Mar 252017
 

By James Petras99GetSmart

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Introduction

From their dismal swamps, US academic and financial journal editorialists, the mass media and contemporary ‘Asia experts’, Western progressive and conservative politicians croak in unison about China’s environmental and impending collapse.

They have variably proclaimed (1) China’s economy is in decline; (2) the debt is overwhelming; a Chinese real estate bubble is ready to burst; (3) the country is rife with corruption and poisoned with pollution; and (4) Chinese workers are staging paralyzing strikes and protests amid growing repression – the result of exploitation and sharp class inequality. The financial frogs croak about China as an imminent military threat to the security of the US and its Asian partners. Other frogs leap for that fly in the sky – arguing that the Chinese now threatens the entire universe!

The ‘China doomsters’ with ‘logs in their own eyes’ have systematically distorted reality, fabricated whimsical tales and paint vision, which, in truth, reflect their own societies.

As each false claim is refuted, the frogs alter their tunes: When predictions of imminent collapse fail to materialize, they add a year or even a decade to their crystal ball. When their warnings of negative national social, economic and structural trends instead move in a positive direction, their nimble fingers re-calibrate the scope and depth of the crisis, citing anecdotal ‘revelations’ from some village or town or taxi driver conversation.

As long-predicted failures fail to materialize, the experts re-hash the data by questioning the reliability of China’s official statistics.

Worst of all, Western ‘Asia’ experts and scholars try ‘role reversal’: While US bases and ships increasingly encircle China, the Chinese become the aggressors and the bellicose US imperialists whine about their victim-hood.

Cutting through the swamp of these fabrications, this essay aims to outline an alternative and more objective account of China’s current socio-economic and political realty.

China: Fiction and Fact

We repeatedly read about China’s ‘cheap wage’ economy and the brutal exploitation of its slaving workers by billionaire oligarchs and corrupt political officials. In fact, the average wage in China’s manufacturing sector has tripled during this decade. China’s labor force receives wages which exceed those of Latin America countries, with one dubious exception. Chinese manufacturing wages now approach those of the downwardly mobile countries in the EU. Meanwhile, the neo-liberal regimes, under EU and US pressure, have halved wages in Greece, and significantly reduced incomes in Brazil, Mexico and Portugal. In China, workers wages now surpass Argentina, Colombia and Thailand. While not high by US-EU standards, China’s 2015 wages stood at $3.60 per hour – improving the living standards of 1.4 billion workers. During the time that China tripled its workers ‘wages, the wages of Indian workers stagnate at $0.70 per hour and South African wages fell from $4.30 to $3.60 per hour.

This spectacular increase in Chinese worker’s wages is largely attributed to skyrocketing productivity, resulting from steady improvements in worker health, education and technical training, as well as sustained organized worker pressure and class struggle. President Xi Jinping’s successful campaign for the removal and arrest of hundreds of thousands of corrupt and exploitative officials and factory bosses has boosted worker power. Chinese workers are closing the gap with the US minimum wage. At the current rate of growth, the gap, which had narrowed from one tenth to one half the US wage in ten years, will disappear in the near future.

China is no longer merely a low-wage, unskilled, labor intensive, assembly plant and export-oriented economy. Today twenty thousand technical schools graduate millions of skilled workers. High tech factories are incorporating robotics on a massive scale to replace unskilled workers. The service sector is increasing to meet the domestic consumer market. Faced with growing US political and military hostility, China has diversified its export market, turning from the US to Russia, the EU, Asia, Latin America and Africa.

Despite these impressive objective advances, the chorus of ‘crooked croakers’ continue to churn out annual predictions of China’s economic decline and decay. Their analyses are not altered by China’s 6.7% GNP growth in 2016; they jump on the 2017 forecast of ‘decline’ to 6.6% as proof of its looming collapse! Not be dissuaded by reality, the chorus of ‘Wall Street croakers’ wildly celebrate when the US announces a GNP increase from 1% to 1.5%!

While China has acknowledged its serious environmental problems, it is a leader in committing billions of dollars (2% of GNP) to reduce greenhouse gases – closing factories and mines. Their efforts far exceed those of the US and EU.

