DID THE WEST JUST LOSE WORLD WAR III BY FORFEIT?

South Front

22.04.2018

Did the West Just Lose World War III by Forfeit?

Written by James George Jatras; Originally appeared at strategic-culture.org

In the fall of the year 1480, at a point not far from Moscow, two armies faced each other on the opposite banks of the Ugra River.

On the one side were the forces of the Grand Duchy of Moscow, whose ruler, Grand Prince Ivan III (known as “the Great” and the “gatherer of the Russian lands”), had recently rejected further payment of tribute to the Great Horde.

On the other were the forces of Grand Khan Ahmed bin Küchük, who had come to lay waste to Moscow and instruct the impudent Prince Ivan to mend his ways.

For weeks the two assembled hosts glared at one another, each wary of crossing the water and becoming vulnerable to attack by the other. In the end, as though heeding the same inaudible signal, both withdrew and hastily returned home.

Thus ended more than two centuries of the Tatar-Mongol yoke upon the land of the Rus’.

Was this event, which came to be known as “the great standing on the Ugra River,” a model of what happened in Syria last week?

Almost immediately upon reports of the staged chemical attack in Douma on April 7, speculation began as to the likely response from the west – which in reality meant from the United States, in turn meaning from President Donald J. Trump. Would Trump, who had repeatedly spoken harshly of his predecessors’ destructive and pointless misadventures in the Middle East, and who just days earlier had signaled his determination to withdraw the several thousand Americans (illegally) stationed in Syria, see through the obvious deception?

Or, whether or not he really believed the patently untrue accusations of Syrian (and Russian) culpability, would Trump take punitive action against Syria? And if so, would it be a demonstrative pinprick of the sort inflicted almost exactly a year earlier in punishment for an obvious false flag chemical attack in Idlib? Or would we see something more “robust” (a word much beloved of laptop bombardiers in Washington) aimed at teaching a lesson to both Syrian President Bashar al-Assad and his ally, Prince Ivan III’s obstreperous heir Russian President Vladimir Putin?

The answer soon came on Twitter.

Assad was an “animal.” Putin, Russia, and Iran were “responsible” for “many dead, including women and children, in mindless CHEMICAL attack” – “Big price to pay.”

Around the world, people mentally braced for the worst. Would a global conflagration start in Syria with an American attack on Russian forces? A grim trepidation reminiscent of the October 1962 Cuban Missile Crisis gripped the hearts of those old enough to remember those thirteen days when the fate of all life on our planet was in doubt.

Certainly there were enough voices in the US establishment egging Trump on. Besides, at home he still had the relentless pressure of the Mueller investigation, intensified by the FBI’s April 9 raid on his lawyer Michael Cohen. Trump’s only respite from the incessant hammering was his strike on Syria last year.

During the first Cold War both American and Soviet forces took great care to avoid direct conflict, rightly afraid it could lead to uncontrolled escalation. But now, in this second Cold War, western commentators were positively giddy at the thought of killing Russians in Syria…

…or rather killing more Russians, citing the slaughter of a disputed number of contractors (or “mercenaries” as western media and officials consistently called them, implying they deserved to have been exterminated). That’ll teach ‘em not to tangle with us! It was unclear whether the warning from Russian Chief of Staff General Valery Gerasimov that

Russia would respond against an attack by striking both incoming weapons as well as the platforms that launched would be taken seriously.

After a slight softening of tone by both Trump and Defense Secretary General James “Mad Dog” Mattis on April 12, during which a team from the Organisation for the Prohibition of Chemical Weapons (OPCW) was approaching Douma to conduct an on-site examination, there emerged a slim ray of hope that Trump would step back from acting on the transparently false provocation. (The slimness of any such hope was illustrated by the fact seemingly the most restrained of Trump’s advisers was somebody nicknamed “Mad Dog.”)

When on the evening of Friday the Thirteenth (Washington time) news came that the US had initiated military action, together with France and (the country Russia had accused of staging the Douma fraud) the United Kingdom, many feared the worst. The hasty timing was clearly aimed at preempting the arrival of the OPCW inspectors.

Of greater concern was the extent of the assault?

If Russians were killed, Gerasimov was serious.

As it turned out, the worst didn’t come. World War III didn’t happen. Or hasn’t – yet.

In fact nothing much happened at all. According to the official US reports, something over a hundred missiles were launched at three targets. All missiles reached their targets – “Mission Accomplished!The other side, however, claimed to have shot down roughly 75 percent of the incoming Tomahawks.

In the end, the damage was even less than from the follow-up to Idlib last year. No one was reported killed, neither Syrian nor Russian nor Iranian. Western governments claimed to have struck a serious blow at Syria’s chemical weapons capability. Syrians and Russians scoffed that the missiles had hit empty buildings and that Syria had no CW to hit since 2014, as certified by the OPCW.

In the aftermath of the missile show, media carried unverified reports that Trump had wanted a stronger campaign but deferred to Mattis’s caution, no doubt reflecting the views of professional military men who didn’t want to find out whether Gerasimov was bluffing. Mattis also reportedly wanted Congress to vote on any action before it was taken but was overruled by Trump.

There was even some speculation that the whole thing was a charade worked out in cooperation with the Russians. Even if true (and it’s unlikely) the mere fact that Trump would have to engage in such a ruse speaks volumes about the weakness of his position.

“Whatever Trump says, America is not coming out of Syria,” writes Patrick Buchanan. “We are going deeper in. Trump’s commitment to extricate us from these bankrupting and blood-soaked Middle East wars and to seek a new rapprochement with Russia is ‘inoperative’.”

That’s clear from the comments of US Ambassador to the United Nations Nikki Haley. She states that America won’t disengage until three objectives have been met: that

ISIS has been defeated (a pretext, since ISIS is on the ropes and remains alive only because of hostile actions taken by the US and others against Syria); Damascus is finally deterred from using chemical weapons (a falsehood, since they don’t have any); and Iran’s regional influence is blocked (which means we’re staying in effect permanently in preparation for a larger war against Iran and perhaps eventually Russia).

The last point is unfortunately true, as plans are underway to beef up a Sunni anti-Iran bulwark in eastern Syria to cut off Tehran’s so-called “land bridge” the Mediterranean. Most Americans in Syria are to be replaced with a so-called Arab force – the “Arab NATO” touted last year in connection with Trump’s maiden foreign trip as president. (As though the one NATO we already have weren’t bad enough!)

Saudi Foreign Minister Adel al-Jubeir has suggested troops from his country would participate. Aside from whether Riyadh can spare them from their ongoing task of wrecking Yemen, Saudi personnel are likely to become a prime target for Syrians itching to get a crack at their chief tormenters over the past seven years.

So was anything really settled on April 13? On this occasion the West chose not to “cross the river,” much as Khan Ahmed’s force declined to do in 1480. For their part, the Russians in Syria, like their ancestors on the Ugra, were on defense and had no need to risk offensive action.

Unfortunately, unlike the “the great standing on the Ugra River,” which resolved the question of Russian independence and sovereignty in that era, nothing has been resolved now. The question remains: will the US peacefully relinquish its position as the sole arbiter of authority, legality, and morality in a unipolar world in favor of a multipolar order where Russia’s and China’s legitimate interests and spheres of influence are respected? Or will we continue to risk plunging mankind into a global conflict?

Syria remains a key arena where one path or the other will be taken to finally wrap up what US Army Major Danny Sjursen calls “Operation Flailing Empire.” The irony is that peacefully “losing” our pointless and dangerous attempt to rule the world would only be to Americans’ benefit. That’s what Trump promised in 2016. He hasn’t delivered and it’s increasingly doubtful he can.

In the end, the threat of World War III hasn’t vanished. It has just been postponed.

 

Advertisements

America’s Enemies, Who’s On the List?

Prospects and Perspectives

Global Research, November 24, 2017

For almost 2 decades, the US pursued a list of ‘enemy countries’ to confront, attack, weaken and overthrow. 

This imperial quest to overthrow ‘enemy countries’ operated at various levels of intensity, depending on two considerations:  the level of priority and the degree of vulnerability for a ‘regime change’ operation.

The criteria for determining an ‘enemy country’ and its place on the list of priority targets in the US quest for greater global dominance, as well as its vulnerability to a ‘successfully’ regime change will be the focus of this essay.

We will conclude by discussing the realistic perspectives of future imperial options.

Prioritizing US Adversaries

Imperial strategists consider military, economic and political criteria in identifying high priority adversaries.

The following are high on the US ‘enemy list’:

1) Russia, because of its military power, is a nuclear counterweight to US global domination.  It has a huge, well-equipped armed force with a European, Asian and Middle East presence.  Its global oil and gas resources shield it from US economic blackmail and its growing geo-political alliances limit US expansion.

2) China, because of its global economic power and the growing scope of its trade, investment and technological networks.  China’s growing defensive military capability, particularly with regard to protecting its interests in the South China Sea serve to counter US domination in Asia.

3) North Korea, because of its nuclear and ballistic missile capability, its fierce independent foreign policies and its strategic geo-political location, is seen as a threat to the US military bases in Asia and Washington’s regional allies and proxies.

4) Venezuela, because of its oil resources and socio-political policies, challenge the US centered neo-liberal model in Latin America.

5) Iran, because of its oil resources, political independence and geo-political alliances in the Middle East, challenge US, Israeli and Saudi Arabia domination of the region and present an independent alternative.

6) Syria, because of its strategic position in the Middle East, its secular nationalist ruling party and its alliances with Iran, Palestine, Iraq and Russia, is a counterweight to US-Israeli plans to balkanize the Middle East into warring ethno-tribal states.

US  Middle-level Adversaries :

1)  Cuba, because of its independent foreign policies and its alternative socio-economic system stands in contrast to the US-centered neo-liberal regimes in the Caribbean, Central and South America.

2) Lebanon, because of its strategic location on the Mediterranean and the coalition government’s power sharing arrangement with the political party, Hezbollah, which is increasingly influential in Lebanese civil society in part because of its militia’s proven capacity to protect Lebanese national sovereignty by expelling the invading Israeli army and helping to defeat the ISIS/al Queda mercenaries in neighboring Syria.

3) Yemen, because of its independent, nationalist Houthi-led movement opposed to the Saudi-imposed puppet government as well as its relations with Iran.

Low Level Adversaries

1) Bolivia, because of its independent foreign policy, support for the Chavista government in Venezuela and advocacy of a mixed economy;  mining wealth and  defense of indigenous people’s territorial claims.

2) Nicaragua, because of its independent foreign policy and criticism of US aggression toward Cuba and Venezuela.

US hostility to high priority adversaries is expressed through economic sanctions military encirclement, provocations and intense propaganda wars toward North Korea, Russia, Venezuela, Iran and Syria.

Because of China’s powerful global market linkages, the US has applied few sanctions.  Instead, the US relies on military encirclement, separatist provocations and intense hostile propaganda when dealing with China.

Priority Adversaries, Low Vulnerability and Unreal Expectations

With the exception of Venezuela, Washington’s ‘high priority targets’ have limited strategic vulnerabilities. Venezuela is the most vulnerable because of its high dependence on oil revenues with its major refineries located in the US, and its high levels of indebtedness, verging on default.   In addition, there are the domestic opposition groups, all acting as US clients and Caracas’ growing isolation within Latin America due to orchestrated hostility by important US clients, Argentina, Brazil, Colombia and Mexico.

Iran is far less vulnerable: It is a strong strategic regional military power linked to neighboring countries and similar religious-nationalist movements.  Despite its dependence on oil exports, Iran has developed alternative markets, like China, free from US blackmail and is relatively safe from US or EU initiated creditor attacks.

North Korea, despite the crippling economic sanctions imposed on its regime and civilian population, has ‘the bomb’ as a deterrent to a US military attack and has shown no reluctance to defend itself.  Unlike Venezuela, neither Iran nor North Korea face significant internal attacks from US-funded or armed domestic opposition.

Russia has full military capacity – nuclear weapons, ICBM and a huge, well-trained armed force – to deter any direct US military threat.  Moscow is politically vulnerable to US-backed propaganda, opposition political parties and Western-funded NGO’s.  Russian oligarch-billionaires, linked to London and Wall Street, exercise some pressure against independent economic initiatives.

To a limited degree, US sanctions exploited Russia’s earlier dependence on Western markets, butsince the imposition of draconian sanctions by the Obama regime, Moscow has effectively counteredWashington’s offensive by diversifying its markets to Asia and strengthening domestic self-reliance in its agriculture, industry and high technology.

China has a world-class economy and is on course to become the world’s economic leader.  Feeble threats to ‘sanction’ China have merely exposed Washington’s weakness rather intimidating Beijing.  China has countered US military provocations and threats by expanding its economic market power, increasing its strategic military capacity and shedding dependence on the dollar.

Washington’s high priority targets are not vulnerable to frontal attack: They retain or are increasing their domestic cohesion and economic networks, while upgrading their military capacity to impose completely unacceptable costs on the US for any direct assault.

