Oct 192016

By James Petras99GetSmart


During most of the past two decades Washington has aggressively launched military and economic wars against at least nine countries, either directly or through its military aid to regional allies and proxies. US air and ground troops have bombed or invaded Afghanistan, Iraq, Pakistan, Libya, Somalia, Syria, Yemen, and Lebanon.

More recently Washington has escalated its global economic war against major economic rivals as well as against weaker countries. The US no longer confines its aggressive impulses to peripheral economic countries in the Middle East, Latin America and Southern Asia: It has declared trade wars against world powers in Asia, Eastern and Central Europe and the Gulf states.

The targets of the US economic aggression include economic powerhouses like Russia, China, Germany, Iran and Saudi Arabia, as well as Syria, Yemen, Venezuela, Cuba, and the Donbas region of Ukraine.

There is an increasingly thinner distinction between military and economic warfare, as the US has frequently moved from one to the other, particularly when economic aggression has not resulted in ‘regime change’ – as in the case of the sanctions campaign against Iraq leading up to the devastating invasion and destruction.

In this essay, we propose to examine the strategies and tactics underlying Washington’s economic warfare, their successes and failures, and the political and economic consequences to target nations and to world stability.

Washington’s Economic Warfare and Global Power

The US has used different tactical weapons as it pursues its economic campaigns against targeted adversaries and even against its long-time allies.

Two supposed allies, Germany and Saudi Arabia, have been attacked by the Obama Administration and US Congress via ‘legal’ manipulations aimed at their financial systems and overseas holdings. This level of aggression against sovereign powers is remarkable and reckless. In 2016 the US Justice Department slapped a $14 billion dollar penalty on Germany’s leading international bank, Deutsche Bank, throwing the German stock market into chaos, driving the bank’s shares down 40% and destabilizing Germany’s financial system. This unprecedented attack on an ally’s major bank was in direct retaliation for Germany’s support of the European Commission’s $13 billion tax levy against the US-tax evading Apple Corporation for its notorious financial shenanigans in Ireland. German political and business leaders immediately dismissed Washington’s legalistic rhetoric for what it was: the Obama Administration’s retaliation in order to protect America’s tax evading and money laundering multinationals.

The chairman of the German parliament’s economic committee stated that the gross US attempt to extort Deutsche Bank had all the elements of an economic war. He noted that Washington had a “long tradition of using every available opportunity to wage what amounted to a trade war if it benefits their own economy” and the “extortionate damages claim” against Deutsche Bank were a punitive example. US economic sanctions against some of Germany’s major trade partners, like Russia, China and Iran, constitute another tactic to undermine Germany’s huge export economy. Ironically, Germany is still considered “a valued ally” when it comes to the US wars against Syria, Afghanistan and Iraq, which have driven millions of refugees to Europe creating havoc with Germany’s political, economic and social system and threatening to overthrow the government of ‘ally’ Angela Merkel.

The US Congress launched an economic-judicial war against its closest ally in the Gulf region when it approved legislation granting US victims of Islamist terrorism, especially related to the attacks on September 11, 2001 the right to sue the government of Saudi Arabia and seize its overseas assets. This included the Kingdom’s immense ‘sovereign funds’ and constitutes an arbitrary and blatant violation of Saudi sovereignty. This opens the Pandora’s Box of economic warfare by allowing victims to sue any government for sponsoring terrorism, including the United States! Saudi leaders immediately reacted by threatening to withdraw billions of dollars of assets in US Treasuries and investments.

The US economic sanctions against Russia are designed to strengthen its stranglehold on the economies of Europe which rely on trade with Russia. These have especially weakened German and Polish trade relations with Russia, a major market for German industrial exports and Polish agriculture products. Originally, the US-imposed economic sanctions against Moscow were supposed to harm Russian consumers, provoke political unrest and lead to ‘regime change’. In reality, the unrest it provoked has been mainly among European exporters, whose contracts with Russia were shredded and billions of Euros were lost. Furthermore, the political and diplomatic climate between Europe and Russia has deteriorated while Washington has ‘pivoted’ toward a more militaristic approach.

Results in Asia have been even more questionable: Washington’s economic campaign against China has moved awkwardly in two directions: Prejudicial trade deals with Asian-Pacific countries and a growing US military encirclement of China’s maritime trade routes.

The Obama regime dispatched Treasury Secretary Jack Lew to promote the Trans- Pacific Partnership (TPP) among a dozen regional governments, which would blatantly exclude China, Asia’s largest economic power. In a slap to the outgoing Obama Administration, the US Congress rejected his showpiece economic weapon against China, the TPP.

Meanwhile, Obama ‘encouraged’ his erstwhile ‘allies’ in the Philippines and Vietnam to sue China for maritime violations over the disputed ‘Spratly Islands’ before the Permanent Court of Arbitration. Japan and Australia signed military pacts and base agreements with the Pentagon aimed at disrupting China’s trade routes. Obama’s so-called ‘Pivot to Asia’ is a transparent campaign to block China from its markets and trading partners in Southeast Asia and Pacific countries of Latin American. Washington’s flagrant economic warfare resulted in slapping harsh import tariffs on Chinese industrial exports, especially steel and tires. The US also sent a ‘beefed up’ air and sea armada for ‘joint exercises’ along China’s regional trade routes and its access to critical Persian Gulf oil, setting off a ‘war of tension’.

In response to Washington’s ham-fisted aggression, the Chinese government deftly rolled out the Asian Infrastructure Investment Bank (AIIB) with over fifty countries eagerly signing on for lucrative trade and investment deals with Beijing. The AIIB’s startling success does not bode well for Obama’s ‘Pivot to Pacific Hegemony’.

The so-called US-EU-Iran accord did not end Washington’s trade war against Tehran. Despite Iran’s agreement to dismantle its peaceful uranium enrichment and nuclear research programs, Washington has blocked investors and tried to undermine trade relations, while still holding billions of dollars of Iranian state assets, frozen since the overthrow of the Shah in 1979. Nevertheless, a German trade mission signed on a three billion trade agreement with Iran in early October 2016 and called on the US to fulfill its side of the agreement with Tehran – so far to no avail.

The US stands alone in sending its nuclear naval armada to the Persian Gulf and threatens commercial relations. Even the Kingdom of Saudi Arabia, the longstanding enemy of the Iranian Islamic Republic, has agreed to a cooperative oil production arrangement at a recent OPEC meeting.

Washington’s declaration of economic warfare against two of its most strategic powerful allies, Germany and Saudi Arabia and three rising competitor world powers, has eroded US economic competitiveness, undermined its access to lucrative markets and increased its reliance on aggressive military strategies over diplomacy.

What is striking and perplexing about Washington’s style of economic warfare is how costly this has been for the US economy and for US allies, with so little concrete benefit.

US oil companies have lost billions in joint exploitation deals with Russia because of Obama’s sanctions. US bankers, agro-exporters, high-tech companies are missing out on lucrative sales just to ‘punish’ Russia over the incredibly corrupt and bankrupt US coup regime in Ukraine.

US multi-national corporations, especially those involved in Pacific Coast transport and shipyards, Silicon Valley high tech industry and Washington State’s agro-export producers are threatened by the US trade agreements that exclude China.

Iran’s billion dollar market is looking for everything from commercial airplanes to mining machinery. Huge trade deals have has been lost to US companies because Obama continues to impose de facto sanctions. Meanwhile, European and Asian competitors are signing contracts.

Despite Washington’s dependence on German technical knowhow and Saudi petro-dollar investments as key to its global ambitions, Obama’s irrational policies continue to undermine US trade.

Washington has engaged in economic warfare against ‘lesser economic powers’ that nevertheless play significant political roles in their regions. The US retains the economic boycott of Cuba; it wages economic aggression against Venezuela and imposes economic sanctions against Syria, Yemen and the Donbas region in eastern Ukraine. While these countries are not costly in terms of economic loss to US business interests, they exercise significant political and ideological influence in their regions, which undermine US ambitions.


Washington’s resort to economic warfare complements its military fueled empire building.

But economic and military warfare are losing propositions. While the US may extract a few billion dollars from Deutsch Bank, it will have lost much more in long-term, large-scale relations with German industrialists, politicians and financiers. This is critical because Germany plays the key role in shaping economic policy in the European Union. The practice of US multi-national corporations seeking off-shore tax havens in the EU may come to a grinding halt when the European Commission finishes its current investigations. The Germans may not be too sympathetic to their American competitors.

Obama’s Trans-Pacific Partnership (TPP) has not only collapsed, it has compelled China to open new avenues for trade and cooperation with Asian-Pacific nations – exactly the opposite of its original goal of isolating Beijing. China’s Asia Infrastructure and Investment Bank (AIIB) has attracted 4 time more participants than Washington’s TPP and massive infrastructure projects are being financed to further bind ASEAN countries to China. China’s economic growth at 6.7% more than three times that of the US at 2%. Worse, for the Obama Administration, Washington has alienated its historically most reliable allies, as China, deepens economic ties and cooperation agreements with Thailand, Philippines, Pakistan, Cambodia and Laos.

Iran, despite US sanctions, is gaining markets and trade with Germany, Russia, China and the EU.

The Saudi-US conflict has yet to play-out, but any escalation of law suits against the kingdom will result in the flight of hundreds of billions of investment dollars from the US.

In effect, Obama’s campaign of economic warfare may lead to the infinitely more costly military warfare and the massive loss of jobs and profits for the US economy. Washington is increasingly isolated. The only allies supporting its campaign of economic sanctions are second and third rate powers, like Poland and current corrupt parasites in Ukraine. As long as the Poles and Ukrainians can ‘mooch’ off of the IMF and grab EU and US ‘loans’, they will cheerlead Obama’s charge against Russia. Israel, as long as it can gobble up an additional $38 billion dollars in ‘aid’ from Washington, remains the biggest advocate for war against Iran.