China, like the rest of Asia, as well as the US, needs to vastly increase investments in rebuilding its decaying or non-existent infrastructure. The Chinese government is alone among nations in keeping up with and even exceeding its growing transportation needs – spending $800 billion a year on high speed railroads, rail lines, seaports, airports subways and bridges.

While the US has rejected multi-national trade and investment treaties with eleven Pacific countries, China has promoted and financed global trade and investment treaties with more than fifty Asia-Pacific (minus Japan and the US), as well as African and European states.

China’s leadership under President Xi Jinping has launched an effective large-scale anti-corruption campaign leading to the arrest or ouster of over 200,000 business and public officials, including billionaires, and top politburo and Central Committee members. As a result of this national campaign, purchases of luxury items have significantly declined. The practice of using public funds for elaborate 12 course dinners and the ritual of gift giving and taking are on the wane.

Meanwhile, despite the political campaigns to ‘drain the swamp’ and successful populist referenda, nothing remotely resembling China’s anti-corruption campaign have taken root in the US and the UK despite daily reports of swindles and fraud involving the hundred leading investment banks in the Anglo-American world. China’s anti-corruption campaign may have succeeded in reducing inequalities. It clearly has earned the overwhelming support of the Chinese workers and farmers.

Journalists and academics, who like to parrot the Anglo-American and NATO Generals, warn that China’s military program poses a direct threat to the security of the US, Asia and indeed the rest of world.

Historical amnesia infects these most deep diving frogs. Forgotten is how the post WW2 US invaded and destroyed Korea and Indo-China (Vietnam, Laos and Cambodia) killing over nine million inhabitants, both civilian and defenders. The US invaded, colonized and neo-colonized the Philippines at the turn of the 20th century, killing up to one million inhabitants. It continues to build and expand its network of military bases encircling China, It recently moved powerful, nuclear armed THADD missiles to the North Korean border, capable of attacking Chinese and even Russian cities. The US is the world’s largest arms exporter, surpassing the collective production and sale of the next five leading merchants of death.

In contrast, China has not unilaterally attacked, invaded or occupied anyone in hundreds of years. It does not place nuclear missiles on the US coast or borders. In fact, it does not have a single overseas military base. Its own military bases, in the South China Sea, are established to protect its vital maritime routes from pirates and the increasingly provocative US naval armada. China’s military budget, scheduled to increase by 7% in 2017, is still less than one-fourth of the US budget.

For its part, the US promotes aggressive military alliances, points radar and satellite guided missiles at China, Iran and Russia, and threatens to obliterate North Korea. China’s military program has been and continues to be defensive. Its increase is based on its response to US provocation. China’s foreign imperial thrust is based on a global market strategy while Washington continues to pursue a militarist imperial strategy, designed to impose global domination by force.

Conclusion

The frogs of the Western intelligentsia have crocked loud and long. They strut and pose as the world’s leading fly catchers – but producing nothing credible in terms of objective analyses.

China has serious social, economic and structural problems, but they are systematically confronting them. The Chinese are committed to improving their society, economy and political system on their own terms. They seek to solve immensely challenging problems, while refusing to sacrifice their national sovereignty and the welfare of their people.

In confronting China as a world capitalist competitor, the US official policy is to surround China with military bases and threaten to disrupt its economy. As part of this strategy, Western media and so-called ‘experts’ magnify China’s problems and minimize their own.

Unlike China, the US is wallowing at less than 2% annual growth. Wages stagnate for decades; real wages and living standards decline. The costs of education and health care skyrocket, while the quality of these vital services decline dramatically. Costs are growing, unemployment is growing and worker suicide and mortality is growing. It is absolutely vital that the West acknowledge China’s impressive advances in order to learn, borrow and foster a similar pattern of positive growth and equity. Co-operation between China and the US is essential for promoting peace and justice in Asia.

Unfortunately, the previous US President Obama and the current President Trump have chosen the path of military confrontation and aggression. The two terms of Obama’s administration present a record of failing wars, financial crises, burgeoning prisons and declining domestic living standards. But for all their noise, these frogs, croaking in unison, will not change the real world.

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.

Mar 122017
 

By James Petras99GetSmart

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US militarism expanded exponentially through the first two decades of the Twenty-First Century, and was embraced by both Democratic and Republican Presidents. The mass media’s hysteria towards President Trump’s increase in military spending deliberately ignores the vast expansion of militarism, in all its facets, under President Obama and his two predecessors, Presidents ‘Bill’ Clinton and George Bush, Jr.