As a result, the US leaders are forced to rely on incremental, peripheral and proxy attacks with limited results against its high priority adversaries.

Washington will tighten sanctions on North Korea and Venezuela, with dubious prospects of success in the former and a possible pyrrhic victory in the case of Caracas. Iran and Russia can easily overcome proxy interventions.  US allies, like Saudi Arabia and Israel, can badger, propagandize and rail the Persians, but their fears that an out-and-out war against Iran, could quickly destroy Riyadh and Tel Aviv forces them to work in tandem to induce the corrupt US political establishment to push for war over the objections of a war-weary US military and population. Saudi and Israelis can bomb and starve the populations of Yemen and Gaza, which lack any capacity to reply in kind, but Teheran is another matter.

The politicians and propagandists in Washington can blather about Russia’s interference in the US’s corrupt electoral theater and scuttle moves to improve diplomatic ties, but they cannot counter Russia’s growing influence in the Middle East and its expanding trade with Asia, especially China.

In summary, at the global level, the US ‘priority’ targets are unattainable and invulnerable.  In the midst of the on-going inter-elite dogfight within the US, it may be too much to hope for the emergence of any rational policymakers in Washington who could rethink strategic priorities and calibrate policies of mutual accommodation to fit in with global realities.

Medium and Low Priorities, Vulnerabilities and Expectations

Washington can intervene and perhaps inflict severe damage on middle and low priority countries.  However, there are several drawbacks to a full-scale attack.

Yemen, Cuba, Lebanon, Bolivia and Syria are not nations capable of shaping global political and economic alignments.  The most the US can secure in these vulnerable countries are destructive regime changes with massive loss of life, infrastructure and millions of desperate refugees . . . but at great political cost, with prolonged instability and with severe economic losses.

Yemen

The US can push for a total Saudi Royal victory over the starving, cholera-stricken people of Yemen.  But who benefits?  Saudi Arabia is in the midst of a palace upheaval and has no ability to exercise hegemony, despite hundreds of billions of  dollars of US/NATO arms, trainers and bases.  Colonial occupations are costly and yield few, if any, economic benefits, especially from a poor, geographically isolated devastated nation like Yemen.

Cuba

Cuba has a powerful highly professional military backed by a million-member militia.  They are capable of prolonged resistance and can count on international support.  A US invasion of Cuba would require a prolonged occupation and heavy losses.  Decades of economic sanctions haven’t worked and their re-imposition by Trump have not affected the key tourist growth sectors.

President Trump’s ‘symbolic hostility’ does not cut any ice with the major US agro-business groups, which saw Cuba as a market. Over half of the so-called ‘overseas Cubans’ now oppose direct US intervention.

US-funded NGOs can provide some marginal propaganda points but they cannot reverse popular support for Cuba’s mixed ‘socialized’ economy, its excellent public education and health care and its independent foreign policy.

Lebanon

A joint US-Saudi economic blockade and Israeli bombs can destabilize Lebanon.  However, a full-scale prolonged Israeli invasion will cost Jewish lives and foment domestic unrest.  Hezbollah has missiles to counter Israeli bombs.  The Saudi economic blockade will radicalize Lebanese nationalists, especially among the Shia and the Christian populations.  The Washington’s ‘invasion’ of Libya, which did not lose a single US soldier, demonstrates that destructive invasions result in long-term, continent-wide chaos.

A US-Israeli-Saudi war would totally destroy Lebanon but it will destabilize the region and exacerbate conflicts in neighboring countries – Syria, Iran and possibly Iraq.  And Europe will be flooded with millions more desperate refugees.

Syria

The US-Saudi proxy war in Syria suffered serious defeats and the loss of political assets.  Russia gained influence, bases and allies.  Syria retained its sovereignty and forged a battle-hardened national armed force.  Washington can sanction Syria, grab some bases in a few phony ‘Kurdish enclaves’ but it will not advance beyond a stalemate and will be widely viewed as an occupying invader.

Syria is vulnerable and continues to be a middle-range target on the US enemy list but it offers few prospects of advancing US imperial power, beyond some limited ties with an unstable Kurd enclave, susceptible to internecine warfare, and risking major Turkish retaliation.

Bolivia and Nicaragua

Bolivia and Nicaragua are minor irritants on the US enemy list. US regional policymakers recognize that neither country exercises global or even regional power.  Moreover, both regimes rejected radical politics in practice and co-exist with powerful and influential local oligarchs and international MNC’s linked to the US.

Their foreign policy critiques, which are mostly for domestic consumption, are neutralized by the near total US influence in the OAS and the major neo-liberal regimes in Latin America.  It appears that the US will accommodate these marginalized rhetorical adversaries rather than risk provoking any revival of radical nationalist or socialist mass movements erupting in La Paz or Managua.

Conclusion

A brief examination of Washington’s ‘list of enemies’ reveals that the limited chances of success even among vulnerable targets.  Clearly, in this evolving world power configuration, US money and markets will not alter the power equation.

US allies, like Saudi Arabia, spend enormous amounts of money attacking a devastated nation, but they destroy markets while losing wars.  Powerful adversaries, like China, Russia and Iran, are not vulnerable and offer the Pentagon few prospects of military conquest in the foreseeable future.

Sanctions, or economic wars have failed to subdue adversaries in North Korea, Russia, Cuba and Iran.  The ‘enemy list’ has cost the US prestige, money and markets – a very peculiar imperialist balance sheet.  Russia now exceeds the US in wheat production and exports.  Gone are the days when US agro-exports dominated world trade including trade with Moscow.

Enemy lists are easy to compose, but effective policies are difficult to implement against rivals with dynamic economies and powerful military preparedness.

The US would regain some of its credibility if it operated within the contexts of global realities and pursued a win-win agenda instead of remaining a consistent loser in a zero-sum game.

Rational leaders could negotiate reciprocal trade agreements with China, which would develop high tech, finance and agro-commercial ties with manufacturers and services.  Rational leaders could develop joint Middle East economic and peace agreements, recognizing the reality of a Russian-Iranian-Lebanese Hezbollah and Syrian alliance.

As it stands, Washington’s ‘enemy list’ continues to be composed and imposed by its own irrational leaders, pro-Israel maniacs and Russophobes in the Democratic Party – with no acknowledgement of current realities.

For Americans, the list of domestic enemies is long and well known, what we lack is a civilian political leadership to replace these serial mis-leaders.

China: Rise, Fall and Re-Emergence as a Global Power

The Lessons of History

Global Research, October 28, 2017
Global Research 7 March 2012

First published on GR in March 2012

The study of world power has been blighted by Eurocentric historians who have distorted and ignored the dominant role China played in the world economy between 1100 and 1800.  John Hobson’s[1] brilliant historical survey of the world economy during this period provides an abundance of empirical data making the case for China ’s economic and technological superiority over Western civilization for the better part of a millennium prior to its conquest and decline in the 19th century.

China ’s re-emergence as a world economic power raises important questions about what we can learn from its previous rise and fall and about the external and internal threats confronting this emerging economic superpower for the immediate future.

First we will outline the main contours of historical China ’s rise to global economic superiority over West before the 19th century, following closely John Hobson’s account in The Eastern Origins of Western Civilization.  Since the majority of western economic historians (liberal, conservative and Marxist) have presented historical China as a stagnant, backward, parochial society, an “oriental despotism”, some detailed correctives will be necessary.  It is especially important to emphasize how China , the world technological power between 1100 and 1800, made the West’s emergence possible.  It was only by borrowing and assimilating Chinese innovations that the West was able to make the transition to modern capitalist and imperialist economies.

In part two we will analyze and discuss the factors and circumstances which led to China ’s decline in the 19th century and its subsequent domination, exploitation and pillage by Western imperial countries, first England and then the rest of Europe, Japan and the United States .

In part three, we will briefly outline the factors leading to China’s emancipation from colonial and neo-colonial rule and analyze its recent rise to becoming the second largest global economic power.

Finally we will look at the past and present threats to China ’s rise to global economic power, highlighting the similarities between British colonialism of the 18 and 19th centuries and the current US imperial strategies and focusing on the weaknesses and strengths of past and present Chinese responses.

China:  The Rise and Consolidation of Global Power 1100 – 1800

In a systematic comparative format, John Hobson provides a wealth of empirical indicators demonstrating China ’s global economic superiority over the West and in particular England .  These are some striking facts:

As early as 1078, China was the world’s major producer of steel (125,000 tons); whereas Britain in 1788 produced 76,000 tons.

China was the world’s leader in technical innovations in textile manufacturing, seven centuries before Britain ’s 18th century “textile revolution”.

China was the leading trading nation, with long distance trade reaching most of Southern Asia, Africa, the Middle East and Europe .  China’s ‘agricultural revolution’ and productivity surpassed the West down to the 18th century.

Its innovations in the production of paper, book printing, firearms and tools led to a manufacturing superpower whose goods were transported throughout the world by the most advanced navigational system.

China possessed the world’s largest commercial ships.  In 1588 the largest English ships displaced 400 tons, China ’s 3,000 tons.  Even as late as the end of the 18th century China ’s merchants employed 130,000 private transport ships, several times that of Britain . China retained this pre-eminent position in the world economy up until the early 19th century.

British and Europeans manufacturers followed China ’s lead, assimilating and borrowing its more advanced technology and were eager to penetrate China ’s advanced and lucrative market.

Banking, a stable paper money economy, manufacturing and high yields in agriculture resulted in China ’s per capita income matching that of Great Britain as late as 1750.

China ’s dominant global position was challenged by the rise of British imperialism, which had adopted the advanced technological, navigational and market innovations of China and other Asian countries in order to bypass earlier stages in becoming a world power[2].

Western Imperialism and the Decline of China

The British and Western imperial conquest of the East, was based on the militaristic nature of the imperial state, its non-reciprocal economic relations with overseas trading countries and the Western imperial ideology which motivated and justified overseas conquest.

Unlike China , Britain ’s industrial revolution and overseas expansion was driven by a military policy.  According to Hobson, during the period from 1688-1815 Great Britain was engaged in wars 52% of the time[3].  Whereas the Chinese relied on their open markets and their superior production and sophisticated commercial and banking skills, the British relied on tariff protection, military conquest, the systematic destruction of competitive overseas enterprises as well as the appropriation and plunder of local resources.  China ’s global predominance was based on ‘reciprocal benefits’ with its trading partners, while Britain relied on mercenary armies of occupation, savage repression and a ‘divide and conquer’ policy to foment local rivalries.  In the face of native resistance, the British (as well as other Western imperial powers) did not hesitate to exterminate entire communities[4].

Unable to take over the Chinese market through greater economic competitiveness, Britain relied on brute military power.  It mobilized, armed and led mercenaries, drawn from its colonies in India and elsewhere to force its exports on China and impose unequal treaties to lower tariffs.  As a result China was flooded with British opium produced on its plantations in India – despite Chinese laws forbidding or regulating the importation and sale of the narcotic.  China ’s rulers, long accustomed to its trade and manufacturing superiority, were unprepared for the ‘new imperial rules’ for global power.  The West’s willingness to use military power  to win colonies, pillage resources and recruit huge mercenary armies commanded by European officers spelt the end for China as a world power.

China had based its economic predominance on ‘non-interference in the internal affairs of its trading partners’.  In contrast, British imperialists intervened violently in Asia , reorganizing local economies to suit the needs of the empire (eliminating economic competitors including more efficient Indian cotton manufacturers) and seized control of local political, economic and administrative apparatus to establish the colonial state.

Britain ’s empire was built with resources seized from the colonies and through the massive militarization of its economy[5].  It was thus able to secure military supremacy over China .  China ’s foreign policy was hampered by its ruling elite’s excessive reliance on trade relations.  Chinese officials and merchant elites sought to appease the British and convinced the emperor to grant devastating extra-territorial concessions opening markets to the detriment of Chinese manufacturers while surrendering local sovereignty.  As always, the British precipitated internal rivalries and revolts further destabilizing the country.

Western and British penetration and colonization of China ’s market created an entire new class:  The wealthy Chinese ‘compradores’ imported British goods and facilitated the takeover of local markets and resources.  Imperialist pillage forced greater exploitation and taxation of the great mass of Chinese peasants and workers.  China ’s rulers were obliged to pay the war debts and finance trade deficits imposed by the Western imperial powers by squeezing its peasantry.  This drove the peasants to starvation and revolt.

By the early 20th century (less than a century after the Opium Wars), China had descended from world economic power to a broken semi-colonial country with a huge destitute population.  The principle ports were controlled by Western imperial officials and the countryside was subject to the rule by corrupt and brutal warlords.  British opium enslaved millions.

