What Globalism Did Was To Transfer The US Economy To China

“How does a country recover when it has given its economy away to a foreign country that it now demonizes as an enemy?”

Source

http://www.paulcraigroberts.org

Paul Craig Roberts

Aug 21, 2019

The main problem with the US economy is that globalism has been deconstructing it. The offshoring of US jobs has reduced US manufacturing and industrial capability and associated innovation, research, development, supply chains, consumer purchasing power, and tax base of state and local governments. Corporations have increased short-term profits at the expense of these long-term costs. In effect, the US economy is being moved out of the First World into the Third World.

Tariffs are not a solution. The Trump administration says that the tariffs are paid by China, but unless Apple, Nike, Levi, and all of the offshoring companies got an exemption from the tariffs, the tariffs fall on the offshored production of US firms that are sold to US consumers. The tariffs will either reduce the profits of the US firms or be paid by US purchasers of the products in higher prices. The tariffs will hurt China only by reducing Chinese employment in the production of US goods for US markets.

The financial media is full of dire predictions of the consequences of a US/China “trade war.” There is no trade war. A trade war is when countries try to protect their industries by placing tariff barriers on the import of cheaper products from foreign countries. But half or more of the imports from China are imports from US companies. Trump’s tariffs, or a large part of them, fall on US corporations or US consumers.

One has to wonder that there is not a single economist anywhere in the Trump administration, the Federal Reserve, or anywhere else in Washington capable of comprehending the situation and conveying an understanding to President Trump.

One consequence of Washington’s universal economic ignorance is that the financial media has concocted the story that “Trump’s tariffs” are not only driving Americans into recession but also the entire world. Somehow tariffs on Apple computers and iPhones, Nike footwear, and Levi jeans are sending the world into recession or worse. This is an extraordinary economic conclusion, but the capacity for thought has pretty much disappeared in the United States.

In the financial media the question is: Will the Trump tariffs cause a US/world recession that costs Trump his reelection? This is a very stupid question. The US has been in a recession for two or more decades as its manufacturing/industrial/engineering capability has been transferred abroad. The US recession has been very good for the Asian part of the world. Indeed, China owes its faster than expected rise as a world power to the transfer of American jobs, capital, technology, and business know-how to China simply in order that US shareholders could receive capital gains and US executives could receive bonus pay for producing them by lowering labor costs.

Apparently, neoliberal economists, an oxymoron, cannot comprehend that if US corporations produce the goods and services that they market to Americans offshore, it is the offshore locations that benefit from the economic activity.

Offshore production started in earnest with the Soviet collapse as India and China opened their economies to the West. Globalism means that US corporations can make more money by abandoning their American work force. But what is true for the individual company is not true for the aggregate. Why? The answer is that when many corporations move their production for US markets offshore, Americans, unemployed or employed in lower paying jobs, lose the power to purchase the offshored goods.

I have reported for years that US jobs are no longer middle class jobs. The jobs have been declining for years in terms of value-added and pay. With this decline, aggregate demand declines. We have proof of this in the fact that for years US corporations have been using their profits not for investment in new plant and equipment, but to buy back their own shares. Any economist worthy of the name should instantly recognize that when corporations repurchase their shares rather than invest, they see no demand for increased output. Therefore, they loot their corporations for bonuses, decapitalizing the companies in the process. There is perfect knowledge that this is what is going on, and it is totally inconsistent with a growing economy.

As is the labor force participation rate. Normally, economic growth results in a rising labor force participation rate as people enter the work force to take advantage of the jobs. But throughout the alleged economic boom, the participation rate has been falling, because there are no jobs to be had.

In the 21st century the US has been decapitalized and living standards have declined. For a while the process was kept going by the expansion of debt, but consumer income has not kept pace and consumer debt expansion has reached its limits.

The Fed/Treasury “plunge protection team” can keep the stock market up by purchasing S&P futures. The Fed can pump out more money to drive up financial asset prices. But the money doesn’t drive up production, because the jobs and the economic activity that jobs represent have been sent abroad. What globalism did was to transfer the US economy to China.

Real statistical analysis, as contrasted with the official propaganda, shows that the happy picture of a booming economy is an illusion created by statistical deception. Inflation is undermeasured, so when nominal GDP is deflated, the result is to count higher prices as an increase in real output, that is, inflation becomes real economic growth. Unemployment is not counted. If you have not searched for a job in the past 4 weeks, you are officially not a part of the work force and your unemployment is not counted. The way the government counts unemployment is so extraordinary that I am surprised the US does not have a zero rate of unemployment.

