rather in its rigorous application and literal understanding. I'm afraid things will not get better, because with each and every new jihadist attack, such as the Charlie Hebdo slaughter in Paris a year ago, or again in Paris last November, or the New Year's Eve violence in Germany, we are witnessing-time and over again-the same problem. The Islamic mindset, the Islamic understanding of the world, the Muslim Weltanschauung , world outlook, is fundamentally incompatible with the Western value system and the Western way of life.

FPR: . . . It seems obvious, regarding Islam, that its "freedom of religion" is impacting other people, and it's dictated to do so-it must go out and fight the infidels. And that's where we have the disconnect. Maybe there is some traction to the statement, as you put it, that fundamentalism reflects a far more thorough following of Islam, and that it is simply incompatible with the Constitution?

ST: It is inevitable, because if you are an orthodox, practicing, mainstream Muslim, then you necessarily believe in the need to impose Sharia as the law of the land. Sharia is much more than a legal code. It is also a political program, it is a code of social behavior, it is the blueprint for the totality of human experience. That's why it is impossible to make Sharia compatible with the liberal principle of "live and let live": it is inherently aggressive to non-Islam. In the Islamic paradigm, the world is divided in the Manichean manner, black-and-white, into "the World of Faith," Dar al-Islam , literally "the world of submission," and "the World of War, Dar al-Harb .

It is the divine duty of each and every Muslim to seek the expansion of Dar al-Islam at the expense of Dar al-Harb until the one true faith is triumphant throughout the world. In this sense the Islamic mindset is very similar to Bolshevism. The Bolsheviks also believed that "the first country of Socialism" should expand its reach and control until the whole world has undergone the proletarian revolution and has become one in the march to the Utopia of communism. There is constant inner tension in the Islamic world, in the sense that for as long as non-Islam exists, it is inherently perceived as "the other," as an abomination. In that sense, Muslims perceive any concession made by the West-for instance in allowing mass immigration into Western Europe-not as a gesture of good will and multicultural tolerance, but as a sign of weakness that needs to be exploited and used as a means to an end.

FPR: The Roman Catholic Church has its Catechism which decides the issues of doctrine. Until there's an Islamic "catechism" which can say "no, this is no longer the right interpretation, this is not what it means any more"-and I don't think this would be a short-term thing, because you'd still have the splinter groups dissenting against the "traitors"-but is this the only way to go to the center of theological jurisprudence in the Islamic world?

ST: The problem is twofold. First of all, there is no "interpretation" of the Kuran . Classical Islamic sources are adamant that the Kuran needs to be taken at face value, literally. If it says in Sura 9, verse 5, "fight the infidels wherever you find them, and let them go if they convert," or if it says time and over again that the choice for a non-Muslim is to accept Islam, or to live as a second-class citizen-the dhimmi -under Islamic supremacy, or else to be killed it is very hard to imagine what sort of authority in the Islamic world would be capable of saying "now we are going to relativize and soften the message."

The second part of the problem is that there is no single authority in Islam. It is not organized in a hierarchical way like the Roman Catholic Church, where if the Pope speaks ex cathedra his pronouncements are obligatory for all Catholics everywhere. Islam is a diffused religion, with various centers of learning and various ullema who may or may not agree on certain peripheral details. Yet any any one of them who'd dare say "look, now we rally need to reinterpret the fundamental sources, the Kuran and the Hadith, so as to make it compatible with the pluralist society"-they'd immediately be condemned as heretics. We've seen attempts at reform in the past. In the end the orthodox interpretation always prevails, because it is-sadly-the right interpretation of the core texts. With neither the hierarchy capable of imposing a new form of teaching on the faithful, nor the existence of alternative core texts which would provide grounds for such reinterpretation, it is very hard to see how it could be done.

FPR: How do we go forward? . . . How does the end-game play out?

ST: I'd say that in modern times the main culprit was Zbigniew Brzezynski, who freely admitted in an interview with the French weekly magazine Le Nouvel Observateur in 1998 that he had this, as he called it, "brilliant idea" to let the Islamist genie out of the bottle to fight the Soviets in Afghanistan following the Soviet occupation in 1979. At that time he was President Carter's National Security Advisor. The transmission belt, from the CIA and various other U.S. agencies to the jihadists in Afghanistan, went via Pakistan. The ISI, the all-powerful military Inter-Service Intelligence-an institution which is pro-jihadist to boot-was used by the U.S. to arm elements which later morphed into al-Qaeda. The breeding ground for the modern, one might say postmodern form of jihadism, was Afghanistan-and it was made possible by U.S. policy inputs which helped its development.

But if we look at the past 14 centuries, time and over again we see the same phenomenon. The first time they tried to conquer Europe was across the Straits of Gibraltar and across the Iberian Peninsula, today's Spain. Then they crossed the Pyrinees and were only stopped at Poitiers by Charles Martel in 732AD. Then they were gradually being pushed back, and the Reconquista -- the reconquest of Spain-lasted 800 years, until 1492, when Cordoba finally fell to the Christian forces. Then came the second, Ottoman onslaught, in the XIVth century, which went across the Dardanelles into the Balkan Peninsula. The Turks were only finally stopped at the gates of Vienna in 1683. Pushing Turkey out of Europe went all the way to 1912, to the First Balkan War.

So we may say that we are now witnessing the third Islamic conquest of Europe. This time it is not using armed janissaries, it is using so-called refugees. In fact most of them are healthy young men, and the whole process is obviously a strategic exercise -- a joint venture between Ankara and Riyadh, who are logistically and financially helping this mass transfer of people from the Turkish and Middle Eastern refugee camps to the heart of Europe. The effect may be the same, but this time it is far more dangerous because, on the European side-unlike in 732, or 1683-there is no political will and there is no moral strength to resist. This is happening because the migrants, the invaders, see Europe as the candy store with a busted lock and they are taking advantage of that fact.

FPR: When you see the horrors of rapes and sexual assaults that took place across Germany, and now we see the Germans' response . . . vigilantes on their streets . . . this is something that we either control politically and with leadership, or else it falls apart into anarchy, Prof. Trifkovic?

ST: Instead of anarchy I think we will have a form of postmodern totalitarianism. The elite class, the government of Germany etc, and the media, will demonize those who try to resist. In fact we already have the spectacle of the minister of the interior of one of the German states saying that "hate speech" on the social networks and websites was far worse than the "incidents" in Cologne. And the Mayor of Cologne-an ultra-feminist who is also a pro-immigration enthusiast-said that in order to prevent such events in the future women should observe a "code of conduct" and keep distance "at an arm's length" from men. It's a classic example of blaming the victim. The victims of Islamic violence should change their behavior in order to adapt themselves to the code of conduct and values of the invaders. This is truly unprecedented.

Instead of utter anarchy, I think we are more likely to see the ever more stringent control of the social media. The German government has already imposed on Google and Twitter which is based on the German draconian "hate speech" legislation, rather than on the universally accepted standards. On the whole we see everywhere in Europe that when you have a political party or a person trying to call a spade by its name, to call for a moratorium on immigration or for a fundamental change in the way of thinking, they will be demonized. The same applies to Marine Le Pen in France and to her party, the Front National , or to Geert Wilders in Holland, or to Strache in Austria. Whoever tries to articulate a coherent plan of action that includes a ban or limits on Islamic immigration is immediately demonized as a right-wing fanatic or a fascist. Instead of facing the reality of the situation, that you have a multi-million Islamic diaspora in Europe which is not assimilating, which refuses even to accept a code of conduct of the host population, the reaction is always the same: blame the victim, and demonize those who try to articulate some form of resistance.

FPR: Dr. Trifkovic, how does a country such as ours, the United States, fix this problem . . .

ST: The answer is fairly simple, but it would require a fundamental transformation of the mindset of the political decision-makers. It is to start treating Islamic activism not as "religious" but as an eminently political activity -- subversive political activity, in the same way as communist subversion was treated during the Cold War. In both cases we have a committed, highly motivated group of people who want to effect a fundamental transformation of the United States in a way that is contrary to the U.S. Constitution, to the American way of life, and to the American values. It is time to stop the Islamists from hiding behind the "freedom of religion" mantra. What they are seeking is not some "freedom of religion" but the freedom to organize in order to pursue political subversion. They do not accept the U.S. Constitution.

To start with, every single potential U.S. citizen from the Islamic world needs to be interviewed in great detail about his or her beliefs and commitments. It is simply impossible for a believing Muslim to swear the oath of allegiance to the United States. None of them, if they are true believers, can regard the U.S. Constitution as superior to the Sharia-which is the law of God, while the U.S. Constitution is a man-made document. I happen to know the oath because I am myself a naturalized U.S. citizen. They can do it "in good faith" from their point of view by practicing taqqiya . This is the Arab word for the art of dissimulation, when the Muslim lies to the infidel in order to protect the faith. For them to lie to investigators or to immigration officials about their beliefs and their objectives does not create any conflict of conscience. The prophet of Islam himself has mandated the use of taqqiya if it serves the objective of spreading the faith.

FPR: Can a civil war come out of this? Is it conceivable?

ST: If there is to be a civil war in Europe, it would be pursued between the elite class which wants to continue pursuing multiculturalism and unlimited immigration --for example Germany, where over a million migrants from the Middle East, North Africa etc. were admitted in 2015 alone-and the majority of the population who have not been consulted, and who feel that their home country is being irretrievably lost. I do not believe that there will be many people fighting on the side of the multiculturalists' suicide, but nevertheless we still have very effective forces of coercion and control on the government side which can be deployed to prevent the articulation of any long-term, coherent plan of resistance.

FPR: Where can people continue to read you writings, Dr. Trifkovic?

ST: On Chroniclesmagazine.org where I publish weekly online commentaries, and also in the print edition of Chronicles where I have my regular column.

[Oct 25, 2017] Tomorrow Belongs to the Corporatocracy by C.J. Hopkins

Highly recommended!
Notable quotes:
"... Google is algorithmically burying leftist news and opinion sources such as Alternet, Counterpunch, Global Research, Consortium News, and Truthout, among others. ..."
"... my political essays are often reposted by right-wing and, yes, even pro-Russia blogs. I get mail from former Sanders supporters, Trump supporters, anarchists, socialists, former 1960s radicals, anti-Semites, and other human beings, some of whom I passionately agree with, others of whom I passionately disagree with. As far as I can tell from the emails, none of these readers voted for Clinton, or Macron, or supported the TPP, or the debt-enslavement and looting of Greece, or the ongoing restructuring of the Greater Middle East (and all the lovely knock-on effects that has brought us), or believe that Trump is a Russian operative, or that Obama is Martin Luther Jesus-on-a-stick. ..."
"... What they share, despite their opposing views, is a general awareness that the locus of power in our post-Cold War age is primarily corporate, or global capitalist, and neoliberal in nature. They also recognize that they are being subjected to a massive propaganda campaign designed to lump them all together (again, despite their opposing views) into an intentionally vague and undefinable category comprising anyone and everyone, everywhere, opposing the hegemony of global capitalism, and its non-ideological ideology (the nature of which I'll get into in a moment). ..."
"... Although the term has been around since the Fifth Century BC, the concept of "extremism" as we know it today developed in the late Twentieth Century and has come into vogue in the last three decades. During the Cold War, the preferred exonymics were "subversive," "radical," or just plain old "communist," all of which terms referred to an actual ideological adversary. ..."
"... Which is why, despite the "Russiagate" hysteria the media have been barraging us with, the West is not going to war with Russia. Nor are we going to war with China. Russia and China are developed countries, whose economies are entirely dependent on global capitalism, as are Western economies. The economies of every developed nation on the planet are inextricably linked. This is the nature of the global hegemony I've been referring to throughout this essay. Not American hegemony, but global capitalist hegemony. Systemic, supranational hegemony (which I like to prefer "the Corporatocracy," as it sounds more poetic and less post-structural). ..."
"... Global capitalism, since the end of the Cold War (i.e, immediately after the end of the Cold War), has been conducting a global clean-up operation, eliminating actual and potential insurgencies, mostly in the Middle East, but also in its Western markets. Having won the last ideological war, like any other victorious force, it has been "clear-and-holding" the conquered territory, which in this case happens to be the whole planet. Just for fun, get out a map, and look at the history of invasions, bombings, and other "interventions" conducted by the West and its assorted client states since 1990. Also, once you're done with that, consider how, over the last fifteen years, most Western societies have been militarized, their citizens placed under constant surveillance, and an overall atmosphere of "emergency" fostered, and paranoia about "the threat of extremism" propagated by the corporate media. ..."
"... Short some sort of cataclysm, like an asteroid strike or the zombie apocalypse, or, you know, violent revolution, global capitalism will continue to restructure the planet to conform to its ruthless interests. The world will become increasingly "normal." The scourge of "extremism" and "terrorism" will persist, as will the general atmosphere of "emergency." There will be no more Trumps, Brexit referendums, revolts against the banks, and so on. Identity politics will continue to flourish, providing a forum for leftist activist types (and others with an unhealthy interest in politics), who otherwise might become a nuisance, but any and all forms of actual dissent from global capitalist ideology will be systematically marginalized and pathologized. ..."
"... C. J. Hopkins is an award-winning American playwright, novelist and satirist based in Berlin. His plays are published by Bloomsbury Publishing (UK) and Broadway Play Publishing (USA). His debut novel, ZONE 23 , is published by Snoggsworthy, Swaine & Cormorant. He can reached at cjhopkins.com or consentfactory.org . ..."
"... That is certainly what the geopolitical establishment is hoping for, but I remain skeptical of their ability to contain what forces they've used to balance the various camps of dissenting proles. They've painted themselves into a corner with non-white identity politics combined with mass immigration. The logical conclusion of where they're going is pogroms and none of the kleptocracy seem bold enough to try and stop this from happening. ..."
"... Germany is the last EU member state where an anti EU party entered parliament. In the last French elections four out of every ten voters voted on anti EU parties. In Austria the anti EU parties now have a majority. So if I were leading a big corporation, thriving by globalism, what also the EU is, I would be worried. ..."
"... This is a great article. The author's identification of "normality" & "extremism" as Capitalism's go-to concepts for social control is spot on accurate. That these terms can mean anything or nothing & are infinitely flexible is central to their power. ..."
Oct 20, 2017 | www.unz.com

Back in October of 2016, I wrote a somewhat divisive essay in which I suggested that political dissent is being systematically pathologized. In fact, this process has been ongoing for decades, but it has been significantly accelerated since the Brexit referendum and the Rise of Trump (or, rather, the Fall of Hillary Clinton, as it was Americans' lack of enthusiasm for eight more years of corporatocracy with a sugar coating of identity politics, and not their enthusiasm for Trump, that mostly put the clown in office.)

