Isolationism seems to be what many voters want. When they go to the gas pump or to Costco, will they like the consequences of lost U.S. hegemony? Mean salaries in the U.S. are dramatically higher than in other countries, except for Switzerland.
From: Friam <friam-boun...@redfish.com> on behalf of glen <geprope...@gmail.com> Date: Monday, November 11, 2024 at 7:54 AM To: friam@redfish.com <friam@redfish.com> Subject: Re: [FRIAM] How democracies die I have not. But Claude has. 8^D Below are first, Claude's summary of summaries. What follows are Claude's summaries of Parts I, II, & III, which were part of the prompt for the summary of summaries. Temperature = 0. I had to do it in parts because the entire book was longer than Claude's context window. IDK if it's accurate or helpful. ----------- Summary of Summaries ----------------- Michael Hudson's Super Imperialism traces the evolution of the American-dominated global economic order from World War I through the early 21st century. The book argues that the United States has used its unique position as the issuer of the world's reserve currency to gain economic and political power, often at the expense of other nations. In Part I, covering 1914-1946, Hudson shows how the U.S. emerged as the world's major creditor after World War I, but its financial policies sowed instability and division. The U.S. refused to reduce war debts owed by allies or provide aid to the Soviet Union after World War II, setting the stage for the Cold War and a divided world economy. Part II examines the Bretton Woods institutions (IMF, World Bank, GATT) that emerged after World War II. These institutions were dominated by U.S. interests and often benefited the U.S. at the expense of developing countries. The IMF, in particular, maintained the dollar's hegemony while imposing austerity on deficit countries. In Part III, Hudson argues that the U.S. has used its debtor position as leverage since the 1960s, threatening to disrupt the global monetary system if other countries don't finance its deficits. The lack of a viable alternative to the dollar allows the U.S. to continue running deficits while pressuring trade partners to keep their markets open. Europe and Asia have failed to challenge this "monetary imperialism," which remains the foundation of U.S. global power. Overall, Super Imperialism presents a critical analysis of how the U.S. has used its economic and monetary dominance to shape the global economic order in its own interests over the past century, often with negative consequences for other nations. The book highlights the asymmetries and inequities inherent in this system and the lack of a functional alternative to dollar hegemony. ------------- Summary of Part I -------------- Part I covers the period from 1914-1946 and the birth of the American world order. The key developments were: - World War I transformed the global financial system from one dominated by private capital flows to one dominated by flows between governments, with the U.S. emerging as the world's major creditor. The U.S. extended loans to its allies that they could not realistically repay, sowing the seeds for financial instability. - In the interwar period of 1921-1933, the U.S. refused to reduce the war debts owed by the Allies, while also raising tariffs. This made it impossible for the Allies to earn the dollars needed to repay the U.S., leading to the breakdown of the international financial system and contributing to the Great Depression and the rise of fascism. The U.S. failed to take on Britain's former role in stabilizing the global economy. - During World War II, the U.S. again extended loans to the Allies through the Lend-Lease program. As the war ended, the U.S. abruptly terminated Lend-Lease aid. At the Bretton Woods conference in 1944, the U.S. established the IMF and World Bank on terms highly favorable to U.S. interests, giving it veto power over their policies. - After the war, the U.S. aimed to create an open world economy centered around the U.S. and the dollar. However, it refused to provide loans or aid to the Soviet Union, pushing the USSR to withdraw from the capitalist world system. This laid the foundations for the Cold War and the splintering of the world economy into rival blocs. In summary, U.S. financial policies from 1914-1946 established its dominant global creditor position, but also sowed instability and division by placing U.S. national interests ahead of its responsibilities as the new hegemonic power. This set the stage for many of the economic tensions of the postwar era. --------------- Summary of Part II ---------------- Part II focuses on the institutions of the American empire that emerged after World War II, specifically the World Bank, U.S. foreign aid programs, the General Agreement on Tariffs and Trade (GATT), and the International Monetary Fund (IMF). The World Bank was dominated by U.S. interests from the start, despite British attempts