Category Archives: Economy

4 Signposts of American Collapse Which Also Occurred in the USSR

In thinking through the (for now) gradually unfolding collapse of the American empire, the collapse of the USSR, which occurred close through three decades ago, continues to perform as a goldmine of useful examples and analogies.

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Beyond the Dollar Creditocracy: A Geopolitical Economy

Understanding of the dollar’s world role is dominated by the ideas of ‘dollar hegemony’ and ‘US hegemony’. In this paper, based on their extensive past work, Radhika Desai and Michael Hudson reveal how these ideas are ideologies, not theories.

They reveal an understanding that is theoretically sound and accords with the historical record, a geopolitical economy of the international monetary system of modern capitalism.

They begin with a theoretical outline of how money operates under capitalism. They then consider how capitalism needs world money and, at the same time, makes its stable functioning difficult.

They then go on to trace the fundamental instability of the modern international monetary systems based on national currencies of dominant countries, from the gold standard to the current volatile and predatory dollar-centred system, and their close connection to short-term and speculative.

“Weak growth in the global economy, low and negative interest rates, the risk of endless stagnation and rising inflation, and prospects for a prolonged recession are, unfortunately, part of the economic reality. Clearly, the globalisation-based financial supercapitalism model, of which the United States was a beneficiary for quite a long time, and which relied on endless lending and financialisation, which turned the commodity markets into financial ones, has run its course.”

–         Alexander Losev from the Preface

Valdai-Paper-116

Download: https://geopolitics.co/wp-content/uploads/2022/06/Valdai-Paper-116.pdf

Radhika Desai is a Professor at the Department of Political Studies and Director, Geopolitical Economy Research Group, University of Manitoba, Winnipeg, Canada.

Michael Hudson is a Veteran of Wall Street; Distinguished Research Professor of Economics at the University of Missouri at Kansas City (UMKC).

With 60 Million Americans Going Hungry, the United States Needs to Make Peace Not War

The United States cannot afford to maintain a war economy. Such a hyper-militarized economy is inciting dangerous tensions between nuclear powers, as well as eroding the very material foundations of American society.

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Lobotomized Economists Clash on the Deck of the Titanic

As the geniuses running the western financial bubble sometimes called an “economy” continue to double down on their obsession to pump a dead financial system with ever more trillions in stimulus spending, arguments are raging among brainwashed economists living in denial over the oncoming systemic collapse.

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RCEP: World’s Biggest Trade Deal Signed While Deep State Brings U.S. Closer to Civil War

While a civil war is looming in the US, several nations in the Asia Pacific region are silently bringing their economies closer together, and have finally signed the world’s biggest trade agreement ever. This milestone proves that these countries strongly reject the view that a threat of force is the only means of maintaining order in the region.

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Putin and the ‘Biden Memorial Pipeline’ to China

In early 2014 Washington staged a blatant coup d’etat in Ukraine breaking the historic relationship with Russia and setting the stage for the subsequent NATO demonization of Russia. The one in charge for the Obama Administration of the Ukraine coup was then-Vice President Joe Biden.

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Russia Writes Off More than $20 Billion African Debt

Unlike its Western “partners”, which force their client states to perpetual capitulation via onerous debt, Russia released the African population from their debt obligation of more than $20 billion and further promised to double its economic cooperation with the continent in the foreseeable future.

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Federal Reserve Intervenes with Massive Repo to Inject Cash into Money Markets

For the first time since 2008 the private central bank Federal Reserve has intervened in the money markets due to “unusually high demand for cash,” that sends borrowing costs soaring high, with massive $53 billion repo on Tuesday, and another $75 billion on Wednesday.

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The World is Dedollarizing

What if tomorrow nobody but the United States would use the US-dollar? Every country, or society would use their own currency for internal and international trade, their own economy-based, non-fiat currency. It could be traditional currencies or new government controlled crypto-currencies, but a country’s own sovereign money. No longer the US-dollar. No longer the dollar’s foster child, the Euro. Continue reading The World is Dedollarizing