Hong Kong’s Umbrellas are ‘Made in USA’

WILLIAM ENGDAHL | NEW EASTERN OUTLOOK

hong-kongProtestsNEO

Hong Kong may be in the grip of the latest US-manufactured (or abetted) “color revolution.” (click to expand)


[dropcap]T[/dropcap]he Washington neo-cons and their allies in the US State Department and Obama Administration are clearly furious with China, as they are with Russia’s Vladimir Putin. As both Russia and China in recent years have become more assertive about defining their national interests, and as both Eurasian powers draw into a closer cooperation on all strategic levels, Washington has decided to unleash havoc against Beijing, as it has unleashed the Ukraine dis-order against Russia and Russian links to the EU. The flurry of recent deals binding Beijing and Moscow more closely—the $400 billion gas pipeline, the BRICS infrastructure bank, trade in rubles and renminbi by-passing the US dollar—has triggered Washington’s response. It’s called the Hong Kong ‘Umbrella Revolution’ in the popular media. 

In this era of industrial globalization and out-sourcing of US industry to cheap-labor countries, especially to China, it’s worth taking note of one thing the USA—or more precisely Washington DC and Langley, Virginia—are producing and exporting to China’s Hong Kong. Hong Kong Special Administrative Region of the People’s Republic of China has been targeted for a color revolution, one that has been dubbed in the media the Umbrella Revolution for the umbrellas that protesters use to block police tear gas.

The “umbrellas” for Hong Kong’s ongoing Umbrella Revolution are made in Washington. Proof of that lies not only in the obscenely-rapid White House open support of Occupy Central just hours after it began, following the same model they used in Ukraine. The US State Department and NGOs it finances have been quietly preparing these protests for years. Consider just the tip of the Washington Hong Kong “democracy” project.

Same dirty old cast of characters…

With almost by-now-boring monotony, Washington has unleashed another of its infamous Color Revolutions. US Government-steered NGOs and US-trained operatives are running the entire Hong Kong “Occupy Central” protests, ostensibly in protest of the rules Beijing has announced for Hong Kong’s 2017 elections. The Occupy Central Hong Kong protest movement is being nominally led by a 17-year-old student, Joshua Wong, who resembles a Hong Kong version of Harry Potter, a kid who was only just born the year Britain reluctantly ended its 99-year colonial occupation, ceding the city-state back to the Peoples’ Republic. Wong is accompanied in Occupy Central by a University of Minnesota-educated hedge fund money man for the protests, Edward Chin; by a Yale University-educated sociologist, Chan Kin-man; by a Baptist minister who is a veteran of the CIAs 1989 Tiananmen Square destabilization, Chu Yiu-ming; and by a Hong Kong University law professor, Benny Tai Yiu-ting, or Benny Tai.


With almost by-now-boring monotony, Washington has unleashed another of its infamous Color Revolutions. US Government-steered NGOs and US-trained operatives are running the entire Hong Kong “Occupy Central” protests…


 

hong-kong-protest

No doubt some people are true believers in the causes of their revolution because the Chinese government could stand some improvement. Washington’s meddling, however, is not triggered by ethical considerations. (Click to expand)

Behind these Hong Kong faces, the US State Department and its favorite NGO, the US Congress-financed National Endowment for Democracy (NED), via its daughter, the National Democratic Institute (NDI), is running the Occupy Central operation. Let’s look behind the nice façade of peaceful non-violent protest for democracy and we find a very undemocratic covert Washington agenda.

Start with Chu Yiu-ming, the Baptist minister chosen to head Occupy Central. The most reverend Chu Yiu-ming is a founder and sits on the executive committee of a Hong Kong NGO– Hong Kong Human Rights Monitor (HKHRM). HKHRM as they openly admit on their website, is mainly financed by the US State Department via its neo-conservative Color Revolution NGO called National Endowment for Democracy (NED).

They state their purpose: “HKHRM briefs the press, the United Nations, local and overseas governments and legislative bodies on Hong Kong human rights issues both orally and through written reports.”  In their 2013 Annual Report, the NED reports giving Rev. Chu Yiu-ming’s HK Human Rights Monitor a grant of US$ 145,000. You can buy a boatload of umbrellas for that. Chu’s HKHRM also works with another NED-financed creation, the Alliance for Reform and Democracy in Asia (ARDA).

When Occupy Central top honchos decided to (undemocratically) name the very reverend Chu as leader of Occupy Central this past January, 2014, Chu said it was because “I have more connections with different activist groups, and experience in large-scale social campaigns.” He could have named NED as activist group and the CIA’s 1989 Tiananmen Square as a ‘large-scale social campaign,’ to be more specific. The Baptist preacher admitted that he was named de facto leader of Occupy Central by two other leading organizers of the civil disobedience movement, Benny Tai Yiu-ting and Dr Chan Kin-man, who wanted him “to take up” the role.

Benny Tai is also familiar with the US State Department. Tai, law professor at the University of Hong Kong and co-founder of Hong Kong Occupy Central, works with the Hong Kong University Centre for Comparative and Public Law which receives grants from the NED subsidiary, National Democratic Institute for projects like Design Democracy Hong Kong. The Centre Annual Report states, “With funding assistance from the National Democratic Institute, the Design Democracy Hong Kong website was built to promote a lawful and constructive bottom-up approach to constitutional and political reform in Hong Kong.” On its own website, NDI describes its years-long Hong Kong law project, the legal backdrop to the Occupy demands which essentially would open the door for a US-picked government in Hong Kong just as Victoria Nuland hand-picked a US-loyal coup regime in Ukraine in February 2014. The NDI boasts,

The Centre for Comparative and Public Law (CCPL) at the University of Hong Kong, with support from NDI, is working to amplify citizens’ voices in that consultation process by creating Design Democracy Hong Kong (www.designdemocracy.hk), a unique and neutral website that gives citizens a place to discuss the future of Hong Kong’s electoral system

The Hong Kong wunderkind of the Color Revolution Washington destabilization, 17-year-old student, Joshua Wong, founded a Facebook site called Scholarism when he was 15 with support from Washington’s neo-conservative National Endowment for Democracy via its left branch, National Democratic Institute and NDI’s NDItech project. And another Occupy Central leading figure, Audrey Eu Yuet recently met with Vice President Joe Biden. Hmmmm.

Cardinal Zen and cardinal sin…

Less visible in the mainstream media but identified as one of the key organizers of Occupy Central is Hong Kong’s Catholic Church Cardinal Bishop Emeritus, Joseph Zen. Cardinal Zen according to the Hong Kong Morning Post, is playing a key role in the US-financed protests against Beijing’s authority. Cardinal Zen also happens to be the primary Vatican adviser on China policy. Is the first Jesuit Pope in history, Pope Francis, making a US-financed retry at the mission of Society of Jesus founder (and, incidentally, the Pope’s real namesake) Francis Xavier, to subvert and take over the Peoples’ Republic of China, using Hong Kong as the Achilles Heel?

