A Different View: New IMF Rules To Isolate China and Russia?

[The IMF has, says Congress and the NYTimes, become more inclusive of China and Russia (see previous Frontlines post, https://revolutionaryfrontlines.wordpress.com/2015/12/29/ny-times-on-the-liberalizing-of-the-international-monetary-fund/).  But others, looking deeply, see the new IMF rules as counter-attacks on Chinese and Russian other-imperialist initiatives.  See this lengthy article for more details. — Frontlines ed.]

The IMF Changes its Rules to Isolate China and Russia

by Michael Hudson, CounterPunch, December 15, 2015

The nightmare scenario of U.S. geopolitical strategists seems to be coming true: foreign economic independence from U.S. control. Instead of privatizing and neoliberalizing the world under U.S.-centered financial planning and ownership, the Russian and Chinese governments are investing in neighboring economies on terms that cement Eurasian economic integration on the basis of Russian oil and tax exports and Chinese financing. The Asian Infrastructure Investment Bank (AIIB) threatens to replace the IMF and World Bank programs that favor U.S. suppliers, banks and bondholders (with the United States holding unique veto power).

Russia’s 2013 loan to Ukraine, made at the request of Ukraine’s elected pro-Russian government, demonstrated the benefits of mutual trade and investment relations between the two countries. As Russian finance minister Anton Siluanov points out, Ukraine’s “international reserves were barely enough to cover three months’ imports, and no other creditor was prepared to lend on terms acceptable to Kiev. Yet Russia provided $3 billion of much-needed funding at a 5 per cent interest rate, when Ukraine’s bonds were yielding nearly 12 per cent.”[1] Continue reading

Capitalist China rapidly expanding its share of inter-imperialist contention and rivalry

[After Mao Zedong died 35 years ago, bourgeois forces within the leadership of the Chinese Communist Party led by the opportunist (revisionist or false-Marxist) Teng Hsiao-Ping seized power and began a ruthless period of destroying socialism and of capitalist profiteering and accumulation (under false banners of “market socialism”,  “development” and “modernization”).  After re-organizing the Chinese workers to serve, for several years, the established Western imperialists as a “cheap labor” resource, the Chinese bourgeoisie, concentrated in both “state-owned” enterprises and private corporations,  launched a more open imperialist drive with foreign investments, global resource acquisition, military force expansion, expanded trade relations, and corollary  diplomatic, media, educational, cultural, and joint-venture monetary and finance-credit initiatives.  The following article details one area of this expansion — arms exports — which inevitably creates new deals for parts supplies, operational training, logistical integration, joint military training exercises, and other aspects of new alliance formation.
All who oppose imperialism, and who have learned so much from the oppression of many imperialist powers such as the British Empire and US imperialism, must take note of this development of Chinese Social-Imperialism (socialist in words, imperialist in deeds).  While China is not the largest, and there are certainly many smaller, imperialist powers within the single imperialist world system, the people have no interest in taking the side of one imperialist versus another.  Only when the people’s revolution destroys and banishes imperialism on a world scale will creative history on human terms truly begin. — Frontlines ed.]

http://www.nytimes.com/2013/10/21/world/asia/chinas-arms-industry-makes-global-inroads.html?hp&_r=0

China’s Arms Industry Makes Global Inroads

October 20, 2013

BEIJING — From the moment Turkey announced plans two years ago to acquire a long-range missile defense system, the multibillion-dollar contract from a key NATO member appeared to be an American company’s to lose.

Members of Aviation Industry Corporation of China displayed a model of the JF-17 jet at an exposition in Beijing last month.

For years, Turkey’s military had relied on NATO-supplied Patriot missiles, built by the American companies Raytheon and Lockheed Martin, to defend its skies, and the system was fully compatible with the air-defense platforms operated by other members of the alliance.

There were other contenders for the deal, of course. Rival manufacturers in Russia and Europe made bids. Turkey rejected those — but not in favor of the American companies. Its selection last month of a little-known Chinese defense company, China Precision Machinery Export-Import Corp oration, stunned the military-industrial establishment in Washington and Brussels.

The sale was especially unusual because the Chinese missile defense system, known as the HQ-9, would be difficult to integrate with existing NATO equipment. China Precision is also subject to sanctions from the United States for selling technologies that the United States says could help Iran, Syria and North Korea develop unconventional weapons. A State Department spokeswoman said this month that American officials had expressed to the Turkish government “serious concerns” about the deal, which has not yet been signed.

Industry executives and arms-sales analysts say the Chinese probably beat out their more established rivals by significantly undercutting them on price, offering their system at $3 billion. Nonetheless, Turkey’s selection of a Chinese state-owned manufacturer is a breakthrough for China, a nation that has set its sights on moving up the value chain in arms technology and establishing itself as a credible competitor in the global weapons market. Continue reading

Obama in South Africa: Washington tells Pretoria how to ‘play the game’ in Africa

Protesters greet Obama, June 28, 2013.