How does a country recover when it has given its economy away to a foreign country that it now demonizes as an enemy? What better example is there of a ruling class that is totally incompetent than one that gives its economy bound and gagged to an enemy so that its corporate friends can pocket short-term riches?

We can’t blame this on Trump. He inherited the problem, and he has no advisers who can help him understand the problem and find a solution. No such advisers exist among neoliberal economists. I can only think of four economists who could help Trump, and one of them is a Russian.

The conclusion is that the United States is locked on a path that leads directly to the Third World of 60 years ago. President Trump is helpless to do anything about it.

All Along the Watchtower: The Follies of History

The ultimate American imperial dream is to engineer a Chinese vassal state

All Along the Watchtower: The Follies of History

There must be some kind of way outta here
Said the joker to the thief
There’s too much confusion
I can’t get no relief

Business men, they drink my wine
Plowmen dig my earth
None were level on the mind
Nobody up at his word

-Bob Dylan, All Along the Watchtower (immortalized by Jimi Hendrix)

Nothing beats the beguiling, stony smiles at the Bayon temple near Angkor Wat in Cambodia’s Siem Reap to plunge us back into history’s vortex, re-imagining how empires, in their endless pursuit of power, rise and fall, usually because they eventually get the very war they had sought to avoid.

The Bayon was built as a state temple at the end of the 12th century by the undisputed superstar of Khmer empires, Jayavarman VII. Its magical narrative reliefs convey a mix of history and mythology while depicting daily life in Khmer society.

We still don’t know today the identity of the faces shown on the temple’s giant stone carvings. They could be a representation of Brahma, or of Jayavarman himself – a practicing Buddhist. What we do know is that the glorious Khmer empire – incomparable in art and architecture, and even benign in the sense that the mandate for power was based on the king’s relationship with the gods, started to fade after the 15th century, dismembered by war against the Thai and later the Vietnamese.

Stony smiles “all along the watchtower”, displayed as a living commentary on the rise and fall of empires, could easily connect, geopolitically, with a touch of Buddhist impermanence, to our turbulent times of Hybrid War. And to the current American empire.

It’s always amusing to observe how US think tanks, such as CIA outlet Stratfor, constantly celebrate success in undermining Russia via this strategy.

Hybrid War on Russia was engineered in 2014 on two fronts: ordering the Persian Gulf petro-poodles to crash the oil price while imposing sanctions after Russia opposed the coup – actually a color revolution – in Kiev. Hybrid War was engineered at a Deep State level as a tool to try to smash Russia’s outstanding recovery since Vladimir Putin was elected to the presidency in 2000. The undisguised Zbigniew “Grand Chessboard” Brzezinski-style goal with the Kiev coup was to draw Russia into an Afghan-style partisan war.

Of course, Russia suffered economically – but then slowly recovered, diversifying production and boosting its agricultural capacity. Yet hybrid warfare always ensures that once economic hardship is engineered, a government necessarily becomes unpopular. Then fakes and traitors are unleashed: Alexei Navalny in Russia, or “protests” in Hong Kong that the Deep State dreams would lead to an uprising in Beijing.

Civil Disobedience in Hong Kong or US Color Revolution Attempt?

A small, radical nucleus of agents provocateurs in Hong Kong, using copycat methods from the Maidan in Kiev, sticks to a single-minded road map: force Beijing to commit a Tiananmen 2.0, thus elevating the all-out demonization of China to the next level.

The inevitable consequence, according to the privileged scenario, would be the “West”, as well as vast sectors of the Global South, boycotting the New Silk Roads, or Belt and Road Initiative, a complex, multi-layered strategy of economic integration that has expanded well beyond Eurasia.

Hong Kong, an irrelevant asset

In Hong Kong, everything is about money and then, on a secondary level, about China.

China’s annual GDP per capita is in the range of $9,700. Hong Kong’s annual GDP per capita is in the range of nearly $49,000 – higher than Germany and Japan. It is no wonder that no one in Hong Kong wants to be “like China.” So money is a key factor for Hong Kongers to fear “Chinese domination.” Only a few outsiders, such as Thai economist Chartchai Parasuk, highlight this.

Hong Kong is becoming increasingly irrelevant for China. At the time of the World Bank-lauded “Asian tigers,” in the early to mid-1990s, Hong Kong’s share of China’s GDP was a hefty 27%. Today it’s a paltry 2.7%.

Hong Kong has been losing importance to China. File pic: Creative Commons/ Brian H.Y.