Vice President Joe Biden, whose own hands are soaked with the blood of thousands of eastern Ukraine victims of the neo-nazi civil war; Cardinal Zen; Reverend Chu; Joshua Wong; Benny Tai and the neo-conservative NED and its NDI and a bevy of other State Department assets and NGO’s too numerous to name here, have ignited a full-blown Color Revolution, the Umbrella Revolution. The timing of the action, a full two years before the Hong Kong 2017 elections, suggests that some people in Washington and elsewhere in the west were getting jumpy.

The growing Eurasian economic space of China in conjunction with Putin’s Russia and their guiding role in creating a peaceful and very effective counter-pole to Washington’s New World (dis-)Order, acting through organizations such as the Shanghai Cooperation Organization and the BRICS, is the real target of their dis-order. That is really quite stupid of them, but then, they are fundamentally stupid people who despise intelligence.


 

F. William Engdahl is strategic risk consultant and lecturer, he holds a degree in politics from Princeton University and is a best-selling author on oil and geopolitics, exclusively for the online magazine “New Eastern Outlook”
First appeared: 
http://journal-neo.org/2014/10/24/hong-kong-s-umbrellas-are-made-in-usa/


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Institutionalized US Spying: More Than NSA’s Involved

cia-InformationAgencies

US information agencies grid (click to expand).

Stephen Lendman

Washington Post headlined “DIA sending hundreds more spies overseas,” saying:

It’s “part of an ambitious plan to assemble an espionage network that rivals the CIA in size, US officials said.”

Perhaps it includes covert domestic spying. CIA’s charter prohibits it. According to the ACLU, it “didn’t stop the (agency) from spying on Americans.”

It’s done it for decades. Post-9/11, it’s more stepped up than ever. Information sharing among US spy agencies and local law enforcement nationwide is official US policy.

The pretext is fighting terrorism. It’s a ruse. It’s about control. It targets dissent. It’s about advancing America’s imperium. It wants threats challenging it eliminated.

The Office of the Director of National Intelligence (DNI) is tasked with coordinating and overseeing intelligence community operations.

DNI’s information sharing’s a platform for what’s becoming the largest/most expansive ever domestic intelligence operation.


No matter what the pretext or excuses, the central purpose of these often redundant and overlapping intelligence agencies is to identify and neutralise dissent and any threats to the global rule of capital.


CIA-logo-floorLobby

Virtually anything considered suspicious is monitored. Numerous federal agencies are involved. So-called guidelines authorize intrusive powers.

In 2008, the National Academy of Sciences said data-mining for terrorism methodologically was scientifically “not feasible.” It’s likely to severely infringe on civil liberties and other privacy rights.

WaPo said DIA’s being transformed “into a spy service focused on emerging threats and more closely aligned with the CIA and elite military commando units.”

When expansion’s completed, it’s expected to have around 1,600 “collectors.” They’ll operate globally.

Numbers are “unprecedented for an agency whose presence abroad numbered in the triple digits in recent years.”

Operatives include military attaches and others not associated with “undercover” work. Washington plans “a new generation of clandestine operatives.”

CIA will provide training. The US Joint Special Operations Command’s involved. The Defense Department will decide assignments.

DIA director Lt. General Michael T. Flynn said:

“This is not a marginal adjustment for DIA.” It’s a “major adjustment for national security.”

It’s part of a far-reaching trend. It reflects “convergence of the military and intelligence agencies that has blurred their once -distinct missions, capabilities and even their leadership ranks.”

It’s what the Pentagon calls its Defense Clandestine Service (DCS). It’s the military’s “largest foray into secret intelligence work.”

DIA’s DCS combined with CIA, NSA, and other US intelligence agency growth “will create a spy network of unprecedented size.”

Doing so reflects Obama’s “affinity for espionage and covert action over conventional force.”

It’s about administration counterterrorism policies for sustained conflict. Pieces are being enhanced to do it.

General Flynn said realigning DIA won’t hamper congressional scrutiny. “We will have to keep congressional staffs and members in the loop,” he claimed.

Saying and meaning it are polar opposites. CIA does what it pleases. So do FBI and NSA. DIA’s no different. They’re rogue agencies. They do what they want.

According to US officials, transforming DIA’s “enabled by a rare syncing of personalities and interests among top officials at the Pentagon and CIA, many of whom switched from one organization to the other to take their current jobs.”

Speaking on condition of anonymity, a former senior Pentagon official said “(t)he stars have been aligning on this for a while.”

Top Pentagon intelligence official/CIA veteran Michael Vickers heads the project. Former Defense Secretary Leon Panetta approved it. So did former CIA chief David Petraeus.

The Pentagon announced DCS months earlier. It’s highly classified. Details aren’t revealed.

DIA has about 500 “case officers.” Plans call for doubling their numbers by 2018. “Cover” arrangements for hundreds of new spies will be created.

They’ll operate from US embassies and other locations. Perhaps they’ll be in neighborhoods near you. They could be stationed anywhere.

DIA plans global operations. It includes hundreds of diplomatic posts and other operations. Overt “positions will represent a declining share amid the increase in undercover slots, officials said.”

“Placing operatives in conventional military units means finding an excuse for them to stay behind when the unit rotates out before the end of the spy’s job.”

“Having DIA operatives pose as academics or business executives requires painstaking work to create those false identities, and it means they won’t be protected by diplomatic immunity if caught.”

DIA is part of Washington’s global spying network. It’s growing. It’s increasingly menacing. It targets freedom for destruction.

A Final Comment

On August 15, the Huffington Post headlined “Exclusive: Edward Snowden Says Media Being Misled ‘About My Situation.’ ”

He wants the record set straight. He said his father, Lon, attorney Bruce Fein, nor his wife and spokeswoman, Mattie , “represent (him) in any way.”

Snowden wants correct information known about legal advice he’s getting. His full statement says:

“It has come to my attention that news organizations seeking information regarding my current situation have, due to the difficulty in contacting me directly, been misled by individuals associated with my father into printing false claims about my situation.”

“I would like to correct the record: I’ve been fortunate to have legal advice from an international team of some of the finest lawyers in the world, and to work with journalists whose integrity and courage are beyond question.”

“There is no conflict amongst myself and any of the individuals or organizations with whom I have been involved.”

“Neither my father, his lawyer Bruce Fein, nor his wife Mattie Fein represent me in any way. None of them have been or are involved in my current situation, and this will not change in the future.”

“I ask journalists to understand that they do not possess any special knowledge regarding my situation or future plans, and not to exploit the tragic vacuum of my father’s emotional compromise for the sake of tabloid news.”

Thank you.

The ACLU’s been in contact with Snowden for weeks. At his request, it’s “playing a coordinating role to ensure that he receives appropriate legal advice and representation.”

An ACLU statement said:

“(W)e believe that the information Mr. Snowden has disclosed about the nature, scope, and putative legal authorization of the NSA’s surveillance operations has generated a remarkable and long-overdue public debate about the legality and propriety of the government’s surveillance activities.”

“The ACLU has long held the view that leaks to the press in the public interest should not be prosecutable under the nation’s espionage laws.”

