Archive for the ‘U.S. Policy’ Category

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Deglobalization, conflict, & the self-inflicted threat to democracy: consequences of US imperial over-reach

Wednesday, December 14th, 2022

Because of the seriousness of the world situation, I have decided to get back in the business of doing interviews (which I do not enjoy doing). Here is a link to my interview (13/12/2022) on RT CrossTalk discussing “New Globalization?”

In that connection, here is a link to a paper (written in 2018) titled “The Fracturing of Globalization: Implications of Economic Resentments and Geopolitical Contradictions”. It significantly anticipated and predicted recent global political economic developments.

Posted in China, Economics, Europe, Globalization, Political Economy, U.S. Policy, Uncategorized | Comments Closed

The false promise and bitter fruit of Neoliberalism: political economic disembedding, cultural transformation, and the rise of proto-fascist politics

Tuesday, October 11th, 2022

Neoliberalism is a political economic philosophy that consists of two claims, one economic and the other political. The economic claim is free market laissez-faire economies are the best way to organize economic activity as they generate efficient outcomes that maximize well-being. The political claim is free market economic arrangements promote individual liberty. This paper argues both claims are problematic. The evidence from the forty-year experiment that began in 1980 shows Neoliberalism has undercut shared prosperity and unleashed illiberal forces that threaten liberty. The paper distinguishes between the first political turn which saw the establishment of Neoliberal political hegemony, and the second political turn toward proto-fascism that we are now experiencing. The second turn is being driven by a collection of factors which have created a demand for proto-fascism and weakened the defenses against alt-right ideas. Those factors include socio-economic disembedding, institutional destruction and political disembedding, increased economic inequality that tilts political power, transformation of attitudes to government and governance, transformation of economic identity, and cultural transformation that celebrates sociopathic egotism. The Third Way’s capture of center-left politics means liberal elites occupy the political place that should be held by true opponents of Neoliberalism. Those liberal elites obstruct the politics needed to reverse the deep causes of the drift to proto-fascism. Ironically, that makes those elites a real danger.

READ THE PAPER

Posted in Economics, Europe, Political Economy, U.S. Policy, Uncategorized | Comments Closed

Sabotaging Germany, blaming Russia: another view of the Nord Stream pipeline attack

Saturday, October 1st, 2022

Imagine Moscow was nuked yesterday, and this morning The New York Times ran a frontpage headline “Moscow nuked: Russia proves its hostility to Europe again”. Sounds pretty crazy? Yet, in a manner of speaking, that is what happened last week.

On Tuesday September 27th three major leaks caused by undersea explosions were discovered in the Nord Stream gas pipelines connecting Russia and Germany. The New York Times evening e-mail briefing, which is sent to nine million readers, headlined “suspicion of Russian sabotage”. The Wednesday European edition ran a similar headline accompanied by comments about the attacks proving Russian aggression against Europe.

The same take echoed in the UK. The conservative Telegraph newspaper ran a headline “Nord Stream sabotage mapped: how Putin could have carried out the attack” along with a photo of Vladimir Putin in a submersible. Meanwhile, the progressive Guardian ran a headline about a “new phase of hybrid war” against Europe with the sub-title accusing Russia of suspected sabotage.

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Posted in Economics, Europe, Political Economy, U.S. Policy, Uncategorized | Comments Closed

How the West betrayed Mikhail Gorbachev and seeded the Ukraine conflict

Thursday, September 1st, 2022

Mikhail Gorbachev died on August 30, 2022. Since then, praises have flowed from Western leaders. Those praises obscure how the West betrayed Gorbachev after he fell from power, and how that betrayal seeded the Ukraine conflict.

The story is complicated because Gorbachev’s fall was triggered by Communist Party hardliners, so the troubles which befell Russia thereafter are also significantly due to Russian actions. That said, Gorbachev sought a partnership for peace, prosperity, and democracy. After he fell, the West reneged on its handshake agreement with him.

A tribute to Gorbachev’s inspiring vision

Before turning to the details of that betrayal, a tribute to Gorbachev is warranted. Gorbachev sought to transform the Soviet Union from a closed repressive system into an open consultative socialist system that would be part of the European family. That aspiration was described as glasnost (openness) and was pushed through the Perestroika reform movement.