Capital has been steadily moving to Singapore, whose annual GDP per capita is now even higher than Hong Kong’s. Real wages are now lower than at the start of the decade. And wealthy Chinese mainlanders are buying everything in sight, thus excluding the average Hong Konger from an upwardly mobile trajectory.

Up to now, Hong Kong’s allure, for China, was its unique position as a free-trade mega-port, the proverbial gateway to the mainland, and one of the world’s top financial markets. But that’s increasingly in the past. Shenzhen, across the border, is already China’s top tech hub, and Shanghai is being slowly but surely configured as the top financial center.

China is also being hit, hybrid war-style, with a rolling trade war plus sanctions. The ultimate American imperial “dream” is to engineer a Chinese vassal. This has nothing to do with trade. There’s no logic of avoiding a trade deficit with China only to see the same products produced in Thailand or India. What’s goin’ on is rather hybrid war all over the spectrum: attempts to destabilize and possibly defeat Russia, China and Iran, the three key hubs of Eurasia integration.

New hybrid politics

The Hybrid War strategy has created our current state of financial warfare. And that inevitably implies blowback. The weaponization of the US dollar is leading Russia, China and Iran as well as Turkey, Syria and Venezuela to seriously turbo-charge their drive towards alternatives. They could be anchored to a basket of commodities, or it could be all about gold. Wily investor Jim Rickards defines Russia, China, Iran and Turkey as the “New Axis of Gold.”

Everything that happens geopolitically and geoeconomically in our turbulent times has to do with the US’ do-or-die imperial struggle against the Russia-China strategic partnership. Only total “victory,” by any means necessary, would assure the continuation of what could be defined as the New American Century.

And that brings us to the necessity of reconstructing Clausewitz’s axiom, according to which, originally, war is a continuation of politics by other means.

Clausewitz argued that war is a real political instrument. Now, Clausewitz remixed should read: Hybrid War is Politics by Other Means.

The means now go way beyond conventional war, as in Khmer empire times. They mix irregular and cyber war; fake news; lawfare (as in Brazil); electoral intervention; and even “diplomacy” (of the gunboat or economic blockade variety, as applied against Iran and Venezuela).

All Along the Watchtower, the song, as written by Dylan and delivered by Hendrix as a hurricane approached, is an ominous portent of Apocalypse Now. Hummed along the stones of the Bayon smiling cryptically at us out of centuries of impermanence-defying history, it seems so fitting for our times of Hybrid War.

Watch out: Pale riders are approaching, as the wind begins to howl.

*

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This article was originally published on Asia Times.

Pepe Escobar is a frequent contributor to Global Research.

The original source of this article is Global Research

Copyright © Pepe Escobar, Global Research, 2019

Articles by:Pepe Escobar

Gibraltar refuses US request to seize Iranian tanker

Gibraltar says US sanctions on Iran are not applicable in European Union.

Source

http://www.aljazeera.com

Aug 18, 2019

The Iranian tanker, Grace 1, has been renamed as the Adrian Darya-1 [Jon Nazca/Reuters]

 

Gibraltar has refused a request by the United States to seize an Iranian oil tanker at the centre of a diplomatic standoff between Tehran and Europe. 

British Royal Marines had seized the vessel in Gibraltar in July on suspicion that it was carrying oil to Syria, a close ally of Iran, in violation of European Union sanctions.

That detention ended last week, but on Friday a US court issued a warrant for the seizure of the tanker, on the grounds that it had links to Iran’s Islamic Revolutionary Guard Corps (IRGC), which Washington has designated a “terrorist” organisation.

Gibraltar’s government said on Sunday it could not comply with the US request because of European law.

“The Central Authority’s inability to seek the Orders requested is a result of the operation of  European Union law and the differences in the sanctions regimes applicable to Iran in the EU and the US,” the government said in a statement.

“The EU sanctions regime against Iran – which is applicable in Gibraltar – is much narrower than that applicable in the US.”

Iran has denied the tanker was ever headed to Syria. 

Al Jazeera’s Andrew Simmons, reporting from Gibraltar, said the authorities in the overseas British territory had determined that US sanctions on Iran were not applicable in the EU. 

“The US action is based on US sanctions, while the action taken by Gibraltar and the UK was enforced under EU sanctions, and as far as that issue goes there is compliance now. There was an assurance [from Iran] that this cargo on board, 2.1 million barrels of light crude oil, is not destined for Syria,” he said.

Tehran said on Sunday it was ready to dispatch its naval fleet to escort the tanker – now renamed the Adrian Darya-1 – if required.

