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As in a Greek tragedy whose protagonist brings about precisely the fate that he has sought to avoid, the US/NATO confrontation with Russia in Ukraine is achieving just the opposite of America’s aim of preventing China, Russia and their allies from acting independently of U.S. control over their trade and investment policy. Naming China as America’s main long-term adversary, the Biden Administration’s plan was to split Russia away from China and then cripple China’s own military and economic viability. But the effect of American diplomacy has been to drive Russia and China together, joining with Iran, India and other allies. For the first time since the Bandung Conference of Non-Aligned Nations in 1955, a critical mass is able to be mutually self-sufficient to start the process of achieving independence from Dollar Diplomacy.

Confronted with China’s industrial prosperity based on self-financed public investment in socialized markets, U.S. officials acknowledge that resolving this fight will take a number of decades to play out. Arming a proxy Ukrainian regime is merely an opening move in turning Cold War 2 (and potentially/or indeed World War III) into a fight to divide the world into allies and enemies with regard to whether governments or the financial sector will plan the world economy and society.

What is euphemized as U.S.-style democracy is a financial oligarchy privatizing basic infrastructure, health and education. The alternative is what President Biden calls autocracy, a hostile label for governments strong enough to block a global rent-seeking oligarchy from taking control. China is deemed autocratic for providing basic needs at subsidized prices instead of charging whatever the market can bear. Making its mixed economy lower-cost is called “market manipulation,” as if that is a bad thing that was not done by the United States, Germany and every other industrial nation during their economic takeoff in the 19th and early 20th century.

Clausewitz popularized the axiom that war is an extension of national interests – mainly economic. The United States views its economic interest to lie in seeking to spread its neoliberal ideology globally. The evangelistic aim is to financialize and privatize economies by shifting planning away from national governments to a cosmopolitan financial sector. There would be little need for politics in such a world. Economic planning would shift from political capitals to financial centers, from Washington to Wall Street, with satellites in the City of London, the Paris Bourse, Frankfurt and Tokyo. Board meetings for the new oligarchy would be held at Davos’s World Economic Forum. Hitherto public infrastructure services would be privatized and priced high enough to include profits (and indeed, monopoly rents), debt financing and management fees rather than being publicly subsidized. Debt service and rent would become the major overhead costs for families, industry and governments.

The U.S. drive to retain its unipolar power to impose “America First” financial, trade and military policies on the world involves an inherent hostility toward all countries seeking to follow their own national interests. Having less and less to offer in the form of mutual economic gains, U.S. policy makes threats of sanctions and covert meddling in foreign politics. The U.S. dream envisions a Chinese version of Boris Yeltsin replacing the nation’s Communist Party leadership and selling off its public domain to the highest bidder – presumably after a monetary crisis wipes out domestic purchasing power much as occurred in post-Soviet Russia, leaving the international financial community as buyers.

Russia and President Putin cannot be forgiven for having fought back against the Harvard Boys’ “reforms.” That is why U.S. officials planned how to create Russian economic disruption to (they hope) orchestrate a “color revolution” to recapture Russia for the world’s neoliberal camp. That is the character of the “democracy” and “free markets” being juxtaposed to the “autocracy” of state-subsidized growth. As Russian Foreign minister Sergey Lavrov explained in a press conference on July 20, 2022 regarding Ukraine’s violent coup in 2014, U.S. and other Western officials define military coups as democratic if they are sponsored by the United States in the hope of promoting neoliberal policies.

Do you remember how events developed after the coup? The putschists spat in the face of Germany, France and Poland that were the guarantors of the agreement with Viktor Yanukovych. It was trampled underfoot the next morning. These European countries didn’t make a peep – they reconciled themselves to this. A couple of years ago I asked the Germans and French what they thought about the coup. What was it all about if they didn’t demand that the putschists fulfil the agreements? They replied: “This is the cost of the democratic process.” I am not kidding. Amazing – these were adults holding the post of foreign ministers.[1]“Foreign Minister Sergey Lavrov’s interview with RT television, Sputnik agency and Rossiya Segodnya International Information Agency, Moscow, July 20, 2022,” Russian Foreign Affairs Ministry, July 20, 2022. https://mid.ru/en/foreign_policy/news/1822901/. From Johnson’s Russia List, July 21, 2022, #5.

This Doublethink vocabulary reflects how far mainstream ideology has evolved from Rosa Luxemburg’s description a century ago of the civilizational choice being posed: barbarism or socialism.

The contradictory U.S. and European interests and burdens of the war in Ukraine

To return to Clausewitz’s view of war as an extension of national policy, U.S. national interests are diverging sharply from those of its NATO satellites. America’s military-industrial complex, oil and agriculture sectors are benefiting, while European industrial interests are suffering. That is especially the case in Germany and Italy as a result of their governments blocking North Stream 2 gas imports and other Russian raw materials.

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The interruption of world energy, food and minerals supply chains and the resulting price inflation (providing an umbrella for monopoly rents by non-Russian suppliers) has imposed enormous economic strains on U.S. allies in Europe and the Global South. Yet the U.S. economy is benefiting from this, or at least specific sectors of the U.S. economy are benefiting. As Sergey Lavrov, pointed out in his above-cited press conference: “The European economy is impacted more than anything else. The stats show that 40 percent of the damage caused by sanctions is borne by the EU whereas the damage to the United States is less than 1 percent.” The dollar’s exchange rate has soared against the euro, which has plunged to parity with the dollar and looks set to fall further down toward the \$0.80 that it was a generation ago. U.S. dominance over Europe is further strengthened by the trade sanctions against Russian oil and gas. The U.S. is an LNG exporter, U.S. companies control the world oil trade, and U.S. firms are the world’s major grain marketers and exporters now that Russia is excluded from many foreign markets.

A revival of European military spending – for offense, not defense

U.S. arms-makers are looking forward to making profits off arms sales to Western Europe, which has almost literally disarmed itself by sending its tanks and howitzers, ammunition and missiles to Ukraine. U.S. politicians support a bellicose foreign policy to promote arms factories that employ labor in their voting districts. And the neocons who dominate the State Department and CIA see the war as a means of asserting American dominance over the world economy, starting with its own NATO partners.

The problem with this view is that although America’s military-industrial, oil and agricultural monopolies are benefitting, the rest of the U.S. economy is being squeezed by the inflationary pressures resulting from boycotting Russian gas, grain and other raw-materials exports, and the enormous rise in the military budget will be used as an excuse to cut back social spending programs. That also is a problem for Eurozone members. They have promised NATO to raise their military spending to the stipulated 2 percent of their GDP, and the Americans are urging much higher levels to upgrade to the most recent array of weaponry. All but forgotten is the Peace Dividend that was promised in 1991 when the Soviet Union dissolved the Warsaw Pact alliance, expecting that NATO likewise would have little reason to exist.

Russia has no discernable economic interest in mounting a new occupation of Central Europe. That would offer no gain to Russia, as its leaders realized when they dissolved the old Soviet Union. In fact, no industrial country in today’s world can afford to field an infantry to occupy an enemy. All that NATO can do is bomb from a distance. It can destroy, but not occupy. The United States found that out in Serbia, Iraq, Libya, Syria and Afghanistan. And just as the assassination Archduke Ferdinand in Sarajevo (now Bosnia-Herzegovina) triggered World War I in 1914, NATO’s bombing of adjoining Serbia may be viewed as throwing down the gauntlet to turn Cold War 2 into a veritable World War III. That marked the point at which NATO became an offensive alliance, not a defensive one.

How does this reflect European interests? Why should Europe re-arm, if the only effect is to make it a target of retaliation in the event of further attacks on Russia? What does Europe have to gain in becoming a larger customer for America’s military-industrial complex? Diverting spending to rebuild an offensive army – that can never be used without triggering an atomic response that would wipe out Europe – will limit the social spending needed to cope with today’s Covid problems and economic recession.

The only lasting leverage a nation can offer in today’s world is trade and technology transfer. Europe has more of this to offer than the United States. Yet the only opposition to renewed military spending is coming from right-wing parties and the German Linke party. Europe’s Social Democratic, Socialist and Labour parties share American neoliberal ideology.

Sanctions against Russian gas makes coal “the fuel of the future”

The carbon footprint of bombing, arms manufacturing and military bases is strikingly absent from today’s discussion about global warming and the need to cut back on carbon emissions. The German party that calls itself Green is leading the campaign for sanctions against importing Russian oil and gas, which electric utilities are replacing with Polish coal and even German lignite. Coal is becoming the “fuel of the future.” Its price also is soaring in the United States, benefitting American coal companies.