In the twelve months since I wrote that piece, we have been subjected to a concerted campaign of corporate media propaganda for which there is no historical precedent. Virtually every major organ of the Western media apparatus (the most powerful propaganda machine in the annals of powerful propaganda machines) has been relentlessly churning out variations on a new official ideological narrative designed to generate and enforce conformity. The gist of this propaganda campaign is that "Western democracy" is under attack by a confederacy of Russians and white supremacists, as well as "the terrorists" and other "extremists" it's been under attack by for the last sixteen years.

I've been writing about this campaign for a year now, so I'm not going to rehash all the details. Suffice to say we've gone from Russian operatives hacking the American elections to "Russia-linked" persons "apparently" setting up "illegitimate" Facebook accounts, "likely operated out of Russia," and publishing ads that are "indistinguishable from legitimate political speech" on the Internet. This is what the corporate media is presenting as evidence of "an unprecedented foreign invasion of American democracy," a handful of political ads on Facebook. In addition to the Russian hacker propaganda, since August, we have also been treated to relentless white supremacist hysteria and daily reminders from the corporate media that "white nationalism is destroying the West." The negligible American neo-Nazi subculture has been blown up into a biblical Behemoth inexorably slouching its way towards the White House to officially launch the Trumpian Reich.

At the same time, government and corporate entities have been aggressively restricting (and in many cases eliminating) fundamental civil liberties such as freedom of expression, freedom of the press, the right of assembly, the right to privacy, and the right to due process under the law. The justification for this curtailment of rights (which started in earnest in 2001, following the September 11 attacks) is protecting the public from the threat of "terrorism," which apparently shows no signs of abating. As of now, the United States has been in a State of Emergency for over sixteen years. The UK is in a virtual State of Emergency . France is now in the process of enshrining its permanent State of Emergency into law. Draconian counter-terrorism measures have been implemented throughout the EU . Not just the notorious American police but police throughout the West have been militarized . Every other day we learn of some new emergency security measure designed to keep us safe from "the terrorists," the "lone wolf shooters," and other "extremists."

Conveniently, since the Brexit referendum and unexpected election of Trump (which is when the capitalist ruling classes first recognized that they had a widespread nationalist backlash on their hands), the definition of "terrorism" (or, more broadly, "extremism") has been expanded to include not just Al Qaeda, or ISIS, or whoever we're calling "the terrorists" these days, but anyone else the ruling classes decide they need to label "extremists." The FBI has designated Black Lives Matter "Black Identity Extremists." The FBI and the DHS have designated Antifa "domestic terrorists."

Hosting corporations have shut down several white supremacist and neo-Nazi websites , along with their access to online fundraising. Google is algorithmically burying leftist news and opinion sources such as Alternet, Counterpunch, Global Research, Consortium News, and Truthout, among others. Twitter, Facebook, and Google have teamed up to cleanse the Internet of "extremist content," "hate speech," and whatever else they arbitrarily decide is inappropriate. YouTube, with assistance from the ADL (which deems pro-Palestinian activists and other critics of Israel "extremists") is censoring "extremist" and "controversial" videos , in an effort to "fight terrorist content online." Facebook is also collaborating with Israel to thwart "extremism," "incitement of violence," and whatever else Israel decides is "inflammatory."

In the UK, simply reading "terrorist content" is punishable by fifteen years in prison. Over three thousand people were arrested last year for publishing "offensive" and "menacing" material.

Whatever your opinion of these organizations and "extremist" persons is beside the point. I'm not a big fan of neo-Nazis, personally, but neither am I a fan of Antifa. I don't have much use for conspiracy theories, or a lot of the nonsense one finds on the Internet, but I consume a fair amount of alternative media, and I publish in CounterPunch, The Unz Review, ColdType, and other non-corporate journals.

I consider myself a leftist, basically, but my political essays are often reposted by right-wing and, yes, even pro-Russia blogs. I get mail from former Sanders supporters, Trump supporters, anarchists, socialists, former 1960s radicals, anti-Semites, and other human beings, some of whom I passionately agree with, others of whom I passionately disagree with. As far as I can tell from the emails, none of these readers voted for Clinton, or Macron, or supported the TPP, or the debt-enslavement and looting of Greece, or the ongoing restructuring of the Greater Middle East (and all the lovely knock-on effects that has brought us), or believe that Trump is a Russian operative, or that Obama is Martin Luther Jesus-on-a-stick.

What they share, despite their opposing views, is a general awareness that the locus of power in our post-Cold War age is primarily corporate, or global capitalist, and neoliberal in nature. They also recognize that they are being subjected to a massive propaganda campaign designed to lump them all together (again, despite their opposing views) into an intentionally vague and undefinable category comprising anyone and everyone, everywhere, opposing the hegemony of global capitalism, and its non-ideological ideology (the nature of which I'll get into in a moment).

As I wrote in that essay a year ago, "a line is being drawn in the ideological sand." This line cuts across both Left and Right, dividing what the capitalist ruling classes designate "normal" from what they label "extremist." The traditional ideological paradigm, Left versus Right, is disappearing (except as a kind of minstrel show), and is being replaced, or overwritten, by a pathological paradigm based upon the concept of "extremism."

* * *

Although the term has been around since the Fifth Century BC, the concept of "extremism" as we know it today developed in the late Twentieth Century and has come into vogue in the last three decades. During the Cold War, the preferred exonymics were "subversive," "radical," or just plain old "communist," all of which terms referred to an actual ideological adversary.

In the early 1990s, as the U.S.S.R. disintegrated, and globalized Western capitalism became the unrivaled global-hegemonic ideological system that it is today, a new concept was needed to represent the official enemy and its ideology. The concept of "extremism" does that perfectly, as it connotes, not an external enemy with a definable ideological goal, but rather, a deviation from the norm. The nature of the deviation (e.g., right-wing, left-wing, faith-based, and so on) is secondary, almost incidental. The deviation itself is the point. The "terrorist," the "extremist," the "white supremacist," the "religious fanatic," the "violent anarchist" these figures are not rational actors whose ideas we need to intellectually engage with in order to debate or debunk. They are pathological deviations, mutant cells within the body of "normality," which we need to identify and eliminate, not for ideological reasons, but purely in order to maintain "security."

A truly global-hegemonic system like contemporary global capitalism (the first of this kind in human history), technically, has no ideology. "Normality" is its ideology an ideology which erases itself and substitutes the concept of what's "normal," or, in other words, "just the way it is." The specific characteristics of "normality," although not quite arbitrary, are ever-changing. In the West, for example, thirty years ago, smoking was normal. Now, it's abnormal. Being gay was abnormal. Now, it's normal. Being transgender is becoming normal, although we're still in the early stages of the process. Racism has become abnormal. Body hair is currently abnormal. Walking down the street in a semi-fugue state robotically thumbing the screen of a smartphone that you just finished thumbing a minute ago is "normal." Capitalism has no qualms with these constant revisions to what is considered normal, because none of them are threats to capitalism. On the contrary, as far as values are concerned, the more flexible and commodifiable the better.

See, despite what intersectionalists will tell you, capitalism has no interest in racism, misogyny, homophobia, xenophobia, or any other despotic values (though it has no problem working with these values when they serve its broader strategic purposes). Capitalism is an economic system, which we have elevated to a social system. It only has one fundamental value, exchange value, which isn't much of a value, at least not in terms of organizing society or maintaining any sort of human culture or reverence for the natural world it exists in. In capitalist society, everything, everyone, every object and sentient being, every concept and human emotion, is worth exactly what the market will bear no more, no less, than its market price. There is no other measure of value.

Yes, we all want there to be other values, and we pretend there are, but there aren't, not really. Although we're free to enjoy parochial subcultures based on alternative values (i.e., religious bodies, the arts, and so on), these subcultures operate within capitalist society, and ultimately conform to its rules. In the arts, for example, works are either commercial products, like any other commodity, or they are subsidized by what could be called "the simulated aristocracy," the ivy league-educated leisure classes (and lower class artists aspiring thereto) who need to pretend that they still have "culture" in order to feel superior to the masses. In the latter case, this feeling of superiority is the upscale product being sold. In the former, it is entertainment, distraction from the depressing realities of living, not in a society at all, but in a marketplace with no real human values. (In the absence of any real cultural values, there is no qualitative difference between Gerhard Richter and Adam Sandler, for example. They're both successful capitalist artists. They're just selling their products in different markets.)

The fact that it has no human values is the evil genius of global capitalist society. Unlike the despotic societies it replaced, it has no allegiance to any cultural identities, or traditions, or anything other than money. It can accommodate any form of government, as long as it plays ball with global capitalism. Thus, the window dressing of "normality" is markedly different from country to country, but the essence of "normality" remains the same. Even in countries with state religions (like Iran) or state ideologies (like China), the governments play by the rules of global capitalism like everyone else. If they don't, they can expect to receive a visit from global capitalism's Regime Change Department (i.e., the US military and its assorted partners).

Which is why, despite the "Russiagate" hysteria the media have been barraging us with, the West is not going to war with Russia. Nor are we going to war with China. Russia and China are developed countries, whose economies are entirely dependent on global capitalism, as are Western economies. The economies of every developed nation on the planet are inextricably linked. This is the nature of the global hegemony I've been referring to throughout this essay. Not American hegemony, but global capitalist hegemony. Systemic, supranational hegemony (which I like to prefer "the Corporatocracy," as it sounds more poetic and less post-structural).

We haven't really got our minds around it yet, because we're still in the early stages of it, but we have entered an epoch in which historical events are primarily being driven, and societies reshaped, not by sovereign nation states acting in their national interests but by supranational corporations acting in their corporate interests. Paramount among these corporate interests is the maintenance and expansion of global capitalism, and the elimination of any impediments thereto. Forget about the United States (i.e., the actual nation state) for a moment, and look at what's been happening since the early 1990s. The US military's "disastrous misadventures" in Iraq, Libya, Afghanistan, Syria, and the former Yugoslavia, among other exotic places (which have obviously had nothing to do with the welfare or security of any actual Americans), begin to make a lot more sense.

Global capitalism, since the end of the Cold War (i.e, immediately after the end of the Cold War), has been conducting a global clean-up operation, eliminating actual and potential insurgencies, mostly in the Middle East, but also in its Western markets. Having won the last ideological war, like any other victorious force, it has been "clear-and-holding" the conquered territory, which in this case happens to be the whole planet. Just for fun, get out a map, and look at the history of invasions, bombings, and other "interventions" conducted by the West and its assorted client states since 1990. Also, once you're done with that, consider how, over the last fifteen years, most Western societies have been militarized, their citizens placed under constant surveillance, and an overall atmosphere of "emergency" fostered, and paranoia about "the threat of extremism" propagated by the corporate media.

I'm not suggesting there's a bunch of capitalists sitting around in a room somewhere in their shiny black top hats planning all of this. I'm talking about systemic development, which is a little more complex than that, and much more difficult to intelligently discuss because we're used to perceiving historico-political events in the context of competing nation states, rather than competing ideological systems or non-competing ideological systems, for capitalism has no competition . What it has, instead, is a variety of insurgencies, the faith-based Islamic fundamentalist insurgency and the neo-nationalist insurgency chief among them. There will certainly be others throughout the near future as global capitalism consolidates control and restructures societies according to its values. None of these insurgencies will be successful.

Short some sort of cataclysm, like an asteroid strike or the zombie apocalypse, or, you know, violent revolution, global capitalism will continue to restructure the planet to conform to its ruthless interests. The world will become increasingly "normal." The scourge of "extremism" and "terrorism" will persist, as will the general atmosphere of "emergency." There will be no more Trumps, Brexit referendums, revolts against the banks, and so on. Identity politics will continue to flourish, providing a forum for leftist activist types (and others with an unhealthy interest in politics), who otherwise might become a nuisance, but any and all forms of actual dissent from global capitalist ideology will be systematically marginalized and pathologized.

This won't happen right away, of course. Things are liable to get ugly first (as if they weren't ugly enough already), but probably not in the way we're expecting, or being trained to expect by the corporate media. Look, I'll give you a dollar if it turns out I'm wrong, and the Russians, terrorists, white supremacists, and other "extremists" do bring down "democracy" and launch their Islamic, white supremacist, Russo-Nazi Reich, or whatever, but from where I sit it looks pretty clear tomorrow belongs to the Corporatocracy.

C. J. Hopkins is an award-winning American playwright, novelist and satirist based in Berlin. His plays are published by Bloomsbury Publishing (UK) and Broadway Play Publishing (USA). His debut novel, ZONE 23 , is published by Snoggsworthy, Swaine & Cormorant. He can reached at cjhopkins.com or consentfactory.org .

Malla , October 20, 2017 at 12:56 pm GMT

Brilliant Article. But this has been going on for nearly a century or more. New York Jewish bankers fund the Bolshevik revolution which gets rid of the Romanov dynasty and many of the revolutionaries are not even Russian. What many people do not know is that many Western companies invested money in Bolshevik Russia as the Bolsheviks were speeding up the modernising of the country. What many do not know is that Feminism, destruction of families and traditional societies, homoerotic art etc . was forced on the new Soviet population in a shock therapy sort of way. The same process has been implemented in the West by the elites using a much slower 'boiling the frog' method using Cultural Marxism. The aim of the Soviet Union was to spread Communism around the World and hence bring about the One World Government as wished by the globalists. Their national anthem was the 'Internationale'. The globalists were funding revolutionary movements throughout Europe and other parts of the world. One such attempt went extremely wrong and that was in Germany where instead of the Communists coming in power, the National Socialists come in power which was the most dangerous challenge faced by the Zio/globalists/elite gang. The Globalists force a war using false flag events like Pearl Harbour etc and crushed the powers which challenged their rule i.e. Germany, Japan and Italy. That is why Capitalist USA funded Communist Soviet Union using the land lease program, which on the surface never makes any sense.

However in Soviet Russia, a power struggle leads to Stalin destroying the old Communist order of Lenin Trotsky. Trotsky and his supporters leave the Soviet Union. Many of the present Neo Cons are ex Trotskyites and hence the crazy hatred for Russia even today in American politics. These Neocons do not have any principles, they will use any ideology such as Communism, Islam, twisted Western Conservatism anything to attain their global goals.

Now with Stalin coming to power, things actually improved and the war with Hitler's Third Reich gave Stalin the chance to purge many old school globalist commies and then the Soviet Union went towards a more nationalist road. Jews slowly started losing their hold on power with Russians and eventually other Soviets gaining more powerful positions. These folks found the ugly modern art culture of the early Soviet period revolting and started a new movement where the messages of Socialism can be delivered with more healthy beautiful art and culture. This process was called 'Social Realism'. So strangely what happened was that the Capitalist Christian West was becoming more and more less traditional with time (Cultural Marxism/Fabien Socialism via media, education, Hollywood) while the Eastern block was slowly moving in an opposite direction. The CIA (which is basically the intelligence agency arm of Wall Street Bankers) was working to stop this 'Social Realism' movement.