“The era of hit and run is over … if top authorities ask the navy, we are ready to escort out tanker Adrian,” Iran’s navy commander, Rear Admiral Hossein Khanzadi was quoted as saying by Mehr news agency.

On Sunday, video footage and photographs showed the tanker flying the red, green and white flag of Iran and bearing its new name, painted in white, on the hull.

Its previous name, Grace 1, had been painted over. The vessel’s anchor was still down.

Hamid Baeidinejad, Iran’s ambassador to Britain, said the vessel was expected to leave Gibraltar on Sunday night.

Gibraltar’s Supreme Court on Thursday ordered the release of the vessel after 43 days in detention.  

The decision came after Gibraltar’s government said it had received written assurances from Iran that the ship would not be headed for countries “subject to European Union sanctions”.

The seizure triggered a sharp deterioration in relations between Iran and the United Kingdom. Tehran subsequently detained the British-flagged tanker in what was seen as a tit-for-tat move. 

That tanker, the Stena Impero, is still in custody. 

Al Jazeera’s Simmons said the British authorities “hope there is a reciprocal action from Iran at some point”.

The release of the British tanker would ease tensions in the Gulf, he said, but much depended on the US’s next move.

“Will the US seize this ship in international waters? That would be extreme and elevate tensions to a very high extent,” he said. 

US-Iran frictions have been mounting since Washington reimposed fresh sanctions on Tehran after exiting an international accord curbing its nuclear programme last year.

The pact’s remaining signatories – UK, France, Germany, Russia and China – oppose the US move and have pledged to protect Tehran from the sanctions imposed by Washington. 

SOURCE: AL JAZEERA AND NEWS AGENCIES

China prepares its ‘nuclear option’ in trade war

“If there is any further pushback from the US on any of these Chinese projects in Iran, then Beijing will invoke in full force the ‘nuclear option’ of selling all or a significant part of its US$1.4 trillion holding of US Treasury Bills, with a major chunk of the paper due to be sold in September on this basis. This massive holding of these bonds – through which the US finances its economy and is an important factor both in the value of the dollar and therefore in the health of US international companies especially – has been used as a bargaining chip before by China, especially when it feels threatened.”

Source

http://www.rt.com

17 Aug, 2019

FILE PHOTO: The mushroom cloud of the first test of a hydrogen bomb, “Ivy Mike” © Reuters

As the trade war continues to escalate, China is becoming increasingly active in Iran and is considering retaliating with what has long been described as the country’s ‘nuclear option’.

For the first of these projects – Phase 11 of the supergiant South Pars non-associated gas field (SP11) – last week saw a statement from the chief executive officer of the Pars Oil and Gas Company (POGC) that talks had resumed with Chinese developers to advance the project. Originally the subject of an extensive contract signed by France’s Total before it pulled out due to re-imposed US sanctions on Iran, talks had been well-advanced with the China National Petroleum Corporation (CNPC) to take up the slack on development. As per the original contract, CNPC had been assigned Total’s 50.1 percent stake in the field when the French firm withdrew, giving it a total of 80.1 percent in the site, with Iran’s own Petropars Company holding the remainder. At the same time, Iran was desperate to increase the pace of development of the fields in its oil-rich West Karoun area, including North Azadegan, South Azadegan, North Yaran, South Yaran, and Yadavaran, in order to optimise oil flows ahead of further clampdowns on exports by the US.

Read more

China’s other nuclear option in trade war with US – Rare earth materials

China, though, which at that time was engaged in just the opening shots of the trade war with the US was loathe to completely disregard all US sensibilities when it came to Iran but equally saw itself as a longstanding partner of the Islamic Republic, not to mention always being cognisant of its need to ensure diversity of energy supply. At that point, China agreed a trade-off with the US that in exchange for it halting active development of SP11 it would be allowed to continue its activities in North Azadegan and would be able to go ahead with its development of Yadavaran – the second of China’s major Iran projects. China told the US that its continued involvement in North Azadegan could easily be justified to anyone else who might be interested – such as the mainstream media – on the basis that it had already spent billions of dollars developing the second phase of the 460 square kilometre field. Similarly, China said at the time, its ongoing activities on Yadavaran could be justified by dint of the fact that the original contract had been signed in good faith in 2007, way before the US withdrawal from the nuclear deal in May 2018 and thus, legally speaking, it had every right to go ahead.

