I have noticed lately that the spinmeisters are now latching on to the term ‘currency war,’ but are trying to deflect it merely to an intensification of the beggar thy neighbor strategy of devaluing your currency to subsidize exports and penalize imports.
This has been going on for a long time, most notably by the Asian Tigers, led by Japan and then perfected by China. But make no mistake, the real heart of this process is in an Anglo-American banking/industrial cartel that intends to beggar everybody.
The multinational corporations went along with it. They were its great lobbyists, and their wealthy scions the founders of think tanks to provide it a rationale and respectability.
Walmart wrote a chapter in the new gospel of greed as a means of undermining wages and the American working class by insisting, as far back as the 1990’s and the Clinton era, that suppliers start offshoring to China. And servile politicians opened the doors wide, and turned a blind eye to abuses that are still coming home to roost.
Part of the arrangement was a quid pro quo. The multinationals, who successfully staged a financial coup d’état in the States and Western Europe, were to extend the reach of their strong dollar policy and europression via foreign direct investments in resources rich overseas nations and foreign markets in order to consolidate their power into the non-democratic world.
But China and Russia balked at their end of the presumed bargain. They realized that opening their own doors to dollar exploitation, and allowing the economic hitmen to come in and pick up assets on the cheap, would lead to eventual political unrest, encirclement, and their own loss of power.
‘Color revolutions’ were becoming popular, as one country after another was falling into chaos, the kind that produces fire sales in productive assets and the elimination of inconvenient local rivals to power. And in Europe, the powers that be created a Eurozone structure that any decent economist would know was unsustainable, and destined to create an unstable situation of few winners and many big losers.
And so a consortium of nations began to resist. Some called them the BRICS. They became alarmed, and then convinced, that allowing a single nation or group of multinationals to control the world’s reserve currency was like a Ponzi scheme that could only continue on until its acquired the whip hand of power everywhere.