These same globalists also funded Mao and pulled the rug under Chiang Kai Shek who they were supporting earlier. Yes, Mao was funded by the Rockerfeller/ Rothschild Cabal. Now, even if the Globalists were not happy with Stalin gaining power in the Soviet Union (they preferred the internationalist Trotskyites), they still found that they could work out with the Soviet Union. That is why during the 2nd World war, the USA supports the USSR with money and material, Stalin gets a facelift as 'friendly Uncle Joe' for the Western audience. Many Cossack families who had escaped the Soviet Union to the West were sent to their deaths after the War to the Soviet Union. Why? Mr. Eden of Britain who could not stand Hitler wanted a New World Order where they could work with the more murderous Soviet Union.

Now we have the cold war. What is not known is that behind the scenes at a higher level, the Americans and the Soviets cooperated with each other exchanging technology, basically the cold war was quite fake. But the Cold war gave the American government (basically the Globalists) to take American Tax payers hard earned money to fund many projects such as Star Wars programme etc All this was not needed, as a gentleman named Keenan had shown in his book that all the Americans needed to do was to make sure Japan, Germany and Britain did not fall to the Soviets, that's it. Thus trillions of American tax payer money would be saved. But obviously the Military Industrial Complex did not like that idea. Both the Soviet and the American governments got the excuse spend their people's hard money on weapons research as well as exchanging some of that technology in the back ground. It is during this period that the precursor to the Internet was already developed. Many of the technology we use today was already invented much earlier by government agencies but released to the people later.

Then we have the Vietnam war. Now you must realise that the Globalist government of America uses wars not only to change enemy societies but also the domestic society in the West. So during the Vietnam War, the US government using the alphabet agencies such as the CIA kick start the fake opposition hippie movements. The CIA not only drugged the Vietnamese population using drugs from the Golden Triangle but later released them on the home population in the USA and the West. This was all part of the Cultural Marxist plan to change or social engineer American/ Western society. Many institutes like the Travestock Institute were part of this process. For example one of the main hochos of the Cultural Marxism, a Mr. Aderno was closely related to the Beatles movement.

Several experiments was done on mind control such as MK Ultra, monarch programming, Edward Bernay's works etc Their aim was to destroy traditional Western society and the long term goal is a New World Order. Blacks for example were used as weapons against Whites at the same time the black social order was destroyed further via the media etc

Now, Nixon going to China was to start a long term (long planned) process to bring about Corporate Communism. Yes that is going to be economic system in the coming New World Order. China is the test tube, where the Worst of Communism and the Worst of Crony Capitalism be brought together as an experiment. As the Soviet Union was going in a direction, the globalist was not happy about (it was becoming more nationalist), they worked to bring the Soviet Union down and thus the Soviet experiment ended only to be continued in China.

NATO today is the core military arm of the globalists, a precursor to a One World Military Force. That explains why after the Warsaw pact was dismantled, NATO was not or why NATO would interfere in the Middle East which is far away from the Atlantic Ocean.

The coming Cashless society will finally lead to a moneyless or distribution society, in other words Communism, that is the long term plan.

My point is, many of the geo political events as well as social movements of the last century (feminism for example) were all planned for a long time and are not accidents. The coming technologies like the internet of things, 5G technology, Cashless society, biometric identification everywhere etc are all designed to help bring about the final aim of the globalists. The final aim is a one world government with Corporate ruled Communism where we, the worker bees will be living in our shitty inner city like ghetto homes eating GM plastic foods and listening to crappy music. That is the future they have planned for us. A inner city ghetto like place under Communism ruled by greedy evil corporates.

Seamus Padraig , October 20, 2017 at 5:13 pm GMT
Once again, C.J. nails it!
Issac , October 21, 2017 at 1:52 am GMT
"Short some sort of cataclysm, like an asteroid strike or the zombie apocalypse, or, you know, violent revolution, global capitalism will continue to restructure the planet to conform to its ruthless interests."

That is certainly what the geopolitical establishment is hoping for, but I remain skeptical of their ability to contain what forces they've used to balance the various camps of dissenting proles. They've painted themselves into a corner with non-white identity politics combined with mass immigration. The logical conclusion of where they're going is pogroms and none of the kleptocracy seem bold enough to try and stop this from happening.

peterAUS , October 21, 2017 at 9:25 pm GMT
@Issac

That is certainly what the geopolitical establishment is hoping for, but I remain skeptical of their ability to contain what forces they've used to balance the various camps of dissenting proles.

Agree.

Wizard of Oz , October 25, 2017 at 4:32 am GMT
@Malla

There must be some evidence for your assertions about the long term plans and aims of globalists and others if there is truth in them. The sort of people you are referring to would often have kept private diaries and certainly written many hundreds or thousands of letters. Can you give any references to such evidence of say 80 to 130 years ago?

edNels , October 25, 2017 at 4:46 am GMT
Finally an article that tells as it is! and the first comment is a great one too. It is right there to see for anybody with eyes screwed in right.
wayfarer , October 25, 2017 at 5:16 am GMT
"Three Things Cannot Be Long Hidden: the Sun, the Moon, and the Truth." – Buddha
ThereisaGod , October 25, 2017 at 5:54 am GMT
Regarding Trump being "a clown" the jury is out:

http://www.voltairenet.org/article198481.html

.. puzzling that the writer feels the need to virtue-signal by saying he "doesn't have much time for conspiracy theories" while condemning an absolutely massive conspiracy to present establishment lies as truth.

That is one of the most depressing demonstrations of the success of the ruling creeps that I have yet come across.

jilles dykstra , October 25, 2017 at 7:35 am GMT
Germany is the last EU member state where an anti EU party entered parliament. In the last French elections four out of every ten voters voted on anti EU parties. In Austria the anti EU parties now have a majority. So if I were leading a big corporation, thriving by globalism, what also the EU is, I would be worried.
animalogic , October 25, 2017 at 7:36 am GMT
"See, despite what intersectionalists will tell you, capitalism has no interest in racism, misogyny, homophobia, xenophobia, or any other despotic values (though it has no problem working with these values when they serve its broader strategic purposes). Capitalism is an economic system, which we have elevated to a social system. It only has one fundamental value, exchange value, which isn't much of a value, at least not in terms of organizing society or maintaining any sort of human culture or reverence for the natural world it exists in. In capitalist society, everything, everyone, every object and sentient being, every concept and human emotion, is worth exactly what the market will bear no more, no less, than its market price. There is no other measure of value."

This is a great article. The author's identification of "normality" & "extremism" as Capitalism's go-to concepts for social control is spot on accurate. That these terms can mean anything or nothing & are infinitely flexible is central to their power.

Mr Hopkins is also correct when he points out that Capitalism has essentially NO values (exchange value is a value, but also a mechanism). Again, Capitalism stands for nothing: any form of government is acceptable as long as it bows to neoliberal markets.

However, the author probably goes to far:

"Nor are we going to war with China. Russia and China are developed countries, whose economies are entirely dependent on global capitalism, as are Western economies. The economies of every developed nation on the planet are inextricably linked. This is the nature of the global hegemony I've been referring to throughout this essay. Not American hegemony, but global capitalist hegemony. Systemic, supranational hegemony".

Capitalism has no values: however the Masters of the capitalist system most certainly do: Capitalism is a means, the most thorough, profound means yet invented, for the attainment of that value which has NO exchange value: POWER.

Capitalism is a supranational hegemony – yet the Elites which control it, who will act as one when presented with any external threats to Capitalism itself, are not unified internally. Indeed, they will engage in cut throat competition, whether considered as individuals or nations or as particular industries.

US Imperialism is not imaginary, it is not a mere appearance or mirage of Capitalism, supranational or not. US Imperialism in essence empowers certain sets of Capitalists over other sets. No, they may not purposely endanger the System as a whole, however, that still leaves plenty of space for aggressive competition, up to & including war.

Imperialism is the political corollary to the ultimate economic goal of the individual Capitalist: Monopoly.

jilles dykstra , October 25, 2017 at 7:36 am GMT
@Malla

Read Howard Zinn, and discover that the USA always was the same since Columbus began.

m___ , October 25, 2017 at 9:00 am GMT
Psychologically daring (being no minstrel to corporatocracy nor irrelevant activism and other "religions" that endorse the current world global system as the overhead), rationally correct, relevant, core definition of the larger geo-world and deeper "ideological" grounding( in the case of capitalism the quite shallow brute forcing of greed as an incentive, as sterile a society as possible), and adhering to longer timelines of reality of planet earth. Perfectly captures the "essence" of the dynamics of our times.

The few come to the authors' through-sites by many venue-ways, that's where some of the corporocratic world, by sheer statistics wind up also. Why do they not get the overhand into molding the shallow into anything better in the long haul. No world leader, no intellectual within power circles, even within confined quarters, speaks to the absurdity of the ongoing slugging and maltering of global human?

The elites of now are too dumb to consider the planet exo-human as a limited resource. Immigration, migration, is the de facto path to "normalization" in the terms of the author. Reducing the world population is not "in" the capitalist ideology. A major weakness, or if one prefers the stake that pinches the concept of capitalism: more instead of quality principles.

The game changers, the possible game changers: eugenics and how they play out as to the elites ( understanding the genome and manipulating it), artificial intelligence ( defining it first, not the "Elon Musk" definition), and as a far outlier exo-planetary arguments.

Confront the above with the "unexpected", the not-human engineered possible events (astroids and the like, secondary effects of human induced toxicity, others), and the chances to get to the author's "dollar" and what it by then might mean is indeed tiny.

As to the content, one of the utmost relevant articles, it is "art" to condense such broad a world view into a few words, it requires a deep understanding foremost, left to wonder what can be grasped by most reading above. Some-one try the numbers?, "big data" anyone, they might turn out in favor of what the author undoubtedly absorbed as the nucleus of twenty-first thinking, strategy and engineering.

This kind of thinking and "Harvard" conventionality, what a distance.

Hans Vogel , October 25, 2017 at 9:24 am GMT
Great article, spot on. Indeed we are all at the mercy now of a relatively small clique of ruthless criminals who are served by armies of desensitized, stupid mercenaries: MBAs, politicians, thugs, college professors, "whorenalists", etc. I am afraid that the best answer to the current and future dystopia is what the Germans call "innere Emigration," to psychologically detach oneself from the contemporary world.

Thus, the only way out of this hellhole is through reading and thinking, which every self-respecting individual should engage in. Shun most contemporary "literature" and instead turn to the classics of European culture: there you will find all you need.

For an earlier and ever so pertinent analysis of the contemporary desert, I can heartily recommend Umberto Galimberti's I vizi capitali e i nuovi vizi (Milan, 2003).

m___ , October 25, 2017 at 9:28 am GMT
@Malla

And yes, another verbally strong expression of the in your face truth, though for so few to grasp. The author again has a deep understanding, if one prefers, it points to the venueway of coming to terms, the empirical pathway as to the understanding.

"Plasticky" society is my preferred term for designating the aberrance that most (within the elites), the rest who cares (as an historical truth), do not seem to identify as proper cluelessness in the light of longer timelines. The current global ideology, religion of capitalism-democracy is the equivalent of opportunistic naval staring of the elites. They are not aware that suffocation will irreversibly affect oneself. Not enough air is the equivalent of no air in the end.

jacques sheete , October 25, 2017 at 11:12 am GMT

The negligible American neo-Nazi subculture has been blown up into a biblical Behemoth inexorably slouching its way towards the White House to officially launch the Trumpian Reich.

While the above is true, I hope most folks understand that the basic concept of controlling people through fear is nothing new. The much vaunted constitution was crammed down our collective throats by the rich scoundrels of the time in the words of more than one anti-federalist through the conjuring of quite a set of threats, all bogus.

I address my most fervent prayer to prevent our adopting a system destructive to liberty We are told there are dangers, but those dangers are ideal; they cannot be demonstrated.

- Patrick Henry, Foreign Wars, Civil Wars, and Indian Wars -- Three Bugbears, June 5, 7, and 9, 1788

https://www.infoplease.com/homework-help/united-states-documents/patrick-henry-foreign-wars-civil-wars-and-indian-wars-three

Bottom line: Concentrated wealth and power suck.The USA was ruled by a plutoligarchy from its inception, and the material benefits we still enjoy have occurred not because of it but despite it.

Jake , October 25, 2017 at 11:28 am GMT
It is the nightmare world of Network come to life.
jacques sheete , October 25, 2017 at 12:29 pm GMT
For today's goofy "right wing" big business "conservatives" who think the US won WW2, I got news for you. Monopoly capitalism, complete with increasing centralization of the economy and political forces were given boosts by both world wars.

It was precisely in reaction to their impending defeat at the hands of the competitive storms of the market tha t business turned, increasingly after the 1900′s, to the federal government for aid and protection. In short, the intervention by the federal government was designed, not to curb big business monopoly for the sake of the public weal, but to create monopolies that big business (as well as trade associations smaller business) had not been able to establish amidst the competitive gales of the free market. Both Left and Right have been persistently misled by the notion that intervention by the government is ipso facto leftish and anti-business. Hence the mythology of the New-Fair Deal-as-Red that is endemic on the Right. Both the big businessmen, led by the Morgan interests, and Professor Kolko almost uniquely in the academic world, have realized that monopoly privilege can only be created by the State and not as a result of free market operations.

-Murray N. Rothbard, Rothbard Left and Right: The Prospects for Liberty, [Originally appeared in Left and Right, Spring 1965, pp. 4-22.]

https://mises.org/library/left-and-right-prospects-liberty

jacques sheete , October 25, 2017 at 12:37 pm GMT

A truly global-hegemonic system like contemporary global capitalism (the first of this kind in human history), technically, has no ideology.

Please change that to" contemporary state-sponsored global capitalism

Malla , October 25, 2017 at 1:58 pm GMT
@Wizard of Oz

It was all about connecting the dots really. Connecting the dots of too many books I have gobe through and videos I have seen. Too many to list here.

You can get a lot of info from the book 'Tragedy and Hope' by Carroll Quigley though he avoids mantioning Jews and calls it the Anglo American establishment, Anthony Sutton however I completely disagree about funding of the Third Reich but he does talk a lot about the secret relationship between the USA and the USSR, Revilo Oliver etc.. etc Well you could read the Protocols. Now if you think that the protocols was a forgery, you gotta see this, especially the last part.

Also check this out

Also check out what this Wall Street guy realised in his career.

Also this 911 firefighter, what he found out after some research

Miro23 , October 25, 2017 at 2:18 pm GMT

Capitalism is an economic system, which we have elevated to a social system. It only has one fundamental value, exchange value, which isn't much of a value, at least not in terms of organizing society or maintaining any sort of human culture or reverence for the natural world it exists in. In capitalist society, everything, everyone, every object and sentient being, every concept and human emotion, is worth exactly what the market will bear no more, no less, than its market price. There is no other measure of value.

This looks like the "financialization" of society with Citizens morphing into Consumers.

And it's worth saying that Citizenship and Consumership are completely different concepts:

Citizenship – Dictionary.com

1. – the state of being vested with the rights, privileges, and duties of a citizen.

2. – the character of an individual viewed as a member of society;behavior in terms of the duties, obligations, and functions of a citizen:

an award for good citizenship.