The third of China’s major as yet unfinished projects in Iran was the build-out of the Jask oil export terminal, which – crucially, particularly in the current security situation – does not lie within the Strait of Hormuz or even in the Persian Gulf, but rather in the Gulf Of Oman. Even before the new US sanctions, the Kharg export terminal was not ideal for use by tankers as the narrowness of the Strait of Hormuz means that they have to go very slowly through it. With the new sanctions in place and tit-for-tat tanker seizures regularly occurring, China would have little choice but to put at least a couple of its own warships into the Gulf to safeguard their passage or stop buying Iranian oil entirely, neither of which Beijing particularly wants to do.

ALSO ON RT.COMChina continues importing Iranian oil in defiance of US sanctions

So, according to the plans, a US$2 billion or so 1,000 kilometre oil pipeline will connect Guriyeh in the Shoaybiyeh-ye Gharbi Rural District, in Khuzestan Province (south-west Iran), to Jask County, in Hormozgan Province (south Iran), with any financing required over and above that provided for Iran to be made readily available  from China. Also to be constructed in Jask is an initial 20 storage tanks each capable of storing 500,000 barrels of oil, and related shipping facilities, at a cost of around US$200 million. Overall, the intention is for Jask to have the capacity to store up to 30 million barrels and export one million barrels per day of crude oil. There are adjunct plans to build a large petrochemicals and refining complex in Jask as well, with the prime market for produced petchems – including gasoline, gas oil, jet fuel, sulphur, butadiene, ethylene and propylene, and mono-ethylene glycol – again being China. According to a recent comment by the director of projects at Iran’s National Petrochemical Company, Ali Mohammad Bossaqzadeh, the project would be built and run by Bakhtar Petrochemicals Holding, although ‘other foreign companies’ may take part. In fact, according to the Iran source, China has also offered to send as many engineers and other professionals required in such a project to Iran for as long as necessary.

ALSO ON RT.COMWhat are rare earth metals & why they are China’s ‘nuclear option’ in trade war with US

Having said that, and aware of the leverage that it had with Iran as one of the very few countries still willing to engage in developing its fields in the midst of increasingly vigorously-imposed sanctions, China has sought deal sweeteners from Iran, and has been given them. In order for it to reactivate its development of SP11, China will get a 17.25 percent discount for nine years on the value of all gas it recovers. “This is the value of the gas as applied to CNPC’s cost-return formula against the open market valuation, and currently the net present value of the site is US$116 billion,” the Iran source told OilPrice.com. For its part, China has agreed to increase the production from its oil fields in the West Karoun area – including North Azadegan and Yadavaran – by an additional 500,000 bpd by the end of 2020. This dovetails with Iran’s plan to increase the recovery rate from these West Karoun fields that it shares with Iraq from the current 5 percent (compared to Saudi Arabia’s 50 percent). “For every one percent increase, the recoverable reserves figure would increase by 670 million barrels, or around US$34 billion in revenues with oil even at US$50 a barrel,” the Iran source said.

Read more

China’s nuclear option of dumping US bonds would cause absolute chaos in global markets – expert

If there is any further pushback from the US on any of these Chinese projects in Iran, then Beijing will invoke in full force the ‘nuclear option’ of selling all or a significant part of its US$1.4 trillion holding of US Treasury Bills, with a major chunk of the paper due to be sold in September on this basis. This massive holding of these bonds – through which the US finances its economy and is an important factor both in the value of the dollar and therefore in the health of US international companies especially – has been used as a bargaining chip before by China, especially when it feels threatened. Back in 2007, just before the great financial crisis, a number of senior Chinese figures at various state-run think tanks – through which China often signals its big geopolitical threats – stated that the large-scale selling of this massive Treasury Bill holding would trigger a dollar crash, a huge spike in bond yields, the collapse of the housing market and stock market chaos.

Such a tactic would neatly fit into China’s overall strategy to have the renminbi challenge the US dollar’s status as the key global reserve currency and the prime currency for global energy transactions. “The long-planned sequencing for this was inclusion in the SDR {Special Drawing Rights] mix, which happened in 2016, increasing use as a trading currency, which followed that, use as the key currency of an international energy trading exchange, which has occurred with the creation of the renminbi-denominated Shanghai International Energy Exchange in last year, and the calls from big oil producers and other major trading nations to use the renminbi, which has been happening over the past few years,” the head of a New York-based commodities hedge fund told OilPrice.com. Only recently, Leonid Mikhelson, chief executive officer of Russian oil major, Novatek, said that future sales to China denominated in renminbi is under consideration and that US sanctions accelerate the process of Russia trying to switch away from US dollar-centric oil and gas trading and the damage from potential sanctions that go with it. “This has been discussed for a while with Russia’s largest trading partners such as India and China, and even Arab countries are starting to think about it… If they do create difficulties for our Russian banks then all we have to do is replace dollars,” he said. “The trade war between the US and China will only accelerate the process,” he added.