Exposing government wrongdoing is a fundamental duty. Whistleblowing reflects exemplary patriotism.

It’s a noble tradition. Doing the right thing is its own reward.

_____________

http://www.claritypress.com/LendmanII.html.     Visit his blog site at sjlendman.blogspot.com

 Listen to cutting-edge discussions with distinguished guests on the Progressive Radio News Hour on the Progressive Radio Network.  It airs Fridays at 10AM US Central time and Saturdays and Sundays at noon. All programs are archived for easy listening.   http://www.progressiveradionetwork.com/the-progressive-news-hour•••••


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Sino/Russian Alliance Challenges West

Stephen Lendman

Sino-Soviet ties go a long way back.

Sino-Soviet ties go a long way back.

[I]n his book titled “The Sino-Russian Challenge to World Order,” Gilbert Rozman says both countries have much closer ties than commonly thought.
They’re deepening. United they challenge US hegemony. Leonid Bershidsky is founding editor of Russia’s leading business daily, Vedomosti.

He expects ties between both nations to strengthen and endure. Russia needs to pivot East. China needs access to its enormous resources.
According to Bershidsky, both countries “are made for each other. Despite many cultural differences, their people have more values in common than either share with the West.”
“(D)ifferent paths led (them) to the same spot…They suit each other.” Putin and Xi call each other “good friends.”
“After 25 years of exploring vastly different models of organizing society, Russians and Chinese are close enough in attitudes to join in partnership against the West.”


sino-sovietFriendship

The Russians have helped China on a number of occasions, although in the past the relationship has had its share of up-and-downs. (click to expand)

Michael J. Green is Center for Strategic and International Studies (CSIS) Asia and Japan Chair senior vice president.
“Is the new alignment between Russia and China a threat to the United States,” he asked? “Moscow and Beijing have not been this close in half a century.”
Xi’s “New Model of Great Power Relations” stresses  “manag(ing) relations with America and “ally(ing)” with Russia.
Both countries share significant interests, Green stresses. Putin and Xi promised increased “coordination” on policy.
Together they challenge Obama’s Asia pivot. They’re a powerful counterforce.
According to Green, “(t)he new Sino-Russian alignment (might) help cure (Washington) of its myopia and force it to think globally as it acts locally.”
Artyom Lukin is Vladivostok-based Far Eastern Federal University School of Regional and International Studies deputy director.
He believes Washington’s dual containment policy binds Russia and China closer together. At the same time, it risks possible WW III.
“The current security situation in the Asia-Pacific – with competing sovereignty claims, the rise of nationalism among both major and lesser countries, and great power rivalry – increasingly resembles Europe a century ago,” he said.
China’s rising power “put(s) it on a collision course with” America. Much like Anglo/German antagonism launched WW I.


Experts believe Washington’s dual containment policy binds Russia and China closer together. At the same time, it risks possible WW III.


Allied with Moscow, Beijing has greater security and access to Russia’s vast resources. United, they “could have Central Asia (and) Mongolia to themselves, effectively shutting out all external powers from the heart of Eurasia.”
“An alliance with Moscow would also put Russia’s military-industrial complex and its vast military infrastructure in Eurasia at Beijing’s service. What might ultimately emerge is a Eurasian league, which, in controlling the continental heartland, would be reminiscent of the Central Powers alliance formed in the middle of Europe by Imperial Germany and the Habsburg empire.”
Washington and other Western nations underestimate the potential for Sino/Russian entente, Lukin believes.  Both countries need each other. They face a common foe. America’s hegemonic ambitions threaten them.
Washington’s Ukraine policy draws them closer together. Lukin calls it “a tipping point, sealing the fate of Eurasian alignments.”  Putin and Xi comprise a “formidable force.” They’ll be around a long time. In 2018, Putin is likely to win reelection. Xi will maintain power until 2022. Perhaps longer as “paramount leader.”
US unipolarity is waning. New order “contours” are taking shape. It remains to be seen how they develop. Will they reflect multipolarity or East/West hostile alliances? Two “grand” ones preceded WW I.
US-led NATO comprises one today. Washington’s dual containment policy forces Russia and China to form an anti-Western counterweight. They’ve done so with BRICS countries Brazil, India and South Africa, the Shanghai Cooperation Organization (SCO), some G20 countries and Non-Aligned Movement (SCO) ones.

US:NATOattack-syria-PUTINcriticizesOba

“In return, however, we have seen various reservations and attempts to interfere in our domestic affairs.” (click to expand)

At issue is forgetting history’s lessons. Repeating its mistakes may follow. Not because of Sino/Russian policy. US hegemonic ambitions risk the unthinkable.