British Academics:  Eloquent Apologists for Imperial Conquest

The entire Western academic profession – first and foremost British  imperial historians – attributed British imperial dominance of Asia to English ‘technological superiority’ and China’s misery and colonial status to ‘oriental backwardness’, omitting any mention of the millennium of Chinese commercial and technical progress and superiority up to the dawn of the 19th century.  By the end of the 1920’s, with the Japanese imperial invasion, China ceased to exist as a unified country.  Under the aegis of imperial rule, hundreds of millions of Chinese had starved or were dispossessed or slaughtered, as the Western powers and Japan plundered its economy.  The entire Chinese ‘collaborator’ comprador elite were discredited before the Chinese people.

What did remain in the collective memory of the great mass of the Chinese people – and what was totally absent in the accounts of prestigious US and British academics – was the sense of China once having been a prosperous, dynamic and leading world power.  Western commentators dismissed this collective memory of China ’s ascendancy as the foolish pretensions of nostalgic lords and royalty – empty Han arrogance.

China Rises from the Ashes of Imperial Plunder and Humiliation:  The Chinese Communist Revolution

The rise of modern China to become the second largest economy in the world was made possible only through the success of the Chinese communist revolution in the mid-20th century.  The People’s Liberation ‘Red’ Army defeated first the invading Japanese imperial army and later the US imperialist-backed comprador led Kuomintang “Nationalist” army.  This allowed the reunification of China as an independent sovereign state.  The Communist government abolished the extra-territorial privileges of the Western imperialists, ended the territorial fiefdoms of the regional warlords and gangsters and drove out the millionaire owners of brothels, the traffickers of women and drugs as well as the other “service providers” to the Euro-American Empire.

In every sense of the word, the Communist revolution forged  the modern Chinese state.  The new leaders then proceeded to reconstruct an economy ravaged by imperial wars and pillaged by Western and Japanese capitalists.  After over 150 years of infamy and humiliation the Chinese people recovered their pride and national dignity.  These socio-psychological elements were essential in motivating the Chinese to defend their country from the US attacks, sabotage, boycotts, and blockades mounted immediately after liberation.

Contrary to Western and neoliberal Chinese economists, China ’s dynamic growth did not start in 1980.  It began in 1950, when the agrarian reform provided land, infrastructure, credits and technical assistance to hundreds of millions of landless and destitute peasants and landless rural workers. Through what is now called “human capital” and gigantic social mobilization, the Communists built roads, airfields, bridges, canals and railroads as well as the basic industries, like coal, iron and steel, to form the backbone of the modern Chinese economy.  Communist China’s vast free educational and health systems created a healthy, literate and motivated work force.  Its highly professional military prevented the US from extending its military empire throughout the Korean peninsula up to China ’s territorial frontiers.  Just as past Western scholars and propagandists fabricated a history of a “stagnant and decadent” empire to justify their destructive conquest, so too their modern counterparts have rewritten the first thirty years of Chinese Communist history, denying the role of the revolution in developing all the essential elements for a modern economy, state and society.  It is clear that China ’s rapid economic growth was based on the development of its internal market, its rapidly growing cadre of scientists, skilled technicians and workers and the social safety net which protected and promoted working class and peasant mobility were products of Communist planning and investments.

China ’s rise to global power began in 1949 with the removal of the entire parasitic financial, compradore and speculative classes who had served as the intermediaries for European, Japanese and US imperialists draining China of its great wealth.
China’s Transition to Capitalism

Beginning in 1980 the Chinese government initiated a dramatic shift in its economic strategy:  Over the next three decades, it opened the country to large-scale foreign investment; it privatized thousands of industries and it set in motion a process of income concentration based on a deliberate strategy of re-creating a dominant economic class of billionaires linked to overseas capitalists.  China ’s ruling political class embraced the idea of “borrowing” technical know-how and accessing overseas markets from foreign firms in exchange for providing cheap, plentiful labor at the lowest cost.

The Chinese state re-directed massive public subsidies to promote high capitalist growth by dismantling its national system of free public education and health care.  They ended subsidized public housing for hundreds of millions of peasants and urban factory workers and provided funds to real estate speculators for the construction of private luxury apartments and office skyscrapers. China ’s new capitalist strategy as well as its double digit growth was based on the profound structural changes and massive public investments made possible by the previous communist government.  China ’s private sector “take off” was based on the huge public outlays made since 1949.

The triumphant new capitalist class and its Western collaborators claimed all the credit for this “economic miracle” as China rose to become the world’s second largest economy.  This new Chinese elite have been less eager to announce China ’s world-class status in terms of brutal class inequalities, rivaling only the US .

China:  From Imperial Dependency to World Class Competitor

China ’s sustained growth in its manufacturing sector was a result of highly concentrated public investments, high profits, technological innovations and a protected domestic market.  While foreign capital profited, it was always within the framework of the Chinese state’s priorities and regulations.  The regime’s dynamic ‘export strategy’ led to huge trade surpluses, which eventually made China one of the world’s largest creditors especially for US debt.  In order to maintain its dynamic industries, China has required huge influxes of raw materials, resulting in large-scale overseas investments and trade agreements with agro-mineral export countries in Africa and Latin America .  By 2010 China displaced the US and Europe as the main trading partner in many countries in Asia, Africa and Latin America .

Modern China ’s rise to world economic power, like its predecessor between 1100-1800, is based on its gigantic productive capacity:  Trade and investment was governed by a policy of strict non-interference in the internal relations of its trading partners.  Unlike the US , China did initiate brutal wars for oil; instead it signed lucrative contracts.  And China does not fight wars in the interest of overseas Chinese, as the US has done in the Middle East for Israel .

The seeming imbalance between Chinese economic and military power is in stark contrast to the US where a bloated, parasitic military empire continues to erode its own global economic presence.

US military spending is twelve times that of China .  Increasingly the US military plays the key role shaping policy in Washington as it seeks to undercut China ’s rise to global power.

China’s Rise to World Power: Will History Repeat Itself?

China has been growing at about 9% per annum and its goods and services are rapidly rising in quality and value.  In contrast, the US and Europe have wallowed around 0% growth from 2007-2012.  China ’s innovative techno-scientific establishment routinely assimilates the latest inventions from the West (and Japan ) and improves them, thereby decreasing the cost of production.  China has replaced the US and European controlled “international financial institutions” (the IMF, World Bank, the Inter-American Development Bank) as the principle lender in Latin America .  China continues to lead as the prime investor in African energy and mineral resources.  China has replaced the US as the principle market for Saudi Arabian, Sudanese and Iranian petroleum and it will soon replace the US as the principle market for Venezuela petroleum products.  Today China is the world’s biggest manufacturer and exporter, dominating even the US market, while playing the role of financial life line as it holds over $1.3 trillion in US Treasury notes.

Under growing pressure from its workers, farmers and peasants, China ’s rulers have been developing the domestic market by increasing wages and social spending to rebalance the economy and avoid the specter of social instability.  In contrast, US wages, salaries and vital public services have sharply declined in absolute and relative terms.

Given the current historical trends it is clear that China will replace the US as the leading world economic power, over the next decade,  if the US empire does not strike back and if China ’s profound class inequalities do not lead to a major social upheaval.

Modern China ’s rise to global power faces serious challenges.  In contrast to China ’s historical ascent on the world stage, modern Chinese global economic power is not accompanied by any imperialist undertakings.  China has seriously lagged behind the US and Europe in aggressive war-making capacity.  This may have allowed China to direct public resources to maximize economic growth, but it has left China vulnerable to US military superiority in terms of its massive arsenal, its string of forward bases and strategic geo-military positions right off the Chinese coast and in adjoining territories.

In the nineteenth century British imperialism demolished China ’s global position with its military superiority, seizing China ’s ports – because of China ’s reliance on ‘mercantile superiority’.

The conquest of India , Burma and most of Asia allowed Britain to establish colonial bases and recruit local mercenary armies.  The British and its mercenary allies encircled and isolated China , setting the stage for the disruption of China ’s markets and the imposition of the brutal terms of trade.  The British Empire’s armed presence dictated what China imported (with opium accounting for over 50% of British exports in the 1850s) while undermining China ’s competitive advantages via tariff policies.

Today the US is pursuing similar policies:  US naval fleet  patrols and controls China ’s commercial shipping lanes and off-shore oil resources via its overseas bases.  The Obama-Clinton White House is in the process of developing a rapid military response involving bases in Australia , Philippines and elsewhere in Asia .  The US is intensifying  its efforts to undermine Chinese overseas access to strategic resources while backing ‘grass roots’ separatists and ‘insurgents’ in West China, Tibet, Sudan, Burma, Iran, Libya, Syria and elsewhere.  The US military agreements with India and  the installation of a pliable puppet regime in Pakistan have advanced its strategy of isolating China .  While China upholds its policy of “harmonious development” and “non-interference in the internal affairs of other countries”, it has stepped aside as US and European military imperialism have attacked a host of China’s trading partners to essentially reverse China’s  peaceful commercial expansion.

China’s lack of a political and ideological strategy capable of protecting its overseas economic interests has been an invitation for the US and NATO to set-up regimes hostile to China .  The most striking example is Libya where US and NATO intervened to overthrow an independent government led by President Gadhafi, with whom China had signed multi-billion dollar trade and investments agreements. The NATO bombardment of Libyan cities, ports and oil installation forced the Chinese to withdraw 35,000 Chinese oil engineers and construction workers in a matter of days.  The same thing happened in Sudan where China had invested billions to develop its oil industry.  The US, Israel and Europe armed the South Sudanese rebels to disrupt the flow of oil and attack Chinese oil workers[6].  In both cases China passively allowed the US and European military imperialists to attack its trade partners and undermine its investments.

Under Mao Tse Tung, China had an active policy countering imperial aggression:  It supported revolutionary movements and independent Third World governments.  Today’s capitalist China does not have an active policy of supporting governments or movements capable of protecting China ’s bilateral trade and investment agreements.  China ’s inability to confront the rising tide of US   military aggression against its economic interests, is due to deep structural problems.  China’s foreign policy is shaped by big commercial, financial and manufacturing interests who rely on their ‘economic competitive edge’ to gain market shares and have no understanding of the military and security underpinnings of global economic power.  China ’s political class is deeply influenced by a new class of billionaires with strong ties to Western equity funds and who have uncritically absorbed Western cultural values. This is illustrated by their preference for sending their own children to elite universities in the US and Europe .  They seek “accommodation with the West” at any price.

This lack of any strategic understanding of military empire-building has led them to respond ineffectively and ad hoc to each imperialist action undermining their access to resources and markets.  While China ’s “business first” outlook may have worked when it was a minor player in the world economy and US empire builders saw  the “capitalist opening” as a chance to easily takeover China ’s public enterprises and pillage the economy.  However, when China (in contrast to the former USSR) decided to retain capital controls and develop a carefully calibrated, state directed “industrial policy”  directing western capital and the transfer of technology to state enterprises, which effectively penetrated the US domestic and overseas markets, Washington began to complain and talked of retaliation.

China ’s huge trade surpluses with the US provoked a dual response in Washington :  It sold massive quantities of US Treasury bonds to the Chinese and began to develop a global strategy to block China ’s advance. Since the US lacked economic leverage to reverse its decline, it relied on its only “comparative advantage” – its military superiority based on a world wide  system of attack bases,  a network of overseas client regimes, military proxies, NGO’ers, intellectuals and armed mercenaries.  Washington turned to its vast overt and clandestine security apparatus to undermine China ’s trading partners.  Washington depends on its long-standing ties with corrupt rulers, dissidents, journalists and media moguls to provide the powerful propaganda cover while advancing its military offensive against China ’s overseas interests.

China has nothing to compare with the US overseas ‘security apparatus’ because it practices a policy of “non-interference”.  Given the advanced state of the Western imperial offensive, China has taken only a few diplomatic initiatives, such as financing English language media outlets to present its perspective, using its veto power on the UN Security Council to oppose US efforts to overthrow the independent Assad regime in Syria and opposing the imposition of drastic sanctions against Iran .  It sternly repudiated US Secretary of State Hilary Clinton’s vitriolic questioning of the ‘legitimacy’ of the Chinese state when it voted against the US-UN resolution  preparing  an attack on Syria[7].

Chinese military strategists are more aware and alarmed at the growing military threat to China .  They have successfully demanded a 19% annual increase in military spending over the next five years (2011-2015)[8].  Even with this increase, China’s military expenditures will still be less than one-fifth of the US military budget and China has not one overseas military base in stark contrast to the over 750 US installations abroad.  Overseas Chinese intelligence operations are minimal and ineffective.  Its embassies are run by and for narrow commercial interests who utterly failed to understand NATO’s brutal policy of regime change in Libya and inform Beijing of its significance to the Chinese state.