The trade war with the US, though, may be the very reason why this policy is not being pushed right now by China, Rory Green, Asia economist for TS Lombard told OilPrice.com last week. “With the renminbi weakening, and set to reach 7.50 to the [US] dollar level if the US imposes 25 percent tariffs on all Chinese exports, it is more difficult for China to persuade the big oil producers like Russia, Iran, Iraq, Venezuela, to make the switch away from the dollar,” he said. “For China as well, the timing is not quite right, as its use of Eurodollar financing is currently significant, it has a lot of dollar-denominated bonds rolling over shortly, and its balance of payments needs a relatively healthy US demand profile, but China wants to get away from the dollar system and that is the overall direction of travel,” he concluded.

This article was originally published on Oilprice.com

From Iran to Mass Shootings on the Mainland, the U.S. Empire Is in a State of Decay

AMERICA’S COLLAPSE

Source

ahtribune.com

BY DANNY HAIPHONG  

AUGUST 07 ,2019

Iran has been subject to crippling U.S. sanctions and military provocations in recent weeks. The most recent U.S. escalation began in mid-July when the U.K., through its territory of Gibraltar, seized an Iranian oil tanker accused of violating E.U.-imposed sanctions against Syria. Iran has since taken three “foreign” tankers into custody and placed seventeen Iranians accused of spying for the CIA under arrest. Meanwhile, in the U.S., the 2020 election buzz has been temporarily drowned out by the deaths of over thirty people in three mass shootings. From Iran to Ohio, the U.S. empire is in a state of decay.

Iran is responding to U.S. imperial decay by defending itself on behalf of the former colonial world, much of which is still under the thumb of neocolonial and imperialist exploitation. The Islamic Republic has been under a state of siege by the imperialist world for over half of a century. Iran’s democratically elected Prime Minister Mohammed Mosaddegh was overthrown in 1953 with the help of the CIA. This placed Iran under the autocratic puppet rule of the Shah. The Shah used a secret police force, the SAVAK, to murder, kidnap, and torture of tens of thousands of Iranians. All of this occurred under the supervision of the U.S. and U.K.

The Iranian people overthrew the Shah and re-nationalized the nation’s vast oil reserves in 1979. Washington never forgave Iran for refusing to bow down to its imperial dictates. Iran maintains sovereignty on several fronts. On the domestic front, Iran has developed an advanced military infrastructure capable of defending the country from foreign invasion. On the international front, the Islamic Republic has developed firm ties with Russia, China, Syria, and a litany of nations which has allowed it to modernize its economy. U.S. sanctions have kept Iran’s people without key medical and other resources necessary for survival, but this hasn’t stopped them from defending the self-determination of Iran and allied nations.

When Iran stands up to the U.S. and its imperial allies, it isn’t merely defending itself. Iran is defending the rest of the world’s peoples. Iran has given critical aid to the Syrian government in its righteous fight against foreign-sponsored “jihadist” mercenaries. Iran has also been a key ally of Venezuela; which, like Iran, has suffered gravely because of U.S. sanctions. Iran’s seizure of foreign oil tankers and CIA agents shows that it is not afraid of the U.S. or its allies. U.S. imperialism is in decay and cannot assert hegemony in the old way. There are no CIA-backed coups in the cards and a full-scale attack on Iran would be political suicide not just for Trump, but for the entire U.S. and E.U. political establishment which has rapidly seen its political legitimacy dwindle over the last several decades.

Just as the U.S. is unable to operate in the same way around the world, mass shootings in the U.S. represent a domestic example of a militarized, racist Empire in decay. White America has historically acted as the foot soldiers in the Empire’s system of racialized social control dating back to the original sin of slavery. Slave patrols, lynch mobs, and their modern manifestations in the American police and prison state are historical byproducts of a ruthless system of profit rooted in the white supremacist dehumanization of Africans in America. For several centuries, most white Americans relished in the benefits conferred to them by a system that placed Black and anyone else deemed a sub-human race to the bottom of the class structure. Only in the last forty to fifty years since Black Americans forced concessions upon the state has it been distasteful to publicly rejoice in the fruits of white supremacy.