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Posted in Europe, Political Economy, U.S. Policy, Uncategorized | Comments Closed

Theorizing dollar hegemony, Part 1: the political economic foundations of exorbitant privilege

Tuesday, August 23rd, 2022

This paper explores dollar hegemony, emphasizing it is a fundamentally political economic phenomenon. Dollar hegemony rests on the economic, military, and international political power of the US and is manifested through market forces. The paper argues there have been two eras of dollar hegemony which were marked by different models. Dollar hegemony 1.0 corresponded to the Bretton Woods era (1946-1971). Dollar hegemony 2.0 corresponds to the Neoliberal era (1980-Today). The 1970s were an in-between decade of dollar distress during which dollar hegemony was reseeded. The deep foundation of both models is US power, but the two models have completely different economic operating systems. Dollar hegemony 1.0 rested on the trade and manufacturing dominance of the US after World War II. Dollar hegemony 2.0 rests on the Neoliberal reconstruction of the US and global economies which have made the US the center of global capitalism and the most attractive place to hold capital. It is a financial model and intrinsically connected to Neoliberalism. Consideration of dollar hegemony leads to two further questions. One is whether there is a better way of organizing the world monetary order, which is associated with debate about the possibility of a new Bretton Woods. The other is what is the future of dollar hegemony?

READ THE WORKING PAPER

LINK TO PUBLISHED PAPER

Posted in Economics, Globalization, Political Economy, U.S. Policy, Uncategorized | Comments Closed

Neoliberalism and the Road to Inequality and Stagnation: A Chronicle Foretold

Friday, April 29th, 2022

My latest book has recently been published by Edward Elgar.

The book explores the impact of neoliberal policies on the US, Europe, and the global economy. It shows how the 2008 financial crisis and Great Recession were predictable outcomes of the neoliberal policy experiment, as is the emergence of global “race to the bottom” competition. It also explains how Europe’s economic fragility is connected to the neoliberal design of the euro. Neoliberalism creates a particular variety of capitalism and is a political choice. That means society is tacitly engaged in a “war of ideas”, the outcome of which will influence our future political economic trajectory.

The book is available HERE. The cheapest option is the e-book purchased via Googleplay (price = $13.11).

Posted in China, Economics, Europe, Globalization, Political Economy, U.S. Policy, Uncategorized | Comments Closed

Ukraine: what will be done and what should be done?

Thursday, February 24th, 2022

Preamble/Postscript:

While rightly condemning Russia for its invasion, the mainstream media continues to selectively report the history behind these events. In my view, its omissions are intentional and contribute to the tragedy. They inflame public understanding, render a diplomatic resolution more difficult, and lock us into a worse trajectory.

Let me make further clear my argument: (1) President Putin is head of the Russian state which is under slow-motion implacable attack by US-led NATO. (2) After failing to secure a satisfactory diplomatic resolution, he has taken action to head off that attack.

If you accept those two propositions, the Ukraine story is massively more complicated than simply claiming Putin is an aggressor and we (the US) are good. There will be no lasting peace until that complexity is fully engaged.

What will be done and what should be done?

The inevitable has happened. Russia has invaded Ukraine. It was inevitable because the US and its NATO partners had backed Russia into a corner from which it could only escape by military means.

In effect, Russia confronted a future in which the US would increasingly tighten the noose around its neck by further eastward expansion of NATO, combined with military upgrading by the US of its Eastern European NATO proxies.

Accompanying that militarization was the prospect of a ramped-up propaganda war in which western media fanned the flames of public animus against Russia. Side-by-side, US government financed entities (such as the National Endowment for Democracy and the German Marshall Fund) would seek to influence European and Russian politics with the goal of regime change.

At this stage, there are two questions. What will be done? And what should be done?

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Posted in Europe, Political Economy, U.S. Policy, Uncategorized | Comments Closed

American Exceptionalism and the Liberal Menace: the US and Ukraine

Sunday, February 13th, 2022

American exceptionalism is the most dangerous doctrine in the world, and it has been on full display in the current Ukraine crisis. Worse yet, the loudest advocates have been America’s elite liberal class.