Washington spends billions of US tax-payer dollars on its military bases in Japan, Philippines and Australia to maintain its hegemony in the Asia-Pacific region. Its allies, though, are salivating at the prospect for greater trade and infrastructure investment deals with China.

Economic warfare doesn’t work for the Washington because the US economy cannot compete, especially when it attacks its own allies and traditional partners. Its regional allies are keen to join the ‘forbidden’ markets and share in major investment projects funded by China. Asian leaders increasingly view Washington, with its ‘pivot to militarism’ as politically unreliable, unstable and dangerous. After the Philippine government economic mission to China, expect more to ‘jump ship’.

Economic warfare against declared adversaries can only succeed if the US is committed to free trade with its allies, ends punitive sanctions and stops pushing for exclusive trade treaties that undermine its allies’ economies. Furthermore, Washington should stop catering to the whims of special domestic interests. Absent these changes, its losing campaign of economic warfare can only turn into military warfare – a prospect devastating to the US economy and to world peace.

James Petras is author of  The End of the Republic and the Delusion of EmpireExtractive Imperialism in the Americas: Capitalism’s New Frontier (with Henry Veltmeyer), and The Politics of Empire: The US, Israel and the Middle EastRead other articles by James, or visit James’s website.

Oct 112016

By James Petras99GetSmart



Brazilian President Dilma Rousseff was removed from office through a well-organized, carefully planned operation among the corrupt Brazilian political elite, closely linked to the stock-market, financial institutions and foreign energy companies. This ‘legislative coup d’état ’eliminated the democratically-elected ‘political intermediaries’ and installed a regime directly controlled by the CEOs of leading multi-nationals. The corporate composition of the post-coup regime insured there would be a radical restructuring of the Brazilian economy, with a massive shift from wage support, social spending and public ownership toward profits, a foreign capital take-over of strategic sectors and foreign-domestic elite dominance over the entire economy.

This paper will describe the socio-economic dynamics of the coup and its aftermath, as well as the strategy and program that Brazil’s new rulers will pursue. In the second half of the paper, we will discuss the Workers Party regimes’ policies (under Lula and Rousseff) that prepared the political and economic ground-work for the right-wing seizure of power.

Socio-Economic Dynamics of the Coup

The overthrow of President Rousseff was organized and implemented by Brazil’s capitalist class for its benefit, even though it had the superficial appearance of a power grab by corrupt politicians.

Rousseff’s Vice-President, Michel Temer, acted as the front-man on behalf of the major investment banks: They set the agenda; he played his part.

Moreover, the principal beneficiaries of the economic giveaways under ‘President’ Temer, most notably the privatization of the energy sector, are clearly foreign capitalists. Once the coup makers lined up the votes among Brazil’s notoriously corrupt Congressmen to oust Rousseff, the multinational corporations emerged from the shadow of the stock market to take control over the levers of power.

In the run-up to the coup, when the so-called ‘impeachment’ was gaining momentum, the shares of the largely state-owned oil company sky-rocketed by 70%. In anticipation of the privatization and sell-off of assets, leading speculators and overseas investment houses seized the moment.

The ‘coup’ was no ‘secretive conspiracy’ – it was an overt, direct capitalist seizure of power. Once installed, it proceeded to dismantle the public sector economy and transfer the jewels of Brazil’s economy to foreign multi-nationals.

Master of Pillage

To ensure that the coup would not deviate from the course set by the capitalist coup-masters, Pedro Parente, ‘one of their own’ and the former head (CEO) of the giant agricultural trader, Bunge, was put in charge of the economy. With dizzying speed, Parente imposed the New Order onto the puppet Temer coup regime. He used a set of phony ‘technocratic’ euphemisms to explain the ongoing plunder of Petrobras, the state oil company.

Parente lowered Petrobras’ public investment sector by 25%, which he called ‘debt reduction’. The brutal programed sell-off of Petrobras’ most valuable assets was described as a ‘deleverage timetable’.

The unelected ‘Privatization Czar Parente’, in effect, ended the state’s role in the Brazilian economy by placing it under the exclusive dictates of private capitalist. The primary beneficiaries will prove to be foreign over national capital.

Parente has undermined the competitiveness of the national manufacturing sector and transport system with a hefty increase in domestic fuel prices. On the surface, he claimed the price increase would ‘raise profits for Petrobras’, obscuring the fact that the oil giant’s public assets had been given over to private capitalists. Meanwhile, Parente privatized the gas stations, ethanol production and distribution, as well as the billion-dollar fertilizer and petro chemical industry. Over $15 billion worth of Brazilian prime public assets were sold off to private, mostly foreign capital, in 2015-2016.

Parente’s onslaught deepened. The ‘grand prize’ was access to its rich off-shore oil fields. By the middle of 2016, a large-scale offshore oil license was sold to the Norwegian multi-national, Statoil, for a mere $2.5 billion.

With Parente in command, the ruling elite is on track to sell-off an additional $20 billion worth of Petrobras assets to foreign capital in 2017-18. The key goal has been to replace the state sector as lead operator in the deep water oil and gas fields.

The ongoing pillage of the Brazil’s huge state energy sector, is only the first course in an orgy of privatization: Infrastructure, transport, utilities and basic state-protected industries are on the chopping block. This private plunder of the state economic jewels accompanies a brutal slashing of public pensions, salaries and wages guarantees as well as public sector budgets for health and education and public workers. In order to reduce corporate taxes, increase profits and attract capital, the coup regime has ordered the cuts by fiat.

Conclusion: Challenges to Capitalist Power

The capitalist class seized state power through the corrupt political and judicial machinations of Brazil’s Vice President and Congressional cronies. The take-over was based on a series of alleged corruption scandals by the Workers Party. The fact that the entire Brazilian congress, most notably the capitalist operatives behind the coup, has been deeply immersed in the scandal over an alleged $15 billion looted from Petrobras, undermines their credibility. In fact, the ousted President Rousseff was cleared of all charges of corruption, while her successor faces ongoing investigations. This tragic comedy exposes that some members of the Workers Party are tiny amateurs in this orgy of capitalist plunder.

The current President Michel Temer is charged with receiving bribes from private contractors. If these investigations undermine his already dubious leadership, the capitalist coup-masters will be forced to call for early election. This will introduce considerable uncertainty about the viability of Privatization Czar Parente’s capitalist power grab.

The regime’s ‘slash and burn’ campaign against wages and pensions has heightened class conflicts within Brazil. The three major labor confederations are preparing for major strikes against a regime of questionable legitimacy.

The business coup has allowed the capitalist class to seize state power and decree its agenda. However it has yet to show it can directly impose its draconian polices aimed at reconcentrating wealth and income for the top five percent while repressing scores of millions of industrial workers, rural landless laborers and the urban poor.

In addition, while the rulers can offer the jewels of Brazil’s economy to foreign capital, the current low oil prices, ongoing corruption trials at the highest level of elite power and intensifying class conflicts will undermine their ability to implement their agenda. Indeed the prospect of escalating state repression and criminal gang violence may persuade foreign capitalists to skim off the top of Brazil’s most profitable assets and abandon the ensuing chaos.


After 13 years of Workers Party control of the Brazilian presidency, how did the coup-masters rise so quickly and decisively? The political leader of the coup was Vice President Michel Tener, who had been selected by the Workers Party (PT) leadership as part of their ‘coalition strategy’ of working with the most corrupt elements of the Brazilian capitalist class. The members of the Congressional majority, which voted to impeach President Rousseff, were in partnership with the PT, elected in joint election platforms. The economic decline and recession, which undermined public support for the PT government, was a result of its emphasis on the ‘boom and bust’ commodity strategy. The strategic role played by the private banking and business sector in the ‘legislative coup’ resulted from the PT’s decision to implement the privatizations started by the previous regime of President Cardoso, thus strengthening this parasitic class.

Above all, it was the PT’s new reliance on financing their political campaigns through the donation of contractors and the business elites, instead of combining electoral politics with class warfare and mass struggle that opened the Party to the everyday corrupt practices of the capitalist parties. It is a perverse justice that only the PT newcomers to political corruption would be caught and prosecuted!

In other words’ the PT continued to win elections by becoming a normal bourgeois party with its social welfare agenda reliant on an unstable capitalist growth cycle of commodity exports. The PT were profoundly mistaken when they saw their alliance with the capitalist class as something permanent rather than an ‘alliance of convenience’ where the business elite would tolerate them until it was in a position to overthrow them.

Oct 052016

By James Petras99GetSmart


“What Russia is sponsoring and doing [in Syria] is not counter-terrorism it is barbarism” – Samantha Power, US Representative to the United Nations


The US representative to the United Nations, Ambassador ‘Ranting Sam’ Samantha Power, accused the Russian and Syrian governments of ‘barbarism’, claiming Moscow or Damascus had attacked an unarmed United Nations humanitarian convoy delivering aid to civilians in Aleppo. No evidence was presented. Rants and threats do not require facts or proof; they only require vehement emotional ejaculations and compliant mass propaganda organs.

‘Barbarians’, to be clear, evoke images of leaders and groups, which abjure all civilized norms and laws. They only respond to armed force.

In the present context Power’s charges of barbarism against Russia and Syria was used to justify the US aerial bombardment of a Syrian army outpost, which killed and maimed almost 200 government troops engaged in combating ISIS terrorists and jihadi invaders.

In other words, accusing Syrian soldiers of ‘barbarism’ was Ambassador Power’s cynical way of dehumanizing the young victims of an earlier and deliberate US war crime.