Putin hopes for better Moscow/Washington relations. He wants potential confrontation avoided. “(O)ur aim has always been to build open partnership relations with the United States.” he said.  “In return, however, we have seen various reservations and attempts to interfere in our domestic affairs.”
“Everything that has happened since the beginning of this year is even more disturbing.”
“Washington actively supported the Maidan protests, and when its Kiev henchmen antagonized a large part of Ukraine through rabid nationalism and plunged the country into a civil war. It blamed Russia for provoking the crisis.”
“Now President Barack Obama in his speech at the UN General Assembly named ‘Russian aggression in Europe’ as one of the three major threats facing humanity today alongside with the deadly Ebola virus and the Islamic State.”
“Together with the sanctions against entire sectors of our economy, this approach can be called nothing but hostile.”
“The United States went so far as to declare the suspension of our cooperation in space exploration and nuclear energy.”
“They also suspended the activity of the Russia-US Bilateral Presidential Commission established in 2009, which comprised 21 working groups dedicated, among other things, to combating terrorism and drug trafficking.”
“At the same time, this is not the first downturn in relations between our countries.”
“We hope that our partners will realize the futility of attempts to blackmail Russia and remember what consequences discord between major nuclear powers could bring for strategic stability.”
“For our part, we are ready to develop constructive cooperation based on the principles of equality and genuine respect for each other’s interests.”
A previous article discussed strengthening Sino/Russian ties. Western policies draw both countries closer together. For security and trade.
A separate article discussed their hugely important gas deal. Worth about $400 billion over 30 years.
It’s Gazprom’s largest deal ever. No other contractual arrangement approaches it. No other bilateral one anywhere.
Russia will supply China with around 38 billion cubic million meters of natural gas annually. For the next 30 years.
Potentially it could nearly double in size. Depending on China’s future needs.
Both countries are natural partners. They pledged stronger economic and financial ties.
Wider-ranging cooperation. Increasingly trading in their own currencies.
Bypassing dollar transactions. Weakening it in the process. At the time, other key trade deals were agreed on.
In technological, industrial, and commercial sectors. In military hardware.
Growing Sino/Russian trade lessens reliance on increasingly undependable Western sources. China is Russia’s leading foreign trade partner.
A Sino/Russian Investment Committee was established. Its purpose is expanding economic and financial ties.
Diversifying trade. Reducing dependence on global economic conditions.
Promoting cooperation in technology-intensive areas. Including industrial, commercial, banking and military ones.
They’re increasing bilateral ruble/renminbi trade. It bears repeating. Doing so bypasses dollar hegemony. Weakening its reserve status strength over time.
Eventually perhaps ending it. Money printing madness defeats it. So does America’s drive for world dominance.
By yearend, China will surpass America as the world’s top economy. Based on purchasing power parity (PPP). What a representative basket of goods in one country costs v. another.
The speed of its growth is remarkable. Analysts call it one of the greatest success stories in modern times.
As recently as 2005, its economy was less than half the size of America’s.
By 2019, IMF economists expect it to be 20% larger based on PPP. Its phenomenon reflects overall emerging market growth v. developed ones.
In 2007, they accounted for around half of global output. It’s now about 57% and rising.
By the 2020s, it may approach, reach or surpass two-thirds. Since 2007, it’s ninefold what developed nations achieved.
China’s growth is polar opposite America’s. It’s gaining at the expense of its Western rival. It benefits from closer Russian ties.
On October 9, Itar Tass headlined “China plans to sign about 50 agreements with Russia.” In aviation, energy, finance, innovations and infrastructure development.
According to Chinese Foreign Minister Cheng Guoping, both countries will sign dozens of inter-governmental, inter-departmental and corporate documents on different aspects of bilateral cooperation.
From October 12 – 14, Chinese State Council Prime Minister Li Keqiang visited Moscow. His first time ever.
Promoting “stronger political trust, higher mutual support between Russia and China in the field of sovereignty and territorial integrity,” according to Cheng.
Beijing intends “build(ing) up practical cooperation with Russia in aviation and space, energy, high-speed railways, finance, innovations and projects for infrastructure development,” he added.
It’ll “develop humanitarian exchanges, particularly during the Year of Youth Exchanges between Russia and China, as well as joint preparation for celebrations on the occasion of the 70th anniversary of the Victory in World War II in 2015.”
It “intends to expand cooperation with Russia on international issues.” During Li’s visit, energy cooperation will be stressed.
According to Cheng, “(g)as cooperation is an important aspect of Russian-Chinese energy cooperation.”
Beijing and Moscow “are working closely on creating” an alternative route for Russian gas to China.
On September 1, Putin and Chinese Vice Premier Zhang Gaoli launched construction of Gazprom’s Power of Siberia (PoS) pipeline.
It’s hugely important. When completed, it’ll deliver around four trillion cubic meters of gas to China over the next 30 years.
Perhaps double that amount depending on Beijing’s future needs. According to Putin:
“The new gas branch will significantly strengthen the economic cooperation with countries in the Asia-Pacific region and above all – our key partner China.”
PoS will extend 3,968 km when completed. It’ll link eastern Siberian gas fields to China. It’ll be the world’s longest fuel transmission network.
It’s one of the world’s largest construction projects. It’s estimated to cost over $70 billion. It’s a vital investment for both countries.
In his opening remarks, Putin said it’ll “increase energy security and ensure Russia’s ability to fulfill (its) export obligations.”
It’s expected to begin operating in 2019. Siberian gas will supply China’s Northeast and Russia’s Far East. In 2015, China will begin construction on its end.
“Once we create a gas pipeline network here in the Far East and Siberia, we will be able to connect the European pipeline system to the East,” said Putin.
“And this, in terms of export opportunities and expanding Russia’s ‘gasification,’ is very beneficial.”
“Depending on the situation in world markets, we can more effectively implement gas flows – either more to the West or to the East.”
“We generally take a very careful approach to the approval of our foreign partners, but of course, for our Chinese friends there are no restrictions.”
Their relationship is hugely important for both nations. It promises to strengthen over time.
Stephen Lendman lives in Chicago. He can be reached at lendmanstephen@sbcglobal.net.
His new book as editor and contributor is titled “Flashpoint in Ukraine: US Drive for Hegemony Risks WW III.”
http://www.claritypress.com/LendmanIII.html
Visit his blog site at sjlendman.blogspot.com.
Listen to cutting-edge discussions with distinguished guests on the Progressive Radio News Hour on the Progressive Radio Network.

 

It airs three times weekly: live on Sundays at 1PM Central time plus two prerecorded archived programs.

 

 


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Pepe Escobar: New Silk Roads and an Alternate Eurasian Century

Please make sure these dispatches reach as many readers as possible. Share with kin, friends and workmates and ask them to do likewise.

Tomgram: 
Can China and Russia Squeeze Washington Out of Eurasia? 

 A grand military spectacle was staged in Beijing on October 1, 1999 to celebrate the 50th anniversary of the founding of the People's Republic of China (P.R.C.).

A grand military spectacle was staged in Beijing on October 1, 1999 to celebrate the 50th anniversary of the founding of the People's Republic of China (P.R.C.). Today's military capabilities are far more advanced, albeit still no match to those of the Big Bully.



[dropcap]D[/dropcap]uring Iraq War II (2003-2011), I used to imagine that the Chinese leadership would gather weekly in the streets of the Forbidden City, singing and dancing to celebrate American idiocy.  Year after year, when the U.S. might have faced off against a rising China, as its leaders had long had the urge to do, it was thoroughly distracted by its disastrous invasion and occupation of Iraq.  I can't help but think that, with a bombing campaign revving up in Iraq and now Syria, the boots of 1,600 military personnel ever closer to the ground, and talk of more to come, with Iraq War III (2014-date unknown) predicted to go on for years, they are once again rejoicing.  For all the talk in recent years about the Obama administration's military “pivot” to Asia, there can be no question that its latest Middle Eastern campaign will put a crimp on its Pacific “containment” planning.

In the meantime, the mood in China has clearly been changing as well.  As Orville Schell wrote recently, after a contentious visit to Beijing by 90-year-old Jimmy Carter, the president who more than 30 years ago sponsored a full-scale American rapprochement with the new capitalist version of Communist China:

“In short, what used to be referred to as ‘the West’ now finds itself confronted by an increasingly intractable situation in which the power balance is changing, a fact that few have yet quite cared to acknowledge, much less to factor into new formulations for approaching China. We remain nostalgic for those quaint days when Chinese leaders still followed Deng [Xiaoping's] admonition to his people to ‘hide our capacities and bide our time’ (taoguang yanghui). What he meant in using this ‘idiom’ (chengyu) was not that China should be eternally restrained but that the time to manifest its global ambition had not yet come. Now that it is stronger, however, its leaders appear to believe that their time has at last come and they are no longer willing even to press the comforting notion of ‘peaceful rise’ (heping jueqi).”

Demonstrators being removed.

