Global economics

We are living amid contradictions whether we like it or not, driving expectations about the future toward opposite extremes. Increasingly plausible are fears that the ‘sixth extinction’ will encompass the human species, or at least, throw human society back to a technology of sticks and stones, with a habitat limited to caves and forests. This dark vision is countered by gene-editing designer promises of virtual immortality and super-wise beings programming super-intelligent machines, enabling a life of leisure, luxury, and security for all. Whether the reality of such a scientistic future would be also dark is a matter of conjecture, but from a survival perspective, it offers an optimistic scenario. On political levels, a similar set of polar scenarios are gaining ground in the moral imagination, producing national leaders who seem comfortable embracing an apocalyptic telos without a second thought. The peoples of the world, entrapped in a predatory phase of...

Let us start with an example. The senior author bought an apartment in a nice housing complex in the little town of Manassas, Prince William County, half an hour from the center of Washington DC. There was a little center with an office and a small staff always there, and a meeting room that could be let was also used for the annual general assembly of house-owners. And most importantly, a competent service man who could handle all big and small problems that arise in an apartment on permanent call. The complex was for all practical purposes a cooperative. There was a monthly fee, of course. But the usual criterion, Q/P, Quality/Price, here Services/Fee, was more than well satisfied. Enters “modern” business, exactly under that heading, as if “modern” can exonerate business from anything. Continue reading here.

The Secretary-General also said this new home’s “potential is enormous”. President Trump arrived on his first trip abroad to Saudi Arabia on May 19, 2017 and big things are supposed to happen, including Saudi Arabia presenting itself as a innovative, visionary leader of the region. His visit must be seen in the light of a number of events and trends, and in what follows we do like the military when it scans the horizon for enemies: we look for patterns – not the least Saudi Arabia’s “surprising new military goals” as Forbes’ Ellen Wald appropriately calls them. Or, as they say – we connect some dots that, invariable, Western mainstream media have no capacity and probably also no interest in connecting. This pattern consists of at least these events and long-term trends: 1. The broadening of NATO cooperation with Gulf countries – one may even see a Middle Eastern NATO branch emerge. 2. Saudi Arabia’s evident leadership...

By Jonathan Power The result of the first round of the French presidential election has given the Euro-pessimists a knock over the head. About time too. The European Union is not going to face break up. Big crises come but they also go. The Euro currency crisis was not dealt with as well as it should have been – austerity was the policy of the long way round – but it passed. The great immigration crisis has been contained and the number of would-be refugees has fallen sharply. The British say they are leaving, but how the biggest political paradox of my lifetime will be squared remains to be seen – a parliament with a majority of its members in favour of staying in Europe but with a government trying to get out as fast as it can with the support of most MPs of the two largest parties. Moreover,...

The Asian economies are picking up speed again. After the big hit from Wall Street when the bank, Lehman Brothers, collapsed in a heap in 2008, sending shock waves everywhere, a recovery is now in the works. How many child deaths in the Third World did these bankers cause? Another question is will future growth be like the past- fast but severely inequitable? The same growth before 2008 that reduced absolute poverty created a widening gulf between the haves and have-nots. But isn’t that sufficient for the day, many ask? Absolute poverty must be the key mark of progress- raising incomes, giving people more money to seek education for their children or medical care or filling the coffers for the state so that it can fund bore holes in the countryside and sewers in the urban slums. After all in the period of rapid growth from 1990 to 2008 the...

Originally published in The New Statesman, London, 15 March 2017 28 March 2017 Three former UN insiders on the future of the world’s most ambitious organisation.  By Hans von Sponeck, Richard Falk – both TFF Associates – and Denis Halliday. US President Donald Trump is ardently embracing a toxic form of messianic nationalism, while demeaning those who oppose him as corrupt, and dishonest enemies. His “America First” chant is creating severe international tension, promoting extremism – within and outside the US – and undermining the homeland security that he has so insistently pledged to enhance. Trump seems determined to implement policies and practices that could signal the weakening of democracy, and possibly even herald the onset of fascism. His programme to deport undocumented immigrants and to exclude all visitors from six designated Muslim majority countries is illustrative of a regressive and Islamophobic outlook. The groundswell of popular dissent is vibrant and...