In contrast to the Paris Club agreements to reduce carbon emissions, the United States has neither the political capability nor the intention to join the conservation effort. The Supreme Court recently ruled that the Executive Branch has no authority to issue nation-wide energy rules; only individual states can do that, unless Congress passes a national law to cut back on fossil fuels.

That seems unlikely in view of the fact that becoming head of a Democratic Senate and Congressional committee requires being a leader in raising campaign contributions for the party. Joe Manchin, a coal-company billionaire, leads all senators in campaign support from the oil and coal industries, enabling him to win his party’s auction for the Senate Energy and Natural Resources committee chairmanship and block any seriously restrictive environmental legislation.

Next to oil, agriculture is a major contributor to the U.S. balance of payments. Blocking Russian grain and fertilizer shipping threatens to create a Global South food crisis as well as a European crisis as gas is unavailable to make domestic fertilizer. Russia is the world’s largest exporter of grain and also of fertilizer, and its exports of these products have been exempted from NATO sanctions. But Russian shipping was blocked by Ukraine placing mines in the sea lanes through the Black Sea to close off access to Odessa’s harbor, hoping that the world would blame the world’s imminent grain and energy crisis on Russia instead of the US/NATO trade sanctions imposed on Russia.[2]International Maritime Organization, “Maritime Security and Safety in the Black Sea and Sea of Azov,” https://www.imo.org/en/MediaCentre/HotTopics/Pages/M...v.aspx . See Yves Smith, Some Implications of the UN’s Ukraine Grain and Russia Fertilizer/Food Agreements,” Naked Capitalism, July 25, 2022, and Lavrov’s July 24 speech to the Arab League. At his July 20, 2022 press conference Sergey Lavrov showed the hypocrisy of the public relations attempt to distort matters:

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For many months, they told us that Russia was to blame for the food crisis because the sanctions don’t cover food and fertiliser. Therefore, Russia doesn’t need to find ways to avoid the sanctions and so it should trade because nobody stands in its way. It took us a lot of time to explain to them that, although food and fertiliser are not subject to sanctions, the first and second packages of Western restrictions affected freight costs, insurance premiums, permissions for Russian ships carrying these goods to dock at foreign ports and those for foreign ships taking on the same consignments at Russian harbours. They are openly lying to us that this is not true, and that it is up to Russia alone. This is foul play.

Black Sea grain transport has begun to resume, but NATO countries have blocked payments to Russia in dollars, euros or currencies of other countries in the U.S. orbit. Food-deficit countries that cannot afford to pay distress-level food prices face drastic shortages, which will be exacerbated when they are compelled to pay their foreign debts denominated in the appreciating U.S. dollar. The looming fuel and food crisis promises to drive a new wave of immigrants to Europe seeking survival. Europe already has been flooded with refugees from NATO’s bombing and backing of jihadist attacks on Libya and Near Eastern oil-producing countries. This year’s proxy war in Ukraine and imposition of anti-Russian sanctions is a perfect illustration of Henry Kissinger’s quip: “It may be dangerous to be America’s enemy, but to be America’s friend is fatal.”

Blowback from the US/NATO miscalculations

America’s international diplomacy aims to dictate financial, trade and military policies that will lock other countries into dollar debt and trade dependency by preventing them from developing alternatives. If this fails, America seeks to isolate the recalcitrants from the U.S.-centered Western sphere.

America’s foreign diplomacy no longer is based on offering mutual gain. Such could be claimed in the aftermath of World War II when the United States was in a position to offer loans, foreign-aid and military protection against occupation – as well as manufactures to rebuild war-torn economies – to governments in exchange for their accepting trade and monetary policies favorable to American exporters and investors. But today there is only the belligerent diplomacy of threatening to hurt nations whose socialist governments reject America’s neoliberal drive to privatize and sell off their natural resources and public infrastructure.

The first aim is to prevent Russia and China from helping each other. This is the old imperial divide-and-conquer strategy. Minimizing Russia’s ability to support China would pave the way for the United States and NATO Europe to impose new trade sanctions on China, and to send jihadists to its western Xinjiang Uighur region. The aim is to bleed Russia’s armaments inventory, kill enough of its soldiers, and create enough Russian shortages and suffering to not only weaken its ability to help China, but to spur its population to support a regime change, an American-sponsored “color revolution.” The dream is to promote a Yeltsin-like leader friendly to the neoliberal “therapy” that dismantled Russia’s economy in the 1990s.

Amazing as it may seem, U.S. strategists did not anticipate the obvious response by countries finding themselves together in the crosshairs of US/NATO military and economic threats. On July 19, 2022, the presidents of Russia and Iran met to announce their cooperation in the face of the sanctions war against them. That followed Russia’s earlier meeting with India’s Prime Minister Modi. In what has been characterized as “shooting itself in its own foot,” U.S. diplomacy is driving Russia, China, India and Iran together, and indeed to reach out to Argentina and other countries to join the BRICS-plus bank to protect themselves.

The U.S. itself is ending the Dollar Standard of international finance

The Trump Administration took a major step to drive countries out of the dollar orbit in November 2018, by confiscating nearly \$2 billion of Venezuela’s official gold stock held in London. The Bank of England put these reserves at the disposal of Juan Guaidó, the marginal right-wing politician selected by the United States to replace Venezuela’s elected president as head of state. This was defined as being democratic, because the regime change promised to introduce the neoliberal “free market” that is deemed to be the essence of America’s definition of democracy for today’s world.

This gold theft actually was not the first such confiscation. On November 14, 1979, the Carter Administration paralyzed Iran’s bank deposits in New York after the Shah was overthrown. This act blocked Iran from paying its scheduled foreign debt service, forcing it into default. That was viewed as an exceptional one-time action as far as all other financial markets were concerned. But now that the United States is the self-proclaimed “exceptional nation,” such confiscations are becoming a new norm in U.S. diplomacy. Nobody yet knows what happened to Libya’s gold reserves that Muammar Gadafi had intended to be used to back an African alternative to the dollar. And Afghanistan’s gold and other reserves were simply taken by Washington as payment for the cost of “freeing” that country from Russian control by backing the Taliban. But when the Biden Administration and its NATO allies made a much larger asset grab of some \$300 billion of Russia’s foreign bank reserves and currency holdings in March 2022, it made official a radical new epoch in Dollar Diplomacy. Any nation that follows policies not deemed to be in the interests of the U.S. Government runs the risk of U.S. authorities confiscating its holdings of foreign reserves in U.S. banks or securities.

This was a red flag leading countries to fear denominating their trade, savings and foreign debt in dollars, and to avoid using dollar or euro bank deposits and securities as a means of payment. By prompting other countries to think about how to free themselves from the U.S.-centered world trade and monetary system that was established in 1945 with the IMF, World Bank and subsequently the World Trade Organization, the U.S. confiscations have accelerated the end of the U.S. Treasury-bill standard that has governed world finance since the United States went off gold in 1971.[3]My Super Imperialism: The Economic Strategy of American Empire (3rd ed., 2021) describes how the Treasury-bill standard has provided America with a free ride and enabled it to run balance-of-payments deficits without constraint, including the costs of its overseas military spending.

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Since dollar convertibility into gold ended in August 1971, dollarization of the world’s trade and investment has created a need for other countries to hold most of their new international monetary reserves in U.S. Treasury securities and bank deposits. As already noted, that enables the United States to seize foreign bank deposits and bonds denominated in U.S. dollars.

Most important, the United States can create and spend dollar IOUs into the world economy at will, without limit. It doesn’t have to earn international spending power by running a trade surplus, as other countries have to do. The U.S. Treasury can simply print dollars electronically to finance its foreign military spending and purchases of foreign resources and companies. And being the “exceptional country,” it doesn’t have to pay these debts – which are recognized as being far too large to be paid. Foreign dollar holdings are free U.S. credit to the Unites States, not requiring repayment any more than the paper dollars in our wallets are expected to be paid off (by retiring them from circulation). What seems to be so self-destructive about America’s economic sanctions and confiscations of Russian and other foreign reserves is that they are accelerating the demise of this free ride.

Blowback resulting from US/NATO isolating their economic and monetary systems

It is hard to see how driving countries out of the U.S. economic orbit serves long-term U.S. national interests. Dividing the world into two monetary blocs will limit Dollar Diplomacy to its NATO allies and satellites.

