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Day of Reckoning in De-Americanized World

Posted by Larry Doyle on October 16, 2013 9:55 AM |

Regardless of where you fall along the political spectrum, you can rest assured we will all pay ever increasing costs for the dysfunction on display in Washington.

Some may discount that reality and think the political power plays properly executed trump the costs incurred. I can assure you they do not.

Who holds the ultimate trump card in the current rendition of Washington’s political game of chicken? The bond market. And who especially within the bond market? Foreign holders of dollar-denominated assets. And who is the biggest holder? The People’s Republic of China. Let’s navigate eastward and get some insights on what folks there think about our dysfunctional government:  

As U.S. politicians of both political parties are still shuffling back and forth between the White House and the Capitol Hill without striking a viable deal to bring normality to the body politic they brag about, it is perhaps a good time for the befuddled world to start considering building a de-Americanized world.

Emerging from the bloodshed of the Second World War as the world’s most powerful nation, the United States has since then been trying to build a global empire by imposing a postwar world order, fueling recovery in Europe, and encouraging regime-change in nations that it deems hardly Washington-friendly.

With its seemingly unrivaled economic and military might, the United States has declared that it has vital national interests to protect in nearly every corner of the globe, and been habituated to meddling in the business of other countries and regions far away from its shores.

Meanwhile, the U.S. government has gone to all lengths to appear before the world as the one that claims the moral high ground, yet covertly doing things that are as audacious as torturing prisoners of war, slaying civilians in drone attacks, and spying on world leaders.

Under what is known as the Pax-Americana, we fail to see a world where the United States is helping to defuse violence and conflicts, reduce poor and displaced population, and bring about real, lasting peace.

Moreover, instead of honoring its duties as a responsible leading power, a self-serving Washington has abused its superpower status and introduced even more chaos into the world by shifting financial risks overseas, instigating regional tensions amid territorial disputes, and fighting unwarranted wars under the cover of outright lies.

As a result, the world is still crawling its way out of an economic disaster thanks to the voracious Wall Street elites, while bombings and killings have become virtually daily routines in Iraq years after Washington claimed it has liberated its people from tyrannical rule.

Most recently, the cyclical stagnation in Washington for a viable bipartisan solution over a federal budget and an approval for raising debt ceiling has again left many nations’ tremendous dollar assets in jeopardy and the international community highly agonized.

Such alarming days when the destinies of others are in the hands of a hypocritical nation have to be terminated, and a new world order should be put in place, according to which all nations, big or small, poor or rich, can have their key interests respected and protected on an equal footing.

To that end, several corner stones should be laid to underpin a de-Americanized world.

For starters, all nations need to hew to the basic principles of the international law, including respect for sovereignty, and keeping hands off domestic affairs of others.

Furthermore, the authority of the United Nations in handling global hotspot issues has to be recognized. That means no one has the right to wage any form of military action against others without a UN mandate.

Apart from that, the world’s financial system also has to embrace some substantial reforms.

The developing and emerging market economies need to have more say in major international financial institutions including the World Bank and the International Monetary Fund, so that they could better reflect the transformations of the global economic and political landscape.

What may also be included as a key part of an effective reform is the introduction of a new international reserve currency that is to be created to replace the dominant U.S. dollar, so that the international community could permanently stay away from the spillover of the intensifying domestic political turmoil in the United States.

Of course, the purpose of promoting these changes is not to completely toss the United States aside, which is also impossible. Rather, it is to encourage Washington to play a much more constructive role in addressing global affairs.

And among all options, it is suggested that the beltway politicians first begin with ending the pernicious impasse.

Do you think foreign creditors will be inclined to direct more investment capital our way? NOT.

As the cost of capital inevitably moves higher, our economic engine slows, and with it the quality of life in America will decline for future generations.

Some legacy Washington is leaving.

Navigate accordingly.

I thank the regular reader who shared the linked commentary.

Larry Doyle

Please pre-order a copy of my book, In Bed with Wall Street: The Conspiracy Crippling Our Global Economy, that will be published by Palgrave Macmillan on January 7, 2014.