There are two other structural weaknesses undermining China ’s rise as a world power. This includes the highly ‘Westernized’ intelligentsia which has uncritically swallowed US economic doctrine about free markets while ignoring its militarized economy.  These Chinese intellectuals parrot the US propaganda about the ‘democratic virtues’ of billion-dollar Presidential campaigns, while supporting financial deregulation which would have led to a Wall Street takeover of Chinese banks and savings.  Many Chinese business consultants and academics have been educated in the US and influenced by their ties to US academics and international financial institutions directly linked to Wall Street and the City of London .  They have prospered as highly-paid consultants receiving prestigious positions in Chinese institutions.  They identify the ‘liberalization of financial markets’ with “advanced economies” capable of deepening ties to global markets instead of as a major source of the current global financial crisis.  These “Westernized intellectuals” are like their 19th century comprador counterparts who underestimated and dismissed the long-term consequences of Western imperial penetration.  They fail to understand how financial deregulation in the US precipitated the current crisis and how deregulation would lead to a Western takeover of China ’s financial system- the consequences of which would reallocate China ’s domestic savings to non-productive activities (real estate speculation), precipitate financial crisis and ultimately undermine China ’s leading global position.

These Chinese yuppies imitate the worst of Western consumerist life styles and their political outlooks are driven by these life styles and Westernized identities which preclude any sense of solidarity with their own working class.

There is an economic basis for the pro-Western sentiments of China ’s neo-compradors.  They have transferred billions of dollars to foreign bank accounts, purchased luxury homes and apartments in London , Toronto , Los Angeles , Manhattan , Paris , Hong Kong and Singapore . They have one foot in China (the source of their wealth) and the other in the West (where they consume and hide their wealth).

Westernized compradores are deeply embedded in China ’s economic system having family ties with the political leadership in the party apparatus and the state. Their connections are weakest in the military and in the growing social movements, although some “dissident” students and academic activists in the “democracy movements” are backed by Western imperial NGO’s.  To the extent that the compradors gain influence, they weaken the strong economic state institutions which have directed China ’s ascent to global power, just as they did in the 19th century by acting as intermediaries for the British Empire .  Proclaiming 19th Century “liberalism” British opium addicted over 50 million Chinese in less than a decade.  Proclaiming “democracy and human rights” US gunboats now patrol off China ’s coast.  China ’s elite-directed rise to global economic power has spawned monumental inequalities between the thousands of new billionaires and multi-millionaires at the top and hundreds of millions of impoverished workers, peasants and migrant workers at the bottom.

China ’s rapid accumulation of wealth and capital was made possible through the intense exploitation of its workers who were stripped of their previous social safety net and regulated work conditions guaranteed under Communism.  Millions of Chinese households are being dispossessed in order to promote real estate developer/speculators who then build high rise offices and the luxury apartments for the domestic and foreign elite.  These brutal features of ascendant Chinese capitalism have created a fusion of workplace and living space mass struggle which is growing every year.  The developer/speculators’ slogan  “to get rich is wonderful” has lost its power to deceive the people.  In 2011 there were over 200,000 popular encompassing urban coastal factories and rural villages.  The next step, which is sure to come, will be the unification of these struggles into  new national social movements with a class-based agenda demanding the restoration of health and educational services enjoyed under the Communists as well as a greater share of China’s wealth. Current demands for greater wages can turn to demands for greater work place democracy.  To answer these popular demands China ’s new compradore-Westernized liberals cannot point to their ‘model’ in the US empire where American workers are in the process of being stripped of the very benefits Chinese workers are struggling to regain.

China , torn by deepening class and political conflict, cannot sustain its drive toward global economic leadership.  China ’s elite cannot confront the rising global imperial military threat from the US with its comprador allies among the internal liberal elite while the country is  a deeply divided society with an increasingly hostile working class.  The time of unbridled exploitation of China ’s labor has to end in order to face the US military encirclement of China and economic disruption of its overseas markets.  China possesses enormous resources.  With over $1.5 trillion dollars in reserves China can finance a comprehensive national health and educational program throughout the country.

China can afford to pursue an intensive ‘public housing program’ for the 250 million migrant workers currently living in urban squalor.  China can impose a system of progressive income taxes on its new billionaires and millionaires and finance small family farmer co-operatives and rural industries to rebalance the economy.  Their program of developing alternative energy sources, such as solar panels and wind farms – are a promising start to addressing their serious environmental pollution.  Degradation of the environment and related health issues already engage the concern of tens of millions.  Ultimately China ’s best defense against imperial encroachments is a stable regime based on social justice for the hundreds of millions and a foreign policy of supporting overseas anti-imperialist movements and regimes – whose independence are in China ’s vital interest.  What is needed is a pro-active policy based on mutually beneficial joint ventures including military and diplomatic solidarity.  Already a small, but influential, group of Chinese intellectuals have raised the issue of the growing US military threat and are “saying no to gunboat diplomacy”.[9]

Modern China has plenty of resources and opportunities, unavailable to China in the 19th century when it was subjugated by the British Empire . If the US continues to escalate its aggressive militaristic policy against China , Beijing can set off a serious fiscal crisis by dumping a few of its hundreds of billions of dollars in US Treasury notes.  China , a nuclear power should reach out to its similarly armed and threatened neighbor, Russia , to confront and confound the bellicose rantings of US Secretary of State, Hilary Clinton.  Russian President-to-be Putin vows to increase military spending from 3% to 6% of the GDP over the next decade to counter Washington’s offensive missile bases on Russia’s borders and thwart Obama’s ‘regime change’ programs against its allies, like Syria[10].

China has powerful trading, financial and investment networks covering the globe as well as powerful economic partners .These links have become essential for the continued growth of many of countries throughout the developing world.  In taking on China , the US will have to face the opposition of many powerful market-based elites throughout the world.  Few countries or elites see any future in tying their fortunes to an economically unstable empire-based on militarism and destructive colonial occupations.

In other words, modern China , as a world power, is incomparably stronger than it was in early 18th century.  The US does not have the colonial leverage that the ascendant British Empire possessed in the run-up to the Opium Wars.  Moreover, many Chinese intellectuals and the vast majority of its citizens have no intention of letting its current “Westernized compradors” sell out the country.  Nothing would accelerate political polarization in Chinese society and hasten the coming of a second Chinese social revolution more than a timid leadership submitting to a new era of Western imperial pillage.

Notes

[1] John Hobson, The Eastern Origins of Western Civilization ( Cambridge UK :  Cambridge University Press 2004)
[2] Ibid, Ch. 9 pp. 190 -218
[3] Ibid, Ch. 11, pp. 244-248
[4] Richard Gott, Britain’s Empire:  Resistance, Repression and Revolt ( London : Verso 2011) for a detailed historical chronicle of the savagery accompanying Britain ’s colonial empire.
[5] Hobson, pp. 253 – 256.
[6] Katrina Manson, “South Sudan puts Beijing ’s policies to the test”, Financial Times, 2/21/12, p. 5.
[7] Interview of Clinton NPR, 2/26/12.
[8] La Jornada, 2/15/12 ( Mexico City ).
[9]  China Daily (2/20/2012)
[10]Charles Clover, ‘Putin vows huge boost in defense spending’, Financial Times, 2/12/2012

◾Who Rules America? The Power Elite in the Time of Trump

Source

James Petras

Introduction

In the last few months, several competing political, economic and military sectors – linked to distinct ideological and ethnic groups – have clearly emerged at the centers of power.

We can identify some of the key competing and interlocking directorates of the power elite:

1. Free marketers, with the ubiquitous presence of the ‘Israel First’ crowd.

2. National capitalists, linked to rightwing ideologues.

3. Generals, linked to the national security and the Pentagon apparatus, as well as defense industry.

4. Business elites, linked to global capital. This essay attempts to define the power wielders and evaluate their range of power and its impact.

The Economic Power Elite: Israel-Firsters and Wall Street CEO’s

‘Israel Firsters’ dominate the top economic and political positions within the Trump regime and, interestingly, are among the Administration’s most vociferous opponents. These include: the Federal Reserve Chairwoman, Janet Yellen, as well as her Vice-Chair, Stanley Fischer, an Israeli citizen and former (sic) Governor of the Bank of Israel.

Jared Kushner, President Trump’s son-in-law and an Orthodox Jew, acts as his top adviser on Middle East Affairs. Kushner, a New Jersey real estate mogul, set himself up as the archenemy of the economic nationalists in the Trump inner circle. He supports every Israeli power and land grab in the Middle East and works closely with David Friedman, US Ambassador to Israel (and fanatical supporter of the illegal Jewish settlements) and Jason Greenblatt, Special Representative for International negotiations. With three Israel-Firsters determining Middle East policy, there is not even a fig leaf of balance.

The Treasury Secretary is Steven Mnuchin, a former Goldman Sachs executive, who leads the neo-liberal free market wing of the Wall Street sector within the Trump regime. Gary Cohn, a longtime Wall Street influential, heads the National Economic Council. They form the core business advisers and lead the neo-liberal anti-nationalist Trump coalition committed to undermining economic nationalist policies.

An influential voice in the Attorney General’s office is Rod Rosenstein, who appointed Robert Mueller the chief investigator, which led to the removal of nationalists from the Trump Administration.

The fairy godfather of the anti-nationalist Mnuchin-Cohn team is Lloyd Blankfein, Goldman Sach’s Chairman. The ‘Three Israel First bankerteers’ are spearheading the fight to deregulate the banking sector, which had ravaged the economy, leading to the 2008 collapse and foreclosure of millions of American homeowners and businesses.

The ‘Israel-First’ free market elite is spread across the entire ruling political spectrum, including ranking Democrats in Congress, led by Senate Minority leader Charles Schumer and the Democratic Head of the House Intelligence Committee Adam Schiff. The Democratic Party Israel Firsters have allied with their free market brethren in pushing for investigations and mass media campaigns against Trump’s economic nationalist supporters and their eventual purge from the administration.

The Military Power Elite: The Generals

The military power elite has successfully taken over from the elected president in major decision-making. Where once the war powers rested with the President and the Congress, today a collection of fanatical militarists make and execute military policy, decide war zones and push for greater militarization of domestic policing. Trump has turned crucial decisions over to those he fondly calls ‘my Generals’ as he continues to dodge accusations of corruption and racism.

Trump appointed Four-Star General James ‘Mad Dog’ Mattis (retired USMC) – a general who led the war in Afghanistan and Iraq – as Secretary of Defense. Mattis (whose military ‘glories’ included bombing a large wedding party in Iraq) is leading the campaign to escalate US military intervention in Afghanistan – a war and occupation that Trump had openly condemned during his campaign. As Defense Secretary, General ‘Mad Dog’ pushed the under-enthusiastic Trump to announce an increase in US ground troops and air attacks throughout Afghanistan. True to his much-publicized nom-de-guerre, the general is a rabid advocate for a nuclear attack against North Korea.

Lieutenant General H. R. McMaster (an active duty Three Star General and long time proponent of expanding the wars in the Middle East and Afghanistan) became National Security Adviser after the purge of Trump’s ally Lt. General Michael Flynn, who opposed the campaign of confrontation and sanctions against Russia and China. McMaster has been instrumental in removing ‘nationalists’ from Trumps administration and joins General ‘Mad Dog’ Mattis in pushing for a greater build-up of US troops in Afghanistan.

Lt. General John Kelly (Retired USMC), another Iraq war veteran and Middle East regime change enthusiast, was appointed White House Chief of Staff after the ouster of Reince Priebus.

The Administration’s Troika of three generals share with the neoliberal Israel First Senior Advisors to Trump, Stephen Miller and Jared Kushner, a deep hostility toward Iran and fully endorse Israeli Prime Minister Netanyahu’s demand that the 2015 Nuclear Accord with Tehran be scrapped.

Trump’s military directorate guarantees that spending for overseas wars will not be affected by budget cuts, recessions or even national disasters.

The ‘Generals’, the Israel First free marketers and the Democratic Party elite lead the fight against the economic nationalists and have succeeded in ensuring that Obama Era military and economic empire building would remain in place and even expand.

The Economic Nationalist Elite

The leading strategist and ideologue of Trump’s economic nationalist allies in the White House was Steve Bannon. He had been chief political architect and Trump adviser during the electoral campaign. Bannon devised an election campaign favoring domestic manufacturers and American workers against the Wall Street and multinational corporate free marketers. He developed Trump’s attack on the global trade agreements, which had led to the export of capital and the devastation of US manufacturing labor.

Equally significant, Bannon crafted Trumps early public opposition to the generals’ 15-year trillion-dollar intervention in Afghanistan and the even more costly series of wars in the Middle East favored by the Israel-Firsters, including the ongoing proxy-mercenary war to overthrow the secular nationalist government of Syria.

Within 8 month of Trump’s administration, the combined forces of the free market economic and military elite, the Democratic Party leaders, overt militarists in the Republican Party and their allies in the mass media succeeded in purging Bannon – and marginalized the mass support base for his ‘America First’ economic nationalist and anti-‘regime change’ agenda.

The anti-Trump ‘alliance’ will now target the remaining few economic nationalists in the administration. These include: the CIA Director Mike Pompeo, who favors protectionism by weakening the Asian and NAFTA trade agreements and Peter Navarro, Chairman of the White House Trade Council. Pompeo and Navarro face strong opposition from the ascendant neoliberal Zionist troika now dominating the Trump regime.