Let’s analyze the appropriate context for the use and abuse of the language of ‘barbarism’ – and its rightful application.

Barbarism: The Deed

Over the past decade and a half, the US and its allies have invaded, occupied, killed, wounded and dispossessed over ten million people, in countries from Afghanistan, Iraq, Somalia, Libya, Syria, Yemen and Lebanon. Military and civilian officials have systematically destroyed entire economies, fostered ethno-religious wars, undermined ancient community and family ties and placed corrupt political puppets in power.

Promoted by the US, torture, arbitrary arrest and incarceration have become the norm creating lawless and chaotic societies, which had once been productive and stable. The shredding of  social structures has provokes massive population flight, with millions of desperate refugees fleeing invasions, wars and total society breakdown. The result of these deliberate imperial policy decisions has been emptied cities and neighborhoods, broken families, destroyed lives and futures for many millions of young Arabs and Muslims.

As the human toll mounts and Western Europe is flooded with the results of US aggressive wars, the imperialists have sharpened their shrill rhetoric, labeling all of their adversaries and critics as ‘accomplices in war crimes’, and ‘barbarians’.

The greater and more sustained the policy of wanton imperial pillage, the more intense the frustration of its leaders over its ultimate failures, and the greater the recourse of its ‘diplomats’ to vituperative language.

Barbarism in Search of Barbarians

The barbarism underlying the US and EU imperial wars of conquest in the Middle East is unmatched. The principal adversaries to US aggression, Russia, China and Iran, have not invaded any sovereign countries, nor have they provoked the desperate flight of millions of refugees. Russia was invited to aid its Syrian government ally confronting an invasion of terrorist mercenaries who are intent on dividing the country. Crimea peacefully re-joined Russia via elections. Moscow rejected playing any military role in support of Western wars against Iraq, Yemen and Libya. None of this rose to the level of US-EU barbarism.

In Asia, the West has invaded and devastated Viet Nam, the Philippines and Afghanistan. Japan, now a US ally, had invaded China, Korea and Southeast Asia. China for its part has not engaged in any imperial war of conquest for centuries.

Iran has not invaded any country in modern times. On the contrary, Iraq invaded Tehran in the 1980’s with US support and waged a decade-long war which caused millions of casualties.

In truth, if waging wars, staging invasions, destroying whole societies and causing millions of deaths are the measure of barbarism, then the US, Europe and Japan have been clearly barbaric.

To claim otherwise and follow the ranting script of Ambassador Samantha Power is to enter into a tunnel of hallucinations where the language of liberal values embellishes truly barbarian acts.

The entire language of politics has been perverted and converted into an artifice of self-delusion. Terrorist militias are re-packaged as ‘rebels’ and ‘moderates’, spreading barbarism from the imperial Western center to the periphery. The deliberate spread of terrorism is itself a barbaric deed, which degrades the status of Western powers.


In ancient Greece, the barbarians were those outside of the empire who did not speak the language of civilization. They were savage invaders seeking to pillage the wealth and culture of the empire. Today the barbarians emerge from inside the empire and spread outward. The imperial leaders have engaged in serial wars of destruction and pillage, even as their own societies and economies wallow in ignorance, misery, debt, addiction and criminality. Imperial barbarians devastate whole cultures, erasing the great historical legacy of ancient civilizations like Iraq and Syria, while imposing their culture of morons, drugs and electronic gadgets, which has already infantilized its own population.

The empire of barbarians is infested with moneychangers and corrupt speculators. They have debased the entire legal system and legislative bodies. The public space has become a private latrine for the elite, closed to any real public discourse and debate.

Electoral spectacles, rather than reasoned debates, undermine republican principles. Imperial conquerors, enmeshed in a military metaphysic, cannot reconstruct a devastated society into a productive colony, nor can they learn or benefit from the best and brightest among its captives, as Rome did with Greece, because it has sown such destruction and salted the very soil under the feet of its conquered peoples.

The barbarian-imperial world order is constantly at war with ‘others’ and can never assimilate and learn from the precious human treasures it has so wantonly destroyed. It rules by terror abroad and deceit at home. As so crudely displayed by the imperial rants of Ambassador Samantha Power, its oratory at international forums reflect the hysteria of mediocre functionaries: mindless barbarians raving among themselves in marbled echo chambers.

In the end, the imperial barbarians will be besieged by their own fleeing vassals and puppets. When they finally confront their own decay and internal dissolution they have to decide whether to engage in a last global conflagration or dismantle the imperial barbaric order and choose justice, law and civilization.

Oct 042016

By James Petras, 99GetSmart



Washington’s quest for perpetual world power is underwritten by systematic and perpetual propaganda wars. Every major and minor war has been preceded, accompanied and followed by unremitting government propaganda designed to secure public approval, exploit victims, slander critics, dehumanize targeted adversaries and justify its allies’ collaboration.

In this paper we will discuss the most common recent techniques used to support ongoing imperial wars.

Propaganda Techniques of Empire

            Role Reversal

A common technique, practiced by the imperial publicists, is to accuse the victims of the same crimes, which had been committed against them. The well documented, deliberate and sustained US-EU aerial bombardment of Syrian government soldiers, engaged in operations against ISIS-terrorist, resulted in the deaths and maiming of almost 200 Syrian troops and allowed ISIS-mercenaries to overrun their camp. In an attempt to deflect the Pentagon’s role in providing air cover for the very terrorists it claims to oppose, the propaganda organs cranked out lurid, but unsubstantiated, stories of an aerial attack on a UN humanitarian aid convoy, first blamed on the Syrian government and then on the Russians. The evidence that the attack was most likely a ground-based rocket attack by ISIS terrorists did not deter the propaganda mills. This technique would turn US and European attention away from the documented criminal attack by the imperial bombers and present the victimized Syrian troops and pilots as international human rights criminals.

Hysterical Rants

Faced with world opprobrium for its wanton violation of an international ceasefire agreement in Syria, the imperial public spokespeople frequently resort to irrational outbursts at international meetings in order to intimidate wavering allies into silence and shut down any chance for reasonable debate resolving concrete issues among adversaries.

The current ‘US Ranter-in-Chief’ in the United Nations, is Ambassador Samantha Power, who launched a vitriolic diatribe against the Russians in order to sabotage a proposed General Assembly debate on the US deliberate violation (its criminal attack on Syrian troops) of the recent Syrian ceasefire. Instead of a reasonable debate among serious diplomats, the rant served to derail the proceedings.

Identity Politics to Neutralize Anti-Imperialist Movements

Empire is commonly identified with the race, gender, religion and ethnicity of its practioners. Imperial propagandists have frequently resorted to disarming and weakening anti-imperialist movements by co-opting and corrupting black, ethnic minority and women leaders and spokespeople. The use of such ‘symbolic’ tokens is based on the assumption that these are ‘representatives’ reflecting the true interests of so-called ‘marginalized minorities’ and can therefore presume to ‘speak for  the oppressed peoples of the world’. The promotion of such compliant and respectable ‘minority members’ to the elite is then propagandized as a ‘revolutionary’, world liberating historical event – witness the ‘election’ of US President Barack Obama.

The rise of Obama to the presidency in 2008 illustrates how the imperial propagandists have used identity politics to undermine class and anti-imperialist struggles.

Under Obama’s historical black presidency, the US pursued seven wars against ‘people of color’ in South Asia, the Middle East and North Africa. Over a million men and women of sub-Saharan black origin, whether Libyan citizens or contract workers for neighboring countries, were killed, dispossessed and driven into exile by US allies after the US-EU destroyed the Libyan state – in the name of humanitarian intervention. Hundreds of thousands of Arabs have been bombed in Yemen, Syria and Iraq under President Obama, the so-called ‘historic black’ president. Obama’s ‘predator drones’ have killed hundreds of Afghan and Pakistani villagers. Such is the power of ‘identity politics’ that ignominious Obama was awarded the ‘Nobel Peace Prize’.

Meanwhile, in the United States under Obama, racial inequalities between black and white workers (wages, unemployment, access to housing, health and educational services) have widened. Police violence against blacks intensified with total impunity for ‘killer cops’. Over two million immigrant Latino workers have been expelled – breaking up hundreds of thousands of families – and accompanied by a marked increase of repression compared to earlier administrations. Millions of black and white workers’ home mortgages were foreclosed while all of the corrupt banks were bailed out – at a greater rate than had occurred under white presidents.

This blatant, cynical manipulation of identity politics facilitated the continuation and deepening of imperial wars, class exploitation and racial exclusion. Symbolic representation undermined class struggles for genuine changes.

Past Suffering to Justify Contemporary Exploitation

Imperial propagandists repeatedly evoke the victims and abuses of the past in order to justify their own aggressive imperial interventions and support for the ‘land grabs’ and ethnic cleansing committed by their colonial allies – like Israel, among others. The victims and crimes of the past are presented as a perpetual presence to justify ongoing brutalities against contemporary subject people.

The case of US-Israeli colonization of Palestine clearly illustrates how rabid criminality, pillage, ethnic cleansing and self-enrichment can be justified and glorified through the language of past victimization. Propagandists in the US and Israel have created ‘the cult of the Holocaust’, worshiping a near century-old Nazi crime against Jews (as well as captive Slavs, Gypsies and other minorities) in Europe, to justify the bloody conquest and theft of Arab lands and sovereignty and engage in systematic military assaults against Lebanon and Syria. Millions of Muslim and Christian Palestinians have been driven into perpetual exile. Elite, wealthy, well-organized and influential zionist Jews, with primary fealty to Israel, have successfully sabotaged every contemporary struggle for peace in the Middle East and have created real barriers for social democracy in the US through their promotion of militarism and empire building. Those claiming to represent victims of the past have become among the most oppressive of contemporary elites. Using the language of ‘defense’, they promote aggressive forms of expansion and pillage. They claim their monopoly on historic ‘suffering’ has given them a ‘special dispensation’ from the rules of civilized conduct: their cult of the Holocaust allows them to inflict immense pain on others while silencing any criticism with the accusation of ‘anti-Semitism’ and relentlessly punishing critics. Their key role in imperial propaganda warfare is based on their claims of an exclusive franchise on suffering and immunity from the norms of justice.

