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Presentation on theme: "Presentation to Institute of Marxism Research of the Chinese Academy of Social Sciences Neoclassical Economics and Neoliberalism as Neo-Imperialism James."— Presentation transcript:

1 Presentation to Institute of Marxism Research of the Chinese Academy of Social Sciences Neoclassical Economics and Neoliberalism as Neo-Imperialism James M. Craven/Omahkohkiaayo Ipoyi

2 A Poem Capturing the Essence of Neoclassical Economics, Neo-liberalism and Imperialism Those who take the meat from the table, teach contentment. Those for whom the taxes are destined, demand sacrifice. Those who eat their fill, speak to the hungry, of wonderful times to come. Those who lead the country into the abyss, call ruling too difficult, for ordinary folk. (Bertolt Brecht)

3 What is Imperialism? If it were necessary to give the briefest possible definition of imperialism we should have to say that imperialism is the monopoly stage of capitalism. Such a definition would include what is most important… But very brief definitions, although convenient, for they sum up the main points, are nevertheless inadequate, since we have to deduce from them some especially important features of the phenomenon that has to be defined. (V.I. Lenin, Imperialism The Highest Stage of Capitalism)

4 Defining Features of Imperialism And so, without forgetting the conditional and relative value of all definitions in general, which can never embrace all the concatenations of a phenomenon in its full development, we must give a definition of imperialism that will include the following five of its basic features: (1) the concentration of production and capital has developed to such a high stage that it has created monopolies which play a decisive role in economic life; (2) the merging of bank capital with industrial capital, and the creation, on the basis of this finance capital, of a financial oligarchy; (3) the export of capital as distinguished from the export of commodities acquires exceptional importance; (4) the formation of international monopolist capitalist associations which share the world among themselves, and (5) the territorial division of the whole world among the biggest capitalist powers is completed. (V.I. Lenin, Imperialism The Highest Stage of Capitalism)

5 Imperialism is a System and Not Simply a Set of Policies In the matter of defining imperialism, however, we have to enter into controversy… The fundamental ideas expressed in our definition of imperialism were very resolutely attacked by Kautsky… when he said that imperialism must not be regarded as a phase or stage of economy, but as a policy, a definite policy preferred by finance capital; (V.I. Lenin, Imperialism The Highest Stage of Capitalism)

6 Slogan of the Medici Family "Money to Get Power. Power to Protect Money"

7 The Core Imperatives and Logic of Capitalism and Imperialism Effective Competition (market power) Realization Maximum Surplus Value Accumulation of Capital* Maximization of Productivity Production Maximum Surplus Value

8 Imperial Superstructure The non-economic superstructure which grows up on the basis of finance capital, its politics and its ideology, stimulates the striving for colonial conquest. Finance capital does not want liberty, it wants domination, as Hilferding very truly says. (V.I. Lenin Imperialism The Highest Stage of Capitalism)

9 Imperial Overreach is Accelerating the Global Decline of America "Our power, then, has the grave liability of rendering our theories about the world immune from failure. But by becoming deaf to easily discerned warning signs, we may ignore long-term costs that result from our actions and dismiss reverses that should lead to a re- examination of our goals and means. (Republican Congressman Henry Hyde)

10 Imperial Expansion Spiral Expanding Home Economy Imperial Power Projection (Hard and Soft) Spheres of Influence Secure Investment Outlets, Raw Materials, Markets Returns of Profits, Interest, Rents and Global Power

11 Imperial Overreach and Decline Increasing Crises Domestic and Global Reckless Power Projections Increasing Resistance Globally Power Vacuums Favoring Rivals Declining Global Market Shares, Returns, Power

12 Pillars of Neo-liberalism Fiscal Policy discipline; Redirection of public spending from subsidies ("especially indiscriminate subsidies") toward broad- based provision of key pro-growth, pro-poor services like primary education, primary health care and infrastructure investment; Tax reform – broadening the tax base and adopting moderate marginal tax rates; Interest rates that are market determined and positive (but moderate) in real terms; Competitive exchange rates; Trade liberalization – liberalization of imports, with particular emphasis on elimination of quantitative restrictions (licensing, etc.); any trade protection to be provided by law and relatively uniform tariffs Liberalization of inward foreign direct investment; Privatization of state enterprises; Deregulation – abolition of regulations that impede market entry or restrict competition, except for those justified on safety, environmental and consumer protection grounds, and prudent oversight of financial institutions; and, Legal security for property rights. Restraint on Unions and Unionization Tight Money Policies (anti-Inflationary even at expense of higher unemployment)

