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Forum Post: The Roads to War and Economic Collapse

Posted 2 years ago on Nov. 24, 2011, 3:02 p.m. EST by alouis (1511) from New York, NY
This content is user submitted and not an official statement

http://www.foreignpolicyjournal.com/2011/11/24/the-roads-to-war-and-economic-collapse/

...Any sentient American who watched or read about the Republican presidential debate must wonder what there is to be thankful for as the national holiday approaches.

The Russian government, which prefers to use its resources for the economy rather than for the military, has decided that it has been taking too many risks in the name of peace. The day before Thanksgiving, Russian President Dmitry Medvedev said, in a televised address to the Russian people, that if Washington goes ahead with its planned missile bases surrounding Russia, Russia will respond with new nuclear missiles of its own, which will target the Amerikan bases and European capital cities.

The President of Russia said that the Russian government has asked Washington for legally binding guarantees that the American missile bases are not intended as a threat to Russia, but that Washington has refused to give such guarantees.

Medvedev’s statement is perplexing. What does he mean “if Washington goes ahead”? The American missile and radar bases are already in place. Russia is already surrounded. Is Medvedev just now aware of what is already in place?

Russia’s and China’s slow response to Washington’s aggression can only be understood in the context of the two countries’ experience with communism. The suffering of Russians and Chinese under communism was extreme, and the thinking part of those populations saw America as the ideal of political life. This delusion still controls the mentality of progressive thinkers in Russia and China. It might prove to be a disaster for Russia and China that the countries have citizens who are aligned with the US.

Belief in Washington’s trustworthiness even pervades the Russian government, which apparently, according to Medvedev’s statement, would be reassured by a “legally binding guarantee” from Washington. After the massive lies told by Washington in the 21st century—“weapons of mass destruction,” “al Qaeda connections,” “Iranian nukes”—why would anyone put any credence in “a legally binding guarantee” from Washington. The guarantee would mean nothing. How could it be enforced? Such a guarantee would simply be another deceit in Washington’s pursuit of world hegemony.

The day prior to Thanksgiving also brought another extraordinary development—the failure of a German government bond auction, an unparalleled event.

Why would Germany, the only member of the EU with financial rectitude, not be able to sell 35% of its offerings of 10-year bonds? Germany has no debt problems, and its economy is expected by EU and US authorities to bear the lion’s share of the bailout of the EU member countries that do lack financial rectitude.

I suspect that the answer to this question is that the failure of the German government’s bond auction was orchestrated by the US, by EU authorities, especially the European Central Bank, and private banks in order to punish Germany for obstructing the purchase of EU member countries’ sovereign debt by the European Central Bank.

The German government has been trying to defend the terms on which Germany gave up control over its own currency and joined the EU. By insisting on the legality of the agreements, Germany has been standing in the way of the ECB behaving as the US Federal Reserve and monetizing the debt of member governments.

From the beginning, the EU was a conspiracy against Germany. If Germany remains in the EU, Germany will be destroyed. It will lose its political and economic sovereignty, and its economy will be bled in behalf of the fiscally irresponsible members of the EU.

If Greeks will not submit to the tyranny, why should Germans?

The Honorable Dr. Paul Craig Roberts was appointed by President Reagan Assistant Secretary of the U.S. Treasury and confirmed by the US Senate. He was Associate Editor and columnist with the Wall Street Journal, and he served on the personal staffs of Representative Jack Kemp and Senator Orrin Hatch. He was staff associate of the House Defense Appropriations Subcommittee, staff associate of the Joint Economic Committee of Congress, and Chief Economist, Republican Staff, House Budget Committee. He wrote the Kemp-Roth tax rate reduction bill, and was a leader in the supply-side revolution. He was professor of economics in six universities, and is the author of numerous books and scholarly contributions. He has testified before committees of Congress on 30 occasions. Read more articles by Paul Craig Roberts.

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15 Comments


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[-] 2 points by ZenDog (20533) from South Burlington, VT 2 years ago

A repelican.

I'm not an economist. I understand that there are over 170 economists who support OWS

http://thinkprogress.org/special/2011/11/21/373878/170-economists-sign-statement-in-support-of-occupy-wall-street/

I would hear from them.

z

[-] 0 points by alouis (1511) from New York, NY 2 years ago

I read the same thing. Paul Krugman speaks well of OW and he is a Nobel winning economist. (Not that I think he's so great, but he's a liberal)

[-] 1 points by ZenDog (20533) from South Burlington, VT 2 years ago

I would hear from at least two or three on this issue, who do agree that the purge of everything not of the right from economic theory has disastrous potential for the entire world.

