How America Dominates Its Allies

A few days ago I shared an excerpt from this Michael Hudson interview with Danny Haiphong on here, and noted I would share some more this week. 

One of the most interesting things I've learnt over the last few years is how America dominates its allies. I read another article a few weeks ago which really puts this in perspective. 

The author noted that China is a threat to the USA because it is starting to protect itself economically internally. That is it is selling offshore assets, consolidating its ability to make what it needs domesticly, etc. Other countries are increasingly doing the same. The same article noted that Australia and other Western countries were clearly not intent on becoming a threat to the globalist US led system, because they are not doing anything to ensure they could be economically independent. We are not selling off offshore assets, or rebuilding our manufacturing industry, or keeping our resources on shore and processing them through our domestic markets. 

In other words economies which prostrated themselves before the globalist system, showing their exposed bellies, and being completely dependent on international trade, were viewed as friendly. And economies that were working hard to make themselves independent as much as possible, were viewed as threats. 

Puts our government's bad economic leadership of the last 30 to 50 years into perspective, doesn't it? It has been a process of submitting to our international overlords. 

Here is an expert economists take on this:

DANNY HAIPHONG: Well, it seems like what the United States is trying to impose its hegemony through its foreign sanctions, is having this blowback effect where now you have countries seeking alternatives to the dollar and the U.S. seems to be more economically vulnerable even though it’s expanding and trying to dominate. It’s this very strange contradiction that feels very unstable and it feels like the dollar is artificially inflating itself as it is also dealing with the fact that there is no end game here in Ukraine. It seems like messing with a big country like Russia and its relationship to Europe is moving us toward economic catastrophe, an economic crisis if there’s not already one underfoot.

MICHAEL HUDSON: No that’s not what’s happening with the dollar at all. People with all of the emphasis on America’s war against Russia to try to break it away from China before going to war with China, the first thing that America wanted to do was to lock in its control over Europe because that’s the easiest way to get things is you want to take over the richest economies in the world and lock them into the United States and that means taking over the Eurozone, England and Japan. And the dollar has been soaring against these currencies.

To put it another way, the Euro has been plunging toward one dollar per Euro. The pound sterling has been plunging to one dollar per sterling. The Japanese yen has been plunging even more so there’s a huge movement to safety into the dollar.

The Americans have successfully destroyed the basis of European industry. They’ve finally beaten Germany. They’ve left Germany without energy and GDP in any country compared to energy per worker and basically the productivity that makes goods is basically embodied energy and Europe has been getting its energy from Russia in the form of gas and oil.

Well, the United States has asked Europe to commit economic suicide basically by saying, “don’t buy Russian gas, wait three or four years, spend five billion dollars on building new ports so that you can import American liquefied natural gas at seven or eight times the price and meanwhile let your chemical industry, your car industry, your basic industries go bankrupt. Take it on the chin for America and Europe said, “okay not Europe but the politicians that America have meddled in European politics to promote to sign on the dotted line for treaties” made that decision so even if the Europeans don’t want to commit suicide, America has its proxy politicians in its Tony Blairs, in the head of the social Democratic Party in the advocates of pollution and global warming at the head of the Green Party.

You have in England you have a Boris Yeltsin and in Japan you have leaders who are willing to continue to sacrifice Japan’s growth to serve the United States. So these countries, the investors in Europe, England, and Japan are moving their money into the United States especially because the United States is raising its interest rates through the Federal Reserve and that’s telling Japan and Europe not to do it so the Eurozone has very low rates.

People are borrowing at under one percent and moving it into the United States to make two, two and a half percent. Japan has almost interest-free money from the central bank. It’s moved its money into the U.S. so the dollar, while I won’t say it’s soaring against these currencies, other currencies in the U.S. orbit are collapsing against the dollar because they’re following U.S. advice.

So, I think when you say other countries are breaking away, you’re talking about the bulk of the world, Central Asia and Latin America and China and the key to the present New Cold War is America has to achieve its almost dictatorial dominance over Europe and Japan. It’s the client oligarchies and client dictatorships and without realizing that this is American democracy, where the leaders of the whole world follow what the United States tells them to do because the United States identifies itself as the democratic center.

So democracy no longer means a political system where voters get to determine who is in charge, democracy is the policy dictated by the United States State Department. Any country that goes its own way or develops the power potentially to go its own way such as China and Russia is called an autocracy. So, you have to realize in today’s world democracy is autocracy and autocracy is democracy.

You could say yeah, the question is of course will the world really break into two halves and it looks like it is breaking into parts and there will be the U.S. and its allies, the U.S., Europe, and Japan against a Eurasian core that will go hand in hand with Africa and Latin America and other Asian countries who are able to rely on trade and investment among themselves. And the United States by seeming to isolate Russia and China and Iran and other countries actually is isolating its own dollar from the rest of the world. So, there is an iron curtain but it’s not to keep other countries out, it’s to keep its own allies within.

All of the rhetoric about free trade and democracy and Sovereignty has been nonsense all along. Especially when you consider how America has interfered in the Middle East and South America, toppling governments. But America has not just interfered in those places, they dictate how their allies will trade and they severely punish those who do not comply, and they will also squeeze their allies to punish their enemies. 

This is how the US globalist system works, and you are seeing now how they are willing to force us to pay more for everything to try and bring their competitors into line. It is US sanctions which are driving up fuel, energy and food costs. It is US politics that drives climate policy. It is US politics that determines how we benefit or suffer from their dominance in the world. Understanding this puts many things in perspective. Especially this: why God warned his people away from alliances. They always cost more than they pay.