The doctrine of exceptionalism holds that the US is inherently different from and superior to other nations. That superiority means the US is subject to a different standard. Its actions are claimed to be benevolent and above international law, and the US is entitled to intervene at will around the world, including building a global network of military bases and garrisons that it would never permit another power to have.

The Liberal Menace

In today’s United States, liberals are the most extreme proponents of American exceptionalism. In contrast, Republicans and conservatives are inclined to justify foreign policy by appeal to raw power, with the US doing what it wants because it can.

For myself, I have long been leery of American liberals. I term them the “liberal menace”. That is because they have been a major obstruction to progress toward a social democratic society for the past forty years.

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A crisis made in the USA: why Russia will likely invade Ukraine

Sunday, January 16th, 2022

Preamble. Living in the US and writing honestly about US-Russia relations (and China too) is very difficult. That is because the US is the aggressor, but Russia is an authoritarian country. That split is used by the US establishment to shuffle discussion away from US aggression on to Russian authoritarianism. Side-by-side, anyone calling the US on its aggression is labelled pro-Russian. In that way, the US establishment cleverly inoculates itself against criticism and taints its critics.

President Vladimir Putin confronts a decisive historical moment. Talks with the US and its NATO partners have shown that the US has no intention of reversing its grinding long-running campaign against Russia. The US wants regime change in Russia. That does not mean democracy, talk of which is just camouflage for the true strategic objective of a permanently weakened Russia. All that matters is Russia be weakened, and the well-being of Russians is truly of no consequence in Washington.

That is the landscape Putin confronts. The implication is Russia’s position is unlikely to strengthen in years to come. Consequently, now may be the most favorable moment to take actions that both strategically strengthen Russia and achieve its own secondary long-term political goal of partial reunification of the historic European component of Russia (i.e., reabsorption of Belarus and Eastern Ukraine).

Implacable US antipathy

The baseline for the argument is recognition that the US has an implacable antipathy to Russia. That antipathy has a long history. In 1918 the US invaded Siberia, intervening in the Russian civil war between the Tsarist Whites and Reds. The invasion set the stage for pre-Cold War hatred of the Soviet Union.

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Federal Reserve Insider Dealing? R.I.P. Central Bank Independence

Tuesday, January 11th, 2022

Federal Reserve Vice-Chair Richard Clarida has shot himself in the foot with what appears to be insider trading. That comes on the heels of prior concerns about inappropriate trading by regional Federal Reserve Bank Presidents Robert Kaplan and Eric Rosengren. Albeit unintentionally, the good news is these indiscretions may have done working families a favor by helping disprove the notion of central bank independence.

For years, many of us have argued that central bank independence is a charade aimed at facilitating control over central banks by financial interests. Here is a link to an article of mine titled “Central Bank Independence: A Rigged Debate Based on False Politics and Economics”.

In that paper I wrote every central banker “inevitably brings her own preferences, views, and prejudices to the policy table (p.77)”.  The implication is clear: appoint people with a Wall Street background and they will bring Wall Street policy preferences; appoint well-to-do financial economists with large stock portfolios and they will bring a personal concern with the stock market and asset prices.

Federal Reserve Presidents and Governors tend to be drawn from the banking community, Wall Street, and neoliberal academic economists. For decades, activists have requested that they be drawn from a broader political economic swathe of society to give working families better representation, but that request has been dismissed as lacking justification.

The Clarida-Kaplan-Rosengren affair argues otherwise. It is suggestive of how private interests are always in the room. It is also indicative of why handing the keys of the central bank to so-called independent bankers does not magically solve the problematic of monetary policy decision making, which is why analytical diversity is a matter of public import.

Messrs. Clarida, Kaplan, and Rosengren will survive and prosper. Wall Street will also continue to taint policymaking via its pre-pensation/post-pensation incentive model. The silver lining in the episode is the opportunity to bury the ideological doctrine of central bank independence and open the Federal Reserve to a broader set of ideas and personnel.

Posted in Economics, Political Economy, U.S. Policy, Uncategorized | Comments Closed

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