For those reading this via a syndicated outlet or receiving it via e-mail or another delivery, please visit the blog and comment on this piece of ‘sense on cents.’

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I have no business interest with any entity referenced in this commentary. The opinions expressed are my own. I am a proponent of real transparency within our markets so that investor confidence and investor protection can be achieved.

  • Jack C

    While reading over this really excellent insert regarding some of the most critical issues facing our world today, I reminded of an old adage that brings me back to the reality of why these well itemized and really superb bits of logic won’t be able to fix what’s wrong with the U.S. and all the other things mentioned: “That’s Too Simple”.

  • lizzy s

    Our country is being run by stupid people encased in an ideological bubble, totally divorced from reality and convinced they are the most brilliant people ever. They are top dogs and won’t suffer from the destruction they are instigating. I don’t have any hope that facts will change their actions. We will suffer.

  • LD

    A Chinese ratings agency downgraded its US sovereign credit rating Thursday despite Washington’s resolution of the debt ceiling deadlock, warning that fundamentals for a potential default remained “unchanged”.

    Dagong lowered its ratings for US local and foreign currency credit from A to A-, maintaining a negative outlook, the agency said in a statement.

    The announcement came after the US Congress passed and President Barack Obama signed a bill that extends the nation’s borrowing authority and ends a two-week government shutdown.

    “The fundamental situation that the debt growth rate significantly outpaces that of fiscal income and gross domestic product remains unchanged,” Dagong said in the statement, adding Washington’s solvency was vulnerable as old debts were still repaid through raising new debts.

    “Hence the government is still approaching the verge of default crisis, a situation that cannot be substantially alleviated in the foreseeable future,” it said.

    Chinese Agency Downgrades US Credit Rating

  • Van

    LARRY

    YOU ARE GETTING CLOSER, KEEP AT IT

  • http://kahudes.net Karen Hudes

    Larry Doyle, you are off by about 50 years for our day of reckoning with the Chinese. Today the day of reckoning is with the super entity identified here: See Stefania Vitali, James B. Glattfelder, and Stefano Battiston: “The network of global corporate control“, ETH Zurich, published September 2011 available here:
    http://arxiv.org/PS_cache/arxiv/pdf/1107/1107.5728v2.pdf
    Read footnotes 7, 8 and 10 in this article http://www.larsschall.com/2013/05/08/governance-issues-at-the-world-bank-a-security-risk-to-the-world-order/ to find the 95% likelihood for a coalition among the Department of Defense, the American people, and the 50 states. The value of the US dollar, issued by the Treasury instead of the crooked Federal Reserve system, will be backed by assets instead of debt. This will result in 50 years of prosperity and peace among our allies in the West, when we will have a peaceful transition to the East.

  • carrie gentry jones

    OK. Karen, you are right on target. And to Larry Doyle, I’m not sure if he is ignorant on certain matters, or simply attempting to be a source of dis or misinformation. ALL you have to do is to read and listen to what all of our greatest leaders have said and seen for ages. And more recently, REALLY watch and listen to Aaron Russo’s interview with Alex Jones. Aaron was good friend’s with David Rock. at one time, and got the truth straight from the horses mouth. He went to his death getting the truth out to “We the People” and he said, “DO NOT ACCEPT THE UNIVERSAL CARD!!!” http://www.youtube.com/watch?v=N3NA17CCboA. Or just google Aaron Russo’s interview with Alex Jones! THIS IS ALL U NEED TO KNOW! Then proceed! Godspeed!

    • LD

      Carrie,

      With all due respect, I think most coherent people who might read your comment would walk away thinking, “What is she talking about?”

      Your comment and the prior one left by Ms. Hudes strike me as falling closely under the heading of spam.

      And that is all I have to say about that.

      • SUSAN E.

        Of course that’s all you have to say LD …you have a book to sell! …what Carrie and Karen have to say makes complete and total sense …YOU, on the other hand, are way off. WAKE UP AND SMELL THE COFFEE!






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