The Consumer – Dictionary.com

1. a person or thing that consumes.

2. Economics. a person or organization that uses a commodity or service.

A good citizen can then define themselves in a rather non-selfish, non-financial way as for example, someone who respects others, contributes to local decisions (politically active), gains respect through work and ethical standards etc.

A good consumer on the other hand, seems to be more a self-idea, essentially someone who buys and consumes a lot (financial idea), has little political interest – and probably defines themselves (and others) by how they spend money and what they own.

It's clear that US, and global capitalism, prefers active consumers over active citizens, and maybe it explains why the US has such a worthless and dysfunctional political process.

jacques sheete , October 25, 2017 at 2:21 pm GMT

It was all about connecting the dots really.

Some folks are completely unable to connect the dots even when spoon fed the evidence. You'll note that some, in risible displays of quasi-intellectual arrogance, make virtually impossible demands for proof, none of which they'll ever accept. Rather, they flock to self aggrandizing mythology like flies to fresh sewage which the plutoligarchy produces nearly infinitely.

Your observations appear pretty accurate and self justifying I'd say.

daniel le mouche , October 25, 2017 at 2:23 pm GMT
@Wizard of Oz

I can, Wiz.

Look up the film director Aaron Russo (recently deceased), discussing how David Rockefeller tried to bring him over to the dark side. Rockefeller discussed for example the women's movement, its engineering. Also, there's Aldous Huxley's speech The Ultimate Revolution, on how drugs are the final solution to rabble troubles–we will think we're happy even in the most appalling societal conditions.

daniel le mouche , October 25, 2017 at 2:49 pm GMT
@jilles dykstra

I can only say Beware of Zinn, best friend of Chomsky, endlessly tauted by shysters like Amy Goodman and Counterpunch. Like all liberal gatekeepers, he wouldn't touch 911. I saw him speak not long before he died, and when questioned on this he said, 'That was a long time ago, let's talk about now.'

This from a professed historian, and it was only 7 years after 911. He seemed to have the same old Jewish agenda, make Europeans look really bad at all times. He was always on message, like the shyster Chomsky. Sincerely probing for the truth was not part of his agenda; his truths were highly selective, and such a colossal event as 911 concerned him not at all, with the ensuing wars, Patriot Acts, bullshit war on Terror, etc etc

joe webb , October 25, 2017 at 4:17 pm GMT
Say what???

" capitalism has no interest in racism, misogyny, homophobia, xenophobia, or any other despotic values (though it has no problem working with these values when they serve its broader strategic purposes). Capitalism is an economic system, which we have elevated to a social system."

This is a typical Left Lie. Capitalism in its present internationalist phase absolutely requires Anti-Racism to lubricate sales uh, internationally and domestically. We are all Equal.

Then, the ticking-off of the rest of the bad isms, and labeling them 'despotic' is another Leftwing and poetic attack on more or less all of us white folks, who have largely invented Capitalism, from a racialist point of view.

"Poetic" because it is an emotional appeal, not a rational argument. The other 'despotisms' are not despotic, unless you claim, like I do that racial personalities are more, or less despotic, with Whites being the least despotic. The Left totalitarian thinks emotional despotism's source is political or statist. It are not. However, Capitalism has been far less despotic than communism, etc.

Emotional Despotism is part of who Homo Sapiens is, and this emotional despotism is not racially equal. Whites are the least despotic, and have organized law and rules to contain such despotism.

Systems arise naturally from the Human Condition, like it or not. The attempt here is to sully the Capitalist system, and that is all it is. This article itself is despotic propaganda.

Arguably, human nature is despotic, and White civilization has attempted to limit our despotic nature.

This is another story.

As for elevating capitalism into a 'social system' .this is somewhat true. However, that is not totally bad, as capitalism delivers the goods, which is the first thing, after getting out of bed.

The second thing, is having a conformable social environment, and that is where racial accord enters.

People want familiar and trustworthy people around them and that is just the way human nature is genetic similarity, etc.

Beyond that, the various Leftie complaints-without-end, are also just the way it is. And yes they can be addressed and ameliorated to some degree, but human nature is not a System to be manipulated, even thought the current crop of scientistic lefties talk a good storyline about epigenetics and other Hopes, false of course, like communist planning which makes its first priority, Social Change which is always despotic. Society takes care of itself, especially racial society.

As Senator Vail said about the 1924 Immigration Act which held the line against Immigration, "if there is going to be any changing being done, we will do it and nobody else." That 'we' was a White we.

Capitalism must be national. International capital is tyranny.

Joe Webb

Wally , Website October 25, 2017 at 4:24 pm GMT
@jacques sheete

Bingo.

Some agendas require the "state sponsored" part to be hidden.

Wally , Website October 25, 2017 at 4:30 pm GMT
@Malla

"How Big Oil Conquered the World"?

That's called 'taking the bait.'

US oil companies make about five cents off a single gallon of gasoline, on the other hand US Big Government taxes on a single gallon are around seventy-one cents for US states & rising, the tax is now $1.00 per gallon for CA.

IOW, greedy US governments make fourteen to twenty times what oil companies make, and it is the oil companies who make & deliver the vital product to the marketplace.

And that is just in the US. Have a look at Europe's taxes. My, my.

It's Big Government, not Big Oil.

jacques sheete , October 25, 2017 at 5:12 pm GMT
@Wally

Some agendas require the "state sponsored" part to be hidden.

That is part of the reason why the constitutional convention was held in secret as well.

The cunning connivers who ram government down our throats don't like their designs exposed, and it's an old trick which nearly always works.

Here's Aristophanes on the subject. His play is worth a read. Short and great satire on the politicians of the day.

SAUSAGE-SELLER

No, Cleon, little you care for his reigning in Arcadia, it's to pillage and impose on the allies at will that you reckon; y ou wish the war to conceal your rogueries as in a mist, that Demos may see nothing of them, and harassed by cares, may only depend on yourself for his bread. But if ever peace is restored to him, if ever he returns to his lands to comfort himself once more with good cakes, to greet his cherished olives, he will know the blessings you have kept him out of, even though paying him a salary; and, filled with hatred and rage, he will rise, burning with desire to vote against you. You know this only too well; it is for this you rock him to sleep with your lies.

- Aristophanes, The Knights, 424 BC

http://classics.mit.edu/Aristophanes/knights.html

jilles dykstra , October 25, 2017 at 5:18 pm GMT
@daniel le mouche

The first loyalty of jews is supposed to be to jews.

Norman Finkelstein is called a traitor by jews, the Dutch jew Hamburger is called a traitor by Dutch jews, he's the chairman of 'Een ander joodse geluid', best translated by 'another jewish opinion', the organisation criticises Israel.

Jewish involvement in Sept 11 seems probable, the 'dancing Israelis', the assertion that most jews working in the Twin Towers at the time were either sick or took a day off, the fact that the Towers were jewish property, ready for a costly demolition, much abestos in the buildings, thus the 'terrorist' act brought a great profit.

Can one expect a jew to expose things like this ?

On his book, I did not find inconsistencies with literature I already knew.

The merit of the book is listing many events that affected common people in the USA, and destroying the myth that 'in the USA who is poor has only himself to blame'.

This nonsense becomes clear even from the diaries of Harold L Ickes, or from Jonathan Raban Bad Land, 1997.

As for Zinn's criticism of the adored USA constitution, I read that Charles A Beard already in 1919 resigned because he also criticised this constitution.

jilles dykstra , October 25, 2017 at 5:20 pm GMT
@Wally

Indeed, in our countries about half the national income goes to the governments by taxes, this is the reason a country like Denmark is the best country to live in.

[Oct 01, 2017] Neoliberal economic policies in the United States The impact of globalisation on a `Northern country by Kim Scipes

Highly recommended!
Notable quotes:
"... Following Frances Fox Piven, "neoliberal economic policies" refers to the set of policies carried out, in the name of individualism and unfettered markets, for "the deregulation of corporations, and particularly of financial institutions; the rollback of public services and benefit programs; curbing labor unions; 'free trade' policies that would pry open foreign markets; and wherever possible the replacement of public programs with private markets" (Piven, 2007: 13). ..."
"... The case of the United States is particularly useful to examine because its elites have projected themselves as "first among equals" of the globalization project ( Bello , 2006), and it is the place of the Global North where the neoliberal project has been pursued most resolutely and has advanced the farthest. In other words, the experiences of American workers illuminate the affects of the neoliberal project in the Global North to the greatest extent, and suggest what will happen to working people in other northern countries should they accept their respective government's adoption of such policies. ..."
"... However, it is believed that the implementation of these neoliberal economic policies and the cultural wars to divert public attention are part of a larger, conscious political program by the elites within this country that is intended to prevent re-emergence of the collective solidarity among the American people that we saw during the late 1960s-early 1970s (see Piven, 2004, 2007) -- of which the internal breakdown of discipline within the US military, in Vietnam and around the world, was arguably the most crucial (see Moser, 1996; Zeiger, 2006) -- that ultimately challenged, however inchoately, the very structure of the established social order, both internationally and in the United States itself. ..."
Oct 01, 2017 | links.org.au

Most contemporary discussions of globalization, and especially of the impact of neoliberal economic policies, focus on the countries of the Global South (see, for example, Bond, 2005; Ellner and Hellinger, eds., 2003; a number of articles in Harris, ed., 2006; Klein, 2007; Monthly Review, 2007; and, among others, see Scipes, 1999, 2006b). Recent articles arguing that the globalization project has receded and might be taking different approaches (Bello, 2006; Thornton, 2007) have also focused on the Global South. What has been somewhat discussed (see Giroux, 2004; Piven, 2004; Aronowitz, 2005) but not systematically addressed, however, is what has been the impact of globalization and especially related neoliberal economic policies on working people in a northern country? [i]

This paper specifically addresses this question by looking at the impact of neoliberal economic policies on working people in the United States . Following Frances Fox Piven, "neoliberal economic policies" refers to the set of policies carried out, in the name of individualism and unfettered markets, for "the deregulation of corporations, and particularly of financial institutions; the rollback of public services and benefit programs; curbing labor unions; 'free trade' policies that would pry open foreign markets; and wherever possible the replacement of public programs with private markets" (Piven, 2007: 13).

The case of the United States is particularly useful to examine because its elites have projected themselves as "first among equals" of the globalization project ( Bello , 2006), and it is the place of the Global North where the neoliberal project has been pursued most resolutely and has advanced the farthest. In other words, the experiences of American workers illuminate the affects of the neoliberal project in the Global North to the greatest extent, and suggest what will happen to working people in other northern countries should they accept their respective government's adoption of such policies.

However, care must be taken as to how this is understood. While sociologically-focused textbooks (e.g., Aguirre and Baker, eds., 2008; Hurst, 2007) have joined together some of the most recent thinking on social inequality -- and have demonstrated that inequality not only exists but is increasing -- this has been generally presented in a national context; in this case, within the United States. And if they recognize that globalization is part of the reason for increasing inequality, it is generally included as one of a set of reasons.

This paper argues that we simply cannot understand what is happening unless we put developments within a global context: the United States effects, and is affected by, global processes. Thus, while some of the impacts can be understood on a national level, we cannot ask related questions as to causes -- or future consequences -- by confining our examination to a national level: we absolutely must approach this from a global perspective (see Nederveen Pieterse, 2004, 2008).

This also must be put in historical perspective as well, although the focus in this piece will be limited to the post-World War II world. Inequality within what is now the United States today did not -- obviously -- arise overnight. Unquestionably, it began at least 400 years ago in Jamestown -- with the terribly unequal and socially stratified society of England's colonial Virginia before Africans were brought to North America (see Fischer, 1989), much less after their arrival in 1619, before the Pilgrims. Yet, to understand the roots of development of contemporary social inequality in the US , we must understand the rise of " Europe " in relation to the rest of the world (see, among others, Rodney, 1972; Nederveen Pieterse, 1989). In short, again, we have to understand that the development of the United States has been and will always be a global project and, without recognizing that, we simply cannot begin to understand developments within the United States .

We also have to understand the multiple and changing forms of social stratification and resulting inequalities in this country. This paper prioritizes economic stratification, although is not limited to just the resulting inequalities. Nonetheless, it does not focus on racial, gender or any other type of social stratification. However, this paper is not written from the perspective that economic stratification is always the most important form of stratification, nor from the perspective that we can only understand other forms of stratification by understanding economic stratification: all that is being claimed herein is that economic stratification is one type of social stratification, arguably one of the most important types yet only one of several, and investigates the issue of economic stratification in the context of contemporary globalization and the neoliberal economic policies that have developed to address this phenomenon as it affects the United States.

Once this global-historical perspective is understood and after quickly suggesting in the "prologue" why the connection between neoliberal economic policies and the affects on working people in the United States has not been made usually, this paper focuses on several interrelated issues: (1) it reports the current economic situation for workers in the United States; (2) it provides a historical overview of US society since World War II; (3) it analyzes the results of US Government economic policies; and (4) it ties these issues together. From that, it comes to a conclusion about the affects of neoliberal economic policies on working people in the United States .

Prologue: Origins of neoliberal economic policies in the United States

As stated above, most of the attention directed toward understanding the impact of neoliberal economic policies on various countries has been confined to the countries of the Global South. However, these policies have been implemented in the United States as well. This arguably began in 1982, when the Chairman of the US Federal Reserve, Paul Volcker, launched a vicious attack on inflation -- and caused the deepest US recession since the Great Depression of the late 1920s-1930s.

However, these neoliberal policies have been implemented in the US perhaps more subtly than in the Global South. This is said because, when trying to understand changes that continue to take place in the United States, these economic policies are hidden "under" the various and sundry "cultural wars" (around issues such as drugs, premarital sex, gun control, abortion, marriages for gays and lesbians) that have been taking place in this country and, thus, not made obvious: most Americans, and especially working people, are not aware of the changes detailed below. [ii]

However, it is believed that the implementation of these neoliberal economic policies and the cultural wars to divert public attention are part of a larger, conscious political program by the elites within this country that is intended to prevent re-emergence of the collective solidarity among the American people that we saw during the late 1960s-early 1970s (see Piven, 2004, 2007) -- of which the internal breakdown of discipline within the US military, in Vietnam and around the world, was arguably the most crucial (see Moser, 1996; Zeiger, 2006) -- that ultimately challenged, however inchoately, the very structure of the established social order, both internationally and in the United States itself. Thus, we see both Democratic and Republican Parties in agreement to maintain and expand the US Empire (in more neutral political science-ese, a "uni-polar world"), but the differences that emerge within each party and between each party are generally confined to how this can best be accomplished. While this paper focuses on the economic and social changes going on, it should be kept in mind that these changes did not "just happen": conscious political decisions have been made that produced social results (see Piven, 2004) that make the US experience -- at the center of a global social order based on an "advanced" capitalist economy -- qualitatively different from experiences in other more economically-developed countries.

So, what has been the impact of these policies on workers in the US?