In addition, there is Secretary of Commerce, Wilbur Ross, a billionaire and former director of Rothschild Inc., who allied with Bannon in threatening import quotas to address the massive US trade deficit with China and the European Union.

Another Bannon ally is US Trade Representative Robert Lighthizer a former military and intelligence analyst with ties to the newsletter Breitbart. He is a strong opponent of the neoliberal, globalizers in and out of the Trump regime.

‘Senior Adviser’ and Trump speechwriter, Stephen Miller actively promotes the travel ban on Muslims and stricter restrictions on immigration. Miller represents the Bannon wing of Trump’s zealously pro-Israel cohort.

Sebastian Gorka, Trump’s Deputy Assistant in military and intelligence affairs, was more an ideologue than analyst, who wrote for Breitbart and rode to office on Bannon’s coat tails. Right after removing Bannon, the ‘Generals’ purged Gorka in early August on accusations of ‘anti-Semitism’.

Whoever remains among Trump’s economic nationalists are significantly handicapped by the loss of Steve Bannon who had provided leadership and direction. However, most have social and economic backgrounds, which also link them to the military power elite on some issues and with the pro-Israel free marketers on others. However, their core beliefs had been shaped and defined by Bannon.

The Business Power Elite

Exon Mobile CEO Rex Tillerson, Trump’s Secretary of State and former Texas Governor Rick Perry, Energy Secretary lead the business elite. Meanwhile, the business elite associated with US manufacturing and industry have little direct influence on domestic or foreign policy. While they follow the Wall Street free marketers on domestic policy, they are subordinated to the military elite on foreign policy and are not allied with Steve Bannon’s ideological core.

Trump’s business elite, which has no link to the economic nationalists in the Trump regime, provides a friendlier face to overseas economic allies and adversaries.

Analysis and Conclusion

The power elite cuts across party affiliations, branches of government and economic strategies. It is not restricted to either political party, Republican or Democratic. It includes free marketers, some economic nationalists, Wall Street power brokers and militarists. All compete and fight for power, wealth and dominance within this administration. The correlation of forces is volatile, changing rapidly in short periods of time – reflecting the lack of cohesion and coherence in the Trump regime.

Never has the US power elite been subject to such monumental changes in composition and direction during the first year of a new regime.

During the Obama Presidency, Wall Street and the Pentagon comfortably shared power with Silicon Valley billionaires and the mass media elite. They were united in pursuing an imperial ‘globalist’ strategy, emphasizing multiple theaters of war and multi-lateral free trade treaties, which was in the process of reducing millions of American workers to permanent helotry.

With the inauguration of President Trump, this power elite faced challenges and the emergence of a new strategic configuration, which sought drastic changes in US political economic and military policy.

The architect of the Trump’s campaign and strategy, Steve Bannon, sought to displace the global economic and military elite with his alliance of economic nationalists, manufacturing workers and protectionist business elites. Bannon pushed for a major break from Obama’s policy of multiple permanent wars to expanding the domestic market. He proposed troop withdrawal and the end of US military operations in Afghanistan, Syria and Iraq, while increasing a combination of economic, political and military pressure on China. He sought to end sanctions and confrontation against Moscow and fashion economic ties between the giant energy producers in the US and Russia.

While Bannon was initially the chief strategist in the White House, he quickly found himself faced with powerful rivals inside the regime, and ardent opponents among Democratic and Republican globalists and especially from the Zionist – neoliberals who systematically maneuvered to win strategic economic and policy positions within the regime. Instead of being a coherent platform from which to formulate a new radical economic strategy, the Trump Administration was turned into a chaotic and vicious ‘terrain for struggle’. The Bannon’s economic strategy barely got off the ground.

The mass media and operatives within the state apparatus, linked to Obama’s permanent war strategy, first attacked Trump’s proposed economic reconciliation with Russia. To undermine any ‘de-escalation’, they fabricated the Russian spy and election manipulation conspiracy. Their first successful shots were fired at Lt. General Michael Flynn, Bannon’s ally and key proponent for reversing the Obama/Clinton policy of military confrontation with Russia. Flynn was quickly destroyed and openly threatened with prosecution as a ‘Russian agent’ in whipped-up hysteria that resembled the heydays of Senator Joseph McCarthy.

Key economic posts in the Trump regime were split between the Israel-Firster neoliberals and the economic nationalists. The ‘Deal Maker’ President Trump attempted to harness Wall Street-affiliated neoliberal Zionists to the economic nationalists, linked to Trump’s working class electoral base, in formulating new trade relations with the EU and China, which would favor US manufacturers. Given the irreconcilable differences between these forces, Trump’s naïve ‘deal’ weakened Bannon, undermined his leadership and wrecked his nationalist economic strategy.

While Bannon had secured several important economic appointees, the Zionist neoliberals undercut their authority. The Fischer-Mnuchin-Cohn cohort successfully set a competing agenda.

The entire Congressional elite from both parties united to paralyze the Trump-Bannon agenda. The giant corporate mass media served as a hysterical and rumor-laden megaphone for zealous Congressional and FBI investigators magnifying every nuance of Trump’s US Russia relations in search of conspiracy. The combined state-Congressional and Media apparatus overwhelmed the unorganized and unprepared mass base of Bannon electoral coalition which had elected Trump.

Thoroughly defeated, the toothless President Trump retreated in desperate search for a new power configuration, turning his day-to-day operations over to ‘his generals’. The elected civilian President of the United States embraced his generals’ pursuit of a new military-globalist alliance and escalation of military threats foremost against North Korea, but including Russia and China. Afghanistan was immediately targeted for an expanded intervention.

Trump effectively replaced Bannon’s economic nationalist strategy with a revival Obama’s multi-war military approach.

The Trump regime re-launched the US attacks on Afghanistan and Syria –exceeding Obama’s use of drone attacks on suspected Muslim militants. He intensified sanctions against Russia and Iran, embraced Saudi Arabia’s war against the people of Yemen and turned the entire Middle East policy over to his ultra-Zionist Political Advisor (Real Estate mogul and son-in-law) Jared Kushner and US Ambassador to Israel David Friedman.

Trump’s retreat turned into a grotesque rout. The Generals embraced the neoliberal Zionists in Treasury and the Congressional global militarists. Communication Directory Anthony Scaramucci was fired. Trump’s Chief of Staff General Joe Kelly purged Steve Bannon. Sebastian Gorka was kicked out.

The eight months of internal struggle between the economic nationalists and the neoliberals has ended: The Zionist-globalist alliance with Trump’s Generals now dominate the Power Elite.

Trump is desperate to adapt to the new configuration, allied to his own Congressional adversaries and the rabidly anti-Trump mass media.

Having all but decimated Trump’s economic nationalists and their program, the Power Elite then mounted a series of media-magnified events centering around a local punch-out in Charlottesville, Virginia between ‘white supremacists’ and ‘anti-fascists’. After the confrontation led to death and injury, the media used Trump’s inept attempt to blame both ‘baseball bat’-wielding sides, as proof of the President’s links to neo-Nazis and the KKK. Neoliberal and Zionists, within the Trump administration and his business councils, all joined in the attack on the President, denouncing his failure to immediately and unilaterally blame rightwing extremists for the mayhem.

Trump is turning to sectors of the business and Congressional elite in a desperate attempt to hold onto waning support via promises to enact massive tax cuts and deregulate the entire private sector.

The decisive issue was no longer over one policy or another or even strategy. Trump had already lost on all accounts. The ‘final solution’ to the problem of the election of Donald Trump is moving foreword step-by-step – his impeachment and possible arrest by any and all means.

What the rise and destruction of economic nationalism in the ‘person’ of Donald Trump tells us is that the American political system cannot tolerate any capitalist reforms that might threaten the imperial globalist power elite.

Writers and activists used to think that only democratically elected socialist regimes would be the target of systematic coup d’état. Today the political boundaries are far more restrictive. To call for ‘economic nationalism’, completely within the capitalist system, and seek reciprocal trade agreements is to invite savage political attacks, trumped up conspiracies and internal military take-overs ending in ‘regime change’.

The global-militarist elite purge of economic nationalists and anti-militarists was supported by the entire US left with a few notable exceptions. For the first time in history the left became an organizational weapon of the pro-war, pro-Wall Street, pro-Zionist Right in the campaign to oust President Trump. Local movements and leaders, notwithstanding, trade union functionaries, civil rights and immigration politicians, liberals and social democrats have joined in the fight for restoring the worst of all worlds: the Clinton-Bush-Obama/Clinton policy of permanent multiple wars, escalating confrontations with Russia, China, Iran and Venezuela and Trump’s deregulation of the US economy and massive tax-cuts for big business.

We have gone a long-way backwards: from elections to purges and from peace agreements to police state investigations. Today’s economic nationalists are labeled ‘fascists’; and displaced workers are ‘the deplorables’!

Americans have a lot to learn and unlearn. Our strategic advantage may reside in the fact that political life in the United States cannot get worse – we really have touched bottom and (barring a nuclear war) we can only look up.

-###-

James Petras is the author of four volume study of US – Israeli relations. The most recent is: The Politics of Empire: The US, Israel and the Middle East

On The Current International Zionist Smear Campaign

July 24, 2017  /  Gilad Atzmon

A Statement by Gilad Atzmon

“The criminalisation of political speech and activism against Israel has become one of the gravest threats to free speech in the west.” Glenn Greenwald 19.7.2017

Together with veteran Pink Floyd star Roger Waters and many other artists and thinkers worldwide, I am being subjected to an international smear campaign, orchestrated and promoted by various Zionist institutions that attempt to silence every form of legitimate dissent of Zionism and Israeli politics.

Video:  https://youtu.be/kaWRu0nvEr8

Local councils, clubs and festivals that promote my music or my thoughts around the world are being subjected to a barrage of emails sent in a clear and malicious attempt to slander me. In these emails I am called an ‘anti-Semite’, ‘bigot’, ‘racist’, ‘Holocaust denier’, and so on.

Obviously, there is no truth in any of this.  As a writer I have indeed criticised Israel and other manifestations of Jewish political exceptionalism, I critically analysed Zionism, Jewish politics, ideology and identity politics in general. I do believe that all states, ideologies and politics must be subject to criticism, but I have never criticized Jews (or anyone else for that matter) as people, as a race or as a biological entity. In fact, my work is deeply anti-racist and focuses only on the political and the cultural.

Unfortunately, there are some who are engaged in relentless censorship and book burning and we must never permit them to succeed. Intellectual freedom and tolerance are precious Western values which we must defend at all odds. So in case you feel the need to address some of those hateful operatives, here are a few points you might wish to take into account.

1.    From its day of inception, my own musical group, the Orient House Ensemble (OHE) has been a melting pot for artists of many different ethnicities and backgrounds, including Jewish, Black, Arab and Romani musicians – hardly a ‘bigoted’ setting.

2.    Despite increasingly tough ‘hate speech’ laws in the UK, Europe and the USA, I have never once been questioned by any law enforcement authority about any of my writings or public appearances. My views and thoughts are well within the strict boundaries of the law in the UK, EU and every other Western country.

3.    I have been accused of being a ‘Holocaust denier.’ This is clearly not the case. I do not deny the Holocaust, but I do insist that this chapter in our past should be treated not as a religion or dogma, but must, like all other events in the past, be subject to scrutiny and open discussion.  Despite Germany and Austria’s stringent Holocaust denial laws, my books and writing are translated and published in both countries and I perform and teach there regularly without ever being subjected to any legal issues.

4.    My work has been endorsed by some of the most respected humanists and scholars around. Here are just a few examples:
“A transformative story told with unflinching integrity that all (especially Jews) who care about real peace, as well as their own identity, should not only read, but reflect upon and discuss widely.” Professor Richard Falk United Nations Special Rapporteur on Human Rights in Palestine

“Fascinating and provocative” Professor of Political Science, John J. Mearsheimer

“Atzmon has the courage – so profoundly lacking among Western intellectuals” Professor of Sociology, James Petras

“Gilad’s book constitutes an excellent critique of Identity Politics in general and Jewish Identity Politics in particular from a humanistic perspective.” Professor of International Law, Francis A. Boyle

Instead of King of the Jews. Perhaps Atzmon should be recognized as the prophet of old, At least in his self description and his outreach, this is the way he appears” Jewish theology Professor Marc Ellis

“A superb and necessary book that demystifies some “undeniable truths” about Jewish identity –
Gauden Sarasola, El Pais

“Atzmon’s essential contribution to solidarity with Palestine is to help non-Jews realize that they are not always in the wrong when conflicts with Jewish organizations arise.” Science Professor Jean Bricmont

“Gilad Atzmon’s book, The Wandering Who? is as witty and thought provoking as its title.  But it is also an important book, presenting conclusions about Jews, Jewishness and Judaism which some will find shocking but which are essential to an understanding of Jewish identity politics and the role they play on the world stage.” Publisher and Film Producer Karl Sabbagh

“Gilad’s escape from spiritual claustrophobia towards a free and open humanitarianism is fearless” Legendary Musician Robert Wyatt

“It is excellent from beginning to end.  very well-organized and well-articulated arguments.” Revolutionary Songwriter David Rovics

“In his inimitable deadpan style, Atzmon identifies the abscess in the Jewish wisdom tooth – exilic tribalism – and pulls it out. Ouch!” Eric Walberg, Al Aharam Weekly

“A brilliant analysis that makes what appear to be contradictions in Jewish identity based political behavior not only comprehensible but predictable.” Jeff Blankfort, Jewish Solidarity Campaigner

“A fascinating achievement” Law professor Oren Ben Dor,

“Gilad Atzmon is someone who encompasses what it means to be an intellectual.” Kim Petersen, Dissident Voice

Gilad Atzmon’s book Being In Time: A Post Political Manifesto is available now on: Amazon.co.ukAmazon.com and gilad.co.uk.   

