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The World Order that’s Now Emerging

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The Post-World-War-II world order was dominated by the one WW II major combatant that had only 0.32% of its population (the lowest percentage) killed by the war: the United States. The Soviet Union’s comparable number killed by the war was the highest — it was 13.7% — 42 .8.times higher than America’s. The U.S. was the main force that defeated Japan and so won WW II in Asia. The U.S.S.R., however, was the main force that defeated Germany and so won WW II in Europe. The U.S.S.R. suffered vastly more than did the U.S. to achieve its victory. In addition to suffering 42.8 times the number of war-deaths than did U.S., the U.S.S.R.’s financial expenditures invested in the conflict, as calculated by Jan Ludvik, were 4.8 times higher than were America’s financial expenditures on the war.

Thus, at the war’s end, the Soviet Union was exhausted and in a much weaker condition than it had been before the war. By contrast, the U.S., having had none of the war’s battles occurring on its territory, was (by comparison) barely even scratched by the war, and it was thus clearly and overwhelmingly the new and dominant world-power emerging from the war.

That was the actual situation in 1945.

The U.S. Government did not sit on its haunches with its enormous post-war advantage, but invested wisely in order to expand it. One of the first investments the U.S. made after the war was the Marshall Plan to rebuild the European countries that had now become the U.S. aristocracy’s vassal-states. The heavily damaged U.S.S.R. possessed no such extra cash to invest in (rebuilding) its vassals. Furthermore, the U.S.S.R.’s communist regime was additionally hobbled by Karl Marx’s labor theory of value, which produced prices that contained no useful information about demand and thus no constructive information for planners. (Planning is essential regardless whether an enterprise is private or public.) Thus, the U.S.S.R. was doomed to lose in its economic competition with The West, so that the Cold War was actually a losing proposition for them, from the very start of the post-war era. America’s post-WW-II dominance, combined with Marx’s crippling economic theory, and produced the exodus of East Europeans to The West.

America’s aristocracy thus increasingly rose on top internationally. Like any aristocracy, the American aristocracy’s main concerns were foreign trade, and so U.S. international corporations increasingly expanded even at the expense of the corporations owned by its competing, now-vassal, aristocracies, and the U.S. aristocracy’s corporations and brands thus came to dominate the entire capitalist sphere. The growth-bug, if it becomes an addiction, is itself a disease. Out of control, it is a cancer, which can destroy the organism. This is what happened in America. Conquering also the communist sphere was the U.S. aristocracy’s long-term goal, so that they would ultimately dominate every nation, the entire world. By the time of 1980, the U.S. aristocracy’s top goal (world domination) became also the U.S. Government’s top goal. The cancer had spread to the culture’s brain. Growth, backed by “Greed is good” economics, became practically the American religion, viewed as patriotic, and not merely as the nation’s economic model (which was bad enough, with its increasingly imperialistic thrust — such as 2003 Iraq, 2011 Libya, 2012- Syria, 2014 Ukraine, 2016- Yemen, and maybe now Iran).

America’s unchallengeable dominance lasted from then till now, but clearly has now reached near its end. The United States is trying to restore its post-Soviet (post-1991) global supremacy, by intensifying the U.S. regime’s secret war against Russia and its allies, which started on the night of 24 February 1990 and which could reach a crescendo soon in WW III unless something will be done by America’s allies to force the by-now wildly flailing U.S. aristocracy to accept peacefully the end of the American aristocracy’s hegemony — the termination of their, until recently, unchallengeable control over the world. By now, with the Soviet Union and its communism and its Warsaw Pact mirror of America’s NATO military alliance gone since 1991 and yet no peace-dividend but only ever-increasing wealth-concentration into the tiny number of billionaires who benefit from war weaponry-sales and conquests, America needs to abandon its addiction to growth, or else it will proceed forward on its current path, to WW III. That’s its current path.

According to Josh Rogin in the Washington Post on November 14th, U.S. Vice President Mike Pence had just said, as Rogin phrased it, that “the United States has no intention of ceding influence or control over the [Pacific] region to Beijing” and that if China won’t do everything that the U.S. demands, then the U.S. is fully prepared to force China to obey. The same newspaper had earlier presented Robert D. Kaplan, on October 9th, saying, “The United States must face up to an important fact: the western Pacific is no longer a unipolar American naval lake, as it was for decades after World War II. The return of China to the status of great power ensures a more complicated multipolar situation. The United States must make at least some room for Chinese air and naval power in the Indo-Pacific region.” But the U.S. regime is now making clear that it won’t do that.

