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A "Super Imperialism" model "pressed foreign governments to regulate their nations' trade and investment to serve US national objectives...Washington Consensus (diktats) made aid borrowers more dependent on their creditors, worsened their terms of trade by promoting raw materials exports and grain dependency, and forestalled needed social modernization such as land reform and progressive income and property taxation."
US companies thus achieved a competitive advantage, not in the marketplace, but by Washington Consensus rules and the Bretton Woods institutions it controls - the IMF, World Bank, etc. What's good for US business benefits America overall and its Super Imperial ambitions.
Today's Source of Financial Instability Compared to the 1920s
The earlier period had a shortage of liquidity. By the early 1970s, it was in surplus, the result of the enormous volume of dollar inflows in world economies. The Korean War began shifting America's balance-of-payments from surplus to deficit. In 1971, Vietnam forced it off gold and "induced a US debtor-oriented international financial policy (with) the rest of the world" - something other nations have been trapped by ever since.
US deficits have disrupted world economies, but its character has changed. Not only does it finance US militarism, but it also "sustain(s) America's stock market and real estate bubble" while at the same time industrial America erodes. In addition, pressure is applied to privatize public enterprises to let this sector pass "into the hands of global finance capital....controlled and shaped by the Washington Consensus."
Under a "new state-capitalist form of imperialism," central banks, not industry, "are the vehicle for balance-of-payments exploitation" with the dollar as the world's reserve currency. It's Super Imperialism because one nation alone gets a Free Lunch right to benefit by getting others to finance its deficits and reckless spending.
The system's unique feature is that other countries may extract their citizens' wealth, but only America extracts theirs through the sale of its Treasury securities.
The World's Need for Financial Autonomy from Dollarization
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