Entertainment Spectacles on Military Platforms

Entertainment spectacles glorify militarism. Imperial propagandists link the public to unpopular wars promoted by otherwise discredited leaders. Sports events present soldiers dressed up as war heroes with deafening, emotional displays of ‘flag worship’ to celebrate the ongoing overseas wars of aggression. These mind-numbing extravaganzas with crude elements of religiosity demand choreographed expressions of national allegiance from the spectators as a cover for continued war crimes abroad and the destruction of citizens’ economic rights at home.

Much admired, multi-millionaire musicians and entertainers of all races and orientations, present war to the masses with a humanitarian facade. The entertainers smiling faces serve genocide just as powerfully as the President’s benign and friendly face accompanies his embrace of militarism. The propagandist message for the spectator is that ‘your favorite team or singer is there just for you … because our noble wars and valiant warriors have made you free and now they want you to be entertained.’

The old style of blatant bellicose appeals to the public is obsolete: the new propaganda conflates entertainment with militarism, allowing the ruling elite to secure tacit support for its wars without disturbing the spectators’ experience.


Do the Imperial Techniques of Propaganda Work?

How effective are the modern imperial propaganda techniques? The results seem to be mixed. In recent months, elite black athletes have begun protesting white racism by challenging the requirement for choreographed displays of flag worship … opening public controversy into the larger issues of police brutality and sustained marginalization. Identity politics, which led to the election of Obama, may be giving way to issues of class struggle, racial justice, anti-militarism and the impact of continued imperial wars. Hysterical rants may still secure international attention, but repeated performances begin to lose their impact and subject the ‘ranter’ to ridicule.

The cult of victimology has become less a rationale for the multi-billion dollar US-tribute to Israel, than the overwhelming political and economic influence and thuggery of billionaire Zionist fundraisers who demand US politicians’ support for the state of Israel.

Brandishing identify politics may have worked the first few times, but inevitably black, Latino, immigrant and all exploited workers, all underpaid and overworked women and mothers reject the empty symbolic gestures and demand substantive socio-economic changes – and here they find common links with the majority of exploited white workers.

In other words, the existing propaganda techniques are losing their edge – the corporate media news is seen as a sham. Who follows the actor-soldiers and flag-worshipers once the game has begun?

The propagandists of empire are desperate for a new line to grab public attention and obedience. Could the recent domestic terror bombings in New York and New Jersey provoke mass hysteria and more militarization? Could they serve as cover for more wars abroad … ?

A recent survey, published in Military Times, reported that the vast majority of active US soldiers oppose more imperial wars. They are calling for defense at home and social justice. Soldiers and veterans have even formed groups to support the protesting black athletes who have refused to participate in flag worship while unarmed black men are being killed by police in the streets. Despite the multi-billion dollar electoral propaganda, over sixty percent of the electorate reject both major party candidates. The reality principle has finally started to undermine State propaganda!

Sep 292016

By James Petras, 99GetSmart



Bombs, domestic and foreign, are defining the nature of politics in the United States, the European Union and among radical Islamist groups and individuals. The scale and scope of bomb-politics varies with the practitioner. ‘Wholesale bombers’ are state actors, who engage in large-scale, long-term bombing designed to destroy adversary governments or movements. ‘Retail bombers’ are groups or individuals engaging in small-scale, sporadic bombings, designed to provoked fear and secure symbolic outcomes.

Apart from planned bombings, there are improvised bombings committed by deranged individuals who engage in suicide attacks without any political backing or coherent purpose.

In this paper we will focus on the nature of ‘wholesale’ and ‘retail’bombings, their frequency, political consequences and long-term impact on global political power.

Bombing as Everyday Events

The US and EU are the world’s foremost practitioners of ‘wholesale bombing’. They engage in serial attacks against multiple countries without declaring war or introducing their own citizen ground troops. They specialize in indiscriminate attacks on civilian populations – unarmed women, children, elders and non-combatant males. In other words, for the ‘wholesale bombers’, unleashing terror on societies is an everyday event.

The US and EU practice ‘total war’ from the skies, not sparing a single sphere of everyday, civilian life. They bomb neighborhoods, markets, vital infrastructure, factories, schools and health facilities. The result of their daily, ‘ordinary’ bombing is the total erasure of the very structures necessary for civilized existence, leading to mass dispossession and the forced migration of millions in search of safety.

It is not surprising that the refugees seek safety in the countries that have destroyed their means of normal existence. The wholesale bombers of the US-EU do not bomb their own cities and citizens – and so millions of the dispossessed are desperate to get in.

Wholesale bomb policies have emerged because prolonged ground wars in the targeted countries evoke strong domestic opposition from their citizens unwilling to accept casualties among US and EU soldiers. Wholesale bombing draws less domestic opposition because the bombers suffer few losses.

At the same time, while mass aerial bombing reduces the political risks of casualties at home, it expands and deepens violent hostility abroad. The mass flight of refugees to US-EU population centers allows the entry of violent combatants who will bring their own version of the total war strategies to the homes of their invaders.

Secular resistance has generally targeted enemy soldiers, whether they are imperial invaders or jihadi mercenaries. Their targets are more focused on the military. But faced with the politics of long-distance, wholesale bombing, the secular opposition becomes ineffective. When the ‘secular opposition’ diminishes, ethno-religious combatants troops emerge.

The Islamists have taken command of the resistance, adopting their tactics to the imperial policy of total serial wars.

Retail Bomb-Warfare

Lacking an air force, Islamist terrorists engage in ground wars to counter imperial air wars. Their response to drone warfare, is hand-made improvised bombs, killing hundreds of civilians. Their victims may be decapitated with hand-held swords, rather than computer-controlled missiles. They capture hostile population, committing pillage, torture and rapine, rather than bomb from a distance, to dispossess and drive into exile.

Retail bomb’ terrorists are generally decentralized and may be recruited overseas. Their bombs are crude and indiscriminate. But like the wholesale bombers, they target population centers and seek to provoke panic and despair among the civilian population.

Islamist ‘retail bombers’ seek to expand their range by attacking the home countries of ‘wholesale bombers’ – the US and Europe. These attacks are exclusively for propaganda and do not constitute any threat to strategic imperial military targets. They expose the vulnerability of their enemies’ civilian population.

While imperial bombers and Islamists bombers have been at war against each other, they have also served as allies of convenience. Several recent examples come to mind.

US-EU ‘wholesale bombing’ campaigns against Libya, Syria and Yemen worked in tandem with Islamist mercenary ground fighters. ‘Wholesale bombers’ devastated the infrastructure and military installations of the governments of Syria and Libya in support of advancing Islamist ground troops. In other words, ‘wholesale bombings’ are not sufficient to achieve targeted ‘regime change’, thus the resort to terrorist ‘retail bombers’ and jihadi ‘head choppers’ to advance on regional and local targets.

The most blatant recent example of the convergence of imperial wholesale bombers in support of Islamist retail bombers and terrorists was the September 17, 2016 US-EU attack on a Syrian military installation, killing and wounding almost two hundred Syrian soldiers who had been engaged in combat against ISIS terrorists. While Washington claimed that the hours-long aerial bombardment of Syrian government soldiers was a ‘mistake’, it allowed the jihadi ‘retail bombers’ to take the offensive and overrun the base. Acting as air-support for ISIS, the US Pentagon effective shut down any possibility for peace negotiations and sabotaged a fragile ceasefire. This was a major victory for Washington’s politics of permanent wholesale bombing and ‘regime change’.

Just as the US launched its propaganda and wholesale bombing attack against the Syrian government, an improvised ‘retail bombing campaign’ was launched in the US – in Manhattan and New Jersey! The latest series of retail bombing attacks in the US led to three dozen, mostly minor, injuries, while the brutal US wholesale bombing of Syrian troops killed over 62 government soldiers and wounded many more. The political impact and consequences of wholesale and retail terror bombings in both regions was highly significant. The US had no more right to launch an air attack on Syrian government troops engaged in defending their country, than the US-based retail terrorist (an Afghan-American) had in planting improvised bombs in US cities. Both actions are illegal.

Political Consequences of Bombing Warfare

The US-ISIS coordinated bombing of Syrian soldiers has set the stage for all-out warfare. Peace talks were violently sabotaged by the Obama Administration. Syria and Russia now face the combined forces of ISIS, Turkey and the US with no hope for a negotiated solution. The battle for control of Aleppo will intensify. Russian negotiators have failed to check their cynical American ‘allies’ in their much-ballyhooed ‘war on terror’. They have no choice but to continue to supply air cover for their Syrian government allies.

The US has embraced the Turkish invasion of Syria, betraying both their Kurdish allies and some element among their ISIS partners. Bombing continues to be Washington’s main option in the Middle East.

The recent retail terror bombing in the US has the predicted consequence – a mass media whipped into a frenzy of fear mongering. New York City is further militarized. The face of the ‘enemy’ (a young Afghan-American, whose own father had tried to turn over to the FBI for his jihadi connections) is on a hundred million TV screens continuously. The electoral campaign salivates in anticipation of a terror war for whoever wins the presidency. Blind fear rather than concrete economic demands take the place of political debate.

Immigrants, Muslims and terrorists replace Wall Street tax evaders, profiteers and speculators as the villains in a country mired in economic and social crises. Economic policies, which have created mass insecurity and misery, are obscured by the militarist rhetoric.