1) The current situation for workers and growing economic inequality

Steven Greenhouse of The New York Times published a piece on September 4, 2006, writing about entry-level workers, young people who were just entering the job market. Mr. Greenhouse noted changes in the US economy; in fact, there have been substantial changes since early 2000, when the economy last created many jobs.

Yet, the percentage drop in wages hides the growing gap between college and high school graduates. Today, on average, college grads earn 45 per cent more than high school graduates, where the gap had "only" been 23 per cent in 1979: the gap has doubled in 26 years (Greenhouse, 2006b).

A 2004 story in Business Week found that 24 per cent of all working Americans received wages below the poverty line ( Business Week , 2004). [iii] In January 2004, 23.5 million Americans received free food from food pantries. "The surge for food demand is fueled by several forces -- job losses, expired unemployment benefits, soaring health-care and housing costs, and the inability of many people to find jobs that match the income and benefits of the jobs they had." And 43 million people were living in low-income families with children (Jones, 2004).

A 2006 story in Business Week found that US job growth between 2001-2006 was really based on one industry: health care. Over this five-year period, the health-care sector has added 1.7 million jobs, while the rest of the private sector has been stagnant. Michael Mandel, the economics editor of the magazine, writes:

information technology, the great electronic promise of the 1990s, has turned into one of the greatest job-growth disappointments of all time. Despite the splashy success of companies such as Google and Yahoo!, businesses at the core of the information economy -- software, semi-conductors, telecom, and the whole range of Web companies -- have lost more than 1.1 million jobs in the past five years. These businesses employ fewer Americans today than they did in 1998, when the Internet frenzy kicked into high gear (Mandel, 2006: 56) .

In fact, "take away health-care hiring in the US, and quicker than you can say cardiac bypass, the US unemployment rate would be 1 to 2 percentage points higher" (Mandel, 2006: 57).

There has been extensive job loss in manufacturing. Over 3.4 million manufacturing jobs have been lost since 1998, and 2.9 million of them have been lost since 2001. Additionally, over 40,000 manufacturing firms have closed since 1999, and 90 per cent have been medium and large shops. In labor-import intensive industries, 25 per cent of laid-off workers remain unemployed after six months, two-thirds of them who do find new jobs earn less than on their old job, and one-quarter of those who find new jobs "suffer wage losses of more than 30 percent" (AFL-CIO, 2006a: 2).

The AFL-CIO details the US job loss by manufacturing sector in the 2001-05 period:

As of the end of 2005, only 10.7 per cent of all US employment was in manufacturing -- down from 21.6 per cent at its height in 1979 -- in raw numbers, manufacturing employment totaled 19.426 million in 1979, 17.263 million in 2000, and 14.232 million in 2005. [iv] The number of production workers in this country at the end of 2005 was 9.378 million. [v] This was only slightly above the 9.306 million production workers in 1983, and was considerably below the 11.463 million as recently as 2000 (US Bureau of Labor Statistics, 2006b). As one writer puts it, this is "the biggest long-term trend in the economy: the decline of manufacturing." He notes that employment in the durable goods (e.g., cars and cable TV boxes) category of manufacturing has declined from 19 per cent of all employment in 1965 to 8 per cent in 2005 (Altman, 2006). And at the end of 2006, only 11.7 per cent of all manufacturing workers were in unions (US Bureau of Labor Statistics, 2007).

In addition, in 2004 and 2005, "the real hourly and weekly wages of US manufacturing workers have fallen 3 per cent and 2.2 per cent respectively" (AFL-CIO, 2006a: 2).

The minimum wage level went unchanged for nine years: until recently when there was a small increase -- to $5.85 an hour on July 24, 2007 -- US minimum wage had remained at $5.15 an hour since September 1, 1997 . During that time, the cost of living rose 26 percent. After adjusting for inflation, this was the lowest level of the minimum wage since 1955. At the same time, the minimum wage was only 31 per cent of the average pay of non-supervisory workers in the private sector, which is the lowest share since World War II (Bernstein and Shapiro, 2006).

In addition to the drop in wages at all levels, fewer new workers get health care benefits with their jobs: [vi] in 2005, 64 per cent of all college grads got health coverage in entry-level jobs, where 71 per cent had gotten it in 2000 -- a 7 per cent drop in just five years. Over a longer term, we can see what has happened to high school grads: in 1979, two-thirds of all high school graduates got health care coverage in entry-level jobs, while only one-third do today (Greenhouse, 2006b). It must be kept in mind that only about 28 per cent of the US workforce are college graduates -- most of the work force only has a high school degree, although a growing percentage of them have some college, but not college degrees.

Because things have gotten so bad, many young adults have gotten discouraged and given up. The unemployment rate is 4.4 per cent for ages 25-34, but 8.2 per cent for workers 20-24. (Greenhouse, 2006b).

Yet things are actually worse than that. In the US , unemployment rates are artificially low. If a person gets laid off and gets unemployment benefits -- which fewer and fewer workers even get -- they get a check for six months. If they have not gotten a job by the end of six months -- and it is taking longer and longer to get a job -- and they have given up searching for work, then not only do they loose their unemployment benefits, but they are no longer counted as unemployed: one doesn't even count in the statistics!

A report from April 2004 provides details. According to the then-head of the US Federal Reserve System, Alan Greenspan, "the average duration of unemployment increased from twelve weeks in September 2000 to twenty weeks in March [2004]" (quoted in Shapiro, 2004: 4). In March 2004, 354,000 jobs workers had exhausted their unemployment benefits, and were unable to get any additional federal unemployment assistance: Shapiro (2004: 1) notes, "In no other month on record, with data available back to 1971, have there been so many 'exhaustees'."

Additionally, although it's rarely reported, unemployment rates vary by racial grouping. No matter what the unemployment rate is, it really only reflects the rate of whites who are unemployed because about 78 per cent of the workforce is white. However, since 1954, the unemployment rate of African-Americans has always been more than twice that of whites, and Latinos are about 1 1/2 times that of whites. So, for example, if the overall rate is five percent, then it's at least ten per cent for African-Americans and 7.5 per cent for Latinos.

However, most of the developments presented above -- other than the racial affects of unemployment -- have been relatively recent. What about longer term? Paul Krugman, a Nobel Prize-winning Princeton University economist who writes for The New York Times, pointed out these longer term affects: non-supervisory workers make less in real wages today (2006) than they made in 1973! So, after inflation is taken out, non-supervisory workers are making less today in real terms that their contemporaries made 33 years ago (Krugman, 2006b). Figures provided by Stephen Franklin -- obtained from the US Bureau of Statistics, and presented in 1982 dollars -- show that a production worker in January 1973 earned $9.08 an hour -- and $8.19 an hour in December 2005 (Franklin, 2006). Workers in 2005 also had less long-term job security, fewer benefits, less stable pensions (when they have them), and rising health care costs. [vii]

In short, the economic situation for "average Americans" is getting worse. A front-page story in the Chicago Tribune tells about a worker who six years ago was making $29 an hour, working at a nuclear power plant. He got laid off, and now makes $12.24 an hour, working on the bottom tier of a two-tiered unionized factory owned by Caterpillar, the multinational earth moving equipment producer, which is less than half of his old wages. The article pointed out, "Glued to a bare bones budget, he saved for weeks to buy a five-pack of $7 T-shirts" ( Franklin , 2006).

As Foster and Magdoff point out:

Except for a small rise in the late 1990s, real wages have been sluggish for decades. The typical (median-income) family has sought to compensate for this by increasing the number of jobs and working hours per household. Nevertheless, the real (inflation-adjusted) income of the typical household fell for five years in a row through 2004 (Foster and Magdoff, 2009: 28).

A report by Workers Independent News (WIN) stated that while a majority of metropolitan areas have regained the 2.6 million jobs lost during the first two years of the Bush Administration, "the new jobs on average pay $9,000 less than the jobs replaced," a 21 per cent decline from $43,629 to $34,378. However, WIN says that "99 out of the 361 metro areas will not recover jobs before 2007 and could be waiting until 2015 before they reach full recovery" (Russell, 2006).

At the same time, Americans are going deeper and deeper into debt. At the end of 2000, total US household debt was $7.008 trillion, with home mortgage debt being $4.811 trillion and non-mortgage debt $1.749 trillion; at the end of 2006, comparable numbers were a total of $12.817 trillion; $9.705 trillion (doubling since 2000); and $2.431 trillion (US Federal Reserve, 2007-rounding by author). Foster and Magdoff (2009: 29) show that this debt is not only increasing, but based on figures from the Federal Reserve, that debt as a percentage of disposable income has increased overall from 62% in 1975 to 96.8% in 2000, and to 127.2% in 2005.

Three polls from mid-2006 found "deep pessimism among American workers, with most saying that wages were not keeping pace with inflation, and that workers were worse off in many ways than a generation ago" (Greenhouse, 2006a). And, one might notice, nothing has been said about increasing gas prices, lower home values, etc. The economic situation for most working people is not looking pretty.

In fact, bankruptcy filings totaled 2.043 million in 2005, up 31.6 per cent from 2004 (Associated Press, 2006), before gas prices went through the ceiling and housing prices began falling in mid-2006. Yet in 1998, writers for the Chicago Tribune had written, " the number of personal bankruptcy filings skyrocketed 19.5 per cent last year, to an all-time high of 1,335,053, compared with 1,117,470 in 1996" (Schmeltzer and Gruber, 1998).

And at the same time, there were 37 million Americans in poverty in 2005, one of out every eight. Again, the rates vary by racial grouping: while 12.6 per cent of all Americans were in poverty, the poverty rate for whites was 8.3 percent; for African Americans, 24.9 per cent were in poverty, as were 21.8 per cent of all Latinos. (What is rarely acknowledged, however, is that 65 per cent of all people in poverty in the US are white.) And 17.6 per cent of all children were in poverty (US Census Bureau, 2005).

What about the "other half"? This time, Paul Krugman gives details from a report by two Northwestern University professors, Ian Dew-Becker and Robert Gordon, titled "Where Did the Productivity Growth Go?" Krugman writes:

Between 1973 and 2001, the wage and salary income of Americans at the 90th percentile of the income distribution rose only 34 percent, or about 1 per cent per year. But income at the 99th percentile rose 87 percent; income at the 99.9th percentile rose 181 percent; and income at the 99.99th percentile rose 497 percent. No, that's not a misprint. Just to give you a sense of who we're talking about: the nonpartisan Tax Policy Center estimates that this year, the 99th percentile will correspond to an income of $402,306, and the 99.9th percentile to an income of $1,672,726. The Center doesn't give a number for the 99.99th percentile, but it's probably well over $6 million a year (Krugman, 2006a) .

But how can we understand what is going on? We need to put take a historical approach to understand the significance of the changes reported above.

(2) A historical look at the US social order since World War II

When considering the US situation, it makes most sense to look at "recent" US developments, those since World War II. Just after the War, in 1947, the US population was about six per cent of the world's total. Nonetheless, this six per cent produced about 48 per cent of all goods and services in the world! [viii] With Europe and Japan devastated, the US was the only industrialized economy that had not been laid waste. Everybody needed what the US produced -- and this country produced the goods, and sent them around the world.

At the same time, the US economy was not only the most productive, but the rise of the industrial union movement in the 1930s and '40s -- the CIO (Congress of Industrial Organizations) -- meant that workers had some power to demand a share of the wealth produced. In 1946, just after the war, the US had the largest strike wave in its history: 116,000,000 production days were lost in early 1946, as industry-wide strikes in auto, steel, meat packing, and the electrical industry took place across the United States and Canada , along with smaller strikes in individual firms. Not only that, but there were general strikes that year in Oakland , California and Stamford , Connecticut . Workers had been held back during the war, but they demonstrated their power immediately thereafter (Lipsitz, 1994; Murolo and Chitty, 2001). Industry knew that if it wanted the production it could sell, it had to include unionized workers in on the deal.

It was this combination -- devastated economic markets around the world and great demand for goods and services, the world's most developed industrial economy, and a militant union movement -- that combined to create what is now known as the "great American middle class." [ix]

To understand the economic impact of these factors, changes in income distribution in US society must be examined. The best way to illuminate this is to assemble family data on income or wealth [x] -- income data is more available, so that will be used; arrange it from the smallest amount to the largest; and then to divide the population into fifths, or quintiles. In other words, arrange every family's annual income from the lowest to the highest, and divide the total number of family incomes into quintiles or by 20 percents (i.e., fifths). Then compare changes in the top incomes for each quintile. By doing so, one can then observe changes in income distribution over specified time periods.

The years between 1947 and 1973 are considered the "golden years" of the US society. [xi] The values are presented in 2005 dollars, so that means that inflation has been taken out: these are real dollar values, and that means these are valid comparisons.

Figure 1: US family income, in US dollars, growth and istribution, by quintile, 1947-1973 compared to 1973-2001, in 2005 dollars

Lowest 20%

Second 20 %

Third 20%

Fourth 20%

95 th Percentile [xii]

1947

$11,758

$18,973

$25,728

$36,506

$59,916

1973

$23,144

$38,188

$53,282

$73,275

$114,234

Difference (26 years) $11,386

(97%)

$19,145

(100%)

$27,554

(107%)

$36,769

(101%)

$54,318

(91%)

1973

$23,144

$38,188

$53,282

$73,275

$114,234

2001

$26,467

$45,355

$68,925

$103,828

$180,973

Difference (28 years) $3,323

(14%)

$7,167

(19%)

$15,643

(29%)

$30,553

(42%)

$66,739

(58%)

Source: US Commerce Department, Bureau of the Census (hereafter, US Census Bureau) at www.census.gov/hhes/www/income/histinc/f01ar.html . All dollar values converted to 2005 dollars by US Census Bureau, removing inflation and comparing real values. Differences and percentages calculated by author. Percentages shown in both rows labeled "Difference" show the dollar difference as a percentage of the first year of the comparison.

Data for the first period, 1947-1973 -- the data above the grey line -- shows there was considerable real economic growth for each quintile . Over the 26-year period, there was approximately 100 per cent real economic growth for the incomes at the top of each quintile, which meant incomes doubled after inflation was removed; thus, there was significant economic growth in the society.

And importantly, this real economic growth was distributed fairly evenly . The data in the fourth line (in parentheses) is the percentage relationship between the difference between 1947-1973 real income when compared to the 1947 real income, with 100 per cent representing a doubling of real income: i.e., the difference for the bottom quintile between 1947 and 1973 was an increase of $11,386, which is 97 per cent more than $11,758 that the top of the quintile had in 1947. As can be seen, other quintiles also saw increases of roughly comparable amounts: in ascending order, 100 percent, 107 percent, 101 percent, and 91 percent. In other words, the rate of growth by quintile was very similar across all five quintiles of the population.

When looking at the figures for 1973-2001, something vastly different can be observed. This is the section below the grey line. What can be seen? First, economic growth has slowed considerably: the highest rate of growth for any quintile was that of 58 per cent for those who topped the fifth quintile, and this was far below the "lagger" of 91 per cent of the earlier period.

