Friday, February 01, 2002

The Bush junta seems to have decided that the days of the American empire are coming to a close, and it is time to cash out. While ultra-capitalists have always tried to maximize their profits and minimize their taxes, I've always had the feeling that they felt that they couldn't squeeze the system too hard, for their continuing good fortune depended on the overall health of the economy and the country. Under Bush, however, they are acting like a group of mafiosi who have taken over a company with a view to extracting all of its wealth, running up its debts, and leaving a bankrupt shell. The long-term effects of 'free trade' mean that the American public only has value as consumers, and only can consume as long as America can borrow the money to do so. America has been able to borrow due to the fact that it has maintained its position as a relatively safe place to place money, and because of the status of the American dollar as the world default reserve currency. The general arrangement since the 1970's has been for the oil producing countries to pour the money from oil back into the American economy. To soak up this money, the American consumer has been encouraged to buy foreign-made consumer goods, which have been cheap because of the strong American dollar and easily financed because the banks have had lots of funds to lend. It appears that the oligarchs feel that this system is coming to an end. The mad scramble to create a world war situation seems to be an attempt to obtain as many profits for the military suppliers as possible. The various attacks on terrorism seem to be an attempt to free up as much oil for exploitation by large U. S. oil companies as possible. This is coupled with a constant series of government moves to lower taxes, remove regulation or any supervision of corporations, remove environmental restraints, and alter the balance between labour and capital to favor capital even more than it is favored now. It appears that the oligarchs intend to squeeze as much out of the country and world as possible, and take the money and run.