It is often boasted in the US that they forced the implosion of the USSR via military overspending, as if recklessly creating a dangerous and useless arms race was something to brag about. However, the spoiled American rich kid is about to get his comeuppance and learn that money does not equal virtue.
The coronavirus hysteria, the West's foolish Great Lockdown and the West's looming transition from the "Great Recession" to the "Great Depression 2" is revealing that the delayed consequences of this overspending - and the hyperfinancialised economy that effort entailed - is causing a second implosion of historic consequences.
When "the Chinese century" is writing the history books they will correctly say it like this: the decades of success and persistence of the USSR forced the US to take the economic measures which ultimately caused its own demise.
The USSR was not beaten by industrial capitalism - it was more than equal as a competitor there - but by financial capitalism. The coronavirus is but a minor malady compared to that disease, certainly. The USSR was certainly not constrained by rules of Islamic finance, but it certainly did not engage in any of the usurious, Ponzi scheme-like, fake-money amassing financial crimes which the West relied on to defeat the Soviets.
The creation of credit-fuelled financial bubbles may have bought the Pentagon some fancy toys, but it also bankrupted the US economically, ideologically and culturally - how could virtue and success ever be the final result of an insane, sovereignty-violating, global-sized war on other people's types of socialism?
Despite all the ignored democratic votes, the influence of money and lobbyists and a vast amount of other evidence, Western liberal democracy does not admit that it does indeed have a vanguard party and that this party is bankers. The US vanguard party is in the process of imploding the US system against the will of their people, exactly like the vanguard party of the USSR did in 1991.
Quantitative Easing economic-political policies will become the historical equivalent of perestroika economic-political policies - two steps which should have never been taken, and which will ultimately be seen as the cause of the demise of the 20th century's two dominant powers.
When the West can't honestly explain WWI, stagflation, the War on Terror, QE Infinity, etc. something is being repeatedly hidden about their system
In early April's Corona rewrites capitalist bust-chronology & proves: It's the nation-state, stupid I pointed out how the corona economic hysteria was giving us more crucial data about "capitalism with Western characteristics" - it was providing a bookend to a new Western economic era within the context of Marx's correct analysis that capitalism lurches from boom to bust. I sketched five historical cycles, from Boom 1, beginning in 1865, up to the current era, the 2020 beginning of Bust 5.
On May 13, in Scarce jobs + revenue desperation = sure Western stagflation post-corona, I noted the current similarities between the near-term future of the US economy with the beginning of the Bust 3 era - the 1970s. I pointed out that not only was Western capitalist theory incapable of explaining how stagflation could occur, they were similarly unwilling to honestly explain what ended it. Western intellectuals and schoolchildren are also similarly dumbfounded regarding the start of World War One - I related the common leftist analysis on May 4: the cause was high finance collusion. It is to this stagflation era where we must return to, as it contains the seeds of modern QE.
Capitalist-imperialist economies require war to produce the profit and growth which their system is built around - they need stolen wages (slavery), the free resources provided by "new frontiers" (the imperialism-rationalising theory of "Manifest Destiny"), new markets (which must be governed by their own puppets), or a constant war machine. When the Vietnam War ended in 1975 the US economy ground to complete halt because their economy had lost these raisons d'être, and their intellectuals could not explain what to do economically.
Nobody could explain it, because nobody could be honest and say that the 20th century US economy was undoubtedly modelled on corporate fascism (which is why after World War II Washington immediately found a natural alliance with their brother corporate fascist states of Germany and Japan) and guided by the Pentagon in Eisenhower's famous "military-industrial complex" analysis" but it now had no slaves, no frontiers left and no wars.
Vietnamese heroism had capped similar bravery by Cubans, North Koreans, Chinese and Soviets, and combined with the MAD of nuclear weapons the corporate fascist concept of "economy as war machine (in order to eradicate redistributing socialism)" had failed, thus the endemic stagnation of the 1970s.
End of story/end of history.
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