Any system living off artifices can't survive in the long term. In August 1972 -when Nixon went out of gold standard, the post WWII system no longer worked.
But the past had been too good to be jettisoned. The set of circumstances had already changed but the US want to continue being the top dog of the world. Hey, who wnats to give up power and money?
It was plain to see, then, that -for all practical purposes- the USSR was kaputt, but they also wanted to keep the illusion the system was still working. Having power is addictive.
The US empire get a lease of life but the USSR did not owing, less to the flexibility and openess of the capitalist system but to the periphery they could fleece to keep the system working. They could go and fleece LATAM and Asia once a decade and the system kept standing. There is a higher IQ in a capitalist system than in a communist system.
The Chinese, a mere 7 years -after August 1972- started changing their economy-Deng 1979. The Chinese communist system showed it had a higher IQ than the Russians. It realized that it was change or die. That is what makes a survivor.
Japan and Germany didn't have the stature nor the critical mass to take over the world economy, from the 70's onwards when it was there for them to take. Minnows, as I say here, and everyone think they are anything to worry about or that they matter. They don't. When I say don't matter I don't meant the people, the nations, I mean as nation-states don't matter, within the whole scheme of things.
Just keep that SCALE -I keep talking about- in mind when I mention ‘don't matter’.
the scale thing here: Message 24715609
Within that SCALE of things minnows can't do much. I keep saying that Japan will go back to the insignificance they come from for about 20 years, by the way. I was saying that at a time people thought they’d take over the world!
By the 80's the world was there to be taken over and no one was big enough to get the reins. It was necessary another 20 years for new powers to raise with the SCALE and critical mass to take over from here on.
That's where we are today.It is becoming obvious a few things:
1) The artifices whereby the US+Canada, Europe and Japan have lived in the past 3 decades are exhausted.
2) That the artifices, have caused severe effectcs in the economies of those countries and regions that have now to be re-adjusted and paid for.
3) There are no more artifices inside the bag to put use. In short, the cat has used its 9 lives.
You see among the BRICs Russia, the old former empire. But look closely, it's just dressed up. It has the DNA of the old empire and Russia is Russia. Governed by a ridiculous rag bag of former communists in the 21st century missing the COMECOM!
Compare that with young boys in Czech Republic who were put in charge to know what I mean. Those old Russians are the ones who fly outdated 50's vintage bombers as if today this was Dr. Strangelove’s time.
Let's look to the Chinese. Have you seen this space walk this week? This is the glory that the former communists never had and try to chase it. That because, for them, the rite of passage for a world power was to have rockets and send men into space. A waste of resources but important for a time when prestige mattered. We were not there in the Sapce race. Let’s run our race today as if this was 1964!!!
Prestige doesn't matter anymore, someone forgot to tell the Chinese. Or better: prestige, today, must be sought in other endeavours. Not in paying for a small clique if technicians play with their toys. You can send to the Moon a rocket every year, but it will still be a few miles of sand and stones and nothing to be gained from that effort.
If the Chinese have the money to pay for the small clique of technicans and sell that internally to the ignorant masses, is OK. Does not damage overall. As long as the leaders do not start believing their own propaganda, is fine.
Here we are today. Things have scaled up. There are no more artifices in the bag. There are no more countries in the periphery to be fleeced to pay for the center misdeeds but the nicest thing is:
The leadership of the world economy is there to be had. As it was there in 70's. Let's call it ' delayed gratification'. |