Mass shootings demonstrate the U.S.’ descent into barbarism. In 2017, in response to the mass shooting in Las Vegas, Democratic Party presidential candidate Pete Buttigieg remarked on Twitter that “I did not carry assault weapons around a foreign country so I could come home and see them used to massacre my countrymen.” Democratic Party representative Steve Cohen deleted a similar tweet not long after the most recent string of mass shootings in California, Ohio, and El Paso “You want to shoot an assault weapon? Go to Afghanistan or Iraq. Enlist!” Such responses to white violence in the U.S. reveal the double standard inherent in the logic of white superiority and imperial violence. Mass shootings that disrupt the mythical tranquility of white society represent a crisis worthy of response while institutionalized mass murder in the form of military intervention is characterized as a necessary and heroic act.

A social system predicated on white supremacy, empire, and a declining capitalist economy inevitably brings about conditions of depravity like those seen in the recent mass shootings. Fascism festers when capitalism forces those who have become comfortable with certain conditions, such as the presence of (white) jobs, into a state of precarity. That’s why the El Paso shooter’s manifesto can simultaneously condemn both U.S. political parties and automation while taking out murderous rage on undocumented immigrants. Economic and political violence is supposed to be reserved for subhuman “savages” such as indigenous peoples, undocumented migrants, and Black Americans. The chickens have come home to roost in White America and it should come as no surprise in an alienated, heavily surveilled society that one of the responses is violence at the barrel of the gun.

Much of the world, including large sections of the U.S. population, is no stranger to U.S. imperial violence. Black Americans and indigenous peoples native to what is now the U.S. mainland are murdered by law enforcement nearly every day in the United States. Iraq lost over one million people during the U.S. invasion beginning in 2003. Iran lost one million itself in the war two decades prior when the U.S. supplied Iraq with chemical weapons to invade the Islamic Republic post-revolution. An empire in decay only becomes more violent and ruthless in its attempt to maintain hegemony. The U.S. has killed over 40,000 Venezuelans in one year’s worth of sanctions. And with China and Russia labeled the greatest threat to U.S. “national security,” the threat of a global war of nuclear proportions looms over humanity like a storm cloud.

The U.S. has long been on the path to barbarism. Iran’s resistance to U.S. imperialism provides an international example of heroism and is a continuation of the anti-colonial struggle of the 20th century. Mass shootings and global provocations are a sign of an empire that is even more dangerous because it is dying. Only by joining in this struggle can exploited and oppressed sections of the U.S. population achieve true peace and justice in our lifetime. Without mass resistance to white supremacy and war, the U.S. empire threatens to devour itself alive and will no doubt attempt to take the rest of us with it.

WRITER

DANNY HAIPHONG

Danny Haiphong is the co-author of the book American Exceptionalism and American Innocence: A People’s History of Fake News-From the Revolutionary War to the War on Terror.

Putin warns of financial crisis the world ‘has not yet seen’

“The disregard for existing norms and a loss of trust may combine with the unpredictability and turbulence of the colossal change. These factors may lead to a systemic crisis, which the world has not seen yet,” he said.

“We don’t need trade wars today or even temporary trade ceasefires. We need a comprehensive trade peace,” the president stressed.

source

http://www.rt.com

25 May, 2018

A Chinese container ship docked at the Port of Oakland. © Beck Diefenbach © Reuters

The global economy is facing a threat of spiraling protectionist measures that can lead to a devastating crisis, Vladimir Putin warned. Nations must find a way to prevent this and establish rules on how the economy should work.

The Russian president spoke out against the growing trend of using unilateral restrictions to achieve economic advantage, as he addressed guests of the St. Petersburg International Economic Forum (SPIEF) on Friday.

“The system of multilateral cooperation, which took years to build, is no longer allowed to evolve. It is being broken in a very crude way. Breaking the rules is becoming the new rule,” he said.

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Washington uses sanctions to push its gas to Europe – Germany’s largest energy company

In addition to traditional forms of protectionism such as trade tariffs, technical standards and subsidies, nations are increasingly using new ways to undermine their competition, like unilateral economic sanctions. And nations which thought they would never be targeted by such measures for political reasons are now being proved wrong, Putin said.

“The ability to impose sanctions arbitrarily and with no control fosters a temptation to use such restrictive tools again and again, right and left, in every case, regardless of political loyalty, talks about solidarity, past agreements and long cooperation,” he said.

Putin called for a change of course, for free trade to be defended, and for rules-based regulation of the global economy, which would alleviate the chaos resulting from the rapid technological transformations arising from the development of digital technology.

“The disregard for existing norms and a loss of trust may combine with the unpredictability and turbulence of the colossal change. These factors may lead to a systemic crisis, which the world has not seen yet,” he said.