Second, of what growth there was, it was distributed extremely unequally . And the growth rates for those in lower quintiles were generally lower than for those above them: for the bottom quintile, their real income grew only 14 per cent over the 1973-2001 period; for the second quintile, 19 percent; for the third, 29 percent; for the fourth, 42 percent; and for the 80-95 percent, 58 percent: loosely speaking, the rich are getting richer, and the poor poorer.

Why the change? I think two things in particular. First, as industrialized countries recovered from World War II, corporations based in these countries could again compete with those from the US -- first in their own home countries, and then through importing into the US , and then ultimately when they invested in the United States . Think of Toyota : they began importing into the US in the early 1970s, and with their investments here in the early '80s and forward, they now are the largest domestic US auto producer.

Second cause for the change has been the deterioration of the American labor movement: from 35.3 per cent of the non-agricultural workforce in unions in 1954, to only 12.0 per cent of all American workers in unions in 2006 -- and only 7.4 per cent of all private industry workers are unionized, which is less than in 1930!

This decline in unionization has a number of reasons. Part of this deterioration has been the result of government policies -- everything from the crushing of the air traffic controllers when they went on strike by the Reagan Administration in 1981, to reform of labor law, to reactionary appointments to the National Labor Relations Board, which oversees administration of labor law. Certainly a key government policy, signed by Democratic President Bill Clinton, has been the North American Free Trade Act or NAFTA. One analyst came straight to the point:

Since [NAFTA] was signed in 1993, the rise in the US trade deficit with Canada and Mexico through 2002 has caused the displacement of production that supported 879,280 US jobs. Most of these lost jobs were high-wage positions in manufacturing industries. The loss of these jobs is just the most visible tip of NAFTA's impact on the US economy. In fact, NAFTA has also contributed to rising income inequality, suppressed real wages for production workers, weakened workers' collective bargaining powers and ability to organize unions, and reduced fringe benefits (Scott, 2003: 1).

These attacks by elected officials have been joined by the affects due to the restructuring of the economy. There has been a shift from manufacturing to services. However, within manufacturing, which has long been a union stronghold, there has been significant job loss: between July 2000 and January 2004, the US lost three million manufacturing jobs, or 17.5 percent, and 5.2 million since the historical peak in 1979, so that "Employment in manufacturing [in January 2004] was its lowest since July 1950" (CBO, 2004). This is due to both outsourcing labor-intensive production overseas and, more importantly, technological displacement as new technology has enabled greater production at higher quality with fewer workers in capital-intensive production (see Fisher, 2004). Others have blamed burgeoning trade deficits for the rise: " an increasing share of domestic demand for manufacturing output is satisfied by foreign rather than domestic producers" (Bivens, 2005). [xiii] Others have even attributed it to changes in consumer preferences (Schweitzer and Zaman, 2006). Whatever the reason, of the 50 states, only five (Nevada, North Dakota, Oregon, Utah, and Wyoming) did not see any job loss in manufacturing between 1993-2003, yet 37 lost between 5.6 and 35.9 per cent of their manufacturing jobs during this period (Public Policy Institute, 2004).

However, part of the credit for deterioration of the labor movement must be given to the labor movement itself: the leadership has been simply unable to confront these changes and, at the same time, they have consistently worked against any independent action by rank-and-file members. [xiv]

However, it must be asked: are the changes in the economy presented herein merely statistical manipulations, or is this indicating something real?

This point can be illustrated another way: by using CAGR, the Compound Annual Growth Rate. This is a single number that is computed, based on compounded amounts, across a range of years, to come up with an average number to represent the rate of increase or decrease each year across the entire period. This looks pretty complex, but it is based on the same idea as compound interest used in our savings accounts: you put in $10 today and (this is obviously not a real example) because you get ten per cent interest, so you have $11 the next year. Well, the following year, interest is not computed off the original $10, but is computed on the $11. So, by the third year, from your $10, you now have $12.10. Etc. And this is what is meant by the Compound Annual Growth Rate: this is average compound growth by year across a designated period.

Based on the numbers presented above in Figure 1, the author calculated the Compound Annual Growth Rate by quintiles (Figure 2). The annual growth rate has been calculated for the first period, 1947-1973, the years known as the "golden years" of US society. What has happened since then? Compare results from the 1947-73 period to the annual growth rate across the second period, 1973-2001, again calculated by the author.

Figure 2: Annual percentage of family income growth, by quintile, 1947-1973 compared to 1973-2001

Population by quintiles

1947-1973

1973-2001
95th Percentile

2.51%

1.66%

Fourth quintile

2.72%

1.25%

Third quintile

2.84%

.92%

Second quintile

2.73%

.62%

Lowest quintile

2.64%

.48%

Source: Calculated by author from gather provided by the US Census Bureau at www.census.gov/hhes/www/income/histinc/f01ar.html .

What we can see here is that while everyone's income was growing at about the same rate in the first period -- between 2.51 and 2.84 per cent annually -- by the second period, not only had growth slowed down across the board, but it grew by very different rates: what we see here, again, is that the rich are getting richer, and the poor poorer.

If these figures are correct, a change over time in the percentage of income received by each quintile should be observable. Ideally, if the society were egalitarian, each 20 per cent of the population would get 20 per cent of the income in any one year. In reality, it differs. To understand Figure 3, below, one must not only look at the percentage of income held by a quintile across the chart, comparing selected year by selected year, but one needs to look to see whether a quintile's share of income is moving toward or away from the ideal 20 percent.

Figure 3: Percentage of family income distribution by quintile, 1947, 1973, 2001.

Population by quintiles 1947 1973 2001

Top fifth (lower limit of top 5percent, or 95th Percentile)-- $184,500 [xv]

43.0% 41.1% 47.7%
Second fifth--$103,100 23.1% 24.0% 22.9%
Third fifth--$68,304 17.0% 17.5% 15.4%
Fourth fifth--$45,021 11.9% 11.9% 9.7%
Bottom fifth--$25,616 5.0% 5.5% 4.2%

Source: US Census Bureau at www.census.gov/hhes/www/income/histinc/f02ar.html .

Unfortunately, much of the data available publicly ended in 2001. However, in the summer of 2007, after years of not releasing data any later than 2001, the Census Bureau released income data up to 2005. It allows us to examine what has taken place regarding family income inequality during the first four years of the Bush Administration.

Figure 4: US family income, in US dollars, growth and distribution, by quintile, 2001-2005, 2005 US dollars

Lowest 20%

Second 20%

Middle 20%

Fourth 20%

Lowest level of top 5%

2001

$26,467

$45,855

$68,925

$103,828

$180,973

2005

$25,616

$45,021

$68,304

$103,100

$184,500

Difference

(4 years)

-$851

(-3.2%)

-$834

(-1.8%)

-$621

(-.01%)

-$728

(-.007%)

$3,527

(1.94%)

Source: US Census Bureau at www.census.gov/hhes/www/income/histinc/f01ar.html . (Over time, the Census Bureau refigures these amounts, so they have subsequently converted amounts to 2006 dollar values. These values are from their 2005 dollar values, and were calculated by the Census Bureau.) Differences and percentages calculated by author.

Thus, what we've seen under the first four years of the Bush Administration is that for at most Americans, their economic situation has worsened: not only has over all economic growth for any quintile slowed to a minuscule 1.94 per cent at the most, but that the bottom 80 per cent actually lost income; losing money (an absolute loss), rather than growing a little but falling further behind the top quintile (a relative loss). Further, the decrease across the bottom four quintiles has been suffered disproportionately by those in the lowest 40 per cent of the society.

This can perhaps be seen more clearly by examining CAGR rates by period.

We can now add the results of the 2001-2005 period share of income by quintile to our earlier chart:

Figure 5: Percentage of income growth per year by percentile, 1947-2005

Population by quintiles

1947-1973

1973-2001

2001-2005

Top 95 percentile

2.51%

1.66%

.48%

Fourth fifth

2.72%

1.25%

-.18%

Third fifth

2.84%

.92%

-.23%

Second fifth

2.73%

.62%

-.46%

Bottom fifth

2.64%

.48%

-.81%

Source: Calculated by author from data gathered from the US Department of the Census www.census.gov/hhes/www/income/histinc/f01ar.html .

As can be seen, the percentage of family income at each of the four bottom quintiles is less in 2005 than in 1947; the only place there has been improvement over this 58-year period is at the 95th percentile (and above).

Figure 6: Percentage of family income distribution by quintile, 1947, 1973, 2001, 2005.

Population by quintiles 1947 1973 2001 2005

Top fifth (lower limit of top 5percent, or 95th Percentile)-- $184,500

43.0% 41.1% 47.7% 48.1%
Second fifth--$103,100 23.1% 24.0% 22.9% 22.9%
Third fifth--$68,304 17.0% 17.5% 15.4% 15.3%
Fourth fifth--$45,021 11.9% 11.9% 9.7% 9.6%
Bottom fifth--$25,616 5.0% 5.5% 4.2% 4.0%

Source: U.S. Census Bureau at www.census.gov/hhes/www/income/histinc/f02ar.html .

What has been presented so far, regarding changes in income distribution, has been at the group level; in this case, quintile by quintile. It is time now to see how this has affected the society overall.

Sociologists and economists use a number called the Gini index to measure inequality. Family income data has been used so far, and we will continue using it. A Gini index is fairly simple to use. It measures inequality in a society. A Gini index is generally reported in a range between 0.000 and 1.000, and is written in thousandths, just like a winning percentage mark: three digits after the decimal. And the higher the Gini score, the greater the inequality.

Looking at the Gini index, we can see two periods since 1947, when the US Government began computing the Gini index for the country. From 1947-1968, with yearly change greater or smaller, the trend is downward, indicating reduced inequality: from .376 in 1947 to .378 in 1950, but then downward to .348 in 1968. So, again, over the first period, the trend is downward.

What has happened since then? From the low point in 1968 of .348, the trend has been upward. In 1982, the Gini index hit .380, which was higher than any single year between 1947-1968, and the US has never gone below .380 since then. By 1992, it hit .403, and we've never gone back below .400. In 2001, the US hit .435. But the score for 2005 has only recently been published: .440 (source: http://www.census.gov/hhes/www/income/histinc/f04.html ). So, the trend is getting worse, and with the policies established under George W. Bush, I see them only continuing to increase in the forthcoming period. [And by the way, this increasing trend has continued under both the Republicans and the Democrats, but since the Republicans have controlled the presidency for 18 of the last 26 years (since 1981), they get most of the credit -- but let's not forget that the Democrats have controlled Congress across many of those years, so they, too, have been an equal opportunity destroyer!]

However, one more question must be asked: how does this income inequality in the US, compare to other countries around the world? Is the level of income inequality comparable to other "developed" societies, or is it comparable to "developing" countries?

We must turn to the US Central Intelligence Agency (CIA) for our data. The CIA computes Gini scores for family income on most of the countries around the world, and the last time checked in 2007 (August 1), they had data on 122 countries on their web page and these numbers had last been updated on July 19, 2007 (US Central Intelligence Agency, 2007). With each country listed, there is a Gini score provided. Now, the CIA doesn't compute Gini scores yearly, but they give the last year it was computed, so these are not exactly equivalent but they are suggestive enough to use. However, when they do assemble these Gini scores in one place, they list them alphabetically, which is not of much comparative use (US Central Intelligence Agency, 2007).

However, the World Bank categorizes countries, which means they can be compared within category and across categories. The World Bank, which does not provide Gini scores, puts 208 countries into one of four categories based on Gross National Income per capita -- that's total value of goods and services sold in the market in a year, divided by population size. This is a useful statistic, because it allows us to compare societies with economies of vastly different size: per capita income removes the size differences between countries.

The World Bank locates each country into one of four categories: lower income, lower middle income, upper middle income, and high income (World Bank, 2007a). Basically, those in the lower three categories are "developing" or what we used to call "third world" countries, while the high income countries are all of the so-called developed countries.

The countries listed by the CIA with their respective Gini scores were placed into the specific World Bank categories in which the World Bank had previously located them (World Bank, 2007b). Once grouped in their categories, median Gini scores were computed for each group. When trying to get one number to represent a group of numbers, median is considered more accurate than an average, so the median was used, which means half of the scores are higher, half are lower -- in other words, the data is at the 50th percentile for each category.

The Gini score for countries, by Gross National Income per capita, categorized by the World Bank:

Figure 7: Median Gini Scores by World Bank income categories (countries selected by US Central Intelligence Agency were placed in categories developed by the World Bank) and compared to 2004 US Gini score as calculated by US Central Intelligence Agency (CIA)

Income category

Median Gini score

Gini score, US (2004)

Low income countries (less than $875/person/year)

.406

.450

Lower-middle income countries (between $876-3,465/person/year)

.414

.450

Upper-middle income countries (between $3,466-10,725/person/year

.370

.450

Upper-income countries (over $10,726/person/year

.316

.450

As can be seen, with the (CIA-calculated) Gini score of .450, the US family income is more unequal than the medians for each category, and is more unequal than some of the poorest countries on earth, such as Bangladesh (.318 -- calculated in 2000), Cambodia (.400, 2004 est.), Laos (.370-1997), Mozambique (.396, 1996-97), Uganda (.430-1999) and Vietnam (.361, 1998). This same finding also holds true using the more conservative Census Bureau-calculated Gini score of .440.

Thus, the US has not only become more unequal over the 35 years, as has been demonstrated above, but has attained a level of inequality that is much more comparable to those of developing countries in general and, in fact, is more unequal today than some of the poorest countries on Earth. There is nothing suggesting that this increasing inequality will lessen anytime soon. And since this increasing income inequality has taken place under the leadership of both major political parties, there is nothing on the horizon that suggests either will resolutely address this issue in the foreseeable future regardless of campaign promises made.

However, to move beyond discussion of whether President Obama is likely to address these and related issues, some consideration of governmental economic policies is required. Thus, he will be constrained by decisions made by previous administrations, as well as by the ideological blinders worn by those he has chosen to serve at the top levels of his administration.

3) Governmental economic policies

There are two key points that are especially important for our consideration: the US Budget and the US National Debt. They are similar, but different -- and consideration of each of them enhances understanding.

A) US budget. Every year, the US Government passes a budget, whereby governmental officials estimate beforehand how much money needs to be taken in to cover all expenses. If the government actually takes in more money than it spends, the budget is said to have a surplus; if it takes in less than it spends, the budget is said to be in deficit.

Since 1970, when Richard Nixon was President, the US budget has been in deficit every year except for the last four years under Clinton (1998-2001), where there was a surplus. But this surplus began declining under Clinton -- it was $236.2 billion in 2000, and only $128.2 billion in 2001, Clinton 's last budget. Under Bush, the US has gone drastically into deficit: -$157.8 billion in 2002; -$377.6 billion in 2003; -$412.7 billion in 2004; -$318.3 billion in 2005; and "only"-$248.2 billion in 2006 (Economic Report of the President, 2007: Table B-78).