The Cold War ended by an agreement that the USSR leaves Eastern Europe and the USA does not enter the area. What the USA did is treason, like Sykes-Picot. NATO expanded from 16 to 28: Bill Clinton added Poland, Czech Republic and Hungary; George W. Bush the Baltic Slovakia, Slovenia, Romania and Bulgaria; Obama attached Croatia and Albania. In 1999, 2004 and 2009, respectively. However, did those countries want it? They could have made their own pacts with neither USSR nor USA. The Soviet empire, and the Soviet Union itself, had collapsed. With NATO at the border, Russia took back its 1954 Crimea gift to Ukraine within the Soviet Union. Kiev with US help fought in Eastern Ukraine to make ethnic Russians escape to Russia. Maybe 60% did. Enters world history: The Pope and the Patriarch declare their Christianities one and the same (Havana Airport, VIP Lounge, 14 Feb 2016)....

Two closely related points, as a starter. This column has argued Lifting the Bottom Up as economic approach in all weathers, bad, fair, good, to mitigate any suffering, and for them to enter the economy as producers and consumers, not as “cases”. This column has also argued judging Trump not by his poisoning words, nor by commentators’ words, but by his deeds. White-male-workers-no college is not the US bottom, but they were heading down. Now lifted up the Trump way, by keeping/bringing back industry to the “Rust Belt”. Ford Motor Company just did that, GM may be next. If outsourcing to Mexico – under the euphemism “trade” served poor Mexican workers, maybe–but it serves rich elites in both countries. 45 percent tariff on Chinese goods: a non-starter. US homes are filled with affordable “Made in China”. To de-industrialize was US stupidity; to re-industrialize will take time. Keep what is, bring...

To understand something we often compare it with something else. A recent Harvard study found 26.7% of world car production in China and 13.3% in USA; US economy bigger but China leading in export with 8 of the 12 biggest harbors; USA end 2016 fighting 7 wars with bases all over and China with no wars or bases, investing, building the New Silk Road-Lane, the Economic Belt. How successfully, it is to be seen. But these are global power relations. That the West is going down, the Rest is coming up, the USA is a major part of the West and China of the Rest, are decades-old truths. And the EU is also part of the West. What does domestic China remind us of, historically, structurally? Not USA, a state since 1776, 1812. Let us compare China with present border and context to Europe from the Atlantic to–whatever the border....

President-elect Donald Trump is about to make the American rich even richer with his plan to cut their taxes. A cause for shame. Nevertheless, the history of America is that poorer people have done better than is commonly thought over the last two centuries. Today they have indoor plumbing, heating, electricity, smallpox and tuberculosis-free lives, adequate nutrition, much lower child and maternal mortality, doubled life expectancy, increasingly sophisticated medical attention, the availability of contraception, secondary level schooling for their children and a shot at university, buses, trains and bicycles, much less racial prejudice, longer retirement, a rising quality of the goods they buy, better working conditions and the vote. Once these were luxuries that only the richer could experience. It has been shown by many studies that happiness increases fast as poorer people get better off but that beyond a certain point – an income of $15,000 per person per...

“View” meaning not only a glimpse from above, but a position taken on the world on which the US electorate is now dumping Donald Trump. That world is today basically multi-polar, maybe with 8 poles: 1) Anglo-America, 2) Latin America-Caribbean, 3) African Unity, 4) Islam-OIC from Casablanca to Mindanao, 5) European Union, 6) Russia more region than state, 7) SAARC from Nepal to Sri Lanka, 8. ASEAN, Australia-New Zealand. [See list of abbreviations with links to the mentioned organisations under the article] And thre is the multi-regional Shanghai Cooperation Organization, SCO, with China and Russia, Islamic countries, India and Pakistan. There is a waning state reality, smaller states being increasingly absorbed into regions. There is a waxing region reality with the above eight; adding West Asian, Central Asian and Northeast Asian regions, maybe eleven. There is a global reality based on IGOs, inter-governmental organizations, with the United Nations on top;...

By Jonathan Power Donald Trump is changing the right wing’s economic spots. He is doing what Franklin Roosevelt did at the time of the Great Depression by increasing government spending – although it was the rearmament brought on by entering World War 2 that was an even more important factor in lifting America out of the doldrums. He is following what Hitler did so successfully before World War 2 when he rebuilt Germany’s economic strength with autobahns and industrial subsidies (not rearmament in the beginning, as is often said). He is walking in the footsteps of President Richard Nixon who when he changed course with a new economic policy said, “We are all Keynesians now”. John Maynard Keynes was the greatest economist who ever lived. For reasons that were shameful, politicians have not listened to his advice as often as they should. The Germans, with their urge to austerity, have...