We will proceed in this essay to compare and discuss the unbroken rise of militarism over the past seventeen years. We will then demonstrate that militarism is an essential structural feature of US imperialism’s insertion in the international system.

Militarism

Vast increases in military spending have been a constant regardless of who was President of the United States, and regardless of their popular campaign rhetoric to curb military spending in favor of the domestic economy.

Under ‘Bill’ Clinton, the war budget increased from $302 billion in 2000 to $313 billion in 2001. Under President George W. Bush (Jr.), military spending jumped from $357 billion in 2002 to $465 billion in 2004, to $621 billion in 2008. Under President Obama (the ‘Peace Candidate’), military spending soared from $669 billion in 2009 to $711 billion in 2011 and then apparently declined to $596 billion in 2017. Currently, the newly installed President Trump is asking for an increase to $650 billion for 2018.

Several observations are in order: Obama’s military budget in 2017 excluded spending in several ‘Defense-related’ departments of government, including a $25 billion increase for the Energy Department’s nuclear weapons program. Obama’s total for military spending for 2017 adds up to $623 billion or $30 billion less than Trump’s proposal. Moreover, Obama’s military spending for Overseas Contingency Operations (OCO), which is not listed in the annual budget proposals, included the cost of US wars in Afghanistan, Iraq, Syria, Yemen, Libya and numerous other countries and had skyrocketed during his term. Indeed, Obama’s eight years in office exceeded George W. Bush’s military spending by over $816 billion dollars.

President Trump’s proposed increase in military spending is in line with the Democratic President’s trajectory – contrary to the claims of the mass media. Clearly both Republicans and Democrats have massively increased their reliance on the US military as the driving force of world power. While Obama’s 2017 budget included $7.5 billion for ‘ISIS operations’ (an increase of 50%) and $8 billion for cyber warfare and (counter) terrorism, the largest increase was for stealth warplanes, nuclear submarines and aircraft carriers, clearly aimed at Russia, China and Iran. The Navy and Air Force got three quarters of the budget.

Under Obama, the US escalation of weaponry was not directed at ‘terrorist groups’ but, instead, at Russia and China. Washington has been intent on bankrupting Russia –in order to return it to the vassalage of the pre-Putin decade. The CIA, Obama, and the Republican Partys’ ferocious campaign against Trump is based on his overtures toward Russia. The centerpiece of the decades-long US quest for unipolar domination now depends on stripping Trump of his power and appointments, which in part or whole, are seen as undermining the entire structure of US military-driven imperialism as had been pursued by the previous four administrations.

Trump’s increase in military spending is apparently intended to be a ‘bargaining chip’ in his plan to expand US economic opportunities – cutting deals with Russia, renegotiating trade with China, East Asia (Singapore, Taiwan and South Korea) and Germany, all of which comprise the bulk of the US trillion-dollar annual trade deficit.

Trump’s repeated setbacks, the constant pressure on his appointees and the toll inflicted by the mass media on every aspect of his persona and personal life, even in the face of a historic increase in the stock market across the board, indicates a deep division among US oligarchs over power and ‘who governs’. Not since the onset of WWII have we witnessed fundamental cleavages over foreign policy. Previous conceptions of partisan debates are out of date. The financial press (the Financial Times and the Wall Street Journal) is openly aligned with the militarists, while the financial marketers on Wall Street support Trump’s pro-business domestic policies and conciliatory overtures to Russia and China. Most of the propaganda mills, dubbed ‘think tanks’, with their stables of academics, ‘experts’, editorialists, and liberal and neoconservative ideologues promote military aggression against Russia. Meanwhile, the populist social media, grass roots Trump supporters, domestic manufacturers and the nation’s Chambers of Commerce press for domestic tax cuts and protectionist measures.

The Army is pro-Trump and favors his concept of regional wars for economic gains. In contrast, the CIA, the Navy and Air Force, which benefited significantly from Obama’s lopsided war budgets, pursue a policy of global military confrontations with Russia and China and multiple wars against their allies, such as Iran, regardless of the devastation such a policy will have on the domestic economy.

