Obama’s Politics of Change and US Policy on China

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Obama’s Politics of Change and US Policy on China
Obama’s Politics of Change and US Policy on
China

 
By Henry
C.K. Liu
 
  
Part: III:
The New Deal Dollar and the Obama Dollar
Some excerpts from the article
  • The fantasy mirage of debt
    capitalism has been brought back to earth fundamentally by the current
    unprecedented financial crisis to show that the US neoliberal
    model of miracle growth and debt prosperity via free markets is unsustainable.
    As predatory dollar hegemony turns international trade into a process of
    spreading dollar denominate debt around the world that ends in sudden
    bankruptcy, prolonged depression and widespread resultant poverty rather than
    for achieving sustainable growth and solid prosperity, populist national
    politics will force all governments to refocus on orderly domestic development
    away from over-reliance of foreign trade, making the issue of exchange rate less
    relevant.
  • China is not the cause of the
    financial problems the
    US had inflicted
    on itself and the globalized economy. In many ways, China has been a double
    victim of the misleading lure of the empty promise of easy prosperity promoted
    by the false prophets of US market fundamentalism, by holding down Chinese wages
    to compete in the export market and unwittingly shipping real wealth created by
    its workers for fiat currency that the US can print at will, money that cannot
    be used in China. Chinese trade surplus is not the reward of 19th
    century mercantilism because Chinese export does not earn gold, only superpower
    fiat currency of no intrinsic value.
  • On the other side, US consumers who
    want to enjoy a good life without working are like Pinocchio, the wooden puppet
    who yearns to be a real boy as promised by the good fairy. But he is sidetracked
    by a boy named Romeo—nicknamed Candlewick because he is so tall and skinny –
    just the type of boy Pinocchio wishes to become, who lures him to go to the Land
    of Play where everyone plays and eats candy all day long and never doing any
    work. Pinocchio goes along with Candlewick and they have a wonderful time in the
    Land of
    Play—until one morning Pinocchio
    awakes with donkey ears. Belatedly, a mouse tells him that boys who do nothing
    but play and never work always grow into donkeys after the initial fun. Allan
    Greenspan is Candlewick of the
    US economy and
    the Land of
    Play is the house of cards that
    Greenspan built.
  • Worse yet, the efficiency that
    supporters of free market fundamentalism claim as inherent in the market system
    turned out to be a mirage of a castle in the sky build by debt. It is a house of
    cards held together by systemic fraud. Wealth in market fundamentalism had not
    been created by honest work in recent decades, but by systemic manipulation of
    credit to turn risks into safety and debt into assets.  From the
    central bank down to the average home owner, every participant in the market
    economy was abusing the false effect of unearned wealth as the miracle of
    finance capitalism. Many are now realizing that the Federal Reserve has been the
    biggest Ponzi scheme operator, not Bernie Madoff.
  • Obama’s new progressivism is based
    on the rehabilitation of government intervention in a failed market economy,
    even as his top economist only accepts the progressive battle cry as a temporary
    necessity. Even Obama himself has to clarify publicly that he realizes that
    Americans do not envy or resent the rich because even the American dream allows
    the poor to emulate the rich. But his stops short of proposing an income policy
    even when it is obvious that income disparity creates destabilizing imbalance
    between supply and demand. The failure of government intervention from misuse,
    such as intervention to help wayward financial institutions rather than
    victimized individuals can turn the
    US into a failed
    state and the economy into a failed market.
  • Current focus on the reform of the
    International Monetary Fund (IMF) is pinned on the hope that the world’s lender
    of last resort can contribute substantially to a recovery in 2010 from the
    greatest economic crisis in a century.  The IMF, headquartered in
    Washington
    D.C., is an international organization
    created in July 1944 during the United Nations Monetary and Financial Conference
    at Bretton Woods, New
    Hampshire. It is charged with the responsibility of
    overseeing the global financial system by monitoring those aspects of macro
    economic policies of its 185 member states that impact exchange rates and the
    balance of payments. In theory, it has been designed as an international
    organization to stabilize international exchange rates and to facilitate the
    balance of payments shortfalls of member states as an international lender of
    last resort.
Complete article includes...
  • The Geithner Plan
  • Obama wasting his First Hundred Days
  • Obama’s New Progressivism
  • Need for a National Income Policy
  • Back to Dysfunctional Trickling
    Down
  • Obama’s Progressive Initiatives
    Blocked by Centrists
  • EU Resistance to US Recovery Strategy
  • Financial Nationalism and the Lehman Brothers
    Bankruptcy
  • IMF Reform
  • FDR’s Monetray Reform
  • Britain’s Gold Standard
  • The FDR Gold Parity Dollar
  • Obama and China’s RMB
  • Obama Flirting with Bankruptcy for the US
  • Obama’s Stimulus Package Will Not Create Jobs
  • China’s Dollar Holdings
  • The Split between the White House and Congress on Economic
    Policy Towards China
  • Summers’
    Position on the Falling Dollar

  • US Foreign Policy Floudering
  • China Needs an Independent Economic
    Strategy
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