Militarism, war and wholesale bombing replace the incremental advances in improving peaceful productive relations with Cuba and Iran.

The politics of bombing, as a strategy and way-of-life affects domestic and foreign policy . . . even as the vast majority of American voters look for alternatives, for jobs, housing, and education and seek to live without fear and threats.

Wholesale wars lead to retail wars. Overseas bombs lead to bombs at home. Invasions and occupations provoke outrage and retaliation. The answer is not to do unto others what you don’t want done on yourself.

Sep 202016

By James Petras, 99GetSmart


The concentration and centralization of the agro-business multi-nationals advances with gigantic strides: Potash Corp and Agrium have combined into a $30 billion monopoly over the world fertilizer market. Dow Chemical and DuPont combine in a $130 billion dollar deal in the seed and agricultural chemicals sector.ChemChina prepares to takeover Syngenta in a $44 billion acquisition. Bayer is preparing to buy out Monsanto for $56 billion and further concentrate control over worldwide seed and chemical markets. A quarter of a trillion dollars worth of mergers and acquisitions is poised to concentrate control of global agriculture prices, profits and markets in four directorates. Parallel to the corporate capitalist drive for world domination, the White House has embarked on a full-scale trade and maritime war against China.

This essay presents the political and social implications of the agro-business counter-revolution and the concomitant US drive to encircle and enclose China’s market.

Agro-Business Monopolies and Social Revolution

This process of agri-business monopolization will have a major impact on farmers, consumers and environmentalists worldwide. Seed and fertilizer prices will rise, devastating farmers’ income and resulting in ever more bankruptcies. Nitrogen and potash, the two biggest fertilizer inputs for farmers, will be controlled by a monopoly cartel. Farmers will have no choice – either market response or political struggle. In other words, they can try to raise food prices or organize a revolt against the cartels.

In the imperial countries, national populist movements have emerged, especially in the countryside, small towns and cities: farmers, ecologists and consumers take to the streets while urban mass opposition, responding to rising food costs, are gaining momentum.

Throughout Asia, Africa and Latin America, the agro-business control of chemical and seed inputs raises the debt burden on peasants and farmers while contaminating food with pesticides and provoking food riots and land occupation movements.

The impact of food insecurity, including debt and malnutrition, undermines community and family cohesion. This is the context in which armed insurgents have emerged, including the Islamist movements in the Middle East, North Africa and West Asia, gaining credibility and followers among the millions of dispossessed.

In response, the agribusiness multinational corporations have reduced the question of popular resistance to one of  ‘political stability’, pushing for repressive state terror to suppress revolts. The Western mass media never discusses the linkage between the monopolization of agriculture and mass exploitation with armed popular resistance. Agro –business leaders claim that mass rebellion is merely a product of  ‘ideology’ promoted by deranged extremists on the left or violent jihadis.

The roots of revolt and upheaval are not analyzed or even described in the narrative of respectable financial newspapers in their “Companies and Markets” section.

Global monopolization of agriculture depends on state de-regulation, privatization, and the systematic policies of blaming any political opposition on ‘outside’ hostile forces. If the opponents are not ‘Islamists’ or communists, they are unfair competitors, who do not ‘play by market rules’ and rely on state subsidies.

Trade Wars for Monopoly Agriculture

The Obama regime has launched a full-scale agricultural war against China, imposing tariffs, promoting WTO boycotts and intensifying its ideological war. Obama’s Department of Agriculture, (which provides massive direct and indirect subsidies to the enormous US agro-industry), denounces China for subsidizing it basic food producers.

Obama attacks China for ‘unfair competition’ even as US MNCs earned $20 billion in agro exports to Beijing in 2015 alone!

While leading US corporate executives look to China’s dynamic growth as a source of investments for US elites, Obama warns of Chinese ‘security threats’. While former Treasury Secretary Paulson editorializes in favor of greater commercial linkages with Beijing as a vehicle for continued US business growth, Obama works to provoke military hostilities against China among second and third tier Asian countries.

In 2015 China invests nearly $20 billion in the US, generating several hundred thousand jobs, while Obama promotes a $38 billion military giveaway program for Israel. According to Obama’s perverse calculus, Israel, the plunderer, is our dearest ally and China the donor and job-creator, is an existential threat to the US!

While China attracts Philippine President Duterte with offers of billion dollar economic aid and investment, Obama encourages its clients among the Philippine military and Manila-based oligarchs to destabilize the government.

The US overt militarist policies toward China are integral to Obama’s political effort to divert the US electorate from the effects of monopoly mergers in raising the cost of living and deepening inequalities in America.

Obama’s war agenda in Asia may have the effect of intimidating US business, especially on the Pacific Coast, which would otherwise have ‘natural trade and investment ties’ with China, not to mention cultural ties.


US multi-national agro-business mergers have upped the ante in provoking social upheavals, North and South. While the agro-business elite expands overseas and increases domestic profits, it does so by heightening class and national conflicts, which, in turn, provoke brutal state repression.

The alliance between agro-business and militarism is a major factor driving the global ascent of populism and nationalism, as well as Islamist radicalism.

The ‘war versus trade’ contradiction dividing the US business elite has created a disjointed political class spinning in both directions without coherence.

The electorate reacts with double negatives: hostile to their own leaders and hostile to any alternatives. The response may well be greater abstention and withdrawal by the voters.

The US and EU multi-nationals, pivoting toward greater concentration of wealth and mega-monopolies, have yet to undermine the nature of Chinese state power – the ultimate arbiter of agriculture in Asia. As Thailand, Cambodia, Laos, Philippines and Myanmar develop closer trade and diplomatic ties with China, the MNCs have to deal with new competition and challenges from non-multi-national adversaries.

Besides Japan, and possibly South Korea, the US trade war against China has few regional allies. Obama’s militarist ‘pivot’ resonates with few outside of the US presidential election rhetoric.

In the European Union, nationalist populist movements and governments are questioning Obama’s proposed ‘Trans-Atlantic Trade and Investment Partnership’ (TTIP), particularly in regard to its impact on European agriculture. As the costs of food production and consumer prices increase the US-sponsored TTIP loses its supporters, because Washington’s conservative allies in Europe need the vote of small-scale farmers and middle class consumers in France, Poland, Hungary and elsewhere.

In India, the huge multinational agribusiness mergers are playing havoc with the political leaders in the BJP as they face scores of millions of devastated peasant producers.

In other words,  mega-agro powers form a two-edged sword in world capitalism: They strengthen the economies of the imperial powers while undermining their own electoral mass base. The feeble efforts to regulate these mergers have failed, as expected. When the ‘free market’ pulverizes small producers and local suppliers, it creates the conditions for class wars on many fronts, in the West and in the East, in the US and the EU, in China and in India.

Sep 112016

By James Petras, 99GetSmart


US empire building depends on regional regimes’ support, especially in the Middle East, Asia and Latin America. These proxy regimes fulfill valuable military roles securing control over neighboring regions, populations and territory.

In recent times, however, we witness the same proxies developing their own tendency toward expansionist policies – in pursuit of their own mini-empires.

Client regimes with local or regional ambitions now present Washington with new points of contention. At a time when the US empire has been forced to retrench or retreat in the face of its prolonged losses, a whole new set of conflicts have emerged. The post-imperial war zones are the new focus. Often, imperial client regimes take the initiative in confronting their regional adversaries. In other cases, competing proxies will brush aside their US ‘mentors’ and advance their own territorial ambitions.

The break-up of the US-dominated empire, far from ending wars and conflicts, will almost certainly lead to many local wars under the pretext of ‘self-determination’, or ‘self-defense’ or protecting one’s ethnic brethren – like Ankara’s sudden concern for the Turkmen in Syria.

We will examine a few of the most obvious case studies.

The Middle East: Turkish-Kurdish-Syrian Conflict

Over the past years, the Turkish regime has been in the forefront in the war to overthrow the secular nationalist Syrian government of Bashar al-Assad.

The Turks acted as proxies for the US – providing military bases, supplies, training and protection, as well as the point of entry, for overseas Islamist terrorist-mercenaries acting on behalf of Washington’s imperial ambitions.

As the ‘independent’ Islamist threat (ISIS) gained territory, targeting US objectives, Washington increasingly turned to its allied, mostly secular, Kurdish fighters. Washington’s Kurdish proxies took over territory from both the anti-US Islamists as well as the Syrian national government – as part of their own long-standing ethno-nationalist agenda.

Turkey saw Kurdish victories in northern Syria as a rallying point for autonomous Kurdish forces within Turkey. President Erdogan intervened militarily – sending tanks, warplanes and tens of thousands of troops into Syria, launching a war of extermination against the US-proxy Syrian Kurds! The Turkish invasion has advanced, taking Syrian territory, under the phony pretext of combating ‘ISIS’. In fact, Turkey has created a wide, colonial ‘safe zone’ to control the Kurds.

The Obama regime in Washington complained but was totally unwilling to intervene as the Turks drove the Kurds out of their northern Syrian home in a massive campaign of ethnic cleansing. Thus, Turkish-Kurdish-Syrian warfare has broken out and the terms, conditions and outcome are well beyond US control.

The US quest for an imperial puppet regime in Syria has flopped: instead, Turkey gobbled up Syrian land, the Kurds resisted the Turks for national-self-determination instead of driving out the Islamist mercenaries and Damascus faces an additional threat to its national sovereignty.

This brutal regional war, started largely by the US and Saudi Arabia, will expose the extent to which the US-Middle East Empire has shrunk.