Now, that is just yearly surpluses and deficits. They get combined with all the other surpluses and deficits since the US became a country in 1789 to create to create a cumulative amount, what is called the National Debt.

B) US national debt. Between 1789 and1980 -- from Presidents Washington through Carter -- the accumulated US National Debt was $909 billion or, to put it another way, $.909 trillion. During Ronald Reagan's presidency (1981-89), the National Debt tripled, from $.9 trillion to $2.868 trillion. It has continued to rise. As of the end of 2006, 17 years later and after a four-year period of surpluses where the debt was somewhat reduced, National Debt (or Gross Federal Debt) was $8.451 trillion (Economic Report of the President, 2007: Table B-78).

To put it into context: the US economy, the most productive in the world, had a Gross Domestic Product (GDP) of $13.061 trillion in 2006, but the National Debt was $8.451 trillion -- 64.7 per cent of GDP -- and growing (Economic Report of the President, 2007: Table B-1).

In April 2006, one investor reported that "the US Treasury has a hair under $8.4 trillion in outstanding debt. How much is that? He put it into this context: " if you deposited one million dollars into a bank account every day, starting 2006 years ago, that you would not even have ONE trillion dollars in that account" (Van Eeden, 2006).

Let's return to the budget deficit: like a family budget, when one spends more than one brings in, they can do basically one of three things: (a) they can cut spending; (b) they can increase taxes (or obviously a combination of the two); or (c) they can take what I call the "Wimpy" approach.

For those who might not know this, Wimpy was a cartoon character, a partner of "Popeye the Sailor," a Saturday morning cartoon that was played for over 30 years in the United States . Wimpy had a great love for hamburgers. And his approach to life was summed up in his rap: "I'll gladly give you two hamburgers on Tuesday, for a hamburger today."

What is argued is that the US Government has been taking what I call the Wimpy approach to its budgetary problems: it does not reduce spending, it does not raise taxes to pay for the increased expenditures -- in fact, President Bush has cut taxes for the wealthiest Americans [xvi] -- but instead it sells US Government securities, often known as Treasuries, to rich investors, private corporations or, increasingly, to other countries to cover the budget deficit. In a set number of years, the US Government agrees to pay off each bond -- and the difference between what the purchaser bought them for and the increased amount the US Government pays to redeem them is the cost of financing the Treasuries, a certain percentage of the total value. By buying US Treasuries, other countries have helped keep US interest rates low, helping to keep the US economy in as good of shape as it has been (thus, keeping the US market flourishing for them), while allowing the US Government not to have to confront its annual deficits. At the end of 2006, the total value of outstanding Treasuries -- to all investors, not just other countries -- was $8.507 trillion (Economic Report of the President, 2007: Table B-87).

It turns out that at in December 2004, foreigners owned approximately 61 per cent of all outstanding US Treasuries. Of that, seven per cent was held by China ; these were valued at $223 billion (Gundzik, 2005).

The percentage of foreign and international investors' purchases of the total US public debt since 1996 has never been less than 17.7 percent, and it has reached a high of 25.08 per cent in September 2006. In September 2006, foreigners purchased $2.134 trillion of Treasuries; these were 25.08 per cent of all purchases, and 52.4 per cent of all privately-owned purchases (Economic Report of the President, 2007: Table B-89). [xvii] Altogether, "the world now holds financial claims amounting to $3.5 trillion against the United States , or 26 per cent of our GDP" (Humpage and Shenk, 2007: 4).

Since the US Government continues to run deficits, because the Bush Administration has refused to address this problem, the United States has become dependent on other countries buying Treasuries. Like a junky on heroin, the US must get other investors (increasingly countries) to finance its budgetary deficits.

To keep the money flowing in, the US must keep interest rates high -- basically, interest rates are the price that must be paid to borrow money. Over the past year or so, the Federal Reserve has not raised interest rates, but prior to that, for 15 straight quarterly meetings, they did. And, as known, the higher the interest rate, the mostly costly it is to borrow money domestically, which means increasingly likelihood of recession -- if not worse. In other words, dependence on foreigners to finance the substantial US budget deficits means that the US must be prepared to raise interests rates which, at some point, will choke off domestic borrowing and consumption, throwing the US economy into recession. [xviii]

Yet this threat is not just to the United States -- according to the International Monetary Fund (IMF), it is a threat to the global economy. A story about a then-recently issued report by the IMF begins, "With its rising budget deficit and ballooning trade imbalance, the United States is running up a foreign debt of such record-breaking proportions that it threatens the financial stability of the global economy ." The report suggested that net financial obligations of the US to the rest of the world could equal 40 per cent of its total economy if nothing was done about it in a few years, "an unprecedented level of external debt for a larger industrial country" according to the report. What was perhaps even more shocking than what the report said was which institution said it: "The IMF has often been accused of being an adjunct of the United States , its largest shareholder" (Becker and Andrews, 2004).

Other analysts go further. After discussing the increasingly risky nature of global investing, and noting that "The investor managers of private equity funds and major banks have displaced national banks and international bodies such as the IMF," Gabriel Kolko (2007) quotes Stephen Roach, Morgan Stanley's chief economist, on April 24, 2007: "a major financial crisis seemed imminent and that the global institutions that could forestall it, including the IMF, the World Bank and other mechanisms of the international financial architecture, were utterly inadequate." Kolko recognizes that things may not collapse immediately, and that analysts could be wrong, but still concludes, "the transformation of the global financial system will sooner or later lead to dire results" (Kolko, 2007: 5).

What might happen if investors decided to take their money out of US Treasuries and, say, invest in Euro-based bonds? The US would be in big trouble, would be forced to raise its interest rates even higher than it wants -- leading to possibly a severe recession -- and if investors really shifted their money, the US could be observably bankrupt; the curtain hiding the "little man" would be opened, and he would be observable to all.

Why would investors rather shift their investment money into Euro-bonds instead of US Treasuries? Well, obviously, one measure is the perceived strength of the US economy. To get a good idea of how solid a country's economy is, one looks at things such as budget deficits, but perhaps even more importantly balance of trade: how well is this economy doing in comparison with other countries?

The US international balance of trade is in the red and is worsening: -$717 billion in 2005. In 1991, it was -$31 billion. Since 1998, the US trade balance has set a new record for being in the hole every year, except during 2001, and then breaking the all time high the very next year! -$165 B in 1998; -$263 B in 1999; -$378 B in 2000; only -$362 B in 2001; -$421 B in 2002; -$494 B in 2003; -$617 B in 2004; and - $717 B in 2005 (Economic Report of the President, 2007: Table B-103). According to the Census Department, the balance of trade in 2006 was -$759 billion (US Census Bureau, 2007).

And the US current account balance, the broadest measure of a country's international financial situation -- which includes investment inside and outside the US in addition to balance of trade -- is even worse: it was -$805 B in 2005, or 6.4 per cent of national income. "The bottom line is that a current account deficit of this unparalleled magnitude is unsustainable and there is no hope of it being painlessly resolved through higher exports alone," according to one analyst (quoted in Swann, 2006). Scott notes that the current account deficit in 2006 was -$857 billion (Scott, 2007a: 8, fn. 1). "In effect, the United States is living beyond its means and selling off national assets to pay its bills" (Scott, 2007b: 1). [xix]

In addition, during mid-2007, there was a bursting of a domestic "housing bubble," which has threatened domestic economic well-being but that ultimately threatens the well-being of global financial markets. There had been a tremendous run-up in US housing values since 1995 -- with an increase of more than 70 per cent after adjusting for the rate of inflation -- and this had created "more than $8 trillion in housing wealth compared with a scenario in which house prices had continued to rise at the same rate of inflation," which they had done for over 100 years, between 1890 and 1995 (Baker, 2007: 8).

This led to a massive oversupply of housing, accompanied with falling house prices: according to Dean Baker, "the peak inventory of unsold new homes of 573,000 in July 2006 was more than 50 per cent higher than the previous peak of 377,000 in May of 1989" (Baker, 2007: 12-13). This caused massive problems in the sub-prime housing market -- estimates are that almost $2 trillion in sub-prime loans were made during 2005-06, and that about $325 billion of these loans will default, with more than 1 million people losing their homes (Liedtke, 2007) -- but these problems are not confined to the sub-prime loan category: because sub-prime and "Alt-A" mortgages (the category immediately above sub-prime) financed 40 per cent of the housing market in 2006, "it is almost inevitable that the problems will spill over into the rest of the market" (Baker, 2007: 15). And Business Week agrees: "Subprime woes have moved far beyond the mortgage industry." It notes that at least five hedge funds have gone out of business, corporate loans and junk bonds have been hurt, and the leveraged buyout market has been hurt (Goldstein and Henry, 2007).

David Leonhardt (2007) agrees with the continuing threat to the financial industry. Discussing "adjustable rate mortgages" -- where interest rates start out low, but reset to higher rates, resulting in higher mortgage payments to the borrower -- he points out that about $50 billion of mortgages will reset during October 2007, and that this amount of resetting will remain over $30 billion monthly through September 2008. "In all," he writes," the interest rates on about $1 trillion worth of mortgages or 12 per cent of the nation's total, will reset for the first time this year or next."

Why all of this is so important is because bankers have gotten incredibly "creative" in creating new mortgages, which they sell to home buyers. Then they bundle these obligations and sell to other financial institutions and which, in turn, create new securities (called derivatives) based on these questionable new mortgages. Yes, it is basically a legal ponzi scheme, but it requires the continuous selling and buying of these derivatives to keep working: in early August 2007, however, liquidity -- especially "financial instruments backed by home mortgages" -- dried up, as no one wanted to buy these instruments (Krugman, 2007). The US Federal Research and the European Central Bank felt it necessary to pump over $100 billion into the financial markets in mid-August 2007 to keep the international economy solvent (Norris, 2007).

So, economically, this country is in terrible shape -- with no solution in sight.

On top of this -- as if all of this is not bad enough -- the Bush Administration is asking for another $481.4 billion for the Pentagon's base budget, which it notes is "a 62 per cent increase over 2001." Further, the Administration seeks an additional $93.4 billion in supplemental funds for 2007 and another $141.7 billion for 2008 to help fund the "Global War on Terror" and US operations in Iraq and Afghanistan (US Government, 2007). According to Stockholm International Peace Research Institute (SIPRI), in 2006, the US "defense" spending was equivalent to 46 per cent of all military spending in the world, meaning that almost more money is provided for the US military in one year than is spent by the militaries of all the other countries in the world combined (SIPRI, 2007).

And SIPRI's accounting doesn't include the $500 billion spent so far, approximately, on wars in Afghanistan and Iraq .

In short, not only have things gotten worse for American working people since 1973 -- and especially after 1982, with the imposition of neoliberal economic policies by institutions of the US Government -- but on-going Federal budget deficits, the escalating National Debt, the need to attract foreign money into US Treasuries, the financial market "meltdown" as well as the massive amounts of money being channeled to continue the Empire, all suggest that not only will intensifying social problems not be addressed, but will get worse for the foreseeable future.

4) Synopsis

This analysis provides an extensive look at the impact of neoliberal economic policies enacted in the United States on American working people. These neoliberal economic policies have been enacted as a conscious strategy by US corporate leaders and their governmental allies in both major political parties as a way to address intensifying globalization while seeking to maintain US dominance over the global political economy.

While it will be a while before anyone can determine success or failure overall of this elite strategy but, because of is global-historical perspective, sufficient evidence is already available to evaluate the affects of these policies on American working people. For the non-elites of this country, these policies have had a deleterious impact and they are getting worse. Employment data in manufacturing, worsening since 1979 but especially since 2000 (see Aronowitz, 2005), has been horrific -- and since this has been the traditional path for non-college educated workers to be able to support themselves and their families, and provide for their children, this data suggests social catastrophe for many -- see Rubin (1995), Barnes (2005), and Bageant (2007), and accounts in Finnegan (1998) and Lipper (2004) that support this -- because comparable jobs available to these workers are not being created. Thus, the problem is not just that people are losing previously stable, good-paying jobs -- as bad as that is -- but that there is nothing being created to replace these lost jobs, and there is not even a social safety net in many cases that can generally cushion the blow (see Wilson, 1996; Appelbaum, Bernhardt, and Murnane, eds., 2003).

Yet the impact of these social changes has not been limited to only blue-collar workers, although the impact has been arguably greatest upon them. The overall economic growth of the society has been so limited since 1973, and the results increasingly being unequally distributed since then, that the entire society is becoming more and more unequal: each of the four bottom quintiles -- the bottom 80 per cent of families -- has seen a decrease in the amount of family income available to each quintile between 2001-05. This not only increases inequality and resulting resentments -- including criminal behaviors -- but it also produces deleterious affects on individual and social health (Kawachi, Kennedy and Wilkinson, eds., 1999; Eitzen and Eitzen Smith, 2003). And, as shown above, this level of inequality is much more comparable internationally to "developing" countries rather than "developed" ones.

When this material is joined with material on the US budget, and especially the US National Debt, it is clear that these "problems" are not the product of individual failure, but of a social order that is increasingly unsustainable. While we have no idea of what it will take before the US economy will implode, all indications are that US elites are speeding up a run-away train of debt combined with job-destroying technology and off-shoring production, creating a worsening balance of trade with the rest of the world and a worsening current account, with an unstable housing market and intensifying militarism and an increasingly antagonistic foreign policy: it is like they are building a bridge over an abyss, with a train increasingly speeding up as it travels toward the bridge, and crucial indicators suggest that the bridge cannot be completed in time.

Whether the American public will notice and demand a radical change in time is not certain -- it will not be enough to simply slow the train down, but it must turn down an alternative track (see Albert, 2003; Woodin and Lucas, 2004; Starr, 2005) -- but it is almost certain that foreign investors will. Should they not be able to get the interest rates here available elsewhere in the "developed" parts of the world, investors will shift their investments, causing more damage to working people in the United States .

And when this economic-focused analysis is joined with an environmental one -- George Monbiot (2007) reports that the best science available argues that industrialized countries have to reduce their carbon dioxide emissions by 90 per cent by the year 2030 if we are to have a chance to stop global warming -- then it is clear that US society is facing a period of serious social instability.

5) Conclusion

This article has argued that the situation for working people in the United States, propelled by the general governmental adoption of neoliberal economic policies, is getting worse -- and there is no end in sight. The current situation and historical change have been presented and discussed. Further, an examination and analysis of directly relevant US economic policies have been presented, and there has been nothing in this analysis that suggests a radical, but necessary, change by US elected officials is in sight. In other words, working people in this country are in bad shape generally -- and it is worse for workers of color than for white workers -- and there is nothing within the established social order that suggests needed changes will be effected.

The neoliberal economic policies enacted by US corporate and government leaders has been a social disaster for increasing numbers of families in the United States .