The U.S. regime appears to be determined to coerce both Russia and China to comply with all American demands. With both of those countries, as with Iran, the U.S. regime is now threatening hot war. Trump, as the “deal-maker,” is offering no concessions, but only demands, which must be complied with, or else. The United States is threatening WW III. But what nations will be America’s allies, this time around? If many European nations abandon the U.S., then what?

Key for the U.S. regime is keeping the U.S. dollar as the world’s reserve currency.

Rockefeller Capital Management, Global Foresight, Third Quarter 2018  presents Jimmy Chang, Chief Investment Strategist, headlining “Nothing Trumps the Dollar, Yet”. He writes: “The reserve currency status gives the U.S. a significant advantage in handling its finances. American economist Barry Eichengreen observed that it cost only a few cents for the U.S. to print a $100 bill, but other countries would need to produce $100 of actual goods or services to obtain that $100 bill. The world’s need for the greenback allows the U.S. to issue debt in its own currency at very low interest rates. French Finance Minister Valéry Giscard d’Estaing, who later became the president, coined [in 1965] the term ‘exorbitant privilege’ to describe America’s advantage” of the U.S. dollar over any other nation’s currency. That “exorbitant advantage” never went away. Chang concludes: “As for the King Dollar, its short-term outlook appears robust.” However, few other observers now share that view. Increasing numbers of countries are pricing goods in other currencies, and China’s yuan and the EU’s euro are especially significant contenders to end dollar-dominance and to end the advantages that U.S.-based international corporations enjoy from dollar-dominance.

Other than dollar-dominance, the key barrier to world peace is NATO, the military alliance of the northern aggressor-nations. Proposals have been put forth for the EU to have its own army, which initially would be allied with NATO (i.e., with the U.S. regime). On November 17th, Russian Television bannered “EU army: Will it be easy for Europe to get rid of American political diktat?” and pointed to the U.S. vassal-nations that would be especially likely to stay in NATO: UK, Poland, Netherlands, Latvia, Lithuania, and Estonia. Perhaps the other EU nations and Russia could form their own military alliance, which will formally be committed to the independence of those U.S. vassal-nations, and which will welcome individual peace-treaties with each of them, so as to indicate that aggression is only the U.S. regime’s way, and thus to lay the groundwork for peace instead of war, going forward. Clearly, the people who control the U.S. are addicted to invasions and coups (“regime-change”s), instead of to respecting the sovereignty of each nation and the right of self-determination of people everywhere. America’s conquest-addiction threatens, actually, every other nation.

Perhaps a reformed and truly independent EU can provide the new reserve currency, and also in other ways the foundation for global peace between nations. NATO will be irrevocably opposed to this, but it could happen. And if and when it does, it might tame the aristocratic beast that rides the American warfare state, but this isn’t likely to happen anytime soon. A step forward toward it is the courageous statement by “The Saker” at the American news-commentary site, Unz dot com, on November 15th, “Thanking Vets for Their ‘Service’ – Why?” He boldly notes that after World War II, all U.S. invasions have been criminal, and that it’s a remarkably long string of evil — and this doesn’t even include the many coups, which have likewise destroyed some nations.

Nationalism is just as evil in today’s America as it was in Hitler’s Germany. It is hostile to people in any other nation. It demands conquest. And wherever nationalism rules, patriotism dies and is replaced by nationalism.

Only by restoring patriotism and eliminating nationalism can WW III be avoided. Ending dollar-dominance is part of the path toward an internationally peaceful world that focuses more on serving the public’s needs and less on serving the aristocrats’ cravings. But ending NATO is also necessary.

Either these things will be done, or there will be WW III.

Author’s note: This piece first posted at strategic-culture.org

Investigative historian Eric Zuesse is the author, most recently, of They’re Not Even Close: The Democratic vs. Republican Economic Records, 1910-2010

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Americas

Israel, the Middle East and Joe Biden

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Photo by Adam Schultz

How will a Biden Administration change American policies on Iran, the Palestinians and Israel’s tightening relationships with Arab states?

Some two years ago, Democrats harshly attacked Trump for withdrawing US troops from Syria and thereby undermining the alliance with the Kurds. However, Democratic leaders also favor a reduced US presence in the Middle East and understand the region’s declining relevance to US global policy.  It was Democrat Obama who withdrew US troops from the Iraqi bloodbath; Biden, if elected, will presumably continue a similar course. The US is no longer dependent on Middle Eastern oil, China is perceived as its greatest threat, and the defeat of ISIS has lowered the strategic terror threat level to US national security.

Biden, just like Trump and Obama, probably believes that the US can downscale its presence in the region and rely on its allies (the Gulf states, Egypt, Jordan and Israel, of course) and on the alliances being forged between its partners over the past two decades. The US could increase aid to a specific ally at a time of need (as was the case with the massive 2014 influx of Syrian refugees into Jordan) or Iraq (during the fighting with ISIS), but it is loath to continue meddling in local conflicts. What is more, the painful lesson of the intervention in Iraq has dissolved the Bush Administration’s messianic belief in the democratization of the Middle East. Concern about Russia or China filling the vacuum left by the US is also no longer deterring US leaders (like Obama and Trump) who are trying to score points with voters by troops drawdowns and free the administration up to deal with different matters, among them the “Pivot to Asia”.

As a Democrat, Biden is expected to be more sensitive than Trump to human rights violations in the Middle East. He condemned the conduct of the Saudi regime following the murder of exiled journalist Jamal Khashoggi in fairly harsh language several times and also called for curbing weapons sales to Riyadh.

However, if elected, Biden’s first order of business will be dealing with the biggest health and economic crisis the US has experienced since 1929. He will have to create jobs and deal with thousands of burning domestic matters. Those will be his flagship issues. He may have to set aside his moral repugnance and allow weapons exports to prevent job and profit losses for Americans. Trump, too, was harshly critical of Saudi Arabia prior to his election, but subsequently changed his tune and conducted his first overseas trip there as president.

One can cautiously assess that any change in US policy toward the Gulf would not undermine Israel’s rapprochement with those states. The strategic regional threats (expansion of Iran’s hegemony and its violations of the nuclear agreement, as well as Turkish activity in the region) will remain unchanged, and therefore the interest in economic and security cooperation between Israel and Gulf states will remain. Arab states that traditionally view Israel as a bridge to the White House could try to exploit this now official relationship to promote their standing with Congress and a new administration, if one is installed.

Biden’s position on the Iran nuclear deal (JCPOA) is of concern these days to both Israeli and Arab leaders, which could further cement their ties. Arab leaders are concerned about Biden rejoining and reviving the deal that Trump abandoned. They are relying on Biden’s criticism of the unilateral US pullout from the agreement and his declaration that he would make every effort to rejoin it. Nonetheless, Biden’s people seem to understand that they cannot simply turn back the clock. Blinken, one of Biden’s closest aides and potential future national security adviser, has said in interviews that the US would not return to the agreement until Iran fulfills all its commitments – meaning, until Iran walks back all its violations of the agreement. It is hard to predict just how Biden might draw Iran to the negotiating table, but as long as such an option is viable, Israel, Saudi Arabia, the UAE and other Gulf states will have sufficient grounds to close ranks.

Biden is a sworn supporter of the two-state solution to the Israeli-Palestinian conflict. He is expected to re-open the US Consulate in East Jerusalem, restore US aid to the Palestinians and invite the PLO ambassador back to Washington. However, this does not mean that he will place the Palestinian issue on his list of priorities, especially given the domestic crisis and ongoing tensions with China. The Palestinian issue is unlikely to return to center stage following a change in the US administration. The Arab world is growing increasingly weak as the coronavirus continues to spread, the economic crisis deepens and unemployment rises. Arab states also fear that the major non-Arab states in the region – Turkey and Iran – will exploit this weakness. Should that happen, the Palestinian issue is unlikely to attract much interest from key Arab states, Saudi Arabia, the UAE and Egypt, which also dictate the conduct of the Arab League.

That said, should Biden decide to revive the Arab Peace Initiative and mobilize Saudi and other Arab support (perhaps in return for a more determined US stand on Iran, the supply of US strategic weapons, etc.), pressure on Israel over the Palestinian issue could re-emerge. If Israel chooses to respond with accelerated construction in the settlements, in defiance of US policy, states such as Saudi Arabia and the UAE would likely toe the line of the US administration but would not cut ties with Israel as a result.

In conclusion, a Biden victory would not affect the strengthening relationship between Israel and Arab states, especially if he opts to focus on the Iranian issue and a US return to the JCPOA. The Middle East’s relevance to the US is expected to continue its decline, prompting cooperation among its partners in the region in order to forge a robust front and repel threats from the non-Arab states (Iran and Turkey). A changed US approach to the Palestinian issue could increase pressure on Israel slightly, but is not expected to substantially change the current dynamics.

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Prospects for U.S.-China Relations in the Biden Era

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The U.S. presidential election which will be held on November 3 is drawing ever closer. As the Trump administration performs poorly in response to the COVID-19 pandemic, where the death toll in the U.S. exceeded 210,000, the election trend appears to be very unfavorable for Donald Trump.

According to a recent poll conducted by NBC News and the Wall Street Journal, Joe Biden led Trump by 14 percentage points in the national elections. It is worth noting that retired American generals, who have traditionally been extremely low-key in politics, publicly supported Biden this year, something that is quite rare. On September 24, 489 retired generals and admirals, former national security officials and diplomats signed a joint letter in support of Biden. Among them are Republicans, Democrats, and non-partisans, showing that they have crossed the affiliation, and jointly support Biden to replace Trump. Although the opinion polls do not represent the final election, with the election only being one month away, the widening of the opinion gap is enough to predict the direction of the election.

For the whole world, especially for China, it is necessary to prepare for the advent of a possible Biden era of the United States. During Trump’s tenure, U.S.-China relations have taken a turn for the worse, and China has been listed as the foremost “long-term strategic competitor” of the United States.

There is a general view in China that after the Democratic Party comes to power, U.S.-China relations may worsen. The reason is that the Democratic Party places more emphasis on values such as human rights and ideology and is accustomed to using values such as human rights, democracy, and freedom in foreign policies against China. However, as far as U.S.-China relations are concerned, it is too vague to use the simple dichotomic “good” or “bad” to summarize the relationship of the two countries.

However, it is certain that after Biden takes office, his policies will be different from Trump’s. An important difference between Biden and Trump is that Biden will follow a certain order and geopolitical discipline to implement his own policies, and he will also seek cooperation with China in certain bottom-line principled arrangements. It should be stressed that it is crucial for China and the United States to reach some principled arrangements in their relations.

From an economic point of view, should Biden become the next President, the United States will likely ease its trade policy, which will alleviate China’s trade pressure. It can be expected that the Biden administration may quell the U.S.-China tariff war and adjust punitive tariff policies that lead to “lose-lose” policies. If Biden takes office, he might be more concerned about politics and U.S.-China balance. In terms of trade, although he would continue to stick to the general direction of the past, this would not be the main direction of his governance. Therefore, the U.S.-China trade war could see certain respite and may even stop. In that scenario, China as the largest trading partner of the United States, could hope for the pressures in the trade with the U.S. being reduced.

China must also realize that even if Biden takes power, some key areas of U.S.-China relations will not change, such as the strategic positioning of China as the “long-term strategic competitor” of the United States. This is not something that is decided by the U.S. President but by the strategic judgment of the U.S. decision-making class on the direction of its relations with China. This strategic positioning destined that the future U.S.-China relations will be based on the pattern dominated by geopolitical confrontation. Biden sees that by expanding global influence, promoting its political model, and investing in future technologies, China is engaging a long-term competition with the U.S, and that is the challenge that the United States faces.

On the whole, if and when Biden takes office, the U.S. government’s domestic and diplomatic practices will be different from those of the Trump administration, although the strategic positioning of China will not change, and neither will it change the U.S.’ general direction of long-term suppression of China’s rise. However, in terms of specific practices, the Biden administration will have its own approaches, and will seek a certain order and geopolitical discipline to implement its policies. He may also seek to reach some bottom-line principled arrangements with China. Under the basic framework, the future U.S.-China relations will undergo changes in many aspects. Instead of the crude “an eye for an eye” rivalry, we will see the return to the traditional systemic competition based on values, alliance interests, and rules. Facing the inevitable changes in U.S.-China relations, the world needs to adapt to the new situation.