to make it more independent. Its lending focused on infrastructure and export sectors in developing countries rather than agricultural modernization, thereby increasing their dependence on food imports, mainly from the U.S. The Bank's operations benefited the U.S. balance of payments significantly. U.S. foreign aid was used as an economic and political tool to secure U.S. geopolitical interests abroad. Aid was increasingly tied to U.S. exports and given on the condition that recipients align with U.S. foreign policy. Food aid under PL 480 expanded markets for U.S. agricultural surpluses while discouraging agricultural development in recipient nations. Overall, aid programs generated a net financial inflow to the U.S. Under GATT, the U.S. promoted free trade principles abroad while maintaining domestic protectionist policies. GATT's limited focus on tariff reductions allowed the U.S. to keep non-tariff trade barriers intact. When GATT rules no longer favored U.S. interests, the U.S. simply ignored them. Finally, the IMF was designed to maintain fixed exchange rates based on the U.S. dollar and gold at $35/ounce. This ensured a strong dollar and prevented other countries from devaluing to gain competitive advantage, as the U.K. was forced to maintain an overvalued pound. The IMF's lending was limited, but it exerted control by imposing austerity on deficit countries while permitting U.S. deficits. In summary, the Bretton Woods institutions entrenched U.S. economic dominance and the dollar's hegemony in the postwar international monetary system, often to the detriment of other nations. The U.S. was able to run deficits and expand its domestic economy without worrying about the balance of payments consequences. ------------------ Summary of Part III ----------------- This is an excellent summary of how the United States has used its unique position as the issuer of the world's reserve currency to gain economic and political power on the global stage, even as it has shifted from being the world's largest creditor to its largest debtor. Some key points: - After WWII, the U.S. used its creditor position to create international institutions like the IMF, World Bank, and GATT that served its interests, while exempting itself from rules that would constrain its own policies. This allowed the U.S. to maintain agricultural subsidies and protectionism while pushing free trade on others. - When the U.S. balance of payments turned negative in the 1960s due to military spending, it used its debtor position as leverage, threatening to wreck the global monetary system if other countries didn't continue to finance its deficits. Closing the gold window in 1971 left foreign central banks with no choice but to accumulate U.S. Treasury securities. - The absence of a viable alternative to the dollar, such as a gold standard or strong euro, allows the U.S. to continue running huge deficits while pressuring trade partners to keep their markets open to American goods and capital. Debtor countries face austerity while the U.S. does not. - Europe and Asia have failed to stand up to American monetary dominance or create alternative institutions, instead accommodating U.S. interests even at the expense of their own economic sovereignty. The lack of a strong theoretical critique of this system perpetuates the asymmetry. In essence, the U.S. has inverted the classical rules of international finance, using its debtor position as an instrument of economic control in the absence of an equitable and functional alternative to the dollar standard. This "monetary imperialism" remains the economic foundation of American global power into the 21st century. On 11/10/24 08:17, Santafe wrote: > So my question to the list is: has any of you read this book: > https://www.amazon.com/Super-Imperialism-Origin-Fundamentals-Dominance/dp/0745319890 > > <https://www.amazon.com/Super-Imperialism-Origin-Fundamentals-Dominance/dp/0745319890> > > A work colleague with whom I was having a conversation about sanctions > policies, history and consequences of reserve currency status and the control > that comes with it (and whether China has any serious intention to take on > that role) sent it. > > Many things about the history sound important enough that they are what we > should be taught in schools (and obviously are not). > > Whether the book does a good job of explaining circumstances and how these > choices get made, or is just written to support the point of view “Everything > ever done by anyone in U.S. public office is Evil! and they are all EXACTLY > The Same!!!!” which would be less helpful. > > I am too far behind to read it until I am put into hospice and have time, but > should understand what I can of it. -- ꙮ Mɥǝu ǝlǝdɥɐuʇs ɟᴉƃɥʇ' ʇɥǝ ƃɹɐss snɟɟǝɹs˙ ꙮ .- .-.. .-.. / ..-. --- --- - . .-. ... / .- .-. . / .-- .-. --- -. --. / ... --- -- . / .- .-. . / ..- ... . ..-. ..- .-.. 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