The blowback now unfolding in the wake of U.S. diplomacy begins with its anti-Russia policy. Imposing trade and monetary sanctions was expected to block Russian consumers and businesses from buying the US/NATO imports to which they had become accustomed. Confiscating Russia’s foreign currency reserves was supposed to crash the ruble, “turning it into rubble,” as President Biden promised. Imposing sanctions against importing Russian oil and gas to Europe was supposed to deprive Russia of export earnings, causing the ruble to collapse and raising import prices (and hence, living costs) for the Russian public. Instead, blocking Russian exports has created a worldwide price inflation for oil and gas, sharply increasing Russian export earnings. It exported less gas but earned more – and with dollars and euros blocked, Russia demanded payment for its exports in rubles. Its exchange rate soared instead of collapsing, enabling Russia to reduce its interest rates.

Goading Russia to send its soldiers to eastern Ukraine to defend Russian speakers under attack in Luhansk and Donetsk, along with the expected impact of the ensuing Western sanctions, was supposed to make Russian voters press for regime change. But as almost always happens when a country or ethnicity is attacked, Russians were appalled at the Ukrainian hatred of Russian-language speakers and Russian culture, and at the Russophobia of the West. The effect of Western countries banning music by Russian composers and Russian novels from libraries – capped by England banning Russian tennis players from the Wimbledon tournament – was to make Russians feel under attack simply for being Russian. They rallied around President Putin.

NATO’s trade sanctions have catalyzed helped Russian agriculture and industry to become more self-sufficient by obliging Russia to invest in import substitution. One well-publicized farming success was to develop its own cheese production to replace that of Lithuania and other European suppliers. Its automotive and other industrial production is being forced to shift away from German and other European brands to its own and Chinese producers. The result is a loss of markets for Western exporters.

In the field of financial services, NATO’s exclusion of Russia from the SWIFT bank-clearing system failed to create the anticipated payments chaos. The threat had been so loudly for so long that Russia and China had plenty of time to develop their own payments system. This provided them with one of the preconditions for their plans to split their economies away from those of the US/NATO West.

As matters have turned out, the trade and monetary sanctions against Russia are imposing the heaviest costs on Western Europe, and are likely to spread to the Global South, driving them to think about whether their economic interests lie in joining U.S. confrontational Dollar Diplomacy. The disruption is being felt most seriously in Germany, causing many companies to close down as a result of gas and other raw-materials shortages. Germany’s refusal to authorize the North Stream 2 pipeline has pushed its energy crisis to a head. This has raised the question of how long Germany’s political parties can remain subordinate to NATO’s Cold War policies at the cost of German industry and households facing sharp rises in heating and electricity costs.

The longer it takes to restore trade with Russia, the more European economies will suffer, along with the citizenry at large, and the further the euro’s exchange rate will fall, spurring inflation throughout its member countries. European NATO countries are losing not only their export markets but their investment opportunities to gain from the much more rapid growth of Eurasian countries whose government planning and resistance to financialization has proved much more productive than the US/NATO neoliberal model.

It is difficult to see how any diplomatic strategy can do more than play for time. That involves living in the short run, not the long run. Time seems to be on the side of Russia, China and the trade and investment alliances that they are negotiating to replace the neoliberal Western economic order.

America’s ultimate problem is its neoliberal post-industrial economy

The failure and blowbacks of U.S. diplomacy are the result of problems that go beyond diplomacy itself. The underlying problem is the West’s commitment to neoliberalism, financialization and privatization. Instead of government subsidy of basic living costs needed by labor, all social life is being made part of “the market” – a uniquely Thatcherite deregulated “Chicago Boys” market in which industry, agriculture, housing and financing are deregulated and increasingly predatory, while heavily subsidizing the valuation of financial and rent-seeking assets – mainly the wealth of the richest One Percent. Income is obtained increasingly by financial and monopoly rent-seeking, and fortunes are made by debt-leveraged “capital” gains for stocks, bonds and real estate.

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U.S. industrial companies have aimed more at “creating wealth” by increasing the price of their stocks by using over 90 percent of their profits for stock buybacks and dividend payouts instead of investing in new production facilities and hiring more labor. The result of slower capital investment is to dismantle and financially cannibalize corporate industry in order to produce financial gains. And to the extent that companies do employ labor and set up new production, it is done abroad where labor is cheaper.

Most Asian labor can afford to work for lower wages because it has much lower housing costs and does not have to pay education debt. Health care is a public right, not a financialized market transaction, and pensions are not paid for in advance by wage-earners and employers but are public. The aim in China in particular is to prevent the rentier Finance, Insurance and Real Estate (FIRE) sector from becoming a burdensome overhead whose economic interests differ from those of a socialist government.

China treats money and banking as a public utility, to be created, spent and lent for purposes that help increase productivity and living standards (and increasingly to preserve the environment). It rejects the U.S.-sponsored neoliberal model imposed by the IMF, World Bank and World Trade Organization.

The global economic fracturing goes far beyond NATO’s conflict with Russia in Ukraine. By the time the Biden administration took office at the start of 2021, Russia and China already had been discussing the need to de-dollarize their foreign trade and investment, using their own currencies.[4]Radhika Desai and Michael Hudson (2021), “Beyond Dollar Creditocracy: A Geopolitical Economy,” Valdai Club Paper No. 116. Moscow: Valdai Club, 7 July, reprinted in Real World Economic Review (97), https://rwer.wordpress.com/2021/09/23. That involves the quantum leap of organizing a new payments-clearing institution. Planning had not progressed beyond broad outlines of how such a system would work, but the U.S. confiscation of Russia’s foreign reserves made such planning urgent, starting with a BRICS-plus bank. A Eurasian alternative to the IMF will remove its ability to impose neoliberal austerity “conditionalities” to force countries to lower payments to labor and give priority to paying their foreign creditors above feeding themselves and developing their own economies. Instead of new international credit being extended mainly to pay dollar debts, it will be part of a process of new mutual investment in basic infrastructure designed to accelerate economic growth and living standards. Other institutions are being designed as China, Russia, Iran, India and their prospective allies represent a large enough critical mass to “go it alone,” based on their own mineral wealth and manufacturing power.

The basic U.S. policy has been to threaten to destabilize countries and perhaps bomb them until they agree to adopt neoliberal policies and privatize their public domain. But taking on Russia, China and Iran is a much higher order of magnitude. NATO has disarmed itself of the ability to wage conventional warfare by handing over its supply of weaponry – admittedly largely outdated – to be devoured in Ukraine. In any case, no democracy in today’s world can impose a military draft to wage a conventional land warfare against a significant/major adversary. The protests against the Vietnam War in the late 1960s ended the U.S. military draft, and the only way to really conquer a country is to occupy it in land warfare. This logic also implies that Russia is no more in a position to invade Western Europe than NATO countries are to send conscripts to fight Russia.

That leaves Western democracies with the ability to fight only one kind of war: atomic war – or at least, bombing at a distance, as was done in Afghanistan and the Near East, without requiring Western manpower. This is not diplomacy at all. It is merely acting the role of wrecker. But that is the only tactic that remains available to the United States and NATO Europe. It is strikingly like the dynamic of Greek tragedy, where power leads to hubris that is injurious to others and therefore ultimately anti-social – and self-destructive in the end.

How then can the United States maintain its world dominance? It has deindustrialized and run up foreign official debt far beyond any foreseeable way to be paid. Meanwhile, its banks and bondholders are demanding that the Global South and other countries pay foreign dollar bondholders in the face of their own trade crisis resulting from the soaring energy and food prices caused by America’s anti-Russian and anti-China belligerence. This double standard is a basic internal contradiction that goes to the core of today’s neoliberal Western worldview.

I have described the possible scenarios to resolve this conflict in my recent book The Destiny of Civilization: Finance Capitalism, Industrial Capitalism or Socialism. It has now also been issued in e-book form by Counterpunch Books.

Notes

[1] “Foreign Minister Sergey Lavrov’s interview with RT television, Sputnik agency and Rossiya Segodnya International Information Agency, Moscow, July 20, 2022,” Russian Foreign Affairs Ministry, July 20, 2022. https://mid.ru/en/foreign_policy/news/1822901/. From Johnson’s Russia List, July 21, 2022, #5.

[2] International Maritime Organization, “Maritime Security and Safety in the Black Sea and Sea of Azov,” https://www.imo.org/en/MediaCentre/HotTopics/Pages/MaritimeSecurityandSafetyintheBlackSeaandSeaofAzov.aspx . See Yves Smith, Some Implications of the UN’s Ukraine Grain and Russia Fertilizer/Food Agreements,” Naked Capitalism, July 25, 2022, and Lavrov’s July 24 speech to the Arab League.

[3] My Super Imperialism: The Economic Strategy of American Empire (3rd ed., 2021) describes how the Treasury-bill standard has provided America with a free ride and enabled it to run balance-of-payments deficits without constraint, including the costs of its overseas military spending.