China "democracy" activists being removed. Many are genuine and well intentioned but tools of the West, nonetheless. | click to enlarge

At the moment, of course, the Chinese have their own internal problems, ranging from an economy that might be bubblicious to an Islamic separatist movement in the backlands of Xinjiang Province and the latest Occupy movement making waves in that modernistic Asian financial hub Hong Kong.  Nonetheless, go to Beijing and the world looks like a different place.  Pepe Escobar, TomDispatch’s peripatetic wanderer on the Eurasian mainland, which he’s dubbed Pipelineistan, has done just that.  He's also visited other spots along the future “new Silk Roads” that China wants to establish all the way to Western Europe.  He offers a vision of a different Eurasian world than the one reflected in news reports in this country.  If you want to understand the planet we may actually be living on in the near future, it couldn’t be more important to take it in. Tom

The Future of a Beijing-Moscow-Berlin Alliance 
By Pepe Escobar

A specter haunts the fast-aging “New American Century”: the possibility of a future Beijing-Moscow-Berlin strategic trade and commercial alliance. Let’s call it the BMB.

One of China's new warships.

One of China's new warships. | click to enlarge

Its likelihood is being seriously discussed at the highest levels in Beijing and Moscow, and viewed with interest in Berlin, New Delhi, and Tehran. But don’t mention it inside Washington’s Beltway or at NATO headquarters in Brussels. There, the star of the show today and tomorrow is the new Osama bin Laden: Caliph Ibrahim, aka Abu Bakr al-Baghdadi, the elusive, self-appointed beheading prophet of a new mini-state and movement that has provided an acronym feast -- ISIS/ISIL/IS -- for hysterics in Washington and elsewhere.

No matter how often Washington remixes its Global War on Terror, however, the tectonic plates of Eurasian geopolitics continue to shift, and they’re not going to stop just because American elites refuse to accept that their historically brief “unipolar moment” is on the wane.  For them, the closing of the era of “full spectrum dominance,” as the Pentagon likes to call it, is inconceivable.  After all, the necessity for the indispensable nation to control all space -- military, economic, cultural, cyber, and outer -- is little short of a religious doctrine.  Exceptionalist missionaries don’t do equality. At best, they do “coalitions of the willing” like the one crammed with “over 40 countries” assembled to fight ISIS/ISIL/IS and either applauding (and plotting) from the sidelines or sending the odd plane or two toward Iraq or Syria.

NATO, which unlike some of its members won’t officially fight Jihadistan, remains a top-down outfit controlled by Washington. It’s never fully bothered to take in the European Union (EU) or considered allowing Russia to “feel” European. As for the Caliph, he’s just a minor diversion. A postmodern cynic might even contend that he was an emissary sent onto the global playing field by China and Russia to take the eye of the planet’s hyperpower off the ball.

Divide and Isolate

So how does full spectrum dominance apply when two actual competitor powers, Russia and China, begin to make their presences felt?  Washington’s approach to each -- in Ukraine and in Asian waters -- might be thought of as divide and isolate.

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In order to keep the Pacific Ocean as a classic “American lake,” the Obama administration has been “pivoting” back to Asia for several years now. This has involved only modest military moves, but an immodest attempt to pit Chinese nationalism against the Japanese variety, while strengthening alliances and relations across Southeast Asia with a focus on South China Sea energy disputes. At the same time, it has moved to lock a future trade agreement, the Trans-Pacific Partnership (TPP), in place.

In Russia’s western borderlands, the Obama administration has stoked the embers of regime change in Kiev into flames (fanned by local cheerleaders Poland and the Baltic nations) and into what clearly looked, to Vladimir Putin and Russia’s leadership, like an existential threat to Moscow. Unlike the U.S., whose sphere of influence (and military bases) are global, Russia was not to retain any significant influence in its former near abroad, which, when it comes to Kiev, is not for most Russians, “abroad” at all.

For Moscow, it seemed as if Washington and its NATO allies were increasingly interested in imposing a new Iron Curtain on their country from the Baltic to the Black Sea, with Ukraine simply as the tip of the spear. In BMB terms, think of it as an attempt to isolate Russia and impose a new barrier to relations with Germany. The ultimate aim would be to split Eurasia, preventing future moves toward trade and commercial integration via a process not controlled through Washington.

From Beijing’s point of view, the Ukraine crisis was a case of Washington crossing every imaginable red line to harass and isolate Russia. To its leaders, this looks like a concerted attempt to destabilize the region in ways favorable to American interests, supported by a full range of Washington’s elite from neocons and Cold War “liberals” to humanitarian interventionists in the Susan Rice and Samantha Power mold.  Of course, if you’ve been following the Ukraine crisis from Washington, such perspectives seem as alien as any those of any Martian.  But the world looks different from the heart of Eurasia than it does from Washington -- especially from a rising China with its newly minted “Chinese dream” (Zhongguo meng).

As laid out by President Xi Jinping, that dream would include a future network of Chinese-organized new Silk Roads that would create the equivalent of a Trans-Asian Express for Eurasian commerce. So if Beijing, for instance, feels pressure from Washington and Tokyo on the naval front, part of its response is a two-pronged, trade-based advance across the Eurasian landmass, one prong via Siberia and the other through the Central Asian “stans.”

In this sense, though you wouldn’t know it if you only followed the American media or “debates” in Washington, we’re potentially entering a new world.  Once upon a time not so long ago, Beijing’s leadership was flirting with the idea of rewriting the geopolitical/economic game side by side with the U.S., while Putin’s Moscow hinted at the possibility of someday joining NATO. No longer. Today, the part of the West that both countries are interested in is a possible future Germany no longer dominated by American power and Washington’s wishes.

Moscow has, in fact, been involved in no less than half a century of strategic dialogue with Berlin that has included industrial cooperation and increasing energy interdependence. In many quarters of the Global South this has been noted and Germany is starting to be viewed as “the sixth BRICS” power (after Brazil, Russia, India, China, and South Africa).

In the midst of global crises ranging from Syria to Ukraine, Berlin’s geostrategic interests seem to be slowly diverging from Washington’s. German industrialists, in particular, appear eager to pursue unlimited commercial deals with Russia and China.  These might set their country on a path to global power unlimited by the EU’s borders and, in the long term, signal the end of the era in which Germany, however politely dealt with, was essentially an American satellite.

It will be a long and winding road. The Bundestag, Germany’s parliament, is still addicted to a strong Atlanticist agenda and a preemptive obedience to Washington. There are still tens of thousands of American soldiers on German soil. Yet, for the first time, German chancellor Angela Merkel has been hesitating when it comes to imposing ever-heavier sanctions on Russia over the situation in Ukraine, because no fewer than 300,000 German jobs depend on relations with that country. Industrial leaders and the financial establishment have already sounded the alarm, fearing such sanctions would be totally counterproductive.

China’s Silk Road Banquet

China’s new geopolitical power play in Eurasia has few parallels in modern history. The days when the “Little Helmsman” Deng Xiaoping insisted that the country “keep a low profile” on the global stage are long gone. Of course, there are disagreements and conflicting strategies when it comes to managing the country’s hot spots: Taiwan, Hong Kong, Tibet, Xinjiang, the South China Sea, competitors India and Japan, and problematic allies like North Korea and Pakistan. And popular unrest in some Beijing-dominated “peripheries” is growing to incendiary levels.