Oligarchs Succeed! Only the People Suffer!

By James Petras

June 01, 2017 “Information Clearing House” – On a scale not seen since the ‘great’ world depression of the 1930’s, the US political system is experiencing sharp political attacks, divisions and power grabs. Executive firings, congressional investigations, demands for impeachment, witch hunts, threats of imprisonment for ‘contempt of Congress’ and naked power struggles have shredded the façade of political unity and consensus among competing powerful US oligarchs.

For the first time in US history, the incumbent elected president struggles on a daily basis to wield state power. The opposition-controlled state (National Public Radio) and corporate organs of mass propaganda are pitted against the presidential regime. Factions of the military elite and business oligarchy face off in the domestic and international arena. The oligarchs debate and insult each other. They falsify charges, plot and deceive. Their political acolytes, who witness these momentous conflicts, are mute, dumb and blind to the real interests at stake.

The struggle between the Presidential oligarch and the Opposition oligarchs has profound consequences for their factions and for the American people. Wars and markets, pursued by sections of the Oligarchs, have led opposing sections to seek control over the means of political manipulation (media and threats of judicial action).

Intense political competition and open political debate have nothing to do with ‘democracy’ as it now exists in the United States.

In fact, it is the absence of real democracy, which permits the oligarchs to engage in serious intra-elite warfare. The marginalized, de-politicized electorate are incapable of taking advantage of the conflict to advance their own interests.

What the ‘Conflict’ is Not About

The ‘life and death’ inter-oligarchical fight is not about peace!

None of the factions of the oligarchy, engaged in this struggle, is aligned with democratic or independent governments.

Neither side seeks to democratize the American electoral process or to dismantle the grotesque police state apparatus.

Neither side has any commitment to a ‘new deal’ for American workers and employees.

Neither is interested in policy changes needed to address the steady erosion of living standards or the unprecedented increase in ‘premature’ mortality among the working and rural classes.

Despite these similarities in their main focus of maintaining oligarchical power and policies against the interests of the larger population, there are deep divisions over the content and direction of the presidential regime and the permanent state apparatus.

What the Oligarchical Struggle is About

There are profound differences between the oligarch factions on the question of overseas wars and ‘interventions’.

The ‘opposition’ (Democratic Party and some Republican elite) pursues a continuation of their policy of global wars, especially aimed at confronting Russian and China, as well as regional wars in Asia and the Middle East. There is a stubborn refusal to modify military policies, despite the disastrous consequences domestically (economic decline and increased poverty) and internationally with massive ethnic cleansing, terrorism, forced migrations of war refugees to Europe, and famine and epidemics (such as cholera and starvation in Yemen).

The Trump Presidency appears to favor increased military confrontation with Iran and North Korea and intervention in Syria, Venezuela and Yemen.

The ‘Opposition’ supports multilateral economic and trade agreements, (such as TTP and NAFTA), while Trump favors lucrative ‘bilateral’ economic agreements. Trump relies on trade and investment deals with Saudi Arabia and the Gulf Emirates and the formation of an aggressive military ‘axis’ (US-Saudi Arabia-Israel -Gulf Emirates) to eventually overthrow the nationalist regime in Iran and divide the country.

The ‘Opposition’ pursues wars and violent ‘regime change’ to replace disobedient ‘tyrants’ and nationalists and set up ‘client governments’, which will provide bases for the US military empire. Trump’s regime embraces existing dictators, who can invest in his domestic infrastructure agenda.

The ‘opposition’ seeks to maximize the role of Washington’s global military power. President Trump focuses on expanding the US role in the global market.

While both oligarchical factions support US imperialism, they differ in terms of its nature and means.

For the ‘opposition’, every country, large or small, can be a target for military conquest. Trump tends to favor the expansion of lucrative overseas markets, in addition to projecting US military dominance.

Oligarchs: Tactical Similarities

The competition among oligarchs does not preclude similarities in means and tactics. Both factions favor increased military spending, support for the Saudi war on Yemen and intervention in Venezuela. They support trade with China and international sanctions against Russia and Iran. They both display slavish deference to the State of Israel and favor the appointment of openly Zionist agents throughout the political, economic and intelligence apparatus.

These similarities are, however, subject to tactical political propaganda skirmishes. The ‘Opposition’ denounces any deviation in policy toward Russia as ‘treason’, while Trump accuses the ‘Opposition’ of having sacrificed American workers through NAFTA.

Whatever the tactical nuances and similarities, the savage inter-oligarchic struggle is far from a theatrical exercise. Whatever the real and feigned similarities and differences, the oligarchs’ struggle for imperial and domestic power has profound consequence for the political and constitutional order.

Oligarchical Electoral Representation and the Parallel Police State

The ongoing fight between the Trump Administration and the ‘Opposition’ is not the typical skirmish over pieces of legislation or decisions. It is not over control of the nation’s public wealth. The conflict revolves around control of the regime and the exercise of state power.

The opposition has a formidable array of forces, including the national intelligence apparatus (NSA, Homeland Security, FBI, CIA, etc.) and a substantial sector of the Pentagon and defense industry. Moreover, the opposition has created new power centers for ousting President Trump, including the judiciary. This is best seen in the appointment of former FBI Chief Robert Mueller as ‘Special Investigator’ and key members of the Attorney General’s Office, including Deputy Attorney General Rob Rosenstein. It was Rosenstein who appointed Mueller, after the Attorney General ‘Jeff’ Session (a Trump ally) was ‘forced’ to recluse himself for having ‘met’ with Russian diplomats in the course of fulfilling his former Congressional duties as a senior member of the Senate Foreign Relations Committee. This ‘recusal’ took significant discretionary power away from Trump’s most important ally within the Judiciary.

The web of opposition power spreads and includes former police state officials including mega-security impresario, Michael Chertoff (an associate of Robert Mueller), who headed Homeland Security under GW Bush, John Brennan (CIA), James Comey (FBI) and others.

The opposition dominates the principal organs of propaganda -the press (Washington Post, Financial Times, New York Times, and Wall Street Journal), television and radio (ABC, NBC, CBS and PBS/ NPR), which breathlessly magnify and prosecute the President and his allies for an ever-expanding web of unsubstantiated ‘crimes and misdemeanors’. Neo-conservative and liberal think tanks and foundations, academic experts and commentators have all joined the ‘hysteria chorus’ and feeding frenzy to oust the President.

The President has an increasingly fragile base of support in his Cabinet, family and closest advisers. He has a minority of supporters in the legislature and possibly in the Supreme Court, despite nominal majorities for the Republican Party.

The President has the passive support of his voters, but they have demonstrated little ability to mobilize in the streets. The electorate has been marginalized.

Outside of politics (the ‘Swamp’ as Trump termed Washington, DC) the President’s trade, investment, taxation and deregulation policies are backed by the majority of investors, who have benefited from the rising stock market. However, ‘money’ does not appear to influence the parallel state.

The divergence between Trumps supporters in the investment community and the political power of the opposition state is one of the most extraordinary changes of our century.

Given the President’s domestic weakness and the imminent threat of a coup d’état, he has turned to securing ‘deals’ with overseas allies, including billion-dollar trade and investment agreements.

The multi-billion arms sales to Saudi Arabia and the Gulf Emirates will delight the military-industrial complex and its hundreds of thousands of workers.

Political and diplomatic ‘kowtowing’ to Israeli Prime Minister Netanyahu should please some American Zionists.

But the meetings with the EU in Brussels and with the G7 in Siciliy failed to neutralize Trump’s overseas opposition.

NATO’s European members did not accept Trump’s demands that they increase their contribution to the alliance and they condemned his reluctance to offer unconditional US military support for new NATO members. They showed no sympathy for domestic problems.

In brief, the President’s overseas supporters, meetings and agreements will have little impact on the domestic correlation of forces.

Moreover, there are long-standing ties among the various state apparatuses and spy agencies in the EU and the US, which strengthen the reach of the opposition in their attacks on Trump.

While substantive issues divide the Presidential and Opposition oligarchs, these issues are vertical, not horizontal, cleavages – a question of ‘their’ wars or ‘ours’.

Trump intensified the ideological war with North Korea and Iran; promised to increase ground troops in Afghanistan and Syria; boosted military and advisory support for the Saudi invasion of Yemen; and increased US backing for violent demonstrations and mob attacks in Venezuela.

The opposition demands more provocations against Russia and its allies; and the continuation of former President Obama’s seven wars.

While both sets of oligarchs support the ongoing wars, the major difference is over who is managing the wars and who can be held responsible for the consequences.

Both conflicting oligarchs are divided over who controls the state apparatus since their power depends on which side directs the spies and generates the fake news.

Currently, both sets of oligarchs wash each other’s ‘dirty linen’ in public, while covering up for their collective illicit practices at home and abroad.

The Trump’s oligarchs want to maximize economic deals through ‘uncritical’ support for known tyrants; the opposition ‘critically’ supports tyrants in exchange for access to US military bases and military support for ‘interventions’.

President Trump pushes for major tax cuts to benefit his oligarch allies while making massive cuts in social programs for his hapless supporters. The Opposition supports milder tax cuts and lesser reductions in social programs.

Conclusion

The battle of the oligarchs has yet to reach a decisive climax. President Trump is still the President of the United States. The Opposition forges ahead with its investigations and lurid media exposés.

The propaganda war is continuous. One day the opposition media focuses on a deported student immigrant and the next day the President features new jobs for American military industries.

The emerging left-neo-conservative academic partnership (e.g. Noam Chomsky-William Kristol) has denounced President Trump’s regime as a national ‘catastrophe’ from the beginning. Meanwhile, Wall Street investors and libertarians join to denounce the Opposition’s resistance to major tax ‘reforms’.

Oligarchs of all stripes and colors are grabbing for total state power and wealth while the majority of citizens are labeled ‘losers’ by Trump or ‘deplorables’ by Madame Clinton.

The ‘peace’ movement, immigrant rights groups and ‘black lives matter’ activists have become mindless lackeys pulling the opposition oligarchs’ wagon, while rust-belt workers, rural poor and downwardly mobile middle class employees are powerless serfs hitched to President Trump’s cart.

Epilogue

After the blood-letting, when and if President Trump is overthrown, the State Security functionaries in their tidy dark suits will return to their nice offices to preside over their ‘normal’ tasks of spying on the citizens and launching clandestine operations abroad.

The media will blow out some charming tid-bits and ‘words of truth’ from the new occupant of the ‘Oval Office’.

The academic left will churn out some criticism against the newest ‘oligarch-in-chief’ or crow about how their heroic ‘resistance’ averted a national catastrophe.

Trump, the ex-President and his oligarch son-in-law Jared Kushner will sign new real estate deals. The Saudis will receive the hundreds of billions of dollars of US arms to re-supply ISIS or its successors and to rust in the ‘vast and howling’ wilderness of US-Middle East intervention. Israel will demand even more frequent ‘servicing’ from the new US President.

The triumphant editorialists will claim that ‘our’ unique political system, despite the ‘recent turmoil’, has proven that democracy succeeds … only the people suffer!

Long live the Oligarchs!

James Petras is a Bartle Professor (Emeritus) of Sociology at Binghamton University, New York.http://petras.lahaine.org

The views expressed in this article are solely those of the author and do not necessarily reflect the opinions of Information Clearing House.

 

Click for Spanish, German, Dutch, Danish, French, translation- Note- Translation may take a moment to load.

What’s your response? –  Scroll down to add / read comments 

China: Rise, Fall and Re-Emergence as a Global Power

The Lessons of History

First published on GR in March 2012

The study of world power has been blighted by Eurocentric historians who have distorted and ignored the dominant role China played in the world economy between 1100 and 1800.  John Hobson’s[1] brilliant historical survey of the world economy during this period provides an abundance of empirical data making the case for China ’s economic and technological superiority over Western civilization for the better part of a millennium prior to its conquest and decline in the 19th century.

