Archive for the ‘U.S. Policy’ Category

The menace of the myth of General Pinochet’s Chilean economic miracle

Saturday, September 9th, 2023

September 11, 2023, marks the fiftieth anniversary of General Pinochet’s military coup against Chilean President Salvador Allende. While it is now widely recognized that Pinochet authorized large-scale human rights abuses, there is an accompanying narrative that he also unleashed an economic miracle via embrace of Milton Friedman’s “Chicago Boys” vision of a market economy.

The “Pinochet economic miracle” narrative is profoundly misleading. Worse yet, it is a political menace for two reasons. First, it risks tacitly promoting the notion that dictatorship may be legitimate to the extent it offers a road to prosperity. Second, the Pinochet regime embraced Neoliberalism which promotes anti-democratic tendencies by fracturing society. The claim of a Pinochet economic miracle lends support to Neoliberalism, thereby encouraging acceptance of Neoliberalism despite its anti-democratic proclivities.

For those reasons, debate over Pinochet’s economic policy remains of vital importance. The fiftieth anniversary of Pinochet’s coup is an opportunity to challenge the pernicious miracle myth which is increasingly part of the conventional wisdom.

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Ukraine destroyed the Kakhovka dam: a forensic assessment

Tuesday, July 4th, 2023

The Kakhovka dam was a massive two-mile-long structure that dammed the Dnieper River which bisects Ukraine. It was built by the Soviet Union in 1956 and raised the Dnieper by 16 meters (52 feet), creating the Kakhovka Reservoir. The dam was destroyed on 6 June 2023, resulting in massive flooding downstream on both sides of the river which created a social and environmental disaster. The city of Kherson, located near the river’s mouth with the Black Sea, was also flooded.

Both Ukraine and Russia deny blowing up the dam and blame the other. At this stage, all the evidence is circumstantial and conjectural, but a forensic assessment of that evidence overwhelmingly suggests Ukraine destroyed the dam. Despite that, US and Western European politicians and media have uniformly sought to implicate Russia as the perpetrator.

In multiple ways, the dam’s destruction echoes the 2022 destruction of the Russian-owned Nord Stream 2 pipeline. That pipeline was a piece of civilian infrastructure; was destroyed by an explosion; its destruction caused a massive environmental disaster; Ukraine denies any role; many European governments claimed Russia had blown up its own pipeline; and Western media either explicitly claimed Russia had done it (Time) or tendentiously sought to implicate Russia (New York Times, Guardian).

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The forgotten case against Milton Friedman: an interview about inflation and the Phillips curve

Saturday, May 13th, 2023

Milton Friedman revolutionized macroeconomics with his 1967 presidential speech to the American Economics Association (AEA), which presented a theory of the so-called natural rate of unemployment for the first time. That speech, which played a major role in discrediting the brand of Keynesianism that prevailed in postwar liberal economic policy thinking, remains one of the most frequently cited papers in all of economics.

Much less well remembered is the rebuttal to Friedman’s ideas issued by another future Nobel Laureate economist in another AEA presidential address, four years later: Yale University’s James Tobin. Tobin’s dueling theory of inflation held out the possibility of an alternative path for economics and macroeconomic policy, but it has seldom received the same recognition, or the same scholarly interest.

READ THE REST OF THE INTERVIEW

Causes and consequences of the Ukraine conflict: an eight-point primer

Sunday, March 19th, 2023

(1) The origins of the Ukraine conflict lie in the ambitions of US Neocons. Those ambitions threatened Russian national security by fuelling eastward expansion of NATO and anti-Russian regime change in the Republics of the former Soviet Union.

(2) The Ukraine conflict is now a proxy war. The US is using Ukraine to attack and weaken Russia.

(3) Russia will eventually prevail. We may already be approaching “game over” because Ukraine’s forces have been eviscerated. Ukraine is now press-ganging military conscripts in Kiev and Lviv.

(4) Once Russia imposes its will, the US will be forced to step back but it will have achieved its strategic goal of weakening Russia and separating Western Europe (especially Germany) from Russia.

(5) Ukraine will be effectively destroyed. It will be half-occupied by Russia; hundreds of thousands of Ukrainians will have died; millions will have fled; and the Ukrainian Nazis will be in charge of what is left.

(6) We have all been played by the Biden administration and the US Neocons.

The biggest losers are the ordinary people of Ukraine. They were cheated by the US Neocons of the possibility of a peaceful accord with Russia.

But we have all lost, especially Western Europe. Higher inflation and energy prices today; lost future economic opportunities; a worsened outlook for climate change; a dangerously deteriorated global security outlook that includes risk of nuclear war; and renewed militarism that will disfigure our societies for decades to come.

(7) Western Europe’s political elites are deeply culpable for their capitulation to US Neocon pressures.

(8) The US is guilty of covertly provoking the war. But it will never be charged because this is a proxy war and it tacitly controls the International Court in The Hague. Instead, the court is being politically pressured to indict Russia, the goal being to foster anti-Russian public sentiment and make a political settlement more difficult. However, that also diminishes the court’s international legitimacy and standing.

World Cup, RT CrossTalk, and US domestic censorship

Saturday, December 17th, 2022

Most of the time I write dense blogs & research papers. I sent the e-mail below to someone close to me. Afterward, I realized it tacitly says a lot about the state of our society (liberals included). Sometimes, mixing things and writing about them in a different way can be revealing.

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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.

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

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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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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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