He stressed that there is a need for transparent universal rules as well as an inclusive mechanism, which would allow those rules to be amended in a way that would be accepted by the international community.

“We don’t need trade wars today or even temporary trade ceasefires. We need a comprehensive trade peace,” the president stressed.

“Competition, clash of interests, has always been, is, and will always be, of course. But we must be respectful towards each other. The ability to resolve differences through honest competition rather than by restricting competition is the source of progress,” Putin added.

The speech comes amid turbulent times for the global economy, in which the nationalist policies of US President Donald Trump have pitted America against other nations which his administration believes to be enjoying unfair advantages in trade. Trump has threatened China, European nations, Canada, and Mexico with trade restrictions, demanding the perceived misbalances be fixed.

The US has also intensified its use of economic sanctions, targeting Russia, Iran, North Korea, and other nations with various punitive measures.

MSM ignores massive anti-sanctions ‘No More Trump’ protest rallies in Venezuela

Source

http://www.rt.com

12 Aug, 2019

Anti-sanctions march in Caracas, Venezuela. August 10, 2019. © Reuters / Manaure Quintero

Leading English-language news organizations have provided extensive and dramatic coverage of anti-government protests in Venezuela, but mostly ignored large-scale rallies against US sanctions, which took place over the weekend.

Tens of thousands of Venezuelans flooded the streets of the country’s capital, Caracas, on Saturday to denounce the economic blockade and sanctions imposed by the US. Many were wrapped in national flags and sported red shirts, typically worn by the supporters of the government. The rallies were held under the slogan ‘No More Trump’.

Ruptly

✔@Ruptly

‘No more #Trump‘ protest led by #Maduro#Venezuela

199

4:16 AM – Aug 11, 2019

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¡Bastante pueblo hay aquí! 😍♥️

Una vez más, el pueblo venezolano sale a las calles de Caracas y de todo el país a exigir al gobierno de Estados Unidos que cese sus agresiones y sanciones a la Patria. #NoMoreTrump#NoMásTrumppic.twitter.com/tWWuJwanhW

— PSUV (@PartidoPSUV) August 10, 2019

The mainstream media stayed largely silent on the massive anti-sanctions rallies. This is a striking contrast to the extensive and often dramatic coverage the leading English-language news organizations have provided during anti-government protests, led by opposition leader Juan Guaido.

Nahum Fernandez@Nahumpsuv

VENEZUELA DIJO ¡NO TRUMP! Nuestro Heroico Pueblo salio a las calles en rechazo a las sanciones criminales impuestas por los EEUU. Venezuela no se rinde, ni se doblega, juntos ¡Nosotros Venceremos! @NicolasMaduro @dcabellor @PartidoPSUV @taniapsuv #NoMasTrump #NoMoreTrump

1,861

6:13 PM – Aug 10, 2019

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José Vásquez@josemvasquez

¡VENEZUELA TIENE HÉROES DE VERDAD!

No de películas y cómics falsos que hacen creer que se puede plagar la América de miseria en nombre de la libertad.@realDonaldTrump No podrás con los hijos de Tupac Amaru.#NoMoreTrump #NoMasTrump

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2:31 PM – Aug 10, 2019 · San Juan De Los Morros, Venezuela

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CNN gave a brief mention to the ‘No More Trump’ protests on its Spanish-language website, CNN en Espanol, but the company’s English-language service, CNN International, ignored the story altogether. As did the New York Times, whose weekend coverage passed over Venezuela entirely, but found space for an opposition march in Moscow.

The event did get some attention from Latin American public broadcaster Telesur, as well as other smaller left-leaning publications such as the British Morning Star, but they were outliers in the world press.

President Nicolas Maduro had earlier called on “all Venezuelans” to gather at the city’s squares to sign a manifesto, decrying US pressure and affirming the will to “defend independence, peace and sovereignty” of the country. The government said it expects to collect more than 13 million signatures by early September, after which the document will be delivered to the UN as proof of what people think about the sanctions.

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In January, opposition politicians declared Guaido, who leads the nation’s parliament, ‘acting president’ of Venezuela, challenging Maduro. The move was dismissed by the government. The opposition has since staged several large-scale protests, some of which spiraled into riots and clashes with police. More than 100 protesters have died in the ensuing violence.

Guaido is openly backed by the US, its allies in Europe and the majority of South American states, including Venezuela’s neighbors, Colombia and Brazil. Nations like China, Russia, Iran and Turkey continue to recognize Maduro as the legitimate leader of the country.