Donald Trump’s concept of imperialism is based on exporting products and capturing markets while attracting multinational corporation capital back to the US for re-investing their profits (currently over one trillion held overseas)in the domestic market. He opposes economic and military alliances that have increased US trade deficits and debt in contrast to the previous administrations of militarists who accepted crippling trade deficits and disproportionate US spending on military intervention, bases and sanctions against Russia and its allies.

President Trump’s goal of making Western Europe pay a greater share of NATO (and thus reduce Europe’s dependence on US military spending) has been rejected by both political parties. Every one of Trump’s small steps toward improving relations to Russia has aroused the ire of the unipolar military imperialists who control the leadership of the Democrats and the Republicans.

Militarist imperialism has offered a few tactical concessions to Russia’s allies – the unstable agreements with Iran and Lebanon and the flimsy peace accords in Ukraine. At the same time Washington is expanding its military bases from the Nordic-Baltic regions to Asia. It threatens support for military coups in Brazil, Venezuela and Ukraine.

The strategic purpose of these bellicose moves is to encircle and destroy Russia as a potential independent counter-weight to US global dominance.

President Trump’s initial policy has been to build ‘fortress America’: Increasing the military budget, building up police and military power along the Mexican border and within the oil rich Gulf States. Trump’s agenda would strengthen the military in Asia and elsewhere in order to enhance the US’ economic bargaining position in bilateral negotiations with the aim of enlarging its export markets.

Conclusion

The United States is witnessing a deadly confrontation between two sharply polarized imperialisms.

Militarism, the established form of US imperialism is deeply entrenched within the permanent state apparatus. This includes the 17 intelligence agencies, the propaganda departments, the Air Force and Navy, as well as the high tech sector and the commercial capitalist elites who have benefited from foreign imports and foreign low cost skilled labor at the expense of US workers. Their record is one of disastrous wars, lost markets, declining wages, deteriorating living standards and the relocation of well-paid jobs abroad. At best, they have secured a few, weak vassal regimes at an enormous cost.

The Trump regime’s attempt to fashion a strategic imperialist alternative revolves around a more nuanced approach: He seeks to use military power to enhance the domestic labor market and secure mass support for overseas economic intervention.

First and foremost, Trump realizes that Russia cannot be isolated from its markets in Europe and defeated by sanctions. This led him to propose negotiating a global agreement for large-scale trade deals, which would favor US banks, oil, agriculture and upscale industries. Secondly, Trump supports ‘social imperialism’, whereby US exports markets, based on local US industries, labor and banks, would lead to higher wages and profits for American businesses and workers. US imperialism would not depend on costly and failed military invasions, but on overseas ‘invasions’ by US industries and banks who would then return their profits to the US for investment and further boost the stock market already stimulated by his stated plans for deregulation and tax cuts.

President Trump’s transition to this new imperial paradigm faces a formidable adversary which has so far succeeded in blocking his agenda and threatens to overthrow his regime.

From the beginning, Trump’s failed to consolidate state power, an error which undermined his administration. While his election victory gave him the Office of the Presidency, his regime is only one aspect of state power, which is vulnerable to immediate erosion and ouster by the independent coercive and legislative branches, intent on his political demise. The other government branches are filled with holdovers from the Obama and previous regimes – and are deeply committed to militarism.

Secondly, Trump failed to mobilize his elite supporters and mass base around an alternative media. His ‘early morning Tweets’ are a flimsy counter-weight to the concentrated mass media attack on his governance.

Thirdly, while Trump moved successfully to secure international support with Japan and England, he backed off from dealing with Russia — which will be central to undermining his imperial adversaries.

Fourthly, Trump has failed to connect his immigration policies with an effective new program of domestic employment and he failed to expose and capitalize on the draconian anti-immigrant policies waged under the Obama administration, during which millions were imprisoned and expelled.

Fifthly, Trump failed to clarify the link between his pro-market economic policies and military spending and how they are linked to a totally different paradigm.

As a consequence, the success of the liberal-neo-conservative militarist assault on the new president has put his central strategy in retreat. Trump is under siege and on the defensive. Even if he survives this concentrated onslaught, his original conception of ‘re-making’ American imperial and domestic policy is in tatters and the pieces will blend the worst of both worlds: Without expanding overseas markets for American products and a successful domestic jobs program, the prospects are for President Donald Trump to revert to overseas wars and usher in a market collapse.

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.