[4] Radhika Desai and Michael Hudson (2021), “Beyond Dollar Creditocracy: A Geopolitical Economy,” Valdai Club Paper No. 116. Moscow: Valdai Club, 7 July, reprinted in Real World Economic Review (97), https://rwer.wordpress.com/2021/09/23.

 
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  1. Print money and reduce any country that doesn’t accept it as having value to an expanse of rubble inhabited by desperate, starving people, that’s American policy in a nutshell.

  2. Franz says:

    The only lasting leverage a nation can offer in today’s world is trade and technology transfer. Europe has more of this to offer than the United States.

    Lots of Americans are noticing. It’s like our Bidens and our Kamalas are turning the US into a pariah. At some strategic moment all our “allies” and trade partners are going to give us the boot in favor of the prosperous and peaceful east and our dark age will begin.

    • Replies: @mulga mumblebrain
  3. Athena says:

    Any nation that follows policies not deemed to be in the interests of the U.S. Government runs the risk of U.S. authorities confiscating its holdings of foreign reserves in U.S. banks or securities.

    Uruguay-China FTA negotiations raise tensions over Mercosur’s future

    https://www.bilaterals.org/?uruguay-china-fta-negotiations

    (Excerpt)

    Disputes in Mercosur

    “In his speech at the summit, Fernández questioned Uruguay’s moves to negotiate bilaterally with China and asked Lacalle Pou to include the entire bloc in the talks. “If we don’t realise that we have to be more united than ever, we are going to make the worst mistake,” Fernández said.

    The Argentine president said that initiatives such as Uruguay’s are focused on the “short term”, and that while he would not refuse to “analyse everything that needs to be analysed” on the issue of flexibility that Lacalle Pou is calling for, he asked that the countries “go through this discussion together”.

    In response, Lacalle Pou said that negotiations with China will begin “shortly” and that once this stage has been reached, he will talk to Mercosur member countries “to go all together” to add “more negotiating power”. However, if Mercosur does not want to be part of the agreement, Uruguay will still proceed, the president added.

    “President Fernández’s speech echoed a concept that he has repeated a couple of times, which is the concept of protecting ourselves. The best way to protect my nation is to open up to the world, and that is why Uruguay is taking the steps it is taking,” Lacalle Pou reiterated.

    For his part, Paraguay’s president Mario Abdo said at the summit that “it is more convenient” to negotiate a joint agreement with China, and that the issue is of concern to his government – which does not have official diplomatic ties with China. “They [China] have very competitive costs and this could threaten Paraguay’s industries, as well as those of Argentina and Brazil,” Abdo said.

    Brazil’s president Jair Bolsonaro did not travel to Paraguay for the summit, and limited himself to a pre-recorded video address in which he did not mention the issue of agreements with China – something that Uruguay interpreted as an implicit endorsement. In fact, Brazil’s foreign trade secretary, Lucas Ferraz, argued that there is a “need for greater flexibility” in the bloc.

    “The announcement made by Uruguay will certainly bring an even greater impetus to the debate [on flexibilisation] within the bloc. Whether or not we will permit Uruguay’s move is a technical question,” Ferraz said. That “will happen at the time of the adoption of the agreement, not now,” he added.”

    • Replies: @Athena
  4. Athena says:
    @Athena

    British colony Canada and Nato-IMF friends, the champions of democracy:

    Canada supports another Latin American coup
    https://yvesengler.com/2012/08/11/canada-supports-another-latin-american-coup/

    Step aside USA, Canada is the new bully in our South American ‘backyard’
    https://yvesengler.com/2019/02/21/step-aside-usa-canada-is-the-new-bully-in-our-backyard/

    “Describing Latin America as “our backyard” is the language favoured by so-called Ugly American politicians seeking to assert the Monroe Doctrine. Latin Americans should beware of the emergence of Ugly Canadians promoting the Trudeau Doctrine.”

    Ottawa lines up with Washington against rest of hemisphere
    https://yvesengler.com/2013/08/30/ottawa-lines-up-with-washington-against-rest-of-hemisphere/

    “On June 22 of last year the left-leaning president of Paraguay, Fernando Lugo, was ousted in what some called an “institutional coup”. Upset with Lugo for disrupting 61-years of one party rule, Paraguay’s traditional ruling elite claimed he was responsible for a murky incident that left 17 peasants and police dead and the senate voted to impeach the president. The vast majority of countries in the hemisphere refused to recognize the new government. The Union of South American Nations (UNASUR) suspended Paraguay’s membership after Lugo’s ouster, as did the MERCOSUR trading bloc. But Canada was one of only a handful of countries in the world that immediately recognized the new government.”

    • Replies: @Curmudgeon
  5. meamjojo says:

    “But the effect of American diplomacy has been to drive Russia and China together, joining with Iran, India and other allies.”

    Nope. China and Russia are not partners. China is merely taking advantage of Russia and hopes to eventually secure Siberia for its expansion.

    India was buying weapons from Russia before the war. Now they can’t buy any because Russia is unable to build anything w/o Western parts. They know they will need to turn to the West for future weapons purchases. What they are doing with their oil purchases is the same as China – taking advantage of big discounts that Russia needs to offer to move their petroleum while under sanctions.

    Iran is just another loser autocratic country desperately trying to develop a nuke bomb so they can play like NK and feel important again. It won’t help. Israel is just looking for an opportunity to level their nuke plans.

    This is the Russian reality:
    ———-
    Actually, the Russian Economy Is Imploding
    Nine myths about the effects of sanctions and business retreats, debunked.

    By Jeffrey Sonnenfeld, the Lester Crown professor in management practice and a senior associate dean at the Yale School of Management, and Steven Tian, the director of research at the Yale Chief Executive Leadership Institute.
    JULY 22, 2022, 5:56 PM

    [MORE]

    Five months into the Russian invasion of Ukraine, there remains a startling lack of understanding by many Western policymakers and commentators of the economic dimensions of President Vladimir Putin’s invasion and what it has meant for Russia’s economic positioning both domestically and globally.

    Far from being ineffective or disappointing, as many have argued, international sanctions and voluntary business retreats have exerted a devastating effect over Russia’s economy. The deteriorating economy has served as a powerful if underappreciated complement to the deteriorating political landscape facing Putin.

    That these misunderstandings persist is not entirely surprising given the lack of available economic data. In fact, many of the excessively sanguine Russian economic analyses, forecasts, and projections that have proliferated in recent months share a crucial methodological flaw: These analyses draw most, if not all, of their underlying evidence from periodic economic releases by the Russian government itself. Numbers released by the Kremlin have long been held to be largely if not always credible, but there are certain problems.
    ….
    https://foreignpolicy.com/2022/07/22/russia-economy-sanctions-myths-ruble-business/

    • Disagree: Biff
    • LOL: Passing By
  6. Altai says:

    Neoliberal economic policy may have hollowed America (As well as built up China) out but it was the neocons (Who are almost all neoliberals and who helped usher that ideology in) who set the US on it’s path of insane confrontations as it falls from hegemony.

    They went and started a confrontation with Russia when anyone could see all that would do is freak out China and the rest of the world and lead to the establishment of the deeper alliance between Russia and China that would prove an unbeatable adversary to US hegemony.

    But they did it because of Israel. The Russians intervened in Syria and had a nascent conflict with Israel over the pipeline from Syria and it was this intervention that caused the neocons to lose their fucking minds. Then as now Israel and Israeli nationalists pretending to be American nationalists (Neocons) sought to lash out like a madman and sought to punish Russia for this action. This tied with atavistic ethnic hatred of Russians has led to this insane pattern of escalation.

    Obama once explained to arch-neocon Jeffrey Goldberg when he was humiliatingly called to account (Sorry, ‘interviewed’) in the Atlantic. The reported version of events from Goldberg makes me think there is no way out.

    https://www.theatlantic.com/magazine/archive/2016/04/the-obama-doctrine/471525/

    Obama’s theory here is simple: Ukraine is a core Russian interest but not an American one, so Russia will always be able to maintain escalatory dominance there.

    “The fact is that Ukraine, which is a non-nato country, is going to be vulnerable to military domination by Russia no matter what we do,” he said.

    I asked Obama whether his position on Ukraine was realistic or fatalistic.

    “It’s realistic,” he said. “But this is an example of where we have to be very clear about what our core interests are and what we are willing to go to war for. And at the end of the day, there’s always going to be some ambiguity.” He then offered up a critique he had heard directed against him, in order to knock it down. “I think that the best argument you can make on the side of those who are critics of my foreign policy is that the president doesn’t exploit ambiguity enough. He doesn’t maybe react in ways that might cause people to think, Wow, this guy might be a little crazy.”

