The end of Rex Americana

This is an interesting article on Zerohedge which argues that the can-kickers of the US financial elite, which has been observably taking place since 1987, are finding it harder and harder to kick an increasingly heavy can:

Since policy is not a zero-sum game, i.e., one participant’s loss does not necessarily entail a gain for another, this paradox has a logical explanation. A crisis erupts within any system when there is a discrepancy between its internal structure and the sum total of available resources (that is, those resources will eventually prove inadequate for the system to function normally and in the usual way).

There are at least three basic options for addressing this situation:

  • Through reform, in which the system’s internal structure evolves in such a way as to better correspond to the available resources.
  • Through the system’s collapse, in which the same result is achieved via revolution.
  • Through preservation, in which the inputs threatening the system are eliminated by force, and the relationships within the system are carefully preserved on an inequitable relationship basis (whether between classes, social strata, castes, or nations).

The preservation method was attempted by the Ming and Qing dynasties in China, as well as the Tokugawa Shogunate in Japan. It was utilized successfully (in the 19th century) prior to the era of capitalist globalization. But neither of those Eastern civilizations (although fairly robust internally) survived their collision with the technologically more advanced (and hence more militarily and politically powerful) European civilization. Japan found its answer on the path of modernization (reform) back in the second half of the 19th century, China spent a century immersed in the quagmire of semi-colonial dependence and bloody civil wars, until the new leadership of Deng Xiaoping was able to articulate its own vision of modernizing reforms.

This point leads us to the conclusion that a system can be preserved only if it is safeguarded from any unwanted external influences, i.e., if it controls the globalized world.

The contradiction between the concept of escaping the crisis, which has been adopted the US elite, and the alternative concept – proposed by Russia and backed by China, then by the BRICS nations and now a large part of the world – lay in the fact that the politicians in Washington were working from the premise that they are able to fully control the globalized world and guide its development in the direction they wish. Therefore, faced with dwindling resources to sustain the mechanisms that perpetuate their global hegemony, they tried to resolve the problem by forcefully suppressing potential opponents in order to reallocate global resources in their favor.

Having already finance-raped the US middle class, they simply can’t find enough external wealth to keep the pyramid scheme going. Hence the finance-rape of Ukraine and the failed finance-rapes of Syria and Iran. If the author is correct, about the only places left for them to find any remaining wealth are Saudi Arabia, Japan, and Singapore. Russia has already been looted, China is off-limits, and the EU is as tapped-out as the USA.

Up until 2015, America’s elite (or at least the ones who determine US policy) had been assured that they possessed sufficient financial, economic, military, and political strength to cripple the rest of the world, while still preserving Washington’s hegemony by depriving everyone, including (at the final stage) even the American people of any real political sovereignty or economic rights. European bureaucrats were important allies for that elite – i.e., the cosmopolitan, comprador-bourgeoisie sector of the EU elite, whose welfare hinged on the further integration of transatlantic (i.e., under US control) EU entities (in which the premise of Atlantic solidarity has become geopolitical dogma) and NATO, although this is in conflict with the interests of the EU member states.

However, the crisis in Ukraine, which has dragged on much longer than originally planned, Russia’s impressive surge of military and political energy as it moved to resolve the Syrian crisis (something for which the US did not have an appropriate response) and, most important, the progressive creation of alternative financial and economic entities that call into question the dollar’s position as the de facto world currency, have forced a sector of America’s elite that is amenable to compromise to rouse itself (over the last 15 years that elite has been effectively excluded from participation in any strategic decisions).

Already the European peoples are starting to develop more trust and confidence in Russia than in the USA. The new nationalist governments will not be friendly to the USA due to the way in which the US government is at least partially responsible for the migrant invasion. It is the coming break between the 70-year unequal alliance between the USA and Western Europe that will end the Pax Americana, although in light of how many countries have been invaded by American troops in the interim, Rex Americana would probably be a more accurate term.