The country’s number one priority remains domestic and focused on carrying out President Xi’s economic reforms, while increasing “transparency” and fighting corruption within the ruling Communist Party. A distant second is the question of how to progressively hedge against the Pentagon’s “pivot” plans in the region -- via the build-up of a blue-water navy, nuclear submarines, and a technologically advanced air force -- without getting so assertive as to freak out Washington’s “China threat”-minded establishment.

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Party leader reviewing honor guard. | click to enlarge

Meanwhile, with the U.S. Navy controlling global sea lanes for the foreseeable future, planning for those new Silk Roads across Eurasia is proceeding apace. The end result should prove a triumph of integrated infrastructure -- roads, high-speed rail, pipelines, ports -- that will connect China to Western Europe and the Mediterranean Sea, the old Roman imperial Mare Nostrum, in every imaginable way.

In a reverse Marco Polo-style journey, remixed for the Google world, one key Silk Road branch will go from the former imperial capital Xian to Urumqi in Xinjiang Province, then through Central Asia, Iran, Iraq, and Turkey’s Anatolia, ending in Venice. Another will be a maritime Silk Road starting from Fujian province and going through the Malacca strait, the Indian Ocean, Nairobi in Kenya, and finally all the way to the Mediterranean via the Suez canal. Taken together, it’s what Beijing refers to as the Silk Road Economic Belt.

China’s strategy is to create a network of interconnections among no less than five key regions: Russia (the key bridge between Asia and Europe), the Central Asian “stans,” Southwest Asia (with major roles for Iran, Iraq, Syria, Saudi Arabia, and Turkey), the Caucasus, and Eastern Europe (including Belarus, Moldova, and depending upon its stability, Ukraine). And don’t forget Afghanistan, Pakistan, and India, which could be thought of as Silk Road plus.

Silk Road plus would involve connecting the Bangladesh-China-India-Myanmar economic corridor to the China-Pakistan economic corridor, and could offer Beijing privileged access to the Indian Ocean. Once again, a total package -- roads, high-speed rail, pipelines, and fiber optic networks -- would link the region to China.

Xi himself put the India-China connection in a neat package of images in an op-ed he published in the Hindu prior to his recent visit to New Delhi. “The combination of the ‘world’s factory’ and the ‘world’s back office,’” he wrote, “will produce the most competitive production base and the most attractive consumer market.”

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The Red flag still flies, and its meaning may return. click to enlarge

The central node of China’s elaborate planning for the Eurasian future is Urumqi, the capital of Xinjiang Province and the site of the largest commercial fair in Central Asia, the China-Eurasia Fair. Since 2000, one of Beijing’s top priorities has been to urbanize that largely desert but oil-rich province and industrialize it, whatever it takes. And what it takes, as Beijing sees it, is the hardcore Sinicization of the region -- with its corollary, the suppression of any possibility of ethnic Uighur dissent.  People’s Liberation Army General Li Yazhou has, in these terms, described Central Asia as “the most subtle slice of cake donated by the sky to modern China.”

Most of China’s vision of a new Eurasia tied to Beijing by every form of transport and communication was vividly detailed in “Marching Westwards: The Rebalancing of China’s Geostrategy,” a landmark 2012 essay published by scholar Wang Jisi of the Center of International and Strategic Studies at Beijing University. As a response to such a future set of Eurasian connections, the best the Obama administration has come up with is a version of naval containment from the Indian Ocean to the South China Sea, while sharpening conflicts with and strategic alliances around China from Japan to India. (NATO is, of course, left with the task of containing Russia in Eastern Europe.)


An Iron Curtain vs. Silk Roads

The $400 billion “gas deal of the century,” signed by Putin and the Chinese president last May, laid the groundwork for the building of the Power of Siberia pipeline, already under construction in Yakutsk.  It will bring a flood of Russian natural gas onto the Chinese market.  It clearly represents just the beginning of a turbocharged, energy-based strategic alliance between the two countries. Meanwhile, German businessmen and industrialists have been noting another emerging reality: as much as the final market for made-in-China products traveling on future new Silk Roads will be Europe, the reverse also applies. In one possible commercial future, China is slated to become Germany’s top trading partner by 2018, surging ahead of both the U.S. and France.

A potential barrier to such developments, welcomed in Washington, is Cold War 2.0, which is already tearing not NATO, but the EU apart. In the EU of this moment, the anti-Russian camp includes Great Britain, Sweden, Poland, Romania, and the Baltic nations. Italy and Hungary, on the other hand, can be counted in the pro-Russian camp, while a still unpredictable Germany is the key to whether the future will hold a new Iron Curtain or “Go East” mindset.  For this, Ukraine remains the key.  If it is successfully Finlandized (with significant autonomy for its regions), as Moscow has been proposing -- a suggestion that is anathema to Washington -- the Go-East path will remain open. If not, a BMB future will be a dicier proposition.

It should be noted that another vision of the Eurasian economic future is also on the horizon.  Washington is attempting to impose a Transatlantic Trade and Investment Partnership (TTIP) on Europe and a similar Trans-Pacific Partnership (TPP) on Asia.  Both favor globalizing American corporations and their aim is visibly to impede the ascent of the BRICS economies and the rise of other emerging markets, while solidifying American global economic hegemony.

Two stark facts, carefully noted in Moscow, Beijing, and Berlin, suggest the hardcore geopolitics behind these two “commercial” pacts. The TPP excludes China and the TTIP excludes Russia. They represent, that is, the barely disguised sinews of a future trade/monetary war.  On my own recent travels, I have had quality agricultural producers in Spain, Italy, and France repeatedly tell me that TTIP is nothing but an economic version of NATO, the military alliance that China’s Xi Jinping calls, perhaps wishfully, an “obsolete structure.”

There is significant resistance to the TTIP among many EU nations (especially in the Club Med countries of southern Europe), as there is against the TPP among Asian nations (especially Japan and Malaysia).  It is this that gives the Chinese and the Russians hope for their new Silk Roads and a new style of trade across the Eurasian heartland backed by a Russian-supported Eurasian Union. To this, key figures in German business and industrial circles, for whom relations with Russia remain essential, are paying close attention.

After all, Berlin has not shown overwhelming concern for the rest of the crisis-ridden EU (three recessions in five years). Via a much-despised troika -- the European Central Bank, the International Monetary Fund, and the European Commission -- Berlin is, for all practical purposes, already at the helm of Europe, thriving, and looking east for more.

Three months ago, German chancellor Angela Merkel visited Beijing. Hardly featured in the news was the political acceleration of a potentially groundbreaking project: an uninterrupted high-speed rail connection between Beijing and Berlin. When finally built, it will prove a transportation and trade magnet for dozens of nations along its route from Asia to Europe. Passing through Moscow, it could become the ultimate Silk Road integrator for Europe and perhaps the ultimate nightmare for Washington.