China ’s re-emergence as a world economic power raises important questions about what we can learn from its previous rise and fall and about the external and internal threats confronting this emerging economic superpower for the immediate future.

First we will outline the main contours of historical China ’s rise to global economic superiority over West before the 19th century, following closely John Hobson’s account in The Eastern Origins of Western Civilization.  Since the majority of western economic historians (liberal, conservative and Marxist) have presented historical China as a stagnant, backward, parochial society, an “oriental despotism”, some detailed correctives will be necessary.  It is especially important to emphasize how China , the world technological power between 1100 and 1800, made the West’s emergence possible.  It was only by borrowing and assimilating Chinese innovations that the West was able to make the transition to modern capitalist and imperialist economies.

In part two we will analyze and discuss the factors and circumstances which led to China ’s decline in the 19th century and its subsequent domination, exploitation and pillage by Western imperial countries, first England and then the rest of Europe, Japan and the United States .

In part three, we will briefly outline the factors leading to China’s emancipation from colonial and neo-colonial rule and analyze its recent rise to becoming the second largest global economic power.

Finally we will look at the past and present threats to China ’s rise to global economic power, highlighting the similarities between British colonialism of the 18 and 19th centuries and the current US imperial strategies and focusing on the weaknesses and strengths of past and present Chinese responses.

China:  The Rise and Consolidation of Global Power 1100 – 1800

In a systematic comparative format, John Hobson provides a wealth of empirical indicators demonstrating China ’s global economic superiority over the West and in particular England .  These are some striking facts:

As early as 1078, China was the world’s major producer of steel (125,000 tons); whereas Britain in 1788 produced 76,000 tons.

China was the world’s leader in technical innovations in textile manufacturing, seven centuries before Britain ’s 18th century “textile revolution”.

China was the leading trading nation, with long distance trade reaching most of Southern Asia, Africa, the Middle East and Europe .  China’s ‘agricultural revolution’ and productivity surpassed the West down to the 18th century.

Its innovations in the production of paper, book printing, firearms and tools led to a manufacturing superpower whose goods were transported throughout the world by the most advanced navigational system.

China possessed the world’s largest commercial ships.  In 1588 the largest English ships displaced 400 tons, China ’s 3,000 tons.  Even as late as the end of the 18th century China ’s merchants employed 130,000 private transport ships, several times that of Britain . China retained this pre-eminent position in the world economy up until the early 19th century.

British and Europeans manufacturers followed China ’s lead, assimilating and borrowing its more advanced technology and were eager to penetrate China ’s advanced and lucrative market.

Banking, a stable paper money economy, manufacturing and high yields in agriculture resulted in China ’s per capita income matching that of Great Britain as late as 1750.

China ’s dominant global position was challenged by the rise of British imperialism, which had adopted the advanced technological, navigational and market innovations of China and other Asian countries in order to bypass earlier stages in becoming a world power[2].

Western Imperialism and the Decline of China

The British and Western imperial conquest of the East, was based on the militaristic nature of the imperial state, its non-reciprocal economic relations with overseas trading countries and the Western imperial ideology which motivated and justified overseas conquest.

Unlike China , Britain ’s industrial revolution and overseas expansion was driven by a military policy.  According to Hobson, during the period from 1688-1815 Great Britain was engaged in wars 52% of the time[3].  Whereas the Chinese relied on their open markets and their superior production and sophisticated commercial and banking skills, the British relied on tariff protection, military conquest, the systematic destruction of competitive overseas enterprises as well as the appropriation and plunder of local resources.  China ’s global predominance was based on ‘reciprocal benefits’ with its trading partners, while Britain relied on mercenary armies of occupation, savage repression and a ‘divide and conquer’ policy to foment local rivalries.  In the face of native resistance, the British (as well as other Western imperial powers) did not hesitate to exterminate entire communities[4].

Unable to take over the Chinese market through greater economic competitiveness, Britain relied on brute military power.  It mobilized, armed and led mercenaries, drawn from its colonies in India and elsewhere to force its exports on China and impose unequal treaties to lower tariffs.  As a result China was flooded with British opium produced on its plantations in India – despite Chinese laws forbidding or regulating the importation and sale of the narcotic.  China ’s rulers, long accustomed to its trade and manufacturing superiority, were unprepared for the ‘new imperial rules’ for global power.  The West’s willingness to use military power  to win colonies, pillage resources and recruit huge mercenary armies commanded by European officers spelt the end for China as a world power.

China had based its economic predominance on ‘non-interference in the internal affairs of its trading partners’.  In contrast, British imperialists intervened violently in Asia , reorganizing local economies to suit the needs of the empire (eliminating economic competitors including more efficient Indian cotton manufacturers) and seized control of local political, economic and administrative apparatus to establish the colonial state.

Britain ’s empire was built with resources seized from the colonies and through the massive militarization of its economy[5].  It was thus able to secure military supremacy over China .  China ’s foreign policy was hampered by its ruling elite’s excessive reliance on trade relations.  Chinese officials and merchant elites sought to appease the British and convinced the emperor to grant devastating extra-territorial concessions opening markets to the detriment of Chinese manufacturers while surrendering local sovereignty.  As always, the British precipitated internal rivalries and revolts further destabilizing the country.

Western and British penetration and colonization of China ’s market created an entire new class:  The wealthy Chinese ‘compradores’ imported British goods and facilitated the takeover of local markets and resources.  Imperialist pillage forced greater exploitation and taxation of the great mass of Chinese peasants and workers.  China ’s rulers were obliged to pay the war debts and finance trade deficits imposed by the Western imperial powers by squeezing its peasantry.  This drove the peasants to starvation and revolt.

By the early 20th century (less than a century after the Opium Wars), China had descended from world economic power to a broken semi-colonial country with a huge destitute population.  The principle ports were controlled by Western imperial officials and the countryside was subject to the rule by corrupt and brutal warlords.  British opium enslaved millions.

British Academics:  Eloquent Apologists for Imperial Conquest

The entire Western academic profession – first and foremost British  imperial historians – attributed British imperial dominance of Asia to English ‘technological superiority’ and China’s misery and colonial status to ‘oriental backwardness’, omitting any mention of the millennium of Chinese commercial and technical progress and superiority up to the dawn of the 19th century.  By the end of the 1920’s, with the Japanese imperial invasion, China ceased to exist as a unified country.  Under the aegis of imperial rule, hundreds of millions of Chinese had starved or were dispossessed or slaughtered, as the Western powers and Japan plundered its economy.  The entire Chinese ‘collaborator’ comprador elite were discredited before the Chinese people.

What did remain in the collective memory of the great mass of the Chinese people – and what was totally absent in the accounts of prestigious US and British academics – was the sense of China once having been a prosperous, dynamic and leading world power.  Western commentators dismissed this collective memory of China ’s ascendancy as the foolish pretensions of nostalgic lords and royalty – empty Han arrogance.

China Rises from the Ashes of Imperial Plunder and Humiliation:  The Chinese Communist Revolution

The rise of modern China to become the second largest economy in the world was made possible only through the success of the Chinese communist revolution in the mid-20th century.  The People’s Liberation ‘Red’ Army defeated first the invading Japanese imperial army and later the US imperialist-backed comprador led Kuomintang “Nationalist” army.  This allowed the reunification of China as an independent sovereign state.  The Communist government abolished the extra-territorial privileges of the Western imperialists, ended the territorial fiefdoms of the regional warlords and gangsters and drove out the millionaire owners of brothels, the traffickers of women and drugs as well as the other “service providers” to the Euro-American Empire.

In every sense of the word, the Communist revolution forged  the modern Chinese state.  The new leaders then proceeded to reconstruct an economy ravaged by imperial wars and pillaged by Western and Japanese capitalists.  After over 150 years of infamy and humiliation the Chinese people recovered their pride and national dignity.  These socio-psychological elements were essential in motivating the Chinese to defend their country from the US attacks, sabotage, boycotts, and blockades mounted immediately after liberation.

Contrary to Western and neoliberal Chinese economists, China ’s dynamic growth did not start in 1980.  It began in 1950, when the agrarian reform provided land, infrastructure, credits and technical assistance to hundreds of millions of landless and destitute peasants and landless rural workers. Through what is now called “human capital” and gigantic social mobilization, the Communists built roads, airfields, bridges, canals and railroads as well as the basic industries, like coal, iron and steel, to form the backbone of the modern Chinese economy.  Communist China’s vast free educational and health systems created a healthy, literate and motivated work force.  Its highly professional military prevented the US from extending its military empire throughout the Korean peninsula up to China ’s territorial frontiers.  Just as past Western scholars and propagandists fabricated a history of a “stagnant and decadent” empire to justify their destructive conquest, so too their modern counterparts have rewritten the first thirty years of Chinese Communist history, denying the role of the revolution in developing all the essential elements for a modern economy, state and society.  It is clear that China ’s rapid economic growth was based on the development of its internal market, its rapidly growing cadre of scientists, skilled technicians and workers and the social safety net which protected and promoted working class and peasant mobility were products of Communist planning and investments.

China ’s rise to global power began in 1949 with the removal of the entire parasitic financial, compradore and speculative classes who had served as the intermediaries for European, Japanese and US imperialists draining China of its great wealth.
China’s Transition to Capitalism

Beginning in 1980 the Chinese government initiated a dramatic shift in its economic strategy:  Over the next three decades, it opened the country to large-scale foreign investment; it privatized thousands of industries and it set in motion a process of income concentration based on a deliberate strategy of re-creating a dominant economic class of billionaires linked to overseas capitalists.  China ’s ruling political class embraced the idea of “borrowing” technical know-how and accessing overseas markets from foreign firms in exchange for providing cheap, plentiful labor at the lowest cost.

The Chinese state re-directed massive public subsidies to promote high capitalist growth by dismantling its national system of free public education and health care.  They ended subsidized public housing for hundreds of millions of peasants and urban factory workers and provided funds to real estate speculators for the construction of private luxury apartments and office skyscrapers. China ’s new capitalist strategy as well as its double digit growth was based on the profound structural changes and massive public investments made possible by the previous communist government.  China ’s private sector “take off” was based on the huge public outlays made since 1949.

The triumphant new capitalist class and its Western collaborators claimed all the credit for this “economic miracle” as China rose to become the world’s second largest economy.  This new Chinese elite have been less eager to announce China ’s world-class status in terms of brutal class inequalities, rivaling only the US .

China:  From Imperial Dependency to World Class Competitor

China ’s sustained growth in its manufacturing sector was a result of highly concentrated public investments, high profits, technological innovations and a protected domestic market.  While foreign capital profited, it was always within the framework of the Chinese state’s priorities and regulations.  The regime’s dynamic ‘export strategy’ led to huge trade surpluses, which eventually made China one of the world’s largest creditors especially for US debt.  In order to maintain its dynamic industries, China has required huge influxes of raw materials, resulting in large-scale overseas investments and trade agreements with agro-mineral export countries in Africa and Latin America .  By 2010 China displaced the US and Europe as the main trading partner in many countries in Asia, Africa and Latin America .

Modern China ’s rise to world economic power, like its predecessor between 1100-1800, is based on its gigantic productive capacity:  Trade and investment was governed by a policy of strict non-interference in the internal relations of its trading partners.  Unlike the US , China did initiate brutal wars for oil; instead it signed lucrative contracts.  And China does not fight wars in the interest of overseas Chinese, as the US has done in the Middle East for Israel .

The seeming imbalance between Chinese economic and military power is in stark contrast to the US where a bloated, parasitic military empire continues to erode its own global economic presence.

US military spending is twelve times that of China .  Increasingly the US military plays the key role shaping policy in Washington as it seeks to undercut China ’s rise to global power.

China’s Rise to World Power: Will History Repeat Itself?

China has been growing at about 9% per annum and its goods and services are rapidly rising in quality and value.  In contrast, the US and Europe have wallowed around 0% growth from 2007-2012.  China ’s innovative techno-scientific establishment routinely assimilates the latest inventions from the West (and Japan ) and improves them, thereby decreasing the cost of production.  China has replaced the US and European controlled “international financial institutions” (the IMF, World Bank, the Inter-American Development Bank) as the principle lender in Latin America .  China continues to lead as the prime investor in African energy and mineral resources.  China has replaced the US as the principle market for Saudi Arabian, Sudanese and Iranian petroleum and it will soon replace the US as the principle market for Venezuela petroleum products.  Today China is the world’s biggest manufacturer and exporter, dominating even the US market, while playing the role of financial life line as it holds over $1.3 trillion in US Treasury notes.

Under growing pressure from its workers, farmers and peasants, China ’s rulers have been developing the domestic market by increasing wages and social spending to rebalance the economy and avoid the specter of social instability.  In contrast, US wages, salaries and vital public services have sharply declined in absolute and relative terms.

Given the current historical trends it is clear that China will replace the US as the leading world economic power, over the next decade,  if the US empire does not strike back and if China ’s profound class inequalities do not lead to a major social upheaval.

