‘Transition’ to a New World Order Is Beyond Most in the West
The new era marks the end to ‘old politics’: The Red vs Blue; Right vs Left labels lose relevance.
Even the need for transition – just to be clear – has only just begun to be recognised in the U.S.
For the European leadership however, and for the beneficiaries of financialisation who haughtily lament Trump’s ‘storm’ unwisely unleashed on the world, his base economic theses are ridiculed as bizarre notions completely divorced from economic ‘reality’.
That is completely untrue.
For, as Greek Economist Yanis Varoufakis points out, the reality of the western situation and the need for transition was clearly spelled out by Paul Volcker, former chair of the Federal Reserve, as long ago as 2005.
The harsh ‘fact’ of the liberal globalist economic paradigm was evident even then:
“What holds together the globalist system is a massive and growing flow of capital from abroad, running to more than $2 billion every working day – and growing. There is no sense of strain. As a nation we don’t consciously borrow or beg. We aren’t even offering attractive interest rates, nor do we have to offer our creditors protection against the risk of a declining dollar”.
“It’s all quite comfortable for us. We fill our shops and garages with goods from abroad, and the competition has been a powerful restraint on our internal prices. It’s surely helped keep interest rates exceptionally low despite our vanishing savings and rapid growth”.
“And it’s [been] comfortable for our trading partners too, and for those supplying the capital. Some, such as China [and Europe, particularly Germany], have depended heavily on our expanding domestic markets. And for the most part, the central banks of the emerging world have been willing to hold more and more dollars, which are, after all, the closest thing that world has to a truly international currency”.
“The difficulty is that this seemingly comfortable pattern can’t go on indefinitely”.
Precisely. And Trump is in the process of blowing up the world trading system so as to re-set it. Those western liberals, who today are gnashing teeth and lamenting the advent of ‘Trumpian economics’, are simply in denial that Trump has at least recognised the most important American reality – ie. that the pattern can’t go on indefinitely, and that debt-led consumerism is way past its sell-by date.
Recall that most participants in the western financial system have known nothing other than Volcker’s ‘comfortable world’ their entire lif
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LewRockwell.com is a libertarian website that publishes articles, essays, and blog posts advocating for minimal government, free markets, and individual liberty. The site was founded by Lew Rockwell, an American libertarian political commentator, activist, and former congressional staffer. The website often features content that is critical of mainstream politics, state intervention, and foreign policy, among other topics. It is a platform frequently used to disseminate Austrian economics, a school of economic thought that is popular among some libertarians.
