Posts Tagged ‘American world power’

The sources and future of U.S. global power

April 20, 2021

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The goals of U.S. power.

With the fall of Communism in Russia in 1991, the USA found itself an unrivaled global power. Two factions in the U.S. governing establishment—the deep state, the establishment, the power elite, call them what you will—decided to keep it that way.

They set policy all through the Clinton, G.W. Bush, Trump and Obama administrations, and they continue to set policy today.

Neoconservatives sought full spectrum military dominance for the United States in every region of the world. Aside from the love of power for its own sake, they thought this would forever secure the United States from any military threat.

Neoliberals sought to give U.S. banks and global corporations access to every region of the world as a source of customers, raw materials and cheap labor. 

This meant suppression of socialist and nationalist regimes that opposed foreign domination of their economies, and, above all, any regime that refused to do business in U.S. dollars.

Other motives are loyalty to alliances with Saudi Arabia and Israel and avoidance of the humiliation of obvious defeat.

No doubt there were and are individuals in the U.S. power structure who sincerely believe in using U.S. power to promote democracy, human rights, a “rules-based international order” and the like.  But they are not the decision-makers.  They are only allowed to speak when their ideals happen to coincide with U.S. policy goals.

The sources of U.S. power.

The main source of U.S. power is the dominance of the U.S. dollar in conducting world trade.

This gives the U.S. government the power to borrow money to finance the world’s most expensive military establishment, and not worry about paying it back.

The U.S. Navy dominates the world’s sea lanes, and the U.S. Air Force dominates the air over poor countries such as Afghanistan, Iraq and Syria.  This allows bombing with impunity.

By using air power and flying killer drones, special operations forces and subsidized foreign fighters, the U.S. military can wage war without large-scale sacrifice of life.

The Central Intelligence Agency has a record of plotting the overthrow of left-wing governments and installing U.S.-friendly dictators.  Latin Americans have a joke: There will never be a military coup in the United States because there is no U.S. embassy in Washington, D.C.

Another source of U.S. power is the thousands of weapons in its nuclear arsenal, the largest in the world.  The only nation with a comparable arsenal is Russia.  This means that no other nation except Russia can rule out the possibility of a nuclear attack.

The power of the dollar also gives the U.S. government control of the financial bottlenecks of world commerce, and impose sanctions and embargoes on foreign countries without having to worry about retaliation.

Much of the world’s commerce flows through the New York money center banks.  This gives New York banks the authority to impound the funds of nations such as Iran and Venezuela.  It also gives federal judges in New York jurisdiction over such things as Argentina’s settlement with his creditors or Ecuador’s fine of Chevron for environmental violations.

The SWIFT system—Society for Worldwide Interbank Financial Telecommunication, based in Brussels—is a messaging system used by banks to transfer money and communicate information.  Being cut off from the SWIFT system means being cut off from the bulk of the world financial system, and SWIFT enforces U.S. sanctions.

The World Bank and International Monetary Fund are dominated by Americans.  They have a record of insisting that debtor countries impose “austerity”—higher taxes, fewer government services, higher prices and lower wages.  The debtor countries have to sell national assets and open up to U.S. and other foreign investors.

The 2014 coup in Ukraine came after the incumbent President decided to take a Russian loan instead of an IMF loan.  The new government took the unpopular IMF loan.

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The threat to U.S. power.

The greatest threat to U.S. power is neither Islamic terrorism, nor Russian subversion, nor China’s growing industrial power. 

It is the replacement of the U.S. dollar as the medium of exchange for doing world business.  Without dollar supremacy, all other sources of U.S. power would collapse.

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Barack Obama, a master of geopolitics?

September 16, 2015

Many of my Democratic friends think of Barack Obama as a well-meaning but naive and weak reformer.  I think of President Obama as a shrewd and strong defender of the status quo.

Alfred McCoy wrote a good article for TomDispatch arguing that this is just as true of his foreign policy as his domestic policy.

The greatest threat to American world power is the rise of China.  While the USA is dissipating its power through failed military interventions. China is extending its power by economic policies that add to its economic strength.

Obama hopes to counter China by leveraging American economic power through the Trans-Pacific Partnership and Trans-Atlantic Trade and Investment Partnership, which will create a global trade bloc from which China and also Russia will be locked out.

The question is how long this will be feasible.  China’s economic power is growing.  American economic power is a legacy from the past.

President Obama has been using America’s status as the planet’s number one consumer nation to create a new version of dollar diplomacy.

His strategy is aimed at drawing China’s Eurasian trading partners back into Washington’s orbit.

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While Beijing has been moving to bring parts of Africa, Asia, and Europe into a unified “world island” with China at its epicenter, Obama has countered with a bold geopolitics that would trisect that vast land mass by redirecting its trade towards the United States.

During the post-9/11 decade when Washington was spilling its blood and treasure onto desert sands, Beijing was investing its trillions of dollars of surplus from trade with the U.S. in plans for the economic integration of the vast Eurasian land mass.

In the process, it has already built or is building an elaborate infrastructure of high-speed, high-volume railroads and oil and natural gas pipelines across the vast breadth of what Sir Halford Mackinder once dubbed the “world island.”  [snip]

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