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Fri

08

Jan

2010

The US and China: One Side is Losing, the Other is Winning
Friday, 08 January 2010 15:32
by James Petras

Introduction:

Asian capitalism, notably China and South Korea are competing with the US for global power. Asian global power is driven by dynamic economic growth, while the US pursues a strategy of military-driven empire building.

One Day’s Read of the Financial Times

Even a cursory read of a single issue of the Financial Times (December 28, 2009) illustrates the divergent strategies toward empire building. On page one, the lead article on the US is on its expanding military conflicts and its ‘war on terror’, entitled “Obama Demands Review of Terror List”. In contrast, there are two page-one articles on China, which describe China’s launching of the world’s fastest long-distance passenger train service and China’s decision to maintain its currency pegged to the US dollar as a mechanism to promote its robust export sector. While Obama turns the US focus on a fourth battle front (Yemen) in the ‘war on terror’ (after Iraq, Afghanistan and Pakistan), the Financial Times reports on the same page that a South Korean consortium has won a $20.4 billion dollar contract to develop civilian nuclear power plants for the United Arab Emirates, beating its US and European competitors.

On page two of the FT there is a longer article elaborating on the new Chinese rail system, highlighting its superiority over the US rail service: The Chinese ultra-modern train takes passengers between two major cities, 1,100 kilometers, in less than 3 hours whereas the US Amtrack ‘Express’ takes 3 ½ hours to cover 300 kilometers between Boston and New York. While the US passenger rail system deteriorates from lack of investment and maintenance, China has spent $17 billion dollars constructing its express line. China plans to construct 18,000 kilometers of new track for its ultra-modern system by 2012, while the US will spend an equivalent amount in financing its ‘military surge’ in Afghanistan and Pakistan, as well as opening a new war front in Yemen.


China builds a transport system linking producers and labor markets from the interior provinces with the manufacturing centers and ports on the coast, while on page 4 the Financial Times describes how the US is welded to its policy of confronting the ‘Islamist threat’ with an endless ‘war on terror’. The decades-long wars and occupations of Moslem countries have diverted hundreds of billions of dollars of public funds to a militarist policy with no benefit to the US, while China modernizes its civilian economy. While the White House and Congress subsidize and pander to the militarist-colonial state of Israel with its insignificant resource base and market, alienating 1.5 billion Moslems (Financial Times – page 7), China’s gross domestic product (GDP) grew 10 fold over the past 26 years (FT – page 9). While the US allocated over $1.4 trillion dollars to Wall Street and the military, increasing the fiscal and current account deficits, doubling unemployment and perpetuating the recession (FT – page 12), the Chinese government releases a stimulus package directed at its domestic manufacturing and construction sectors, leading to an 8% growth in GDP, a significant reduction of unemployment and ‘re-igniting linked economies’ in Asia, Latin America and Africa (also on page 12).

While the US was spending time, resources and personnel in running ‘elections’ for its corrupt clients in Afghanistan and Iraq, and participating in pointless mediations between its intransigent Israeli partner and its impotent Palestinian client, the South Korean government backed a consortium headed by the Korea Electric Power Corporation in its successful bid on the $20.4 billion dollar nuclear power deal, opening the way for other billion-dollar contracts in the region (FT – page 13).

While the US was spending over $60 billion dollars on internal policing and multiplying the number and size of its ‘homeland’ security agencies in pursuit of potential ‘terrorists’, China was investing $25 billion dollars in ‘cementing its energy trading relations’ with Russia (FT – page 3).

The story told by the articles and headlines in a single day’s issue of the Financial Times reflects a deeper reality, one that illustrates the great divide in the world today. The Asian countries, led by China, are reaching world power status on the basis of their massive domestic and foreign investments in manufacturing, transportation, technology and mining and mineral processing. In contrast, the US is a declining world power with a deteriorating society resulting from its military-driven empire building and its financial-speculative centered economy:

    1. Washington pursues minor military clients in Asia; while China expands its trading and investment agreements with major economic partners – Russia, Japan, South Korea and elsewhere.
    2. Washington drains the domestic economy to finance overseas wars. China extracts minerals and energy resources to create its domestic job market in manufacturing.
    3. The US invests in military technology to target local insurgents challenging US client regimes; China invests in civilian technology to create competitive exports.
    4. China begins to restructure its economy toward developing the country’s interior and allocates greater social spending to redress its gross imbalances and inequalities while the US rescues and reinforces the parasitical financial sector, which plundered industries (strips assets via mergers and acquisitions) and speculates on financial objectives with no impact on employment, productivity or competitiveness.
    5. The US multiplies wars and troop build-ups in the Middle East, South Asia, the Horn of Africa and Caribbean; China provides investments and loans of over $25 billion dollars in building infrastructure, mineral extraction, energy production and assembly plants in Africa.
    6. China signs multi-billion dollar trade and investment agreements with Iran, Venezuela, Brazil, Argentina, Chile, Peru and Bolivia, securing access to strategic energy, mineral and agricultural resources; Washington provides $6 billion in military aid to Colombia, secures seven military bases from President Uribe (to threaten Venezuela), backs a military coup in tiny Honduras and denounces Brazil and Bolivia for diversifying its economic ties with Iran.
    7. China increases economic relations with dynamic Latin American economies, incorporating over 80% of the continent’s population; the US partners with the failed state of Mexico, which has the worst economic performance in the hemisphere and where powerful drug cartels control wide regions and penetrate deep into the state apparatus.
Conclusion

China is not an exceptional capitalist country. Under Chinese capitalism, labor is exploited; inequalities in wealth and access to services are rampant; peasant-farmers are displaced by mega-dam projects and Chinese companies recklessly extract minerals and other natural resources in the Third World. However, China has created scores of millions of manufacturing jobs, reduced poverty faster and for more people in the shortest time span in history. Its banks mostly finance production. China doesn’t bomb, invade or ravage other countries. In contrast, US capitalism has been harnessed to a monstrous global military machine that drains the domestic economy and lowers the domestic standard of living in order to fund its never-ending foreign wars. Finance, real estate and commercial capital undermine the manufacturing sector, drawing profits from speculation and cheap imports.