By Patrick Bond, Durban

July 1, 2013Links International Journal of Socialist RenewalUS President Barack Barack Obama’s weekend trip to South Africa may have the desired effect of slowing the geopolitical realignment of Pretoria to the Brazil-India-Russia-China-South Africa (BRICS) axis. That shift to BRICS has not, however, meant deviation from the hosts’ political philosophy, best understood as “talk left, walk right” since it mixes anti-imperialist rhetoric with pro-corporate policies.

Overshadowed by Nelson Mandela’s critically ill health, Obama’s implicit denial of a US imperial agenda could not disguise Washington’s economic paranoia. As expressed on June 25 by White House deputy national security adviser Ben Rhodes, “What we hear from our businesses is that they want to get in the game in Africa. There are other countries getting in the game in Africa – China, Brazil, Turkey. And if the US is not leading in Africa, we’re going to fall behind in a very important region of the world.”

Over a century earlier, another Rhodes – Cecil John – explained that very game: “We must find new lands from which we can easily obtain raw materials and at the same time exploit the cheap slave labour that is available from the natives of the colonies. The colonies would also provide a dumping ground for the surplus goods produced in our factories.” Although there is no longer formal slave labour within formal colonies, this sentiment readily links the neoliberal agenda of both the BRICS and the US.

Perhaps embarrassed, Obama himself retracted Ben Rhodes’ confession of inter-imperial rivalry when asked by the White House press corps: “I want everybody playing in Africa. The more the merrier. A lot of people are pleased that China is involved in Africa.”

This must have raised cynical eyebrows, because he added, “China’s primary interest is being able to obtain access for natural resources in Africa to feed the manufacturers in export-driven policies of the Chinese economy.” Continue reading

As China’s investments grow, Obama gives advice to Africans

[Obama speaks from the long experience of the US’ empire in Africa, when he urges African caution when new investors come around.  These are not altruistic words; they come from the proverbial fox seeking to “guard and protect” the hen house from other predators.  Obama asserts that African development can only occur under his “trusted” US’ tutelage.  But the pathbreaking writer Walter Rodney, author of the 1973 book “How Europe Undeveloped Africa,” detailed those relations and concluded, “African development is possible only on the basis of a radical break with the international capitalist system.”–  Frontlines ed.]

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Ask questions on foreign investments, Obama tell Africans

Vanguardngr.com, PRETORIA, on June 29, 2013

US President Barack Obama urged Africans on Saturday to ask more questions about lop-sided deals with some foreign investors, while dismissing talk of a Chinese and US scramble for influence on the continent.

During a landmark visit to the continent of his father’s birth, Obama said he welcomed renewed interest from larger emerging markets.

“I actually welcome the attention that Africa is receiving from countries like China and Brazil and India and Turkey.”

But he urged African nations to make sure trade was not a one-way street.

“When we look at what other countries are doing in Africa, I think our only advice is make sure it’s a good deal for Africa.” Continue reading

US’ “Junior-Partners-in-Empire” also spied by NSA (but worried that data is not shared with them)

Europe outraged but conflicted over NSA surveillance

Indignation was sharp and predictable across Europe – a continent where privacy is revered. Yet anger over revelations of U.S. electronic surveillance was tempered by an indisputable fact: Europe wants the information that American intelligence provides.

That dilemma was clear Tuesday, only days after leaks about two National Security Agency programs that purportedly target foreign messages – including private e-mails, voice and other data transmissions – sent through U.S. Internet providers.

The European Union’s top justice official, Viviane Reding, said she would demand that the United States afford EU citizens the same rights as Americans when it comes to data protection. Hannes Swoboda, a Socialist leader in the European Parliament, said the purported surveillance showed that the U.S. “is just doing what it wants.”At the same time, German Interior Minister Hans-Peter Friedrich confirmed that his government regularly receives tips from the United States on Islamic extremists – and he doesn’t expect the Americans to tell him where they got the information. Continue reading

Washington in Africa: Who will Obama ‘whack’ next?

[An important and detailed look at Washington’s Obama-era African policy initiatives.  Lengthy, but well worth reading.  The conclusions drawn from the information provided are the author’s, and do not necessarily imply Frontlines’ perspective.  —  Frontlines ed.]

Graphic from The Economist

 

by Patrick Bond, Address to the Muslim Youth Movement 40th Anniversary Conference, University of KwaZulu-Natal, Durban, September 30, 2012.  Article was posted at Links International Journal of Socialist Renewal with the author’s permission.