Asia: Japan, Vietnam, Philippine and China Conflict

The US Empire in Asia has seen the making and unmaking of proxy states. After WWII, the US incorporated Japan, Pakistan, South Korea, Taiwan, the Philippines, Australia and New Zealand as proxy states in an effort to strangle and conquer China, North Korea and Vietnam.

More recently India, Vietnam and Myanmar have joined the US in its new militarist scheme to encircle China.

Central to the Obama-Clinton ‘Pivot to Asia’ is the Trans-Pacific Partnership (TPP), a singular effort to ‘unify’ Asian nations under US control in order to isolate and diminish China’s role in Asia.

The original, post-WW2 proxies, South Korea, Philippines and Japan provided military bases, troops, material and logistic support. Vietnam, the newest ‘proxy-on-the-block’, welcomes Pentagon weapons aimed at China – despite the millions of Vietnamese deaths during the US war in Indochina.

While most of the Asian proxies continue to pay lip service to Washington’s ‘Sinophobic agenda’, many do so on their own terms: they are reluctant to provoke China’s economic wrath through Washington’s policy of direct confrontation. During the recent ASEAN Conference in Laos (2016), nations resisted Washington’s pressure to denounce China despite the ‘international court’ ruling against Beijing’s South China Sea maritime claims. The US’ ability to influence events through its Europe-based ‘international tribunals’ seems to have waned. The US cannot implement its own transpacific economic ‘blockade’ strategy (TPP) because of both domestic and external resistance. Meanwhile, new proxy relations have emerged.

The proxy-stooges in Tokyo face growing anti-proxy opposition from the Japanese people over their nation’s role as a glorified US airbase. As a result Tokyo carefully pursues its own anti-China strategy by forming deeper economic links to new or minor proxy states in Indo-China, the Philippines and Myanmar. In the course of developing its relations with these weaker proxy regimes, Japan is actually laying the ground for autonomous economic and military policies independent of the US.

Notably, the Philippines under its new President Détente, seeks to accommodate relations with China, even as its neo-colonial proxy military relations with Washington remain in place. The Western media kerfuffle over Duterte’s ‘colorful’ language and ‘human rights’ policies masks Washington’s imperial disapproval with his independent foreign policy toward China.

While India grows closer ties with the US and even offers military co-operation with the Pentagon, it is signing even greater Chinese investment and trade agreements – anxious to enter the enormous China market.

In other words, Washington’s Asian proxies have (1) widened their own reach, (2) defined autonomous spheres of action and (3) have downgraded US efforts to impose trade agreements.

Symptomatic of the decay of US ‘proxy power’ is the ‘disinclination’ among Washington’s clients to express overt hostility to Beijing. In frustration, the Washington-New York financial mouthpieces (New York Times, Washington Post, Wall Street Journal) provide bully pulpits for the most obscure, marginal characters, including a minor Hong Kong politician, a decrepit exiled Tibetan ‘holy man’ and a gaggle of Uighur terrorists!

Washington’s Ephemeral Proxies in Latin America

One of the most striking aspects of US empire-building is the ease with which it has secured proxies in Latin America … and how quickly they are undermined!

Over the past three decades the US propped up proxy military regimes, which were overthrown and replaced by independent governments in the last decade. These are currently being replaced by a new wave of neo-liberal proxies – a motley collection of corrupt thugs and elite clowns incapable of establishing a sustainable imperial-centered region.

A proxy-based empire is a contradiction in terms. The Latin American proxies are too dependent on outside support, lacking mass internal popularity and roots. Their very neoliberal economic and social policies are unable to stimulate the industrial development required grow the economy. The Latin American proxies are mere predators, devoid of historical entrepreneurial skills of the Japanese and the disciplined nationalist ideology of the Turks.

In that sense, the Latin American proxies more closely resemble the Philippine ruling oligarchy: They preach submission and breed subversion. Proxy instability and policy shifts emerge as powerful forces to challenge the US empire – whether the Chinese in Asia or domestic internal conflicts – like the Trump phenomenon in the US.


Imperial wars continue … but so does an upsurge in domestic instability, mass rejection of imperial policies, regional conflicts and national wars. The decline of the empire threatens to bring on an era of intra-proxy wars – multiple conflicts, which may or may not benefit the US empire. The war of the few against the many is becoming the war of the many against the many. But what are the choices in the face of such historic shifts?

Only the emergence of truly class-conscious organized mass movements can offer a positive response to the coming deluge.


Please see James Petras latest book: The end of the Republic and the Delusion of EmpireClarity Press 2016 ISBN 978-0-9972870-5-9

Sep 092016

By James Petras, 99GetSmart

Big six: Tax woes

Big six: Tax woes


Large-scale political and economic challenges are confronting the US multi-national corporate elite. Apple, Google, Facebook, Microsoft, Pfizer and scores of other multinational tax evaders are facing the triple threat of multi-billion dollar fines, the redistribution of their wealth and the possible reintroduction of equitable socio-economic programs, which could undermine their power.

Washington-backed exporters and financiers, eager to impose free trade agreements on European and Asian business classes, have been faced with stiff resistance and outright rejection.

In Latin America, the Obama administration recently installed neo-liberal regimes in Argentina and Brazil, provoking massive opposition from small and medium sized firms driven into bankruptcy by their harsh policies.

Intense intra-capitalist rivalries are no longer confined to the conference table: Open warfare, involving large-scale transfers of capital, has undermined the foundation of international capitalist class solidarity. While working class movements and mass protests still occur, the fundamental internal capitalist antagonism toward the US Empire has become the driving force of the current upheavals.

We will identify the alignment of forces and the implications of these challenges to the power and wealth of the multi-national corporations. We will then highlight the break-up of the free trade treaties and the demise of US dominance in Europe and Asia. In the final section, we will focus on the rise and decline of the latest US interventions to subordinate Latin America to its domination, starting with the legislative coup in Brazil and the conflicts in Argentina.

The European Commission and Apple ‘s Tax Evasion

The European Commission (EC) imposed an initial $13 billion penalty on the Apple Corporation for tax evasion – with tens of billions of more fines to come. The EC announced that Apple’s ridiculous 0.005% corporate tax rate in Ireland was a form of theft, exposing its phony posture as a defender of human rights and a paragon of corporate social responsibility. Scores of the biggest US multi-nationals have set-up overseas operations, especially in Ireland, specifically to avoid paying taxes. These include Google, Facebook, Microsoft, Pfizer and scores of others among the   ‘Fortune five hundred’.

Apple’s multi-billion-dollar tax scams were possible because of support from the US Treasury, Commerce and Trade Departments. Indeed, Treasury Secretary, Jack Lew, launched a tirade against the European Commission, threatening retaliation, claiming that these US tax swindles were vital to the security of world trade. Wall Street flunky, Senator Charles Schumer called the EU penalty ‘a cheap money grab’ and threatened to start a trade war with Europe if the Democrats regain power in the upcoming Senatorial and Congressional elections.

The entire US imperial edifice operates through corrupt multi-national corporate tax swindlers who control and direct their politician stooges who, in turn, intimidate, submissiveEuropean regimes (like Ireland). The system is now being challenged by rival European economic powers intent on reducing the US tax advantages to increase their competitiveness. The growing competition over profits, markets and tax receipts has important political implications as the US dominance of Europe depends on the supremacy of its multi-nationals.

US taxpayers subsidize the US multi-nationals even when they relocate jobs abroad to cheap labor markets and move their corporate head offices to low-tax countries. The result is that the US government has to increase the tax burden on wage- salaried workers and small businesspeople to finance social programs and critical infrastructure because the US multinationals have moved their ‘addresses’ to tax havens.

As Europe tightens the squeeze on the US billionaire tax fraudsters, Washington will retaliate by mobilizing its own stable of European flunkies and the ever-compliant US Senators. Capitalist warfare may increase ‘nationalist’ rancor and undermine Atlantic trade treaties.

The End of Atlantic and Pacific Trade Agreements

In demanding an end to negotiations with the US over the trans-Atlantic trade deal, the French minister for foreign trade summed up his country’s position: “There is no political support from France for those negotiations . . . the Americans give nothing or just crumbs”. Throughout Europe politicians of the Left and Right have pointed out that closer ties with the US undermine their business deals with Russia and China, dilute environmental protection and abolish workers’ rights.

Parallel developments are taking place in Asia with regard to the trans-Pacific trade deal: The US has failed to convince Asian countries to sign bilateral and multilateral trade pacts designed to exclude China.

Asia’s increasing use of China’s currency (the renminbi) shows that the Anglo-American bloc has declined as the center of foreign exchange markets and trade. The US no longer dominates Asia: Even its former colony, the Philippines, has made overtures to China. Cambodia has granted China extended use of a deep-water port, strengthening Beijing’s position as the dominant maritime power in Asia. The US ally, Australia increasingly depends on trade with Beijing. China’s mix of public-private capitalism has out-muscled the US in Asian markets while deepening its trade links with Russia, Iran, the Gulf States, Africa and Latin America.

To the extent that international capitalism has ‘recovered’ from the economic crisis of the recent past, it is thanks to Chinese–Asia capitalism. The policy failures of the US Treasury, Commerce and Trade departments have led to calls for protectionism – domestically with the Trump campaign – and growing militarism among both candidates.

Increasingly the struggle for world markets among regional capitalist blocs- Anglo-American, European and Sino-Asian –defines the nature of global instability.

Latin America: The Rebellion of the Middle Class

On the surface, Washington and Wall Street have gained some important political victories: In Argentina, the Mauricio Macri regime has imposed an economic agenda totally in line with Washington’s free trade demands. In Brazil, Washington successfully promoted the legislative coup impeaching the center-left government of President Dilma Rousseff and installing the corrupt Vice President Temer. The proxy regime is dedicated to de-nationalizing and privatizing strategic, lucrative sectors of the economy.