    “The ‘crazy Nixon’ approach,” I said: Confuse and frighten your enemies by making them think you’re capable of committing irrational acts.

    “But let’s examine the Nixon theory,” he said. “So we dropped more ordnance on Cambodia and Laos than on Europe in World War II, and yet, ultimately, Nixon withdrew, Kissinger went to Paris, and all we left behind was chaos, slaughter, and authoritarian governments that finally, over time, have emerged from that hell. When I go to visit those countries, I’m going to be trying to figure out how we can, today, help them remove bombs that are still blowing off the legs of little kids. In what way did that strategy promote our interests?”

    You have to call the neocons out for what they are, Jewish nationalists and what they want, to use America as Israel’s golem and keep it as a hegemon to effectively achieve this. Otherwise they’ll keep getting away with it and people will just throw their hands up and treat these actions and policies as if they’re inevitable when they’re not. You think Biden wants this war anymore than Trump or Obama? But if your only critique of an Anthony Blinken neglects his ethnicity and his motivations, then they’ll just replace him with another.

    They’ll continue to act insane when wielding American power because every bet seems okay when you’re playing with free money. The neocons don’t think of America as their country, just as a tool.

    • Thanks: Z-man
    • Replies: @JWalters
    , @Anon
  7. Joseph Biden is but the latest version of the Boris Yeltsin inflatable decoy doll expressly designed to divert attention from the oligarchs as they rape and pillage the world. Whereas Yeltsin was a drunken traitor of Russia, Biden in a senile traitor of Russia. Same modus operandi, different costume.

  8. A123 says: • Website

    European WEF Imperial Diplomacy as a Tragic Drama

    The WEF ran the Blue Coup in Washington DC inserting their pawn Not-The-President Biden to do the bidding of the Davos-Berlin-Brussels Axis. Going after Christian Americans for this mess is ‘Blaming The Victim’. Not only is it wrong & immoral, it also prevents any hope for a solution.

    Those who care about Europe should focus on Scholz, Macron, and Truss! Deflecting attention to America instead of concentrating on the European Empire can only support WEF Imperial goals. Weidel (AfD), Zemmour, and even Suella Braverman would be vastly better than those who are now in charge. Truss may even try to reverse Brexit.

        — The Problem with Europe is Europe —

    Until people start focusing on Europe’s WEF Empire as the root cause, indigenous Europeans will continue to suffer diminished lives. Blaming the European Empire’s pawn, Not-The-President Biden, is 100% guaranteed to make things worse in Europe. DNC rule in the U.S. is a symptom, not a source, of European Imperial corruption.

    PEACE 😇

    • Troll: mulga mumblebrain
  9. PJ London says:
    @meamjojo

    ‘Nope. China and Russia are not partners. ‘ wow are you the go-between for Xi and Putin?

    China and Russia have for the last 25 years recognised that the USA-UK financial oligarchy are the issue that has to be defeated.

    “The issue which has swept down the centuries and which will have to be fought sooner or later is the people versus the banks.”

    Lord Acton

    China has no interest in fighting for territory, when it can simply buy all that it needs. Russia has no interest in acquiring territory as it realised that occupation is an expense not a benefit. It dumped the USSR because it could not afford it any longer. However both countries are hugely Nationalistic and will defend their citizens (and native speaking peoples) with all the resources and force at their command. (remember when Great Britain and the USA used to be like that?)
    Neither buy into the “consumer” society with Mammon as the only God. Both “governments” are socialist with the greater good for all citizens as their objective. As long as Xi and Putin (or their philosophical counterparts) can maintain their leadership, withstanding the CIA endless agitation for Colour revolutions, then the non-west will win. 80% of the world’s population live in non-NATO countries and none of them support NATO, 50% of the people of NATO countries do not support the Ukraine war at all and would withdraw support yesterday rather than tomorrow.
    By 2023 when the reality of the sanctions begin to bite, then it will be 90% of NATO population.
    BRICS has a dozen countries asking to join, NATO has to threaten and bribe to get applications and even then the politicians are too scared to put it to a vote as NATO would be rejected overwhelmingly.
    “Through Russia comes the hope of the world. Not in respect to what is sometimes termed Communism or Bolshevism — no! But freedom — freedom! That each man will live for his fellow man. The principle has been born there. It will take years for it to be crystallised; yet out of Russia comes again the hope of the world.”
    Edgar Cayce circa 1935

    • Replies: @meamjojo
  10. It doesn’t matter what these morons try against China and Russia. They are incompetents. Everything they do blows up in their faces. They are doomed to failure.

    Let’s look at their recent track record:

    First, they blew up some buildings in New York and set out to quickly destroy seven Muslim countries for Israel under the Bush and Obama puppets. They failed miserably in this objective.

    Then, Trumpstein launched a “trade war” against China. This failed hilariously as it only strengthened China’s self-reliance while harming the American economy more than anything. Chinese netizens still lovingly refer to “Comrade Trump” to this day.

    After the trade war failed, their next move was to launch the infamous COVID weapon in China with the intention of completely destroying China’s economy. Needless to say, this only mildly impacted China while doing much more harm to Western economies. An even more hilarious failure.

    Finally, with the Biden puppet in place, they provoked Russia into taking back Ukraine, with the goal of launching the “Sanctions From Hell” that they thought would destroy Russia’s economy and spur mass riots against Putin. Inevitably, Russia is doing just fine and the West is destroying itself.

    See? Utter clowns. This Pelosi stunt is just the latest brilliant idea from these imbeciles.

    • Agree: Brad Anbro
    • Replies: @Ann Nonny Mouse
  11. meamjojo says:
    @PJ London

    “Through Russia comes the hope of the world. Not in respect to what is sometimes termed Communism or Bolshevism — no! But freedom — freedom! That each man will live for his fellow man. The principle has been born there. It will take years for it to be crystallised; yet out of Russia comes again the hope of the world.”
    Edgar Cayce circa 1935

    Cayce was a failed psychic and from this quote, apparently also a failed political commentator. He’s long dead anyway, so is unable to comment on the present state of Russia.

    • Replies: @Anonymous
    , @JR Foley
  12. @meamjojo

    Well, first they told me the sanctions are going to turn Ruble into rubble, now they are telling me a strong Ruble is the sign Russia is collapsing. Where the data does not fit the narrative, it is Kremlin’s lie. Surely Russia is collapsing, but Russians do not know it yet!

    It is the West that is collapsing and not knowing it yet. The Masters of the Universe take Americans to be such fools that they are expected to believe that Russia first arrested the surrendering Ukrainians instead of killing them, then housed them in a hospital, and then destroyed that hospital through a missile, to kill them! Even if a Russian General suddenly turns crazy and decides to kill the PoWs, he would use bullets, not rockets. Such a blatant lie, yet the American media brazenly tells this to American people, so the underlying assumption is American people are so dumb as to believe anything from the propaganda media.

    All that patient reasoning of Lavrov seems to achieve nothing. Probably Russia needs to do something, some act of war, that cannot be spun by the Western media into a fairy tale.

  13. Jim H says:

    ‘The longer it takes to restore trade with Russia, the more European economies will suffer, along with the citizenry at large.’ — Michael Hudson

    This winter, a large-scale social experiment will be conducted in Germany. Will reducing the German citizenry to pauperism, cold and hunger — not unlike the bitter days of the early 1920s, following Woody Wilson’s vengeful treaty of Versailles — finally induce them to rise up and throw off NATO’s cruel yoke?

    I wouldn’t count on it. But if Germans just lie supine in learned helplessness to take their beatings, I’d be inclined to administer a few stings of the lash myself, whilst bellowing ‘On your feet or on your knees, you cringing curs!’

    • Replies: @A123
  14. meamjojo says:
    @Old Brown Fool

    Ka Ching! 6,225 Rubles have been deposited into your account Comrade.

    • Troll: Biff, Eric Novak
    • Replies: @Fred777
  15. Great analysis… But people aren’t paying attention…. Well in the 1st world anyway… The citizens of the Global South are seeing much more clearly.

  16. @Ghan-buri-Ghan

    Good comment, GbG. I agree. Thanks.

    • Thanks: Ghan-buri-Ghan
  17. A123 says: • Website
    @Jim H

    ‘The longer it takes to restore trade with Russia, the more European economies will suffer, along with the citizenry at large.’ — Michael Hudson

    This winter, a large-scale social experiment will be conducted in Germany. Will reducing the German citizenry to pauperism, cold and hunger

    The European WEF Empire hates Christianity. Using cold & hunger to kill Christians is how ‘The West’ makes room for more Muslims.