China invests in petroleum-rich countries; the US attacks them. China sells plates and bowls for Afghan wedding feasts; US drone aircraft bomb the celebrations. China invests in extractive industries, but, unlike European colonialists, it builds railroads, ports, airfields and provides easy credit. China does not finance and arm ethnic wars and ‘color rebellions’ like the US CIA. China self-finances its own growth, trade and transportation system; the US sinks under a multi trillion dollar debt to finance its endless wars, bail out its Wall Street banks and prop up other non-productive sectors while many millions remain without jobs.

China will grow and exercise power through the market; the US will engage in endless wars on its road to bankruptcy and internal decay. China’s diversified growth is linked to dynamic economic partners; US militarism has tied itself to narco-states, warlord regimes, the overseers of banana republics and the last and worst bona fide racist colonial regime, Israel.

China entices the world’s consumers. US global wars provoke terrorists here and abroad.

China may encounter crises and even workers rebellions, but it has the economic resources to accommodate them. The US is in crisis and may face domestic rebellion, but it has depleted its credit and its factories are all abroad and its overseas bases and military installations are liabilities, not assets. There are fewer factories in the US to re-employ its desperate workers: A social upheaval could see the American workers occupying the empty shells of its former factories.

To become a ‘normal state’ we have to start all over: Close all investment banks and military bases abroad and return to America. We have to begin the long march toward rebuilding industry to serve our domestic needs, to living within our own natural environment and forsake empire building in favor of constructing a democratic socialist republic.

When will we pick up the Financial Times or any other daily and read about our own high-speed rail line carrying American passengers from New York to Boston in less than one hour? When will our own factories supply our hardware stores? When will we build wind, solar and ocean-based energy generators? When will we abandon our military bases and let the world’s warlords, drug traffickers and terrorists face the justice of their own people?

Will we ever read about these in the Financial Times?

In China, it all started with a revolution

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Project Humanbeingsfirst.org said:

0
China is only the template for central planning in One-world Government
"In China, it all started with a revolution…" -- backed by the same financiers who took American jobs offshore and replaced its real industrial production base with fictitous financial base - doing the opposite for China. And why would they do that? Why would they want to make America bankrupt and shore up the communist state with their new penchant for state-capitalism? Have you studied their overarching agenda? Erosion of the soverignty of nation-states, ushering in one-world government, world communism under the control of the handful of capitalist oligarchy?

Have you seen this interview with Norman Dodd: is he to be believed for his revelations to the Congressional Reece Committee and to G. Edward Griffin who recorded the interview:

http://video.google.com/videoplay?docid=8605813744843314322

Is this book by W. Cleon Skoussen to be believed: The Naked Capitalist, in which Skoussen quotes the head (or prominent worker) of the Communist part in the US receiving her instructions for the USSR from the Waldorf Astoria, and USSR subsequently confirming those instructions - all at the hieght of the Cold War?

Is this book by Carroll Quigley to be believed: "Tragedy and Hope"?

Is the data and analysis provided by Antony Sutton in his Wall Street related books of their role in financing Hitler and other boogieman to be believed?

Is the role of the international banksters in the running the major macro affairs of the world, creating world wars, providing passage to Communist leaders to reach Russia at the beginning of their communist revolution, to prop up both the warring Chinese leaders, one became Taiwan, one the "revolution" you speak off?

Is the role of Hegelian Dialectics to raise the phoenix from the ashes of global conflicts empirical?

The examination of these questions can lend some insight into why the Chinese experiment is being conducted. China is pegged to the US dollar. And bound to it by the backing of the militarist state whom you speak of. When currency collapse is orchestrated to create global currency, all are in the same boat.

Just as once upon a time Berlin was at the top of the world with perhaps the fastest trains, then NY (and Japan), now Chinese cities - and all layed to waste, and to be layed to waste, by the same common godfathers of International finance whose primal agenda appears to be population Reduction, which includes China, if NSSM 200 is to be believed.

But why would one believe any of this - it all sounds such fantastical nonsense. It is surely by accident and sagacious policies alone that China came about.

Howsoever one may view history, as being orchestrated or accidental, forensic empiricism indicates that China is only a grand experiment of state managed production, central planning, and big governement, and that experiment is being conducted by the same financial oligarchy which is making America bankrup.

China is being held up as the model of success in their own Mighty Wurlitzer rag - and that's why the Financial Times is presenting matters in this way. The International banksters are orchestrating the recipe for global governance, and selling it to the public. They made that fact abundantly clear one year ago in the same Financial Times of Dec 08, 2009:

http://print-humanbeingsfirst.blogspot.com/2008/12/responseto-ft-gideon-rachman-worldgov.html

Wouldn't you say that Mr. Karl Marx is sitting pretty in his grave just about now? His communist manifesto coming to life with a twist!


Thank you.

Zahir Ebrahim
Project Humanbeingsfirst.org


Comment for: James Petras atlanticfreepress.com/news/1/12594-the-us-and-china-one-side-is-losing-the-other-is-winning.html

 
January 09, 2010 | url
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