In Venezuela, Washington’s proxies who have gained control of the congress are organizing to oust the left-of-center Maduro government through street protests, sabotage and the hoarding of vital commodities.

Nevertheless the image of middle class and local capitalist support for Washington’s agenda is proving ephemeral. Once installed at the top, the US-backed local proxies are rapidly imposing brutal austerity policies that undermine middle class and, of course, working class support.

After merely nine months in power, Argentine President Macri and his Washington backers face open opposition from the entire range of small and medium size businesses.

Inflation and deflation, utility price increases of 400% to 1000% have bankrupted at least a fourth of small-scale commercial and medium-size business firms in Argentina. Thousands have massed in the streets. On September 2, a broad based multi-class demonstration of several hundred thousand took over the famous Plaza de Mayo in the center of Buenos Aires to denounce Macri’s devastating neo-liberal agenda.

Similar mass actions are erupting in Brazil, as the US-backed Temer regime slashes government budget subsidies, credit and public investments. His public approval rating (never high because of his own corruption) has dropped to a single digit.

In a short time the business class has become deeply divided between the top tier, linked to international capital, and the middle and lower tiers. The initial consensus opposing the left-populist government has rapidly disintegrated while the unity of the capitalist class has collapsed.


In the current phase of global capitalism, the most striking socio-economic dynamics are located in the deepening intra-capitalist conflicts between regions, nations and among segments of the capitalist class. The ideologues of capitalist globalization and  regional integration are finally exposed as false prophets. Attempts by the US to impose a new world order that subordinates Europe and Asia have failed; the US now faces internal dissension, notably in US Presidential candidate Donald Trump’s ‘American First’ campaign, pressing for ‘national solutions’.

The European capitalist elite is now only willing to collaborate with Washington where US-Europe trade agreements can be mutually beneficial – they openly reject being reduced to ‘reaping crumbs.’ National capitalism has emerged as the new reality on both sides of the Atlantic and across the globe in Asia, as China emerges as the dominant economic force in the region. China’s quest to secure global markets and investment sites has set in motion rival nationalist alignments, which threaten US regional power.

Rebellions by capitalist political elites are the ‘new norm’ everywhere. Multi-national rivalries over tax evasion and its consequences are leading to ‘tit-for-tat’ reprisals, which can rupture historical ties.

Latin American capitalist triumphs over the left are short-lived, as the different segments engage in violent divisions and realignments.

The ultra-militarist US is incapable of establishing a stable world capitalist order under its direction. Instead, we now find a multiplicity of capitals and competing state regimes with subordinate and divided segments of the capitalist class. Trans-Atlantic and Pacific unity fractures, and each sub-region seeks its own socio-economic partners. Trade talks cease and acrimony reigns.

Given the US total reliance on military-driven empire building, this post-imperial emergence of national and class rivalries is more likely to lead to war than to a new just social order.

Aug 292016

By James Petras, 99GetSmart




The Financial Times editorial page carries a logo that proclaims: “Without fear and without favor”. Indeed the editors have shown no fear when it comes to . . .  fabricating lies, promoting imperial wars decimating countries and impoverishing millions, whether in Libya, Syria, Iraq, Afghanistan, Yemen and now Venezuela. The fearless “Lies of Our Times” have been at the forefront forging pretexts for inciting imperial armies to crush independent governments.

Despite its pretentious scribblers and prestigious claims, the FT is seen by the Anglo-American financial class as a belligerent purveyor of militarist policies designed for the most retrograde sectors of the ruling elite.

What is most striking about the FT fearless fabrications on behalf of imperial militarism is how often their political and economic prognostications have been incompetent and flat out wrong.

For the past ten years, the FT editorial pages have described  China in economic crisis and heading for a fall, while in reality, the Chinese economy has grown at between eight and six percent a year.

For over a decade and a half, the FT editors claimed Russia under President Vladimir Putin presented an international existential threat to ‘the West’. In fact, it was the ‘Western’ armies of NATO, which expanded military operations to the borders of Russia, the US, which financed a neo-fascist coup in Kiev and the US-EU which promoted an Islamist uprising in Syria designed to totally undermine Russia’s influence and relations in the Middle East.

The FT’s economic gurus and its leading columnists prescribed the very catastrophic deregulatory formulas which precipitated the financial crash of 2008-09, after which they played the clownish role of “Mickey the Dunce” – blaming others for the failed policies.

The fearless FT scribes are currently leading a virulent propaganda campaign to promote the violent overthrow of the democratically elected Venezuelan government of President Nicolas Maduro.

This essay will identify the FT’s latest pack of fearless lies and fabrications and then conclude by analyzing the political consequences for Venezuela and other independent regimes.

The Financial Times and Venezuela: From War in the Suites to Terror in the Streets

In covering the crisis in Venezuela, the FT has systematically ignored the ongoing campaign of assaults and assassinations against elected officials, security officers, military and police who have been murdered by the FT’s favored ‘opposition’.

The FT did not cover the horrific murders of an elected Chavista congresswoman and her two young children, who were executed (shot in the head) in broad daylight by opposition-paid hitmen.

These ongoing opposition terror campaigns against the elected government and the general public are systematically ignored in the FTs ‘reports’ and on its editorial pages, which focus more on the shortages of consumer items.

The FT cover-up of rightwing terror extended to inventing a ‘possible’ army or National Guard plan to open fire on opposition demonstrators. In this case, the FT anticipated rightwing violence by laying the blame on the government in advance.

The FT covers-up the opposition business elite’s campaign of hoarding essential goods to create artificial shortages and panic buying. They deny the ongoing price gouging and pin the blame for shortages and long consumer lines exclusively on ‘regime mismanagement’.

The FT conveniently omits to mention that the decline in world oil prices has affected not only the economy of Venezuela but all countries dependent on commodity exports, including the Financial Times favorite neo-liberal regimes in Brazil and Argentina.

The Financial Times cites bogus ‘opinion’ polls, which wildly exaggerate the government’s declining popularity: In the recent elections Maduro’s supporters secured 40% of the popular vote while the FT claims his support to be 7%!

US client regimes (Mexico, Peru, and Colombia) are the largest producers of illegal drugs and US banks are the largest launderers for narco-money. Yet the FT reports on “Venezuela’s role as a conduit for illegal drugs smuggled north to the US and east into Brazil, Africa and thence to Europe”. Drug enforcement experts all agree that Colombia, home to seven US military bases and with a regime closely linked to paramilitary-narco gangs, is the source of drugs smuggled through Venezuela. That Venezuela has become a victim of the violent Colombian narco-trade is never acknowledged by the elegant City of London pen-prostitutes.

The FT blames the re-emergence of ‘malaria and  other possible diseases’ on the leftist Maduro government. In fact the recent ‘malaria outbreak’ (also cited by the New York Timespropagandists) is based on a single illegal gold miner.

The FT ignores how the US- backed neoliberal regimes in Argentina and Brazil, which rule by presidential decree, have slashed public health programs setting the stage for much greater public health crises.

The Financial Times: Big Lies for Mass Murder

The Financial Times is waging an all-out propaganda war with one goal: To incite the violent seizure of power in Venezuela by US political clients.

In line with the Obama-Clinton ‘regime-change by any means’ policies, the FT paints a deceptive picture of Venezuela facing ‘multiple crises’, representing a ‘destabilizing’ threat to the hemisphere, and on the brink of a global ‘humanitarian crisis’.

Armed with these deadly clichés, the FT editorial pages demand “a new government soon and certainly before the 2018 elections”.

Recently, the FT proposed a phony legal gimmick – a recall referendum. However, since the opposition cannot initiate the vote in time to oust the elected President Maduro, the FT calls for “events which precipitate changes sooner” – a violent coup!

FT’s scenarios aim to precipitate a violent rightwing “march”, eventually provoking civil bloodshed in early September of this year.

The FT expects that “blood in Caracas will require an active Latin America response”(sic). In other words, the FT hopes that a US-backed military invasion from neighboring Colombia would help eliminate the Chavistas and install a rightist regime.

The Financial Times, which actively promoted the NATO-led destruction of the government in Libya, now calls for a US-led invasion of Venezuela. Never ones to re-assess their promotion of  ‘regime change’, the FT now calls for a violent coup in Venezuela, which will exceed that of Libya in terms of the loss of thousands of Venezuelan lives and  the brutal reversal of a decade of significant socio-economic progress.

Without fear and without favor”, the FT  speaks for imperial wars everywhere.


The US presidential elections take place just as the Obama-Clinton regime prepares to intervene in Venezuela. Using bogus ‘humanitarian’ reports of  widespread hunger, disease, violence and instability, the Obama will still need Venezuelan thugs to provoke enough violent street violence to trigger an’ invitation’ for  Washington’s Latin American military partners to ‘intervene’ under the auspices of the UN or OAS.

If  ‘successful’, a rapid overthrow of the elected government in Caracas could be presented as a victory for Hilary Clinton’s campaign, and an example of her policy of ‘humanitarian-military interventions’ around the world.

However, if Obama’s allied invasion does not produce a quick and easy victory, if the Venezuelan people and armed forces mount a prolonged and courageous defense of their government and if US lives are lost in what could turn into a popular war of resistance, then Washington’s intervention could ultimately discredit the Clinton campaign and her ‘muscular’ foreign policy. The American electorate might finally decide against four more years of losing wars and losing lives.  No thanks to the ‘fearless’ Financial Times.

The hashtag #YankeeGoHome has gone viral. – Photo: Twitter

The hashtag #YankeeGoHome has gone viral. – Photo: Twitter

Aug 242016

By James Petras, 99GetSmart

Luka Robotics - While the US has spent trillions in the Middle East for wars on behalf of Israel, China has invested similar amounts in Germany for advanced technology, robotics and digital innovations.