 

At a time when popular revolutions are sweeping the globe, the United States should be strengthening, not weakening, basic rules of law and principles of justice enumerated in the Universal Declaration of Human Rights. But instead of making the world safer, America’s violation of international human rights abets our enemies and alienates our friends. – Former US president Jimmy Carter, 25 June 2012, New York Times

US actions since 9/11 represent the final stage in the US’s century-long effort to complete the project of making US-led globalization a concrete reality across the world through three historical moments: 1) the attempted creation of a global Monroe doctrine between 1898 and 1919; 2) the Roosevelt administration’s creation of the Bretton Woods Institutions – the World Bank and IMF – and the UN; and 3) globalization – the US-led effort to establish a new global regime based on free trade, deregulation, and privatization. – Neil Smith, The Endgame of Globalization, 2005

The US Assistant Secretary of State for Africa and former three-time ambassador, Johnnie Carson, was feted by Brooks Spector recently at Daily Maverick, in an article entitled “America’s Mr Africa”. While it is always fitting to honour African-Americans who persevere to the top despite that country’s deep internal racism, Spector makes contentious political and economic claims about the “new” US Africa policy. “For some observers at least”, he says, “Barack Obama’s new partnership with Africa was announced in his speech in Accra [July 11, 2009], when he declared the era of the authoritarian African big man to be over – kaput!”[1] As described below, however, Washington has maintained extremely cozy relationships with a variety of African dictators.

Spector then endorses Carson’s claims that “US interests in the continent fundamentally stem from its interest in strengthening trade to help African states grow their economies and meet development needs”, and that “the US wants to work with African nations to strengthen democratic institutions, good governance and efforts to stamp out corruption [and] to spur economic growth through market-driven, free trade principles”. Sorry, but we recall Washington’s deregulatory support for Wall Street’s market-driven binge, which in 2008-09 contributed to the worst global economic crash in 80 years, resulting in around a million South African job losses. We know that only the wealthy recovered so far, and that in the US, the top 1 per cent received 93 per cent of all new income since 2009, because the system wasn’t fixed. And who can forget White House hypocrisy when it comes to vast and often illegal US agro-corporate subsidies which continue to thwart African production? And is there any capital city whose political system is more corrupted by corporate (especially banking) campaign contributions than Washington, resulting in such extreme malgovernance that Obama cannot even make an effort to convict a single banker for world-historic economic misdeeds?

Spector’s most flawed assumption is that by increasing trade with (and vulnerability to) the world economy, “Africa” grows. Although a few elites have certainly grown rich from extraction, the opposite is more true, if we make a simple, rational adjustment to GDP: incorporating the wasting of Africa’s “natural capital” (a silly phrase but one used increasingly by powerbrokers eyeing the ‘Green Economy’). Measuring this loss is something that 10 African leaders agreed to start doing so in May, in the Gabarone Declaration initiated by Botswana president Ian Khama and the NGO Conservation International. The adjustment entails counting the outflow of natural capital (especially non-renewable mineral/petroleum resources) not only as a short-term credit to GDP (via “output of goods” measuring the resources extracted and sold), but also as a long-term debit to the natural capital stocks, as non-renewable resources no longer become available to future generations. Number-crunch the resource depletion, and net wealth declines in Africa as well as the Middle East. Continue reading

Corporate Thieves Run, but Cannot Hide

[An interesting exposure of the secret exemptions which large-scale capitalists and government officials have used to hide their monstrous accumulations of wealth in the midst of global hunger and poverty.  The embarassing (for capitalists and their state machineries) article and the responses to it, try to make it appear that these grotesque accumulations are exceptions, and not the rule, for the capitalist system.  And there are efforts to make it appear that capitalist governments can clean up these “blemishes” on their system.  The people will take note of these as the barely exposed “tips of the iceberg” of the crimes against humanity, requiring  the justice of people’s socialist revolution–not the fantasy of justice from the perpetrators, co-conspirators, and mouthpieces, of the criminal capitalist system. — Frontlines ed.]

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Leaks reveal secrets of the rich who hide cash offshore

Exclusive: Offshore financial industry leak exposes identities of 1,000s of holders of anonymous wealth from around the world

, The Guardian, Wednesday 3 April 2013
British Virgin Islands

[The British Virgin Islands, the world’s leading offshore haven used by an array of government officials and rich families to hide their wealth. Photograph: Duncan Mcnicol/Getty Images]

Millions of internal records have leaked from Britain’s offshore financial industry, exposing for the first time the identities of thousands of holders of anonymous wealth from around the world, from presidents to plutocrats, the daughter of a notorious dictator and a British millionaire accused of concealing assets from his ex-wife.

The leak of 2m emails and other documents, mainly from the offshore haven of the British Virgin Islands (BVI), has the potential to cause a seismic shock worldwide to the booming offshore trade, with a former chief economist at McKinsey estimating that wealthy individuals may have as much as $32tn (£21tn) stashed in overseas havens.

In France, Jean-Jacques Augier, President François Hollande’s campaign co-treasurer and close friend, has been forced to publicly identify his Chinese business partner. It emerges as Hollande is mired in financial scandal because his former budget minister concealed a Swiss bank account for 20 years and repeatedly lied about it.

In Mongolia, the country’s former finance minister and deputy speaker of its parliament says he may have to resign from politics as a result of this investigation.

But the two can now be named for the first time because of their use of companies in offshore havens, particularly in the British Virgin Islands, where owners’ identities normally remain secret. Continue reading