By New Silk Strategies staff
None of this US manipulation was, of course, based on anything resembling sound economic principles or natural market forces. In the past, even the US would probably not have stooped so low as to hold a proverbial gun to the customer’s head to force a sale. The government was at least somewhat constrained by a semblance of ethical principles.
There are two glaring examples of how the US resisted growing its economy on sound principles, blocked from doing so by a failed ideology.
First, in the Obama administration, China offered to all interested parties a chance to enter its Asian Infrastructure Investment Bank (AIIB) from the ground floor, as the vast majority of US allies did (despite Obama’s dire warning not to). This was based on the Chinese principle of fairness to all involved – the disarmingly simple essence of Chinese business policies since the dawn of time. Call it Confucianism, call it Chineseness, but whatever, this policy is part and policy of Chinese culture and the secret of Chinese business success. It is the diametric opposite of the now typical Western approach of cheating and lying one’s way to success – a formula that can be called financialisation of the economy. Economy and finance used to be two separate realms. Not any more, not in the West. This is the approach that gave the world the real estate bubble and the attendant Great Recession. Today it has degenerated further into the casino-isation of Wall Street, where economic growth is based on a gross overvaluation of stocks. There is no way this manipulation can be called economic growth, put bread on US tables or generate jobs. The resulting deflation of the dollar has only succeeded in creating more millionaires holding rapidly deflating portfolios.
If the US had joined the AIIB, it would have been able to cash in on the Chinese bank’s inestimable future profits, but this would have required adhering to Chinese rules of fairness, and the US financial elites, by now thoroughly addicted to the old method of cheating and bankrupting its customers (as chillingly detailed by John Perkins, CEO of strategic-consulting firm Chas. T. Main, in his book “Confessions of an Economic Hit Man”), just could not kick the habit. The ideas of the radical school of the Enlightenment were approaching their logical end. (We refer here not to the Enlightenment per se but specifically to the more radical school, as detailed in our three part resource: Part 1, Part 2, Part 3. To understand the Western world, we believe it is vital to keep in mind this ideological context in which the Western elites operate. Otherwise it all seems random. Indeed it is absurd, but not random).
It is no exaggeration to say that the US financial system is a full-fledged mental disease in its terminal stages.
The second example was the US’ refusal to join the BRI (Belt and Road Initiative, once called the One-Belt One-Road, or OBOR), even though many US allies joined. But it was worse than that. There is an irrational desire in the US to sabotage the project, to the detriment of the Chinese and the Third World, particularly the Africans, who are counting on this project to help lift them out of poverty (as detailed in our article on Xi Jinping). No less than Steve Bannon, former presidential strategist, said in an interview to The Economist: “Let’s screw up the Belt and Road.” This was a direct attack on the Third World poor and Americans didn’t bat an eyelash. It mattered not that the US was on a path toward the destruction of economics per se, ie, toward a post-economic world where even they would eventually be living below the poverty line!
After all, why should this matter to Americans who had sat in their armchairs for decades as their bombers blew up millions of innocent men, women and children in their homes. Just as long as their pay-checks or pensions kept rolling in, they would never protest government-sanctioned mass murder. The US had developed a culture of murder for hire, to the benefit of the Saudis and their allies, including Israel. (As detailed in this NSS resource: Part 1, Part 2, Part 3).
This mind set was now part of the culture of planned destruction. After all, the more losers were created, the more gloriously the Americans were winning.
Nonetheless, however richly the US might deserve to have its currency implode à la Weimarer Republik, there are a number of reasons why the dollar is probably not facing imminent doom.
Let us consider the possibility of China’s persuading the Saudis to back out of the petrodollar deal and start accepting RMB or other currencies in settlement for their oil. This is a real possibility considering that the kinsmen arrested and held by Crown Prince Mohammed bin Salman include two loyal friends of the US regime, ie, Mohammed bin Nayef, a CIA favourite (they awarded him a prize for “counter-terrorism”) and Bandar bin Sultan, an old family friend of GW Bush. When the FBI tried to investigate the Bandar-headed Saudi embassy in Washington for complicity in the 9-11 attacks, it was Bush himself who, according to the NY Post, blocked the investigation on the grounds of diplomatic immunity – despite the deaths of 3,000 Americans. (Imagine if the embassy of Iran had been implicated.)
In other words, the future king was taking unprecedented steps that ran counter to US government interests. Breaking off the petrodollar deal would not be incompatible with this behaviour.