[-] 1 points by GirlFriday (21783) 2 years ago

There is no slow response from China and Russia. The response has taken place in ways that people are not accustomed to looking at. People need to look at business contracts between the two above countries and all others. If you look there, you will see some very aggressive tactics. That has nothing to do with communism. Secondly, if you listen to what has been said in Greece, they are fully aware that their country may as well be run by Germany with things going the way they are. I'm sure that Germany is not crying.

[-] 1 points by looselyhuman (3117) 2 years ago

"From the beginning, the EU was a conspiracy against Germany. If Germany remains in the EU, Germany will be destroyed. It will lose its political and economic sovereignty, and its economy will be bled in behalf of the fiscally irresponsible members of the EU."

I feel like that couldn't be much more biased. Germany dominates the EU, and are playing much the same obstructionist role in the EU crisis that the GOP is in the US crisis. Germans may be the only people more paranoid about inflation than the American right.

"was a leader in the supply-side revolution"

I mean, come on.

[-] 0 points by alouis (1511) from New York, NY 2 years ago

Germany made out very well with the Euro for a long time and its bankers and their French friends too,knew damned well the Greek books were cooked. I know that. It's a sign of the times that Germany couldn't sell it's bonds, that the Republicans can't find someone minimally knowedgable, articulate and non repulsive to run for office and that Russia seems to be awakening to the fact that it's being surrounded by a power that means it harm. I admire this guy for being so strongly anti interventionist, anti militarist, willing to condemn US policy in such terms as to suggest the other side has right and reason.

[-] 1 points by looselyhuman (3117) 2 years ago

Yeah I don't have a problem per se with his Russia/China points (actually, I do, but it's not that important), just the Germany/EU stuff.

The ECB needs to start acting as lender of last resort. It just has to, and soon, and all this austerity crap needs to be reversed before we really are facing the abyss of a depression-style collapse (again).

Inflation sucks, but it doesn't have to be allowed to turn into hyperinflation, and it's also the only way out of the debt problems, here and there. Germany's currently got 2.5% inflation. 5% would not be the end of the world. We did 15%+ post WWII and it helped us pay off our debts and powered us into a 40-year economic boom.

http://krugman.blogs.nytimes.com/2011/09/19/when-inflation-was-good/

[-] 0 points by alouis (1511) from New York, NY 2 years ago

Krugman is the guy who says that rising food and fuel prices are not inflation, just volatile. The US did well 1945 - 1970 for a number of reasons. Not only were the rich paying high taxes, but the potential competitors were flat on their backs, which is no longer the case. then the US got its butt whipped by these Vietnamese and hasn't quite been the same since then.

[-] 1 points by looselyhuman (3117) 2 years ago

Intelligent trade policy (as well as taxation as you mention) could do a lot to restore that old order. Our trade policy is designed by and for neoliberal coporatists. Combine that with allowing for more inflation, thereby devaluing our currency, will also help.

Good thread: http://occupywallst.org/forum/inflation-is-the-only-answer/

[-] 1 points by AFarewellToKings (1486) 2 years ago

begs the question: would Russia or the Germans be more willing to trust a congress full of 99rs or RepubliCrats.

[-] 0 points by alouis (1511) from New York, NY 2 years ago

We are very far from such alternatives. BTW I think the author is a sharp analyst I do not agree with some of what he has to say. I think he offers food for thought and I do agree that the three news items he focuses on are of enormous importance, and that they should be discussed by people who care about where the world is headed.

[-] 1 points by AFarewellToKings (1486) 2 years ago

What is the alternative to 99rs occupying congress? There are people proposing an Amendment approach and I think that could go forward while the 99 party sets up shop. The tsunami would recede by 2016 if things go according to plans. That doesn't fit my definition of very far considering the magnitude of the project. Any other alternatives you know of?

[-] 0 points by alouis (1511) from New York, NY 2 years ago

1- The system is designed for rule by money. 2- I think OW is too new and unformed to mount a challenge for congress. 3- Redneck states are overrepresented by the skewed electoral system.