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The US task, however, will be all the harder with the addition of Venezuela as a full Mercosur member. The country has clout and intends to use it. Besides its immense oil reserves Chavez is willing to share equitably on an ALBA-type arrangement with his trading partners, Venezuela is South America's third largest economy after Brazil and Argentina. It's addition to Mercosur means this trade bloc now has a combined market of 250 million people and a total output of $1,000,000,000,000 ($1 trillion) in goods and services annually - 75% of the continent's GDP. Further, with its associate members and possible addition of Mexico (especially if Lopez Obrador manages to assume the office of President he won but so far has been denied), Mercosur is poised to become even larger and more powerful. At the Mercosur summit on July 20 - 21 in Cordoba, Argentina, Chavez called for Bolivia and Cuba to be included in the trade bloc. Bolivia already is an associate member, and in a clear rejection of how the US treats Cuba with its 45 year-old embargo aimed at trying to topple Fidel Castro, Mercosur nations just concluded an Economic Complementation Accord with the island state designed to eliminate tariffs and boost complementary trade.Mercosur's growing strength is more political than economic, and therein hopefully lies its clout. It can't compete in size with the Global North or any trade bloc with the US as a member. As impressive as its market size and combined GDP numbers are, they're quite small compared to the three nation NAFTA bloc dominated by the US that has 450 million people in it and a combined Gross Domestic Product (GDP) of $14 trillion. But just as the Hezbollah resistance humbled the mighty Israeli Defense Forces (IDF) fourth most powerful military in the world by its resilience, so too might economically small Mercosur hold its own in its dealings with its powerful and dominant northern neighbor - especially with some help from other developing nations like India, China and Russia that are also unwilling to trade across the board on any basis they consider unfair and are getting away with it when determined to do it.
Recent Russian muscle-flexing is an example of how one nation is able to stand up to the US successfully. Relations between the two countries have been frosty for some time, and as a result the Bush administration blocked Russia's desired entry into the WTO. In return, Russian President Vladimir Putin retaliated by denying US oil giants Chevron and Conoco-Phillips the right to develop oil and gas fields in the Barents Sea. Putin also cemented a relationship with US nemesis Hugo Chavez by concluding an arms deal involving 24 advanced Russian fighter jets, 53 helicopters, and 100,000 Kalashnikov rifles in addition to discussing the possibility of Russia becoming involved in building an oil pipeline in Venezuela.
The US may face still further obstacles as Russia, China and Iran have announced or signaled their intentions to shift a portion of their dollar reserves away from the US currency into others like the euro. Russia also plans to make its ruble convertible into the other major currencies, and Iran intends to open an oil bourse, (its scheduled opening now delayed several times) and sell at least part of its oil in euros. China, in fact, just did it by opening its Shanghai Petroleum Exchange on August 18, began trading in gasoline, announced bitumen, methanol and glycol will follow and soon thereafter will trade in other petroleum and chemical products including crude and refined oil and liquified gas. The announcement didn't mention what currency trading would be done in, but likely initially at least it will be in the Chinese yuan with possible euro trading to follow.
If China, Russia, and Iran ally to reduce their dollar holdings, trade oil in euros, rubles and/or other non-dollar currencies and can get other oil producing states to join with them and do the same like Venezuela, it will pose a serious threat to US dominance in the region as well as undermine it's position as the world's economic leader. It will also increase world instability, as the US won't stand pat in the face of actions it sees as a challenge to its preeminence or anything that may harm its economy. Nonetheless, it shows what's possible when enough nations join together to counter the hostile effects of US dominance in trade and all else. In alliance these nations have strength in numbers, may attract others to join with them and thus be able to hold their own against US hegemony, weaken it significantly in the process, and end up negating whatever steps the US may attempt to fight back.
The Lesson Learned May Be Resist and Ye Shall Succeed
To prevail, it's just a matter of enough nations joining in their common self-interest to find out how successful they may be if they try. It's like the old story of the schoolyard bully who's able to get away with beating up on weaker kids until one or more fight back, strike a telling blow, and get away with it. At that point, the game is up, and the bully knows his bullying days are over. Others picked on know they too can fight back, some will if picked on, and bullies only like picking on the ones who won't. It's the same story with nations as with schoolyard bullies. The developing world can put down the US bully if enough of them in it refuse to be pushed around any more, join together for added strength and fight back.
History is on their side as the US seems to be repeating the same fatal errors all other dominant empires in the past did that overreached and paid for it with their own demise. Grandiose imperial plans and dreams and super weapons to back them up are no insulation against the rest of the world determined to resist them. That's what Yale Senior Research Scholar Immanuel Wallerstein believes in his 2003 book The Decline of American Power. In it he said the US "has been a fading global power since the 1970s, and the US response to the (9/11) terrorist attacks has accelerated this decline......the economic, political and military factors that contributed to US hegemony are the same factors that will inexorably produce the coming US decline." Retired professor Chalmers Johnson also predicts the dissolution of the US empire if present trends continue. He outlines a disturbing scenario in his 2004 book Sorrows of Empire including a "state of perpetual war," a loss of democracy, and the US going bankrupt because of its inability to maintain its "grandiose military projects." The conclusion is the US is acting recklessly and imprudently like all other dominant empires before it and is increasingly vulnerable as a result. It just remains for enough other nations joining together in a common purpose for them likely to be able to achieve what they set out to do.
It's already happening with positive results that holds promise of resonating and inspiring others in the developing world to join the struggle for their own rights. It happens in schoolyards, and it's now beginning to happen in global trade. It may just be a matter of time before the fight is carried to the larger issues of war and peace, social equity and global justice. All that's needed to advance the ball are a few more dedicated leaders like Hugo Chavez and Bolivia's Evo Morales combined with enough good people acting with courage and determination on their own behalf throughout the developing world to spread their message of resistance, ignite it into a raging bonfire, and extend it to others willing to join the fight for the possible big reward of a better world. That may be happening now on the streets of Mexico as millions there are rallying behind their candidate Lopez Obrador so far denied by electoral fraud of the office of President he clearly won. Win or lose, their voices are being heard in Mexico and throughout the region. Their resonance may inspire others to battle as courageously for the social equity and justice they too deserve.
Hugo Chavez is on a mission to help them by trying to build unity among developing nations to "confront the great challenges of this imperialist neo-liberal era." As part of it, he just concluded a whirlwind tour of seven nations including Russia, Iran, Vietnam, Belarus, Mali and Benin, and beginning August 22 he'll spend a week in China (his fourth visit there) to strike energy and investment deals and try to build political support with this important Asian country in need of the oil Venezuela can supply it. Chavez and his allies know how important these alliances are, and if they can convince enough other nations to join with them their strength in combination may give them the power they need to challenge US dominance and end its bullying days forever. For now it's just a glorious dream. But isn't that the way all great social movements begin?
Stephen Lendman lives in Chicago and can be reached at lendmanstephen@sbcglobal.net. Also visit his blog site at sjlendman.blogspot.com.
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