Michael Hudson: A New Bipolar World. US finance capitalism vs. China's mixed public/ private economy

TL;DR

Germany is being forced into a deepening economic depression and deindustrialization due to its subordination to US policies and trade sanctions against Russia and China.

Transcript

I'd like to welcome everyone to this inaugural talk in our new series The New International order we are very very honored to have Michael Hudson who we think is one of the most brilliant thinkers with regard to economics and I think also in geopolitics that's why he was our first choice for this inaugural talk is always our first choice for many t... Read More

Key Insights

• 🌍 Germany has become an economic satellite of the US in its new Cold War with Russia and China, imposing trade and investment sanctions to the detriment of its own economy. This fracture is splitting the world into two opposing sets of economic alliances.
• 📊 The US aims to shift economic planning out of elected governments' hands to be controlled by Wall Street and other financial centers under US control. It promotes privatization of infrastructure and dependency on US technology, oil, and food exports.
• 🤝 The US rhetoric of promoting democracy is a cover for shifting economic power to financial centers at the expense of elected governments. Autonomy from US control, financialization, and privatization is seen as autocracy.
• 🌐 The world economy is dividing into a US-centered dollarized economy and a multi-polar, multi-currency Eurasian economy. The US aims to prevent countries from pursuing their own economic growth and self-reliance.
• 💣 Sanctions imposed on Germany and Europe, under US pressure, are leading to de-industrialization and economic depression. The US aims to cut Germany off from Russian gas and oil, forcing it to rely on expensive US gas and oil.
• 🕊️ The US is orchestrating a new Cold War, demonizing nations that do not follow its neoliberal ideology and interfering in their internal affairs. The US claims the right to select heads of state and demand economic policies that serve its interests.
• 🛢️ The US uses oil as a key foreign policy tool, prioritizing control over global oil supplies to manipulate and dominate countries lacking energy resources. US sanctions and military interventions are often driven by a desire for oil control.
• ☯️ Historical parallels can be drawn between the US Cold War strategy and medieval conflicts, such as the Crusades and the struggle between the papacy and German kings. These demonstrate a timeless strategy of power consolidation and control.
• 🛡️ There is limited resistance within the US against its financial imperialism, with unions and workers' movements facing major challenges. Central banks play a key role in enforcing policies that lower living standards and prevent wage increases.

Questions & Answers

Q: How does Germany's economic dependence on the US and its compliance with US policies impact its own economic growth and prosperity?

Germany's economic subordination to the US and its adherence to US policies, including trade sanctions, harm its own economic growth and prosperity. The forced imposition of sanctions on itself undermines vital trade relationships with Russia and China, leading to deindustrialization and economic decline. Germany's dependence on US technology, imports, and exports limits its ability to pursue independent economic strategies and hampers self-reliance.

Q: What impact do these economic sanctions have on Germany's energy sector and its access to resources like gas and oil?

These sanctions result in Germany being cut off from important energy resources, particularly Russian gas and oil, on which its industrial sectors heavily rely. Instead, Germany is pushed to pay higher prices for American liquid natural gas and invest in the construction of expensive infrastructure like new ports to import US gas and oil. The sanctions not only raise costs but also limit Germany's access to affordable and reliable energy sources, undermining its energy security and industrial competitiveness.

Q: What role does the United States play in determining Germany's economic policies and international trade relations?

The United States exerts significant influence over Germany's economic policies and trade relations through coercive diplomacy and economic pressures. German politicians and parties are frequently influenced and supported by US subsidies, with US-sponsored individuals taking positions that align with US interests and objectives. The US uses organizations like the IMF and the World Bank to enforce its policies of financialization and privatization on a global scale, impacting Germany's economic decision-making and its ability to pursue independent economic growth.

Q: How does Germany's subordination to US policies and trade sanctions contribute to the broader global fracture between the US-centered economy and the Eurasian-centered economy?

Germany's compliance with US policies and trade sanctions reinforces the broader global fracture between the US-centered economy and the Eurasian-centered economy. By isolating itself from trade and investment opportunities with Russia, China, and other countries, Germany aligns with the US-led NATO alliance seeking to maintain its economic dominance and unipolar control. In contrast, countries in Eurasia aim to promote their independent economic interests, foster mutual trade and investment, and challenge the US-dominated economic order.

Summary & Key Takeaways

• Germany has become an economic satellite of the US, as it is forced to impose trade and investment sanctions on itself in line with US policies against Russia and China.

• The US aims to shift economic planning away from elected governments and towards Wall Street and other financial centers under US control.

• Germany's dependence on Russian gas, oil, and metals, along with its industrial sectors, is being threatened by US sanctions, ultimately leading to deindustrialization and economic decline.