    Creating a food crisis so millions of MENA origin rape-ugees “have” to be admitted to Christian lands. Also, a plan of ‘The West’.
    ___

    Once people understand that the two sides are actually — ‘The West’ versus Christianity — The necessary response is much more clear. Trump’s 2nd Term will see MAGA America leave ‘The West’ and rejoin Christianity.

    Alas, the European leaders who would do that have been carefully screened out by the Establishment. Giorgia Meloni is the next test. Her party and likely allies will score 40%+ in the upcoming Italian elections. Will she:

    — Successfully lead Christian Italy against immigration policies of ‘The West’?
    — Be undermined in the coalition process and other establishment swamp?
    — Wind up denied leadership by the formation of an incoherent (but pro EU/EZ) coalition?

    Freeing Italy from the domination of green energy aggression by ‘The West’ is key to saving much of Christian Europe. The EastMed gas pipeline (Cyprus-Greece-Italy) needs to be built, thus providing hydrocarbons that Scholz cannot touch.

    PEACE 😇

    • Thanks: profnasty
    • Troll: mulga mumblebrain
    • Replies: @anonymous
  18. Anymike says:

    Beyond Clausewitz: War is the extension of peace by other means.

  19. @meamjojo

    Russia never needed Western parts for weapons, dum dum. You must be sixteen years old. China’s expansionist ambitions would run face first into Russia’s 7000 nuclear weapons.

  20. @Franz

    Most of the world’s population have long hated and feared the USA. Their governing ‘elites’ must bend the knee to The Empire or be targeted for ‘regime change’. When the USA falls, what’s left of humanity, if any, will rejoice.

    • Replies: @Corrupt
    , @repsinec
  21. JWalters says:

    “The underlying problem is the West’s commitment to … [a] market … [which is] deregulated and increasingly predatory”.

    This problem stems from a few private, criminal bankers monopolizing our money supply and banking system. Academic economic models do not factor in this criminal, predatory gang at the center of the economic system.

    America is predominantly “financial capitalism” because these criminals shipped America’s manufacturing base overseas (e.g. computer chip factories).

    And America’s wars and vast military expenses are to benefit these criminals, through stealing other countries’ resources and through war profits. Their attempt to foment a regime change in Russia and grab its resources lies at the heart of the current conflict in Ukraine.

    And their desire to rule the world from Jerusalem lies behind their various Western puppets pushing for war with Russia, China, and Iran. Their cover story for these new wars, as Mike Pompeo recently put it, is to defend those “three lighthouses of liberty, Ukraine, Israel, and Taiwan”.
    War Profiteers and Israel’s Bank
    https://warprofiteerstory.blogspot.com/p/war-profiteers-and-israels-bank.html

    It seems to me we need an economic model and system that cultivates the benefits of individual initiative, as specified in the U.S. Constitution, while simultaneously protecting society by blocking predatory corruption by the financially successful, which has currently captured our banking, media, and government. (Perhaps we might call this “socially responsible capitalism”, or “social capitalism” for short.)

    A key step is taking control of our money creation back from the corrupt banking mafia, and putting it in the hands of the People, as stipulated in the U.S. Constitution.

    This will also have the beneficial effect of reducing America’s political assassinations and rigged elections.

    • Thanks: Theophrastus
    • Replies: @Old Brown Fool
  22. @Old Brown Fool

    The head of Azov said he would hunt those responsible down. I wonder if ?elensky is sweating that bit more. What a pleasing denouement that would be-the darling of the West, lynched by his own neo-Nazis.

    • Thanks: JR Foley
  23. bert33 says:

    What if other countries had to fight their own wars and solve their own problems and feed their own people and the US never even got invited to the party? We could save money on diplomats and defense spending for sure. Never have to read any mess like this ever again either. 🙂

    • Replies: @Fred777
  24. JWalters says:
    @Altai

    The Israeli military prepares for war with unarmed civilians.
    Israeli military drills in Masafer Yatta turn Palestinian villages into a shooting range
    https://mondoweiss.net/2022/07/israeli-military-drills-in-masafer-yatta-turn-palestinian-villages-into-a-shooting-range/

    With the full support of Anthony Blinken on your behalf.

    • Replies: @profnasty
  25. GMC says:

    Everything wrong , that is going on in the West is from the Zionist Party, that runs the US and Europe. Every dirty move made in foreign policy and domestic policies have a thousand Zionists. Israelis, or their supporters Visibly behind them. Everyone of those ” Americans ” that traveled and pursued the Ukraine Coup and takeover were Zionist Jews and/or their bought off USGov. employees. It’s an open and shut case on who is responsible for this prelim to WW III. The economic disaster was planned all along , since the globalist always have 3,4 or more end games, working together.

    Ukraine’s take over and western controlled wars had multiple end games besides trying to displace Russia. Those other side jobs resulted in Human and Immigrant trafficking – { women, and children } , sex trafficking, disrupting/separating the Slavic race and using them as propagandists against Russia, in those countries that took them in, and here we are talking about millions of Ukrainian/Russian people. The War also was a typical move by the Zionists in order to harvest organs which is huge profits – how many dead or wounded soldiers lost their organs ? How many wounded were dead after the organ harvesting? How’s Israels economy doing thru all of this? Behind the scenes they’re booming and so – let’s read an Article on this. Never Happen because the Zionist Party owns – not only the 2 US fake parties but everybody in the West.

    • Replies: @Ben Sampson
  26. As much as I respect Prof Hudson, I must confess that I was taken aback by this, where he is describing the NATO bombing of Serbia in the 90s:

    That marked the point at which NATO became an offensive alliance, not a defensive one.

    This is rubbish; NATO was never a defensive alliance; it was created to establish US Zio-Nazi control over Europe, as evidenced for instance by its stay-behind armies known collectively as Operation Gladio.

    NATO was always an offensive entity (double meaning intended). There was never a point where it ceased to be merely defensive and became offensive simply because it was never defensive to begin with.

    Furthermore, to ascribe all the machinations as coming solely from US foreign policy fails to see the proverbial elephant in the room: the financial cabal of zionist-freemasons and elite bloodlines who together from The Owners’ Club and dictate policy.

    • Agree: GMC
    • Replies: @Jim H
    , @JR Foley
    , @RobinG
  27. History is like a Greek tragedy. In it every empire eventually faces the war it is fighting to avoid – its own collapse – all for power: but power in an illusion.
    https://patternofhistory.wordpress.com/

  28. Fred777 says:
    @meamjojo

    Better rubles than dollars.

  29. Fred777 says:
    @bert33

    The risk is that the other countries might get along.

  30. Confronted with China’s industrial prosperity based on self-financed public investment in socialized markets, U.S. officials acknowledge that resolving this fight will take a number of decades to play out

    At this pace, I doubt the US in its current form will survive ‘a number of decades’. When things start to crumble, the final collapse happens in a blink. The only question is whether the collapse will happen through implosion or explosion. For obvious reasons, the rest of the world roots for an implosion.

  31. Anonymous[661] • Disclaimer says:
    @meamjojo

    I think Cayce was making a spiritual rather than a political comment.

    At least from the Christian viewpoint events at both Fatima and Medjugorje posit Russia as the central player in either bringing humanity back to God or being the instrument of God’s chastisement of the rest of the world.

    Not a big fan of Cayce, but I am a fan of Solzhenitsyn and I think Solzhenitsyn would agree.

    • Replies: @anonymous
    , @radicalcenter
  32. Just for the record, the title of Michael Hudson’s article is a cop — from the American historian William Appleman Williams’ book “The Tragedy of American Diplomacy,” published in 1957, and still regarded as a classic. The only thing one might add is “Plus ça change …”

  33. Much to commend, to applaud Michael Hudson for this analysis.

    That said, this from the analysis is particularly important to understand what the neoliberals, or whatever to call them:

    The failure and blowbacks of U.S. diplomacy are the result of problems that go beyond diplomacy itself. The underlying problem is the West’s commitment to neoliberalism, financialization and privatization. Instead of government subsidy of basic living costs needed by labor, all social life is being made part of “the market” – a uniquely Thatcherite deregulated “Chicago Boys” market in which industry, agriculture, housing and financing are deregulated and increasingly predatory, while heavily subsidizing the valuation of financial and rent-seeking assets – mainly the wealth of the richest One Percent. Income is obtained increasingly by financial and monopoly rent-seeking, and fortunes are made by debt-leveraged “capital” gains for stocks, bonds and real estate.