Modern China ’s rise to global power faces serious challenges.  In contrast to China ’s historical ascent on the world stage, modern Chinese global economic power is not accompanied by any imperialist undertakings.  China has seriously lagged behind the US and Europe in aggressive war-making capacity.  This may have allowed China to direct public resources to maximize economic growth, but it has left China vulnerable to US military superiority in terms of its massive arsenal, its string of forward bases and strategic geo-military positions right off the Chinese coast and in adjoining territories.

In the nineteenth century British imperialism demolished China ’s global position with its military superiority, seizing China ’s ports – because of China ’s reliance on ‘mercantile superiority’.

The conquest of India , Burma and most of Asia allowed Britain to establish colonial bases and recruit local mercenary armies.  The British and its mercenary allies encircled and isolated China , setting the stage for the disruption of China ’s markets and the imposition of the brutal terms of trade.  The British Empire’s armed presence dictated what China imported (with opium accounting for over 50% of British exports in the 1850s) while undermining China ’s competitive advantages via tariff policies.

Today the US is pursuing similar policies:  US naval fleet  patrols and controls China ’s commercial shipping lanes and off-shore oil resources via its overseas bases.  The Obama-Clinton White House is in the process of developing a rapid military response involving bases in Australia , Philippines and elsewhere in Asia .  The US is intensifying  its efforts to undermine Chinese overseas access to strategic resources while backing ‘grass roots’ separatists and ‘insurgents’ in West China, Tibet, Sudan, Burma, Iran, Libya, Syria and elsewhere.  The US military agreements with India and  the installation of a pliable puppet regime in Pakistan have advanced its strategy of isolating China .  While China upholds its policy of “harmonious development” and “non-interference in the internal affairs of other countries”, it has stepped aside as US and European military imperialism have attacked a host of China’s trading partners to essentially reverse China’s  peaceful commercial expansion.

China’s lack of a political and ideological strategy capable of protecting its overseas economic interests has been an invitation for the US and NATO to set-up regimes hostile to China .  The most striking example is Libya where US and NATO intervened to overthrow an independent government led by President Gadhafi, with whom China had signed multi-billion dollar trade and investments agreements. The NATO bombardment of Libyan cities, ports and oil installation forced the Chinese to withdraw 35,000 Chinese oil engineers and construction workers in a matter of days.  The same thing happened in Sudan where China had invested billions to develop its oil industry.  The US, Israel and Europe armed the South Sudanese rebels to disrupt the flow of oil and attack Chinese oil workers[6].  In both cases China passively allowed the US and European military imperialists to attack its trade partners and undermine its investments.

Under Mao Tse Tung, China had an active policy countering imperial aggression:  It supported revolutionary movements and independent Third World governments.  Today’s capitalist China does not have an active policy of supporting governments or movements capable of protecting China ’s bilateral trade and investment agreements.  China ’s inability to confront the rising tide of US   military aggression against its economic interests, is due to deep structural problems.  China’s foreign policy is shaped by big commercial, financial and manufacturing interests who rely on their ‘economic competitive edge’ to gain market shares and have no understanding of the military and security underpinnings of global economic power.  China ’s political class is deeply influenced by a new class of billionaires with strong ties to Western equity funds and who have uncritically absorbed Western cultural values. This is illustrated by their preference for sending their own children to elite universities in the US and Europe .  They seek “accommodation with the West” at any price.

This lack of any strategic understanding of military empire-building has led them to respond ineffectively and ad hoc to each imperialist action undermining their access to resources and markets.  While China ’s “business first” outlook may have worked when it was a minor player in the world economy and US empire builders saw  the “capitalist opening” as a chance to easily takeover China ’s public enterprises and pillage the economy.  However, when China (in contrast to the former USSR) decided to retain capital controls and develop a carefully calibrated, state directed “industrial policy”  directing western capital and the transfer of technology to state enterprises, which effectively penetrated the US domestic and overseas markets, Washington began to complain and talked of retaliation.

China ’s huge trade surpluses with the US provoked a dual response in Washington :  It sold massive quantities of US Treasury bonds to the Chinese and began to develop a global strategy to block China ’s advance. Since the US lacked economic leverage to reverse its decline, it relied on its only “comparative advantage” – its military superiority based on a world wide  system of attack bases,  a network of overseas client regimes, military proxies, NGO’ers, intellectuals and armed mercenaries.  Washington turned to its vast overt and clandestine security apparatus to undermine China ’s trading partners.  Washington depends on its long-standing ties with corrupt rulers, dissidents, journalists and media moguls to provide the powerful propaganda cover while advancing its military offensive against China ’s overseas interests.

China has nothing to compare with the US overseas ‘security apparatus’ because it practices a policy of “non-interference”.  Given the advanced state of the Western imperial offensive, China has taken only a few diplomatic initiatives, such as financing English language media outlets to present its perspective, using its veto power on the UN Security Council to oppose US efforts to overthrow the independent Assad regime in Syria and opposing the imposition of drastic sanctions against Iran .  It sternly repudiated US Secretary of State Hilary Clinton’s vitriolic questioning of the ‘legitimacy’ of the Chinese state when it voted against the US-UN resolution  preparing  an attack on Syria[7].

Chinese military strategists are more aware and alarmed at the growing military threat to China .  They have successfully demanded a 19% annual increase in military spending over the next five years (2011-2015)[8].  Even with this increase, China’s military expenditures will still be less than one-fifth of the US military budget and China has not one overseas military base in stark contrast to the over 750 US installations abroad.  Overseas Chinese intelligence operations are minimal and ineffective.  Its embassies are run by and for narrow commercial interests who utterly failed to understand NATO’s brutal policy of regime change in Libya and inform Beijing of its significance to the Chinese state.

There are two other structural weaknesses undermining China ’s rise as a world power. This includes the highly ‘Westernized’ intelligentsia which has uncritically swallowed US economic doctrine about free markets while ignoring its militarized economy.  These Chinese intellectuals parrot the US propaganda about the ‘democratic virtues’ of billion-dollar Presidential campaigns, while supporting financial deregulation which would have led to a Wall Street takeover of Chinese banks and savings.  Many Chinese business consultants and academics have been educated in the US and influenced by their ties to US academics and international financial institutions directly linked to Wall Street and the City of London .  They have prospered as highly-paid consultants receiving prestigious positions in Chinese institutions.  They identify the ‘liberalization of financial markets’ with “advanced economies” capable of deepening ties to global markets instead of as a major source of the current global financial crisis.  These “Westernized intellectuals” are like their 19th century comprador counterparts who underestimated and dismissed the long-term consequences of Western imperial penetration.  They fail to understand how financial deregulation in the US precipitated the current crisis and how deregulation would lead to a Western takeover of China ’s financial system- the consequences of which would reallocate China ’s domestic savings to non-productive activities (real estate speculation), precipitate financial crisis and ultimately undermine China ’s leading global position.

These Chinese yuppies imitate the worst of Western consumerist life styles and their political outlooks are driven by these life styles and Westernized identities which preclude any sense of solidarity with their own working class.

There is an economic basis for the pro-Western sentiments of China ’s neo-compradors.  They have transferred billions of dollars to foreign bank accounts, purchased luxury homes and apartments in London , Toronto , Los Angeles , Manhattan , Paris , Hong Kong and Singapore . They have one foot in China (the source of their wealth) and the other in the West (where they consume and hide their wealth).

Westernized compradores are deeply embedded in China ’s economic system having family ties with the political leadership in the party apparatus and the state. Their connections are weakest in the military and in the growing social movements, although some “dissident” students and academic activists in the “democracy movements” are backed by Western imperial NGO’s.  To the extent that the compradors gain influence, they weaken the strong economic state institutions which have directed China ’s ascent to global power, just as they did in the 19th century by acting as intermediaries for the British Empire .  Proclaiming 19th Century “liberalism” British opium addicted over 50 million Chinese in less than a decade.  Proclaiming “democracy and human rights” US gunboats now patrol off China ’s coast.  China ’s elite-directed rise to global economic power has spawned monumental inequalities between the thousands of new billionaires and multi-millionaires at the top and hundreds of millions of impoverished workers, peasants and migrant workers at the bottom.

China ’s rapid accumulation of wealth and capital was made possible through the intense exploitation of its workers who were stripped of their previous social safety net and regulated work conditions guaranteed under Communism.  Millions of Chinese households are being dispossessed in order to promote real estate developer/speculators who then build high rise offices and the luxury apartments for the domestic and foreign elite.  These brutal features of ascendant Chinese capitalism have created a fusion of workplace and living space mass struggle which is growing every year.  The developer/speculators’ slogan  “to get rich is wonderful” has lost its power to deceive the people.  In 2011 there were over 200,000 popular encompassing urban coastal factories and rural villages.  The next step, which is sure to come, will be the unification of these struggles into  new national social movements with a class-based agenda demanding the restoration of health and educational services enjoyed under the Communists as well as a greater share of China’s wealth. Current demands for greater wages can turn to demands for greater work place democracy.  To answer these popular demands China ’s new compradore-Westernized liberals cannot point to their ‘model’ in the US empire where American workers are in the process of being stripped of the very benefits Chinese workers are struggling to regain.

China , torn by deepening class and political conflict, cannot sustain its drive toward global economic leadership.  China ’s elite cannot confront the rising global imperial military threat from the US with its comprador allies among the internal liberal elite while the country is  a deeply divided society with an increasingly hostile working class.  The time of unbridled exploitation of China ’s labor has to end in order to face the US military encirclement of China and economic disruption of its overseas markets.  China possesses enormous resources.  With over $1.5 trillion dollars in reserves China can finance a comprehensive national health and educational program throughout the country.

China can afford to pursue an intensive ‘public housing program’ for the 250 million migrant workers currently living in urban squalor.  China can impose a system of progressive income taxes on its new billionaires and millionaires and finance small family farmer co-operatives and rural industries to rebalance the economy.  Their program of developing alternative energy sources, such as solar panels and wind farms – are a promising start to addressing their serious environmental pollution.  Degradation of the environment and related health issues already engage the concern of tens of millions.  Ultimately China ’s best defense against imperial encroachments is a stable regime based on social justice for the hundreds of millions and a foreign policy of supporting overseas anti-imperialist movements and regimes – whose independence are in China ’s vital interest.  What is needed is a pro-active policy based on mutually beneficial joint ventures including military and diplomatic solidarity.  Already a small, but influential, group of Chinese intellectuals have raised the issue of the growing US military threat and are “saying no to gunboat diplomacy”.[9]

Modern China has plenty of resources and opportunities, unavailable to China in the 19th century when it was subjugated by the British Empire . If the US continues to escalate its aggressive militaristic policy against China , Beijing can set off a serious fiscal crisis by dumping a few of its hundreds of billions of dollars in US Treasury notes.  China , a nuclear power should reach out to its similarly armed and threatened neighbor, Russia , to confront and confound the bellicose rantings of US Secretary of State, Hilary Clinton.  Russian President-to-be Putin vows to increase military spending from 3% to 6% of the GDP over the next decade to counter Washington’s offensive missile bases on Russia’s borders and thwart Obama’s ‘regime change’ programs against its allies, like Syria[10].

China has powerful trading, financial and investment networks covering the globe as well as powerful economic partners .These links have become essential for the continued growth of many of countries throughout the developing world.  In taking on China , the US will have to face the opposition of many powerful market-based elites throughout the world.  Few countries or elites see any future in tying their fortunes to an economically unstable empire-based on militarism and destructive colonial occupations.

In other words, modern China , as a world power, is incomparably stronger than it was in early 18th century.  The US does not have the colonial leverage that the ascendant British Empire possessed in the run-up to the Opium Wars.  Moreover, many Chinese intellectuals and the vast majority of its citizens have no intention of letting its current “Westernized compradors” sell out the country.  Nothing would accelerate political polarization in Chinese society and hasten the coming of a second Chinese social revolution more than a timid leadership submitting to a new era of Western imperial pillage.

Notes

[1] John Hobson, The Eastern Origins of Western Civilization ( Cambridge UK :  Cambridge University Press 2004)
[2] Ibid, Ch. 9 pp. 190 -218
[3] Ibid, Ch. 11, pp. 244-248
[4] Richard Gott, Britain’s Empire:  Resistance, Repression and Revolt ( London : Verso 2011) for a detailed historical chronicle of the savagery accompanying Britain ’s colonial empire.
[5] Hobson, pp. 253 – 256.
[6] Katrina Manson, “South Sudan puts Beijing ’s policies to the test”, Financial Times, 2/21/12, p. 5.
[7] Interview of Clinton NPR, 2/26/12.
[8] La Jornada, 2/15/12 ( Mexico City ).
[9]  China Daily (2/20/2012)
[10]Charles Clover, ‘Putin vows huge boost in defense spending’, Financial Times, 2/12/2012

%d bloggers like this: