Washington’s looming war against China
SOTT – Signs of The Times, Michael Hudson, The Unz Review, Sat, 22 Jul 2023
Economic Logic has been Replaced by National Security Overrides
The July NATO summit in Vilnius had the feeling of a funeral, as if they had just lost a family member – Ukraine. To clear away NATO’s failure to drive Russia out of Ukraine and move NATO right up to the Russian border, its members tried to revive their spirits by mobilizing support for the next great fight – against China, which is now designated as their ultimate strategic enemy. To prepare for this showdown, NATO announced a commitment to extend their military presence all the way to the Pacific.
The plan is to carve away China’s military allies and trading partners, above all Russia, starting with the fight in Ukraine. President Biden has said that this war will be global in scope and will take many decades as it expands to ultimately isolate and break up China.
The U.S.-imposed sanctions against trade with Russia are a dress rehearsal for imposing similar sanctions against China. But only the NATO allies have joined the fight. And instead of wrecking Russia’s economy and “turning the ruble to rubble” as President Biden predicted, NATO’s sanctions have made it more self-reliant, increasing its balance of payments and international monetary reserves, and hence the ruble’s exchange rate.
To cap matters, despite the failure of trade and financial sanctions to injure Russia – and indeed, despite NATO’s failures in Afghanistan and Libya, NATO countries committed themselves to trying the same tactics against China. The world economy is to be split between US/NATO/Five Eyes on the one hand, and the rest of the world – the Global Majority – on the other. EU Commissioner Joseph Borrell calls this as a split between the US/European Garden (the Golden Billion) and the Jungle threatening to engulf it, like an invasion of its well-manicured lawns by an invasive species.
From an economic vantage point, NATO’s behavior since its military buildup to attack Ukraine’s Russian-speaking eastern states in February 2022 has been a drastic failure. The U.S. plan was to bleed Russia and leave it so economically destitute that its population would revolt, throw Vladimir Putin out of office and restore a pro-Western neoliberal leader who would pry Russia away from its alliance with China – and then proceed with America’s grand plan to mobilize Europe to impose sanctions on China…………………..
The US/NATO West has led this global fracture, yet it will be the big loser. NATO members already have seen Ukraine deplete their inventory of guns and bullets, artillery and ammunition, tanks, helicopters weapons and other arms accumulated over five decades. But Europe’s loss has become America’s sales opportunity, creating a vast new market for America’s military-industrial complex to re-supply Europe. To gain support, the United States has sponsored a new way of thinking about international trade and investment. The focus has shifted to “national security,” meaning to secure a U.S.-centered unipolar order.
The world is dividing into two blocs: a post-industrial US/NATO vs the Global Majority
……………………………………………………………………………. By trying to prevent other countries from following this logic, U.S. and European NATO diplomacy has brought about exactly what U.S. supremacists most feared. Instead of crippling the Russian economy to create a political crisis and perhaps breakup of Russia itself in order to isolate it from China, the US/NATO sanctions have led Russia to re-orient its trade away from NATO countries to integrate its economy and diplomacy more closely with China and other BRICS members.
Ironically, the US/NATO policy is forcing Russia, China and their BRICS allies to go their own way, starting with a united Eurasia. This new core of China, Russia and Eurasia with the Global South are creating a mutually beneficial multipolar trade and investment sphere.
By contrast, European industry has been devastated. Its economies have become thoroughly and abjectly dependent on the United States – at a much higher cost to itself than was the case with its former trade partners. European exporters have lost the Russian market, and are now following U.S. demands that they abandon and indeed reject the Chinese market. Also to be rejected in due course are markets in the BRICS membership, which is expanding to include Near Eastern, African and Latin American countries……………………………………………………………………..
Today’s fighting against Russia on the Ukrainian front can be thought of as the opening campaign in World War III. In many ways it is an outgrowth of World War II and its aftermath that saw the United States establish international economic and political organizations to operate in its own national self-interest. The International Monetary Fund imposes U.S. financial control and helps dollarize the world economy. The World Bank lends dollars to governments to build export infrastructure to subsidize US/NATO investors in control of oil, mining and natural resources, and to promote trade dependency on U.S. farm exports while promoting plantation agriculture, instead of domestic food-grain production. The United States insists on having veto power in all international organizations that it joins, including the United Nations and its agencies.
The creation of NATO is often misunderstood. Ostensibly, it depicted itself as a military alliance, originally to defend against the thought that the Soviet Union might have some reason to conquer Western Europe. But NATO’s most important role was to use “national security” as the excuse to override European domestic and foreign policy and subordinate it to U.S. control. Dependency on NATO was written into the European Union’s constitution. Its objective was to make sure that European party leaders followed U.S. direction and opposed left-wing or anti-American politics, pro-labor policies and governments strong enough to prevent control by a U.S.-client financial oligarchy.
NATO’s economic program has been one of adherence to neoliberal financialization, privatization, government deregulation and imposing austerity on labor. EU regulations prevent governments from running a budget deficit of more than 3% of GDP. That blocks Keynesian-type policies to spur recovery. Today, higher military arms costs and government subsidy of energy prices is forcing European governments to cut back social spending. Bank policy, trade policy and domestic lawmaking are following the same U.S. neoliberal model that has deindustrialized the American economy and loaded it down with debt to the financial sector in whose hands most wealth and income is now concentrated.
Abandoning economic self-interest for “national security” dependence on the US
The post-Vilnius world treats trade and international relations not as economic, but as “national security.” Any form of trade is the “risk” of being cut off and destabilized. The aim is not to make trade and investment gains, but to become self-reliant and independent. For the West, this means isolating China, Russia and the BRICS in order to depend fully on the United States. So for the United States, its own security means making other countries dependent on itself, so that U.S. diplomats won’t lose control of their military and political diplomacy…………………………………………………………………………………………………
The world is dividing into two blocs – with quite different economic philosophies……………………………………………………………………………………………………………………………………………
We are witnessing what seems to be an inexorable Decline of the West. U.S. diplomats have been able to tighten their economic, political and military control leadership over their European NATO allies. Their easy success in this aim has led them to imagine that somehow they can conquer the rest of the world despite de-industrializing and loading their economies so deeply in debt that there is no foreseeable way in which they can pay their official debt to foreign countries or indeed have much to offer.
The traditional imperialism of military conquest and financial conquest is ended
……………………………….. The US has only one weapon: Missiles and bombs can destroy, but cannot occupy but not occupy and take over a country.
The second way to create imperial power was by economic power to make other countries dependent on U.S. exports……………………………Control of world oil trade has been a central aim of US trade diplomacy………………………………………………………………………………………………. https://www.sott.net/article/482853-Washingtons-looming-war-against-China
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