    And this:

    It is difficult to see how any diplomatic strategy can do more than play for time. That involves living in the short run, not the long run. Time seems to be on the side of Russia, China and the trade and investment alliances that they are negotiating to replace the neoliberal Western economic order.

    Though Donald Trump was a rube in many ways, one of the more or most unusual of people to ascend to the Presidency, he often was accurate beyond his behavior and what he said of Russia, something to the effect that America would be much better off by trying to be on friendly terms with it, and his latest comment on Nancy Pelosi is so true.

    How is she a representative of America, how is she a diplomat, how is she traipsing out into a potential maelstrom which she may very well aggravate? Will she stand behind someone from China who delivers a speech, and tear up the papers of the speech while he delivers it? Or rub her wrists together after she delivers an incoherent address to… to whom is difficult to fathom.

    And then, upon return, whisper in Paul Pelosi’s ear what stock to buy for the coming turmoil she helped foster?

    Is this person, for example, what America needs to lead it?

  34. We should find a modern Thucydides to describe the causes of modern war.
    How would Thucydides describe modern warfare?
    History repeats itself and perhaps with the same ending, for those who do not study it.
    Personally, I compare the Athenians with the Americans…..
    and the Spartans the same as the Russians. I will also say why.
    The Athenians are a great naval power, as are the Americans.
    The Spartans were a great land military force, as were the Russians.
    Let’s go to the parallel history……
    Athenians and Spartans, together, defeated the Persians, who wanted conquests.
    Americans and Russians, together, defeated the Nazis, who wanted conquests.
    The growing power of the Athenians caused fear in the Spartans.
    The growing power of the Americans caused fear in the Russians.

    In general, the Athenians were disheartened after their victories over the Persians and tried
    to build their empire, enslaving other Greek cities, some of which
    they ruled out, like for example the Milisians!!!!!
    The Americans are certainly disheartened after the fall of the Eastern bloc and they want to
    their own empire to build, enslaving other states, such as Iraq, Yugoslavia,
    Afghanistan, Iran, and other countries…
    What our American friends should notice is that in the end the Spartans defeated them
    arrogant Athenians, who Athenians could not recover from the disaster!!!!!

  35. Jim H says:
    @Theophrastus

    ‘NATO was always an offensive entity (double meaning intended).’ — Theophrastus

    That may be so. But probably Professor Hudson was pointing to the bombing of Serbia as NATO’s first out-of-area operation. Serbia was not a member of NATO, so this was a clear-cut, unmistakable case of NATO external aggression.

    At the time I was bitterly protesting to Clowngress. My letters included a NATO star with added 90-degree extensions, turning it into a menacing swastika.

  36. The US empire is and was addicted to war. It’s a genocidal war machine run by a plutocracy and cheered on by 330Million buffoons.

  37. Karl1906 says:

    Warmongering for fun and profit. Same as in the 19th century. Just with nukes and armageddon for everybody for “progress”.

  38. There is no such thing as “American diplomacy.”

    American foreign policy serves the neocons, and that means that generally we do what is good for Israel and the jews.

    Of course, such an insane form of “diplomacy” results in lies and misery and chaos and slaughter and destruction.



  39. Video Link

    Ron Paul Institute.

    • Thanks: Agent76
  40. “American Diplomacy as a Tragic Drama” has been caused because of malevolent Jews who have completed their communist “March Through the Institutions”, and who are now in control of EVERYTHING in the West. These Jews are liars, cheats, thieves and murderers who don’t have any positive vision at all beyond short-term profits and the establishment of an anti-White tyranny. The fact is that when these Jewish parasites finish killing their host countries, they too will go down the drain. As intelligent as they are purported to be, Jews are nothing but organized criminals who are busy “busting out” the greatest civilization (White) in history. They are exactly like the stinking Gypsies except that they have higher IQs.
    It’s time for Whites to fight back against the Jews and their nonWhite allies, and recover what they built and is still rightfully theirs.

    • Replies: @mulga mumblebrain
  41. jimmy1969 says:

    Mike a great article…but why do you suppose that you are not on the Council for Foreign Relations. Why is it that you are not published in Foreign Affairs on Foreign Policy Magazine. Do you not covet prestige like that? Would you not like to be invited to glittering cocktail parties and plush events at the Met in New York or the Metropolitan Club and hob nob with beautiful women and the elite of the intellectual world like I do. Would you not like to give a lecture at the Council on Foreign Relations or Harvard or Yale. Do you fantasize about that? Does it hurt to be no better than a guy who is reduced to putting up posters on telephone polls?

    • Replies: @radicalcenter
  42. There is no American foreign policy , it ended in 1913 with the creation of the zionist privately owned FED and IRS which are 2 of the 1o planks of the communist manifesto and then came the wars and debt and deaths all to the benefit of the zionists who are in control of the ZUS and have been since 1913, the ZUS has a zionist foreign policy and it is destroying America.

    The zionist Israels and traitors in the zionist ZUS governments attack on the WTC on 911 and blamed on the muslims proved who is in control of the government aka zionist Israel and it gave the excuse to destroy the middle east for Israel, congress is the lower house of the knesset.

  43. Corrupt says:
    @mulga mumblebrain

    “Most of the world’s population have long hated and feared the USA”

    No, most of the worlds population has more immediate concerns, like water, food and shelter.

  44. Zumbuddi says:
    @Priss Factor

    It is not accurate to post that “IRGC Supports Ukraine.”

    Dissident elements within Iran “support Ukraine.”
    Be aware that MEK, a group of subversive Iranians supported by US & Israel, easily infiltrate Iranian outlets.

    IRGC-Linked Newspaper Slams Iranians Supporting Ukraine
    3/1/2022
    https://www.iranintl.com/en/202203012866

  45. Agent76 says:

    July 29, 2022 Two Party Imperialism and War with Russia. A Historical Perspective

    The Democrats and Republicans are relentless warmongers. They kill, they maim, they ravage, and they deceive with impunity. They destroy entire countries to feed the dogs of war. Their latest victim is Ukraine.

    https://www.globalresearch.ca/two-party-imperialism-war-russia/5787958

    • Replies: @A123
  46. @Athena

    British colony Canada…

    Canada hasn’t been “British” for 60 years. “Red” Lester Pearson started the project of separating us, from our roots, Trudeau v1.0 completed that project by turning us into a multicultural shit hole then implemented a coup d’etat in 1982. Since then Canada has become a US sock puppet.
    Quite frankly, we were better off as an alleged colony.

    • Replies: @JR Foley
  47. profnasty says:
    @JWalters

    Coming soon to a town near you.

  48. A123 says: • Website
    @Agent76

    The Democrats and Republicans are relentless warmongers. They kill, they maim, they ravage, and they deceive with impunity. They destroy entire countries to feed the dogs of war. Their latest victim is Ukraine.

    MAGA has expelled the worst of the NeoConDemocrats back home to the DNC War Party.

      

    Despite sociopath Khamenei’s attempts to start a war. Trump wisely refused.

    The transformation is not yet complete. However, MAGA victories in the midterms will see more appropriations for domestic security and much less funding for Ukrainian aggression.
    ___

    If the European WEF Empire wants to keep fighting the war they started. They will have to pay for it. And, we all know that the world has nothing stingier than German Bankers…. And, that was before the recession.

    Rumor has it … Truckloads of pecans and walnuts are spontaneously cracking their shells as they are simply driven near Germany’s ECB headquarters in Frankfurt. 😂

    PEACE 😇

    • Troll: mulga mumblebrain
  49. “Why Are No Conservatives Talking About This?!”

  50. “American diplomacy” is a contradiction in terms. The US did not have qualified diplomats since the dissolution of the USSR. The only US “diplomacy” now is “do what I say, or else”.

    It is said that when god wants to punish someone, he takes away his mind. If there is god, s/he is severely punishing the US elites.

  51. jimmy1969 says:

    Mike: he had to sit down at City College in Manchester and write an Economics exam…he did not know the difference between supply and demand, and when he tried to get into Oxford they sent him a tape of canned laughter.

  52. Diplomacy is a term that doesn’t have an American translation.

    • Agree: AnonfromTN, Jim H
  53. AndrewR says:
    @Priss Factor

    IRGC? Really? Iran can’t afford to not Support Russia

  54. anonymous[164] • Disclaimer says:
    @A123

    Christian euRape including its outposts is spiritually cursed, and mentally fucked up for placing its faith on pagan abominations such as the father mangod and the son mangod. The blessed man you have placed on a pedestal condemns you all.

    You pagan roaches might just as well place your faith on dot dindoo abominations such as shiva mangod or vishnu mangod, and heck even shiva’s phallic symbol, the Lingum.

