It's been inevitable for decades, but it really gained momentum with
the rise of the Internet and the globalization of knowledge work.

Is there an end game? I think there are several being played by
different parties in the international community. Take OPEC.
Nominally, OPEC has a goal of maintaining price stability in oil in
order to give the modern world a reliable supply of energy. But within
OPEC, member states are all over the map politically in their
affiliation with the United States. Russia, our former Cold War rival,
distrusts us and sees danger in every eastern advance of NATO and US
power. Hugo Chavez in Venezuela wants to see US hegemony overturned
and socialism triumphant (good luck with that project, by the way, not
that it hasn't been tried before to utterly disastrous results).
Because the US protects the Saudi monarchy from Iran, Saudi Arabia
wants to see US hegemony preserved. That goes double for Kuwait.
Libya, who knows? Iraq? It's complicated. And the list goes on.

What about China and India? The two most populous states on the
planet, each with over a billion people, are emerging from rural
poverty into modern urban life, and that emergence is creating a huge
demand for raw materials and resources like food and oil. China's
leaders are not stupid. They see the success of post-war American
dominance of the sea lanes as a key to the stability of American
society, and I wager they are aiming to replicate our stewardship of
the seas when the American project literally and figuratively runs out
of gas. Let's be clear though, China is not America. American post-war
dominance was driven by the desire to see a peace earned with the
blood of millions of lives maintained, and for the victims of the war
to be protected. China's desire to maintain global stability comes
from its desire for internal stability. I don't see Chinese troops
putting boots on ground in foreign lands to help protect innocent
civilians against human rights violations. If they can't respect human
rights internally, how can they be trusted internationally? China has
some growing up to do if it plans on one day playing superpower. They
still have a problematic tendency to see global relations as a zero
sum game.

India's goals are clearly less directed at military might. Much of
India is still very poor and ignorant of what is going on in the
outside world. As in China, lifting hundreds of millions of people out
of poverty carries huge risks of instability as poor people become
truly aware of just how poor they are. The cultural remains of the
caste system work to keep people in place to some extent, but it isn't
going to last forever. Sooner or later those people are going to
demand equal treatment.  Even with its relative rise in incomes, India
ranked 137 last year on the list of per capita GDP at $1,176:

http://en.wikipedia.org/wiki/List_of_countries_by_GDP_%28nominal%29_per_capita

China's per capita GDP is more than three times India's. Is it because
India has been less aggressive about building a middle class? I don't
know, but somehow I don't see a big internal push in India to bring
the very poorest people out of such abject poverty.  I see Indians
building a bunch of monuments to excess, like the high-rise being
built in Mumbai for a single family. Indians are also partly driving
the rise on gold prices, BTW, as they are the biggest market in the
world for gold. It is compact, easily transportable wealth that has a
specific value anywhere in the world. For the discerning traveler who
wants to discretely move money from one country to another, gold is
perfect.

As for the people in the US who participated in this mess, it comes
down to the socialists and the capitalists. Unfortunately we're still
fighting the same tired battles of the last century. Socialists want
to break the US financially so they can get free rein to re-make
society like Chavez got in Venezuela. There is an argument that Obama
is in this camp, but I'm not so sure. Capitalists want to force the
government to go on a diet and become small enough that industry can
control every aspect of government - a situation I see as effectively
deferring our sovereignty to a bunch of globalized, undemocratic,
semi-feudal non-state actors. Our two choices today are government
taking more and more power (I've seen this film, it ends badly), or
ceding power to the pharaohs, to use a term Bill Gates once used by
way of comparison for his position as head of Microsoft. I prefer
option three.



On Tue, Apr 5, 2011 at 6:43 PM, Vivec <[email protected]> wrote:
>
> Robert,
>
> With the current economic model..wasn't this inevitable?
> I've been reading about this happening for the last 10 years, and seen
> articles for years before that.
>
> The people who maneuvered the economy to this point MUST have known
> what the outcome would be.
>
> Do you think there is no end-game?
>

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