“Losing” Russia

In a blaze of media attention, the recent NATO summit in Wales yielded only a modest “rapid reaction force” for deployment in any future Ukraine-like situations. Meanwhile, the expanding Shanghai Cooperation Organization (SCO), a possible Asian counterpart to NATO, met in Dushanbe, Tajikistan. In Washington and Western Europe essentially no one noticed.  They should have. There, China, Russia, and four Central Asian “stans” agreed to add an impressive set of new members: India, Pakistan, and Iran.  The implications could be far-reaching. After all, India under Prime Minister Narendra Modi is now on the brink of its own version of Silk Road mania. Behind it lies the possibility of a “Chindia” economic rapprochement, which could change the Eurasian geopolitical map. At the same time, Iran is also being woven into the “Chindia” fold.

So the SCO is slowly but surely shaping up as the most important international organization in Asia.  It’s already clear that one of its key long-term objectives will be to stop trading in U.S. dollars, while advancing the use of the petroyuan and petroruble in the energy trade. The U.S., of course, will never be welcomed into the organization.

All of this lies in the future, however.  In the present, the Kremlin keeps signaling that it once again wants to start talking with Washington, while Beijing has never wanted to stop. Yet the Obama administration remains myopically embedded in its own version of a zero-sum game, relying on its technological and military might to maintain an advantageous position in Eurasia.  Beijing, however, has access to markets and loads of cash, while Moscow has loads of energy. Triangular cooperation between Washington, Beijing, and Moscow would undoubtedly be -- as the Chinese would say -- a win-win-win game, but don’t hold your breath.

Instead, expect China and Russia to deepen their strategic partnership, while pulling in other Eurasian regional powers. Beijing has bet the farm that the U.S./NATO confrontation with Russia over Ukraine will leave Vladimir Putin turning east. At the same time, Moscow is carefully calibrating what its ongoing reorientation toward such an economic powerhouse will mean. Someday, it’s possible that voices of sanity in Washington will be wondering aloud how the U.S. “lost” Russia to China.

In the meantime, think of China as a magnet for a new world order in a future Eurasian century.  The same integration process Russia is facing, for instance, seems increasingly to apply to India and other Eurasian nations, and possibly sooner or later to a neutral Germany as well. In the endgame of such a process, the U.S. might find itself progressively squeezed out of Eurasia, with the BMB emerging as a game-changer. Place your bets soon.  They’ll be called in by 2025.


About the author(s)
Pepe Escobar is the roving correspondent for Asia Times/Hong Kong, an analyst for RT, and a TomDispatch regular. His new book, Empire of Chaos, will be published in November by Nimble Books. Follow him on Facebook.  Follow TomDispatch on Twitter and join us on Facebook. Check out the newest Dispatch Book, Rebecca Solnit's Men Explain Things to Me.

Copyright 2014 Pepe Escobar




Crowning the Dragon: World’s Top Economy

Stephen Lendman

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[I]t was just a matter of time before China surpassed America as the world’s leading economy based on purchasing power parity (PPP).  It’s an exchange rate between currencies measured by the cost of a representative basket of goods in one country v. another.

Surprisingly, China’s growth happened faster than experts expected. In 2011, IMF economists estimated it would overtake America in 2016.  At the time, they projected its PPP GDP at $18,975.7 trillion v. $18,807.5 trillion for America.

They now estimate America’s 2014 PPP GDP at $17.4 trillion v. $17.6 trillion for China. The speed of China’s growth is remarkable. As recently as 2005, its economy was less than half the size of America’s.

READ EDITOR’S NOTE BELOW. CLICK THE SHADED BAR  down-arrowBlue


 [learn_more caption=”China’s economic growth may be a success story, but hold the champagne.”] The desirability of such an economic stance has been discussed now for decades, including among bourgeois economists who clearly see the limits and costs of (but do not sufficiently criticize) the capitalist approach to the good society. As the Wiki somewhat mildly notes,

Development of steady state economics (sometimes also called full-world economics) is a response to the observation that economic growth has limits. Macroeconomic policies in most countries, particularly those with large economies as measured on a GDP scale, typically have been officially structured for economic growth for decades.[3] Given the costs associated with such policies (e.g., global climate disruption, widespread habitat loss and species extinctions, consumption of natural resources, pollution, urban congestion, intensifying competition for remaining resources, and increasing disparity between the wealthy and the poor), some economists, scientists, and philosophers have questioned the biophysical limits to growth, and the desirability of continuous growth.

In sum, China, after taking care of her self-defense needs in regard to her sovereignty, should lead in the establishment of a new type of economic system, one radically different from the destructive and ultimately unviable capitalist way.—P. Greanville[/learn_more]


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By 2019, IMF economists expect it to be 20% larger based on PPP. Its phenomenon reflects overall emerging market growth v. developed ones. In 2007, they accounted for around half of global output. It’s now about 57% and rising. By the 2020s, it may approach, reach or surpass two-thirds.

Overall emerging market growth is extraordinary by any standard. Since 2007, it’s ninefold what developed nations achieved.  Analysts call China’s growth over the past three and a half decades one of the greatest success stories in modern times.

It began in 1979 when Deng Xiaoping introduced economic reforms. He famously said: “Black cat, white cat. What does it matter what color (it) is as long as it catches mice.” The Congressional Budget Office (CBO) estimates China’s real GDP grew 19-fold in real terms from 1980 to 2011. Real per capital GDP increased 14-fold.

An estimated 500 million people were elevated out of poverty. Beginning in 1979, farmers got price and ownership incentives to sell crops freely on their own.  At the same time, special economic zones were created to attract foreign investment, boost exports and attract high technology. Tax and trade incentives were offered.


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China’s Hi Speed Rail system is among the fastest and best in the world. America’s rails —by comparison—are an international embarrassment.

Other reforms followed in stages. Economic policymaking was decentralized in several sectors. Especially trade. Provincial and local governments got economic control of various enterprises. Based on free market principles rather than central planning state control. Citizens were encouraged to establish businesses. Central regions and cities were designated open ones and development zones.

Doing so let enterprises experiment with free market reforms. Tax and other incentives were offered. Price controls on many products were gradually eliminated. Official policy aimed to identify ways to achieve maximum growth.

Deng called the process “crossing the river by touching the stones.” Economic crisis beginning in late 2007 impacted China greatly. Its GDP fell from 14.2% in 2008 to 9.2% in 2009.

In response, significant economic stimulus was introduced. So was expansive monetary policy. Domestic investment and consumption increased. Sharp slowdown was avoided.

In 2010, real Chinese GDP grew 10.4%. In 2011, it was 9.2%. In 2012, 7.8%. In 2013, 7.7%.

Industrial Bank in Shanghai chief economist Lu Zhengwei says “(i)t’s like Chinese medicine. If you don’t take it, you may have problems in the future.”

“But if you take it now, you cannot expect to regain your youth tomorrow.”

After three and a half decades of extraordinary growth, Beijing wants more sustainable higher-quality development instead.

Achieving it requires letting business have more say in allocating resources. It involves promoting greater domestic consumption at the expense of investments and exports.


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The MagLev wind turbine, which was first unveiled at the Wind Power Asia exhibition in Beijing, is expected to take wind power technology to the next level with magnetic levitation.