    A rabid pagan Islamophobic mofer like you does not spare any opportunity to spew your bile on Islam and muslims, but it does give us true monotheists the opportunity to fling it back in kind at you faeces-for-brains lowlifes.

    Thank you for that, you pagan godless albinonigger. 😀

  55. @GMC

    Terrific comment! The horrific routine truth that few dare speak that some courageous ones as there is less and less alternative. The horror increasingly appearing out openly, more and more….

    • Thanks: GMC
    • Replies: @GMC
  56. windwaves says:
    @meamjojo

    yes, sure, like we have been told that Russia is running out of everything for the past 4 months. What a farce. First they were running out of tanks, then cannons, then missiles then all kinds of ammo. Dude, wake the f up.

  57. anonymous[164] • Disclaimer says:
    @Anonymous

    Lol! Pathetic Nonsense!

    Russia is an integral part of the Christian evilisation. Those slavoids worship polytheist mangods, idols and graven images, which makes them pagan and thus of the godless. They are as spiritually cursed as their euRapean cousins.

    Now, how is a pagan godless entity, the “central player in either bringing humanity back to God or being the instrument of God’s chastisement of the rest of the world”?

    This lionization of “Christian” Russia, as the last bastion of “the Divine truth,” by desperate Chrizzies has always sounded hilarious and pathetic, and even more importantly, highly delusional.

    Don’t get me wrong, I do support Russia against the unspeakably evil western albinoniggers.

    Ultimately, may the Almighty One weaken the enemies of true monotheism, and destroy the most rabid of them. God willing.

  58. JR Foley says:
    @Theophrastus

    It is all “doublespeak”. Post-WWII NATO was set up as a defense against USSR. When USSR collapsed and its Warsaw Pact was abandoned –NATO did NOT follow suit. Bush says that NATO will remain but the new Russia has nothing to fear. 2021 —-35 biological labs in West Ukraine —-prior times Serbia attacked and color revolution in Kyiv and NATO expanding —adding ALL former Warsaw Pact countries and provoking Russia and East Ukrainians dying for 8 years and do not forget the MH flight being shot down East Ukraine with USSR “buk” but instructions coming from air traffic controller in Kyiv. If this is NOT aggression ——–is it defense on steroids ???

  59. JR Foley says:
    @Curmudgeon

    Big collapse of Canada came in February 1959 when John Diefenbaker shut down Avro. 8,000 talents were fired that day ( all good technicians and engineers) and later went USA with many joining NASA. Today very few students study engineering ( Reesaon –week arithcmetick ) and prefer studying value-added systems like law —ekomomix and polly science. So many shades and colors and ends with a happy rainbow before the Pox arrives —from lower ordered primates.

  60. JR Foley says:
    @meamjojo

    Cayce also said the Poles will reverse and in this, he is partially correct. The Poles went from Warsaw Pact to NATO —will it reverse again when winter arrives or will the Poles wait until USA gas arrives aboard Canadian tankers? Was it Cole Porter’s song ” Baby it’s cold outside !” Another possibility is to construct an over the Pole pipeline with Canadian gas —smack dad to Warsaw—–

    • Replies: @nokangaroos
  61. Anon[985] • Disclaimer says:
    @Altai

    “ But if your only critique of an Anthony Blinken neglects his ethnicity and his motivations, then they’ll just replace him with another”

    This is the exact reason that Richard Perle doesn’t get punished but get replaced with another sinister guy ( FDD founder ) and Perle’s policy is reoriented to Iran .This so why Wolfowptz or Feith or Abrams don’t get mail term or hard labors but are rewarded then replaced with equally vicious nasty human beings form same ethnic clubs .These nasty rascals then try same policies in Syria , Sudan and Lebanon .

  62. GMC says:
    @Ben Sampson

    Ya Ben, the other big problem is that the same Zionists/Globalists have bought up the commenting software companies like Disqus, and the others that team up and 86 you. I’ve been 86d by Disqus in all but one website for many years now , and I think they leave me alone on that one because they want my locations and data. And my gut feeling is that the USG has list of us that they send to all websites that want us banned also. It’s part of the Mafia Crime Syndicate. If you really want to see a heavy propaganda scene, head over to Yahoo and check out the new troll commenting section, with regards to the Ukie war. Haifa is alive and well , working for Horizon Inc. lol

  63. denk says:

    Incredible, no protest in the streets when the witch is playing fire with nuclear tinderbox at China’s doorstep.

    Please dont tell us its the Jew/Israel wars ever again, this is your war, you own it.
    NO more excuse.

    • Agree: Arthur MacBride
  64. @JR Foley

    Post-WWII NATO was set up as a defense against USSR.

    No, it was not. It was set up to control the European countries and was the first step towards the creation of the EU, itself a control mechanism.

    NATO was the cover for Operation Gladio, which were stay-behind mercenaries (i.e, armies) that were employed to terrorize ordinary people and keep them scared enough that the media could easily propagandize them, Read about Licio Gelli of the Masonic lodge known as P2, read about Yves Guerin-Serac and Stefano delle Chiaie, who led the assaults in the Bologna train station in 1980 and the bombings in Piazza Fontana in Milan a few years earlier, not to mention many other attacks throughout Western Europe. This was known as the Strategy of Tension.

    The scapegoats for these hits were entities like the so-called Red Brigades in Italy and the Baader-Meinhof group in Germany: they were patsies, like Oswald or Sirhan.

    NATO was always a tool for subordination, from its very beginning. It was never a defense against the USSR, except nominally.

    • Thanks: RobinG
  65. @JR Foley

    The Polacks will fellate whatever Sugar Daddy keeps the Germans from
    kicking them out of East Germany – for that you need no prophet,
    sleeping or otherwise.

  66. @JR Foley

    I remember seeing the Arrow when it was on display after a test flight. Stunningly beautiful for its day, and, obviously, technologically advanced. I was told, about 30 years ago, by an aeronautical engineer, that the official story of its cancellation, Sputnik, was an excuse. The US Air Force was interested in buying them, and had actually put in an order. AV Roe was instructed to co-operate with their inquiries as to how they overcame manufacturing problems to make them more “production line”. According to the engineer, the USAF took that information and turned it over to US manufacturers, then cancelled the order. I’m not sure we will ever know.
    Roe got screwed twice. They were working on a passenger jet when the Arrow project was put in place and were told it had top priority, so they set passenger project aside.
    Yes, it was a big event, but it was the moneymen taking aim at Diefenbaker when, in 1960 he clashed with the Bank of Canada Governor James Coyne, and the devaluing of the dollar to make exports cheaper and imports more expensive that led to his downfall. The “Diefenbuck” was the Liberals mantra, and people bought it.

  67. RobinG says:
    @Theophrastus

    “As much as I respect Prof Hudson…”

    For MMT, or what? A certain respect is due anyone who succeeds in society, even in the dubious pseudo-science of economics. He’s certainly achieved cult status. His prediction of our demise is becoming generally acknowledged. I haven’t been keeping track (because my eyes glaze over, lol), so how recently did he aver that MMT could save us?

    This, I just wanted to see what Saker looked like…

  68. @Anonymous

    Incoherent nonsense. Just stop it.

  69. @jimmy1969

    Probably a higher status than the guy who can’t spell “poles.”

  70. @JR Foley

    US stooge regimes, particularly the Five Eyes, are like colonial administrations following orders from the Homeland. Big Boss Thanatopolis DC don’t want no goddammed competitors, even in the colonies, so industry and academia must be closed down, and the brain drain directed to the USA. And here a reverse brain drain has been in action for years, with Yanks and Canadians infesting our academe at increasing rates, along with their not euphonious drawls.

  71. @JR Foley

    KIEV, please. MH 17 was shot down by a Ukronazi jet, as the eye-witnesses stated. No pictures of the unmistakable smoke trail of an ascending Bukh has ever been shown, and the USA has satellites over Ukraine 24/7, and did then, but NO evidence is provided, naturally. Ukraine did shoot down Siberia Airlines flight 1812 in 2001, after all, for no apparent reason, killing 78, mostly Israelis.

  72. @Fisk Ellington Rutledge IV

    Come on-some Jews are liars etc. Most are not, or only intermittently. The same goes for every human group. This painting ALL Jews as such-and-such is stupid, as dumb as Judaic supremacist and goy arse-lickers stating that ALL Jews are saints.
    The Judaic elites, however, are a menace to humanity, including fellow Jews. Those are the enemy, as are their goy collaborators.

  73. @JWalters

    Money creation is the one single issue that must be clearly understood to get ourselves out of the clutches of the banksters.

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