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Third world needs ideological shift

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As nations across the world have been pooling their efforts to contain the COVID-19 spread, the looming economic crisis has caught the attention of global intelligentsia. In the light of health emergency, The policy makers of Asia, Africa and Latin America have been struggling to steer the economic vehicle back to normalcy. Although, the reason for the economic slump could be attributed to the pandemic, it is also important to cast light on the economics of these tricontinental nations. Been as colonies for more than two centuries, these players had adopted the style of economics which is a mix of market economics and socialism. The imperial powers of the then Europe had colonised these nations and had subjugated them with their military and political maneuvers. Under the banner of White man’s burden, the Imperial masters had subverted the political, economical, social and cultural spheres of the colonies and had transformed these self-reliant societies into the ones which depend on Europe for finished products. The onslaught on the economical systems of colonies was done through one way trade. Though, the western powers brought the modern values to the third world during colonial era, they were twisted to their advantage. The European industrial machines were depended on the blood, sweat and tears of the people of colonies. It is clear that the reason for the backwardness of these players is the force behind the imperial powers which had eventually pushed them towards these regions in search of raw materials and markets i.e., Capitalism. Needless to say, the competition for resources and disaccord over the distribution of wealth of colonies led to twin world wars. Capitalism, as an economic idea, cannot survive in an environment of a limited market and resources. It needs borderless access, restless labour and timeless profit. While the European imperial powers had expanded their influence over Asia and Africa, the US had exerted its influence over Latin America. Earlier, at the dawn of modern-day Europe, The capitalist liberal order had challenged the old feudal system and the authority of church. Subsequently, the sovereign power was shifted to monarchial king. With the rise of ideas like democracy and liberty, complemented by the rapid takeoff of industrialization, the conditions were set for the creation of new class i.e., capitalist class. On the one hand, Liberalism, a polical facet of capitalism, restricts the role of state(political) in economical matters but on the other hand it provides enough room for the elite class and those who have access to power corridors to persuade the authority(state) to design the policies to their advantage. Inequality is an inescapable feature of liberal economics.

The powerful nations cannot colonise these nations as once done. The Watchwords like interconnectedness, interdependency and free trade are being used to continue their domination on these players. As soon as the third world nations were freed from the shackles of colonialism, they were forced to integrate their economies into the global economical chain. Characterized by the imbalance, the globalization has been used as a weapon by the Western powers to conquer the markets of developing nations.

The Carrot and stick policy of the US is an integral part of its strategy to dominate global economical domain. The sorry state of affairs in the Middle East and Latin America could be attributed to the US lust for resources. In the name of democracy, the US has been meddling in the internal affairs of nations across the developing world. Countries like Iran, Cuba, Venezuela, Libya, Iraq and Syria have challenged the US,a global policeman. Back in the day,soon after assuming the power, the Left leadership in Latin American countries had adopted socialist schemes and had nationalised the wealth creating assets, which were previously in the hands of the US capitalists. Irked by the actions of these nations, the US had devised a series of stratagems to destabilize the regimes and to install its puppets through the imposition of cruel sanctions and by dubbing them as terrorist nations on the pretext of exporting violent communist revolution. With the exception of the regimes of Fidel castro in Cuba and Hugo Chavez in Venezuela, the US is largely successful in its agenda of destabilizing anti-American governments in the region. The US has a long history of mobilising anti-left forces in Latin America, the region which US sees as its backyard, in an attempt to oust socialist leaders. At present, by hook or by crook, the trump administration has been trying to depose Nicolas Maduro, the president of Venezuela, a socialist.

In addition,The US has been colonising the minds of the third world citizens psychologically with its cultural hegemony and anti-left indoctrination. It is important to understand that the reason for the neo-fascism, which is unfurling across the developing and developed world alike, is rooted in capitalism.The third world citizenry is disgruntled and the ultra-nationalist right wing forces in these countries have been channeling the distress amongst the working class to solidify their position. Growing inequalities, Falling living standards, Joblessness and Insecurity are exposing the incompetence of capitalism and have been pushing a large chunk of workforce in the developing countries into a state of despair.Adding to their woes, the Covid-19 has hit them hard.

The US, with the help of IMF and the world bank, had coerced the developing countries to shun welfare economics.The term “Development” is highly contested  in the economic domain.Capitalists argue that the true development of an individual and the society depends upon economic progress and the free market is a panacea for all problems.Given the monopolistic tendencies in the economical systems across the developing world, the free market is a myth, especially in a societies where a few of business families, who have cronies in policy making circles, dominates the economical and social scene.The time has come for the governments of these nations to address these issues and ensure that the wealth would be distributed in a more equitable manner.

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