Luka Robotics – While the US has spent trillions in the Middle East for wars on behalf of Israel, China has invested similar amounts in Germany for advanced technology, robotics and digital innovations.


China and the United States are moving in polar opposite directions: Beijing is rapidly becoming the center of overseas investments in high tech industries, including robotics, nuclear energy and advanced machinery with collaboration from centers of technological excellence, like Germany.

In contrast, Washington is pursuing a predatory military pivot to the least productive regions with collaboration from its most barbaric allies, like Saudi Arabia.

China is advancing to global economic superiority by borrowing and innovating the most advance methods of production, while the US degrades and debases its past immense productive achievements to promote wars of destruction.

China’s growing prominence is the result of a cumulative process that advanced in a systematic way, combining step-by-step growth of productivity and innovation with sudden jumps up the ladder of cutting edge technology.

China’s Stages of Growth and Success

China has moved from a country, highly dependent on foreign investment in consumer industries for exports, to an economy, based on joint public-private investments in higher value exports.

China’s early growth was based on cheap labor, low taxes and few regulations on multi-national capital. Foreign capital and local billionaires stimulated growth, based on high rates of profit. As the economy grew, China’s economy shifted toward increasing its indigenous technological expertise and demanding greater ‘local content’ for manufactured goods.

By the beginning of the new millennium China was developing high-end industries, based on local patents and engineering skills, channeling a high percentage of investments into civilian infrastructure, transportation and education.

Massive apprenticeship programs created a skilled labor force that raised productive capacity. Massive enrollment in science, math, computer science and engineering universities provided a large influx of high-end innovators, many of whom had gained expertise in the advanced technology of overseas competitors.

China’s strategy has been based on the practice of borrowing, learning, upgrading and competing with the most advanced economics of Europe and the US.

By the end of the last decade of the 20th century, China was in a position to move overseas. The accumulation process provided China with the financial resources to capture dynamic overseas enterprises.

China was no longer confined to investing in overseas minerals and agriculture in Third World countries. China is looking to conquer high-end technological sectors in advanced economics.

By the second decade of the 21st century Chinese investors moved into Germany, Europe’s most advanced industrial giant. During the first 6 months of 2016 Chinese investors acquired 37 German companies, compared with 39 in all of 2015. China’s total investments in Germany for 2016 may double to over $22 billion dollars.

In 2016, China successfully bought out KUKA, Germany’s most innovative engineering company. China’s strategy is to gain superiority in the digital future of industry.

China is rapidly moving to automate its industries, with plans to double the robot density of the US by the year 2020.

Chinese and Austrian scientists successfully launched the first quantum-enabled satellite communication system which is reportedly ‘hack proof’, ensuring China’s communications security.

While China’s global investments proceed to dominate world markets, the US, England and Australia have been trying to impose investment barriers. By relying on phony ‘security threats’, Britain’s Prime Minister Theresa May blocked a multi-billion dollar Chinese investment-heavy nuclear plant (Hinckley Point C). The pretext was the spurious claim that China would use its stake to “engage in energy blackmail, threatening to turn off the power in the event of international crises”.

The US Committee on Foreign Investment has blocked several multi-billion dollar Chinese investments in high tech industries.

In August 2016 Australia blocked an $8 billion-dollar purchase of a controlling stake in its biggest electricity distribution network on specious claims of ‘national security’.

The Anglo-American and German empires are on the defensive. They increasingly cannot compete economically with China, even in defending their own innovative industries.

In large part this is the result of their failed policies. Western economic elite have increasingly relied on short-term speculation in finance, real estate and insurance, while neglecting their industrial base.

Led by the US, their reliance on military conquests (militaristic empire-building) absorb public resources, while China has directed its domestic resources toward innovative and advanced technology.

To counter China’s economic advance, the Obama regime has implemented a policy of building economic walls at home, trade restrictions abroad and military confrontation in the South China Seas – China’s strategic trade routes.

US officials have ratcheted up their restrictions on Chinese investments in high tech US enterprises including a $3.8 billion investment in Western Digital and Philips attempt to sell its lighting business. The US blocked ‘Chen China’s planned $44 billion takeover of Swiss chemical group ‘Syngenta’.

US officials are doing everything possible to stop innovative billion dollar deals that include China as a strategic partner.

Accompanying its domestic wall, the US has been mobilizing an overseas blockade of China via its Trans-Pacific-Partnership, which proposes to exclude Beijing from participating in the ‘free trade zone’ with a dozen North America, Latin American and Asian members. Nevertheless, not a single member-nation of the TPP has cut back its trade with China. On the contrary, they are increasing ties with China – an eloquent comment on Obama’s skill at ‘pivoting’.

While the ‘domestic economic wall’ has had some negative impacts on particular Chinese investors, Washington has failed to dent China’s exports to US markets. Washington’s failure to block China’s trade has been even more damaging to Washington’s effort to encircle China in Asia and Latin America, Oceana and Asia.

Australia, New Zealand, Peru, Chile, Taiwan, Cambodia and South Korea depend on Chinese markets far more than on the US to survive and grow.

While Germany, faced with China’s dynamic growth, has chosen to ‘partner’ and share, up-scale productive investments, Washington has opted to form military alliances to confront China.

The US bellicose military alliance with Japan has not intimidated China. Rather it has downgraded their domestic economies and economic influence in Asia.

Moreover, Washington’s “military pivot” has deepened and expanded China’s strategic links to Russia’s energy sources and military technology.

While the US spends hundreds of billions in military alliances with the backward Baltic client-regimes and the parasitical Middle Eastern states, (Saudi Arabia, Israel), China accumulates strategic expertise from its economic ties with Germany, resources from Russia and market shares among Washington’s ‘partners’ in Asia and Latin America.

There is no question that China, following the technological and productive path of Germany, will win out over the US’s economic isolationist and global militarist strategy.

If the US has failed to learn from the successful economic strategy of China, the same failure can explain the demise of the progressive regimes in Latin America.

China’s Success and the Latin American Retreat

After more than a decade of growth and stability, Latin America’s progressive regimes have retreated and declined. Why has China continued on the path of stability and growth while their Latin American partners retreated and suffered defeats?

Brazil, Argentina, Venezuela, Uruguay, Paraguay, Bolivia and Ecuador, for over a decade, served as Latin America’s center-left success story. Their economies grew, social spending increased, poverty and unemployment were reduced and worker incomes expanded.

Subsequently their economies went into crisis, social discontent grew and the center-left regimes fell.

In contrast to China, the Latin American center-left regimes did not diversify their economies: they remained heavily dependent on the commodity boom for growth and stability.

The Latin American elites borrowed and depended on foreign investment, and financial capital, while China engaged in public investments in industry, infrastructure, technology and education.

Latin American progressives joined with foreign capitalist and local speculators in non-productive real estate speculation and consumption, while China invested in innovative industries at home and abroad. While China consolidated political rulership, the Latin American progressives “allied” with strategic domestic and overseas multi-national adversaries to ‘share power’, which were, in fact, eagerly prepared to oust their “left” allies.

When the Latin commodity based economy collapsed, so did the political links with their elite partners. In contrast, China’s industries benefited from the lower global commodity prices, while Latin America’s left suffered. Faced with widespread corruption, China launched a major campaign purging over 200,000 officials. In Latin America, the Left ignored corrupt officials, allowing the opposition to exploit the scandals to oust center-left officials.

While Latin America imported machinery and parts from the West; China bought the entire Western companies producing the machines and their technology – and then implemented Chinese technological improvements.

China successfully outgrew the crisis, defeated its adversaries and proceeded to expand local consumption and stabilized rulership.

Latin America’s center-left suffered political defeats in Brazil, Argentina and Paraguay, lost elections in Venezuela and Bolivia and retreated in Uruguay.


China’s political economic model has outperformed the imperialist West and leftist Latin America. While the US has spent billions in the Middle East for wars on behalf of Israel, China has invested similar amounts in Germany for advanced technology, robotics and digital innovations.

While President Obama and Secretary of State Hillary Clinton’s “pivot to Asia” has been largely a wasteful military strategy to encircle and intimidate China, Beijing’s “pivot to markets” has successfully enhanced its economic competitiveness. As a result, over the past decade, China’s growth rate is three times that of the US; and in the next decade China will double the US in ‘robotizing’ its productive economy.

The US ‘pivot to Asia’, with its heavy dependence on military threats and intimidation has cost billions of dollars in lost markets and investments. China’s ‘pivot to advanced technology’ demonstrates that the future lies in Asia not the West. China’s experience offers lessons for future Latin American leftist governments.

First and foremost, China emphasizes the necessity of balanced economic growth, over and above short-term benefits resulting from commodity booms and consumerist strategies.

Secondly, China demonstrates the importance of professional and worker technical education for technological innovation, over and above business school and non-productive ‘speculative’ education so heavily emphasized in the US.

Thirdly, China balances its social spending with investment in core productive activity; competitiveness and social services are combined.

China’s enhanced growth and social stability, its commitment to learning and surpassing advanced economies has important limitations, especially in the areas of social equality and popular power. Here China can learn from the experience of Latin America’s Left. The social gains under Venezuela’s President Chavez are worthy of study and emulation; the popular movements in Bolivia, Ecuador and Argentina, which ousted neo-liberals from power, could enhance efforts in China to overcome the business- state nexus of pillage and capital flight.

China, despite its socio-political and economic limitations, has successfully resisted US military pressures and even ‘turned the tables’ by advancing on the West.

In the final analysis, China’s model of growth and stability certainly offers an approach that is far superior to the recent debacle of the Latin American Left and the political chaos resulting from Washington’s quest for global military supremacy.