At the same time, China’s economy is heavily dependent on growth. In 2013, capital formation accounted for 54% of it.

It exceeded consumption’s 50%. Net exports detracted 4.4% from overall growth.

Economist Tim Condon said he didn’t “see any evidence of a rebalancing last year.” Yet Beijing wants investment reined in.

In 2013, China’s fixed-asset investment grew 19.6%. It was the smallest increase in the past decade. It was slightly below a projected 19.8% rise.  At the same time, $3 trillion in debt accumulated. Head of China’s statistics bureau Ma Jiantang calls it vital to check.

“In 2014, I believe reforms will continue to be a key driving force for economic growth,” he said. Slowdown to a sustainable level is vital. Better-quality development can follow. Changes can be instituted gradually. Without concern for inadequate job growth or perhaps losses at times.

Beijing will have more latitude to stabilize monetary policy. Risky lending can be curbed. According to IHS Global Insight chief China economist Brian Jackson:

“On the whole, the Chinese economy is performing well through its adjustment phase.”

Concerns about too much growth through transition to what’s more sustainable are unfounded, he believes. Average growth targets issued by 22 of China’s 31 local governments show downward revisions by nearly 1%.  At the same time, China’s key commercial centers’ growth is mostly stable. Overall growth is declining modestly.

Reforms take time to produce results. China performed remarkably for decades. Economists expect continued strong results ahead. At a more sustainable level. Analysts attribute China’s growth to large-scale domestic and foreign investment, as well as impressive productivity gains. Economic reforms produced higher efficiency. Output was boosted. Increased resources became available for additional investment.

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China historically maintained high savings. In !979, they were 32% of GDP. Economic reforms produced substantial household savings growth as well as corporate savings. As a percent of GDP, they reached 53.9% in 2010 compared to America’s 9.3%. High-level Chinese savings permit greater domestic investment.

Its gross domestic savings level far exceeds what’s needed for internal needs. China is a large net global lender. Productivity gains enabled greater economic growth. Especially in agriculture, trade, services and other formerly controlled government sectors.

By any standard, China’s growth over the past three and half decades has been extraordinary. It was just a matter of time before it became the world’s largest economy. Currently on a PPP basis. Ahead based on GDP by any measure. The dragon is No. One. It intends staying there and then some.

In contrast, IMF World Economic Outlook (WEO) data show world economic conditions “in the middle of a balancing act.”

“On the one hand, countries must address the legacies of the global financial crisis, ranging from debt overhangs to high unemployment,” said WEO. On the other, they face a cloudy future. Potential growth rates are being revised downward, and these worsened prospects are in turn affecting confidence, demand, and growth today.”

Crisis conditions since 2008 proved tougher to resolve than expected, IMF economists say. Interplay of negative forces caused downward growth revisions over the past three years. From 5.3% to 3.3% and heading south. Things are no different now. WEO data suggest “mediocre” growth ahead. Worse than forecast in July.

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At the same time, forces operate differently in various countries. Global economic evolution is more “differentiated” than earlier. Central bank money printing madness keeps America and EU economies from collapsing. What can’t go on forever won’t.  Free lunches last only so long. Day of reckoning time approaches. It won’t be pretty when it arrives. Irresponsible monetary policy prevents stimulative growth. Central bank governors pursue what never worked before sustainably.

Economic numbers are rigged to conceal it. Real growth requires dropping money on Main Street. Noted investor/philosopher king Jeremy Grantham bashes Fed policy justifiably. In an earlier commentary, he highlighted “runaway commodities, (zombi) banks back to life, homes destroyed, families evicted, and currency wars.”

He blamed Bernanke. “If I were a benevolent dictator,” he said, he’d limit Fed policy solely to maintaining price stability. He’d make sure the economy got enough liquidity to function normally. He’d “force (Fed governors) to swear off manipulating asset prices through artificially low rates and asymmetric promises.”

He referred to the Greenspan/Bernanke put. He’d eliminate “immoral hazard.” It’s immoral behavior, he said. It’s outsized excess. It’s grand theft. It bails out large banks, other financial giants and large investors. Doing so encourages imprudent risks. Winning is guaranteed. Regulatory checks are absent. Anything goes is policy.

Things persist irresponsibly. They do so “under the guise of ‘saving the system,’ ” said Grantham. Money manipulators have things their way. Monied interests control Western central bank policies. They’re served at the expense of popular ones. America’s economy is deplorable. Claims otherwise are false.

It bears repeating. Numbers are rigged to conceal house of cards conditions. They’re worsening, not improving. Virtually all global assets are overpriced. Bubble conditions exist. Grantham compared them to Einstein’s definition of insanity. The madness of repeating the same mistakes. Expecting a different outcome doesn’t work.

Last year, Grantham compared Fed policy to beating a donkey. He called it the 1% growing economy. “(H)e keeps beating it until it either turns into a horse or drops dead from too much beating,” he said. “We’ve been conned.” We’re manipulated to believe “debt is everything.” In 1982, it was one-and-a-quarter times GDP.

It’s more than triple that amount now. It has nothing to do with long-term growth. It’s an “accounting world. It’s paper,” said Grantham. “The real world is the quantity and quality of your people, and the quality and quantity of capital spending.”

“Are you building new machines? Are you being inventive?” Are you educating a new generation properly? “We’re in this death grip that only paper things matter.” Vital issues go unaddressed. Wealth is transferred upward. From most people to rich ones.

To Wall Street, not Main Street. Interest rates are outrageously low. Practically zero. Speculators benefit. Ordinary people lose out. Retirees lose vital income. Financial interests are served at the expense of the real economy.

Former Reagan budget director David Stockman said money printing madness and bailouts reflct the “most shameful chapter in American financial history.”

It’s grand theft by any measure. It wrecked the economy to benefit Wall Street, other corporate favorites and rich elites. It let popular needs go begging. It’s self-defeating. Protracted Main Street Depression conditions persist. Hard times keep getting harder. America once was sustainably prosperous. Today it’s in decline.

It’s thirdworldized. Outrageously corrupted. More kleptocracy than democracy. It’s unsustainable and then some. Money power in private hands doesn’t work. It’s been this way for over a century. Banker-controlled Fed policy loots America. It’s responsible for deplorable conditions. They include:

  • unsustainable consumer debt;
  • record budget and trade deficits;
  • out-of-control national debt;
  • record numbers of personal and business bankruptcies;
  • millions of home foreclosures;
  • depression level unemployment, poverty, homelessness and hunger;
  • an unprecedented wealth gap between rich elites and ordinary Americans; and
  • a hugely unstable economy lurching from one crisis to another.

A 1913 dollar isn’t worth a plug nickel today. At best about two or three cents. Wall Street planned it this way. It profits at the expense of ordinary Americans. It’s high time things changed. It’s more than ever vital to put money back in public hands where it belongs. It’s an idea whose time has come.


ABOUT THE AUTHOR

http://www.claritypress.com/LendmanIII.html

Visit his blog site at sjlendman.blogspot.com.

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