Globalization for profit -- or what could be better claimed to be "globalization from above" -- and its resulting neoliberal economic policies have long-been recognized as being a disaster for most countries in the Global South. This study argues that this top-down globalization and the accompanying neoliberal economic policies has been a disaster for working people in northern countries as well, and most particularly in the United States .

The political implications from these findings remains to be seen. Surely, one argument is not only that another world is possible, but that it is essential.

© Kim Scipes, Ph.D.

[Kim Scipes is assistant professor of sociology , Purdue University, North Central, Westville , IN 46391. The author's web site is at http://faculty.pnc.edu/kscipes .This paper was given at the 2009 Annual Conference of the United Association for Labor Education at the National Labor College in Silver Spring , MD. It has been posted at Links International Journal of Socialist Renewal with Kim Scipes' permission.]

* * *

Note to labor educators: This is a very different approach than you usually take. While presenting a "big picture," this does not suggest what you are doing is "wrong" or "bad." What it suggests, however, is that the traditional labor education approach is too limited: this suggests that your work is valuable but that you need to put it into a much larger context than is generally done, and that it is in the interaction between your work and this that we each can think out the ways to go forward. This is presented in the spirit of respect for the important work that each of you do on a daily basis.

[Sep 18, 2017] Looks like Trump initially has a four point platform that was anti-neoliberal in its essence: non-interventionism, no to neoliberal globalization, no to outsourcing of jobs, and no to multiculturism. All were betrayed very soon

Highly recommended!
Jun 02, 2017 | economistsview.typepad.com

It looks like Trump initially has a four point platform that was anti-neoliberal in its essence:

  1. Non-interventionism. End the wars for the expansion of American neoliberal empire. Détente was Russia. Abolishing NATO and saving money on this. Let European defend themselves. Etc.
  2. No to neoliberal globalization. Abolishing of transnational treaties that favor large multinationals such as TPP, NAFTA, etc. Tariffs and other means of punishing corporations who move production overseas. Repatriation of foreign profits to the USA and closing of tax holes which allow to keep profits in tax heavens without paying a dime to the US government.
  3. No to neoliberal "transnational job market" -- free movement of labor. Criminal prosecution and deportation of illegal immigrants. Cutting intake of refugees. Curtailing legal immigration, especially fake and abused programs like H1B. Making it more difficult for people from countries with substantial terrorist risk to enter the USA including temporary prohibition of issuing visas from certain (pretty populous) Muslim countries.
  4. No to the multiculturalism. Stress on "Christian past" and "white heritage" of American society and the role of whites in building the country. Rejection of advertising "special rights" of minorities such as black population, LGBT, etc. Promotion them as "identity wedges" in elections was the trick so dear to DemoRats and, especially Hillary and Obama.

That means that Trump election platform on an intuitive level has caught several important problem that were created in the US society by dismantling of the "New Deal" and rampant neoliberalism practiced since Reagan ("Greed is good" mantra).

Of cause, after election he decided to practice the same "bait and switch" maneuver as Obama. Generally he folded in less then 100 days. Not without help from DemoRats (Neoliberal Democrats) which created a witch hunt over "Russian ties" with their dreams of the second Watergate.

But in any case, this platform still provides a path to election victory in any forthcoming election, as problems listed are real , are not solved, and are extremely important for lower 90% of Americans. Tulsi Gabbard so far is that only democratic politician that IMHO qualifies. Sanders is way too old and somewhat inconsistent on No.1.

Frank was the first to note this "revolutionary" part of Tramp platform:

http://www.theguardian.com/commentisfree/2016/mar/07/donald-trump-why-americans-support

Last week, I decided to watch several hours of Trump speeches for myself. I saw the man ramble and boast and threaten and even seem to gloat when protesters were ejected from the arenas in which he spoke. I was disgusted by these things, as I have been disgusted by Trump for 20 years. But I also noticed something surprising. In each of the speeches I watched, Trump spent a good part of his time talking about an entirely legitimate issue, one that could even be called left-wing.

Yes, Donald Trump talked about trade. In fact, to judge by how much time he spent talking about it, trade may be his single biggest concern – not white supremacy. Not even his plan to build a wall along the Mexican border, the issue that first won him political fame.

He did it again during the debate on 3 March: asked about his political excommunication by Mitt Romney, he chose to pivot and talk about trade.

It seems to obsess him: the destructive free-trade deals our leaders have made, the many companies that have moved their production facilities to other lands, the phone calls he will make to those companies' CEOs in order to threaten them with steep tariffs unless they move back to the US.

[May 01, 2017] Trump: A Resisters Guide by Wesley Yang

Highly recommended!
Recommended !
Notable quotes:
"... [Neo]liberalism that needs monsters to destroy can never politically engage with its enemies. It can never understand those enemies as political actors, making calculations, taking advantage of opportunities, and responding to constraints. It can never see in those enemies anything other than a black hole of motivation, a cesspool where reason goes to die. ..."
"... Hence the refusal of empathy for Trump's supporters. Insofar as it marks a demand that we not abandon antiracist principle and practice for the sake of winning over a mythicized white working class, the refusal is unimpeachable. ..."
"... Such a [neo]liberalism becomes dependent on the very thing it opposes, with a tepid mix of neoliberal markets and multicultural morals getting much-needed spice from a terrifying right. Hillary Clinton ran hard on the threat of Trump, as if his presence were enough to authorize her presidency. ..."
"... Clinton waged this campaign on the belief that her neoliberalism of fear could defeat the ethnonationalism of the right. ..."
"... In the novel, what begins as a struggle against inherited privilege results in the consolidation of a new ruling class that derives its legitimacy from superior merit. This class becomes, within a few generations, a hereditary aristocracy in its own right. Sequestered within elite institutions, people of high intelligence marry among themselves, passing along their high social position and superior genes to their progeny. Terminal inequality is the result. The gradual shift from inheritance to merit, Young writes, made "nonsense of all their loose talk of the equality of man": ..."
"... Losing every young person of promise to the meritocracy had deprived the working class of its prospective leaders, rendering it unable to coordinate a movement to manifest its political will. ..."
"... A policy of benign neglect of immigration laws invites into our country a casualized workforce without any leverage, one that competes with the native-born and destroys whatever leverage the latter have to negotiate better terms for themselves. The policy is a subsidy to American agribusiness, meatpacking plants, restaurants, bars, and construction companies, and to American families who would not otherwise be able to afford the outsourcing of childcare and domestic labor that the postfeminist, dual-income family requires. At the same time, a policy of free trade pits native-born workers against foreign ones content to earn pennies on the dollar of their American counterparts. ..."
"... Four decades of neoliberal globalization have cleaved our country into two hostile classes, and the line cuts across the race divide. On one side, college students credential themselves for meritocratic success. On the other, the white working class increasingly comes to resemble the black underclass in indices of social disorganization. On one side of the divide, much energy is expended on the eradication of subtler inequalities; on the other side, an equality of immiseration increasingly obtains. ..."
Jan 21, 2017 | harpers.org
[Neo]liberalism that needs monsters to destroy can never politically engage with its enemies. It can never understand those enemies as political actors, making calculations, taking advantage of opportunities, and responding to constraints. It can never see in those enemies anything other than a black hole of motivation, a cesspool where reason goes to die.

Hence the refusal of empathy for Trump's supporters. Insofar as it marks a demand that we not abandon antiracist principle and practice for the sake of winning over a mythicized white working class, the refusal is unimpeachable. But like the know-nothing disavowal of knowledge after 9/11, when explanations of terrorism were construed as exonerations of terrorism, the refusal of empathy since 11/9 is a will to ignorance. Far simpler to imagine Trump voters as possessed by a kind of demonic intelligence, or anti-intelligence, transcending all the rules of the established order. Rather than treat Trump as the outgrowth of normal politics and traditional institutions - it is the Electoral College, after all, not some beating heart of darkness, that sent Trump to the White House - there is a disabling insistence that he and his forces are like no political formation we've seen. By encouraging us to see only novelty in his monstrosity, analyses of this kind may prove as crippling as the neocons' assessment of Saddam's regime. That, too, was held to be like no tyranny we'd seen, a despotism where the ordinary rules of politics didn't apply and knowledge of the subject was therefore useless.

Such a [neo]liberalism becomes dependent on the very thing it opposes, with a tepid mix of neoliberal markets and multicultural morals getting much-needed spice from a terrifying right. Hillary Clinton ran hard on the threat of Trump, as if his presence were enough to authorize her presidency.

Where Sanders promised to change the conversation, to make the battlefield a contest between a multicultural neoliberalism and a multiracial social democracy, Clinton sought to keep the battlefield as it has been for the past quarter-century. In this single respect, she can claim a substantial victory. It's no accident that one of the most spectacular confrontations since the election pitted the actors of Hamilton against the tweets of Trump. These fixed, frozen positions - high on rhetoric, low on action - offer an almost perfect tableau of our ongoing gridlock of recrimination.

Clinton waged this campaign on the belief that her neoliberalism of fear could defeat the ethnonationalism of the right. Let us not make the same mistake twice. Let us not be addicted to "the drug of danger," as Athena says in the Oresteia, to "the dream of the enemy that has to be crushed, like a herb, before [we] can smell freedom."

The term "meritocracy" became shorthand for a desirable societal ideal soon after it was coined by the British socialist Sir Michael Young. But Young had originally used it to describe a dystopian future. His 1958 satirical novel, The Rise of the Meritocracy, imagines the creation and growth of a national system of intelligence testing, which identifies talented young people from every stratum of society in order to install them in special schools, where they are groomed to make the best use possible of their innate advantages.

In the novel, what begins as a struggle against inherited privilege results in the consolidation of a new ruling class that derives its legitimacy from superior merit. This class becomes, within a few generations, a hereditary aristocracy in its own right. Sequestered within elite institutions, people of high intelligence marry among themselves, passing along their high social position and superior genes to their progeny. Terminal inequality is the result. The gradual shift from inheritance to merit, Young writes, made "nonsense of all their loose talk of the equality of man":

Men, after all, are notable not for the equality, but for the inequality, of their endowment. Once all the geniuses are amongst the elite, and all the morons are amongst the workers, what meaning can equality have? What ideal can be upheld except the principle of equal status for equal intelligence? What is the purpose of abolishing inequalities in nurture except to reveal and make more pronounced the inescapable inequalities of Nature?

I thought about this book often in the years before the crack-up of November 2016. In early 2015, the Harvard sociologist Robert Putnam published a book that seemed to tell as history the same story that Young had written as prophecy. Our Kids: The American Dream in Crisis opens with an evocation of the small town of Port Clinton, Ohio, where Putnam grew up in the 1950s - a "passable embodiment of the American Dream, a place that offered decent opportunity for all the kids in town, whatever their background." Port Clinton was, as Putnam is quick to concede, a nearly all-white town in a pre-feminist and pre-civil-rights America, and it was marked by the unequal distribution of power that spurred those movements into being. Yet it was also a place of high employment, strong unions, widespread homeownership, relative class equality, and generally intact two-parent families. Everyone knew one another by their first names and almost everyone was headed toward a better future; nearly three quarters of all the classmates Putnam surveyed fifty years later had surpassed their parents in both educational attainment and wealth.

When he revisited it in 2013, the town had become a kind of American nightmare. In the 1970s, the industrial base entered a terminal decline, and the town's economy declined with it. Downtown shops closed. Crime, delinquency, and drug use skyrocketed. In 1993, the factory that had offered high-wage blue-collar employment finally shuttered for good. By 2010, the rate of births to unwed mothers had risen to 40 percent. Two years later, the average worker in the county "was paid roughly 16 percent less in inflation-adjusted dollars than his or her grandfather in the early 1970s."

Young's novel ends with an editorial note informing readers that the fictional author of the text had been killed in a riot that was part of a violent populist insurrection against the meritocracy, an insurrection that the author had been insisting would pose no lasting threat to the social order. Losing every young person of promise to the meritocracy had deprived the working class of its prospective leaders, rendering it unable to coordinate a movement to manifest its political will. "Without intelligence in their heads," he wrote, "the lower classes are never more menacing than a rabble."

We are in the midst of a global insurrection against ruling elites. In the wake of the most destructive of the blows recently delivered, a furious debate arose over whether those who supported Donald Trump deserve empathy or scorn. The answer, of course, is that they deserve scorn for resorting to so depraved and false a solution to their predicament - and empathy for the predicament itself. (And not just because advances in technology are likely to make their predicament far more widely shared.) What is owed to them is not the lachrymose pity reserved for victims (though they have suffered greatly) but rather a practical appreciation of how their antagonism to the policies that determined the course of this campaign - mass immigration and free trade - was a fully political antagonism that was disregarded for decades, to our collective detriment.

A policy of benign neglect of immigration laws invites into our country a casualized workforce without any leverage, one that competes with the native-born and destroys whatever leverage the latter have to negotiate better terms for themselves. The policy is a subsidy to American agribusiness, meatpacking plants, restaurants, bars, and construction companies, and to American families who would not otherwise be able to afford the outsourcing of childcare and domestic labor that the postfeminist, dual-income family requires. At the same time, a policy of free trade pits native-born workers against foreign ones content to earn pennies on the dollar of their American counterparts.

In lieu of the social-democratic provision of childcare and other services of domestic support, we have built a privatized, ad hoc system of subsidies based on loose border enforcement - in effect, the nation cutting a deal with itself at the expense of the life chances of its native-born working class. In lieu of an industrial policy that would preserve intact the economic foundation of their lives, we rapidly dismantled our industrial base in pursuit of maximal aggregate economic growth, with no concern for the uneven distribution of the harms and the benefits. Some were enriched hugely by these policies: the college-educated bankers, accountants, consultants, technologists, lawyers, economists, and corporate executives who built a supply chain that reached to the countries where we shipped the jobs. Eventually, of course, many of these workers learned that both political parties regarded them as fungible factors of production, readily discarded in favor of a machine or a migrant willing to bunk eight to a room.

Four decades of neoliberal globalization have cleaved our country into two hostile classes, and the line cuts across the race divide. On one side, college students credential themselves for meritocratic success. On the other, the white working class increasingly comes to resemble the black underclass in indices of social disorganization. On one side of the divide, much energy is expended on the eradication of subtler inequalities; on the other side, an equality of immiseration increasingly obtains.

Even before the ruling elite sent the proletariat off to fight a misbegotten war, even before it wrecked the world economy through heedless lending, even before its politicians rescued those responsible for the crisis while allowing working-class victims of all colors to sink, the working class knew that it had been sacrificed to the interests of those sitting atop the meritocratic ladder. The hostility was never just about differing patterns in taste and consumption. It was also about one class prospering off the suffering of another. We learned this year that political interests that go neglected for decades invariably summon up demagogues who exploit them for their own gain. The demagogues will go on to betray their supporters and do enormous harm to others.

If we are to arrest the global descent into barbarism, we will have to understand the political antagonism at the heart of the meritocratic project and seek a new kind of politics. If we choose to neglect the valid interests of the working class, Trump will prove in retrospect to have been a pale harbinger of even darker nightmares to come.

Continued