13 Pillars of Neoclassical Economics The first meta-axiom of neoclassical economics: methodological individualism The second meta-axiom of neoclassical economics: methodological instrumentalism The third meta-axiom of neoclassical economics: methodological equilibration Source: Arnsperger, Christian and Varoufakis, Yanis, What is Neoclassical Economics?, Post-autistic Economics Review Issue 38, July 2009

14 Methodological Individualism Individual (buyer, seller, owner) is the focus of all analysis; Whole (Macro) = Sum of its parts; Micro Macro; Strict Separation of Structure from Agency: Micro Macro but no concept of Macro Micro; Form of methodological reductionism or the notion that all large entities may be explained by reference to smaller ones; No place for social class, race, ethnicity, gender, history, state of society or type of system in decision making; Collective action is simple aggregation of actions of rational utility-maximizing individuals.

15 Methodological Instrumentalism All human behavior is preference driven with all preferences reduced to ultimate goals of utility maximization and minimization of pain, costs, uncertainty and risk; Homo Oeconomicus Model (Evolving) a) Perfectly Rational to Bounded Rational b) Maximizer now Satisficer of Total Utility and Profits; calculates on the margin to maximize in Toto c) Preferences: given Exogenous; now adaptive Endogenous d) Egoistic or Self-interested and competitive Individual e) Preferences independent of influence of others or contexts now, via Game Theory, allows adaptation to past outcomes and context. f) From perfectly informed on all information necessary for rational choice to asymmetric information g) from pure competition to imperfect competition

16 Methodological Equilibration Axiomatic imposition of equilibrium as focus of analysis Questions about how, how likely equilibrium could occur in the real world never dealt with. Equilibrium merely and summarily asserted as neoclassical theory cannot demonstrate how some equilibrium could/would naturally occur out of competitive interactions of the instrumentally rational choices of economic agents. Economy can be analytically detached and analyzed independent of the other dimensions of society (pure Economics instead of Political Economy) Economy as a Morphostatic and not Morphogenetic system. Equilibrium focus has rhetorical intention. (Who goes to the psychiatrist looking for more disequilibrium in their lives?)

17 (Source Henderson, Hazel, http://www.hazelhenderson.com/visual.html; reprinted under Fair Use Doctrine)http://www.hazelhenderson.com/visual.html

18 Rhetoric of Neoclassical Economics However, since 1870, triumphant marginalism has set itself the task of working out an economic science that is pure, or, more precisely, independent of all other social sciences. This pure economic science must necessarily be a historical, since the laws it seeks to discover have to be true whatever the economic and social system may be. Abandoning the universal outlook of Marxism, breaking down the bridges that the latter had laid between the various branches of social science it its attempt to explain history, neoclassical economics was led to become, first and foremost, an algebra of logical deductions from a certain number of axioms based on a sketchy psychology of eternal man. (Samir Amin, Accumulation on a World Scale, p. 5)

19 How is Neoclassical Economics Used in Service to Imperialism? Analysis free of history, class, race, ethnicity, gender, and power (the real world) Focus on humans relations with things (Scarcity v Wants) and not on human relations among themselves in the course of producing and distributing means of subsistence Focus on mythical equilibrium in a system doomed to chronic disequilibrium, crises and eventual implosion All exchanges assumed by Neoclassicals and Neoliberals to be voluntary and mutually beneficial otherwise would not have occurred; whereas imperialism is all about unequal and involuntary exchanges and outright plunderall assumed away a-priori Ideology of universal harmonies based on mere tautologies with real world forms of exploitation defined or assumed away. Hypothetico-deductivist; anti-empirical Bad career move for economists who reject it; Dominant Paradigm

20 Early 20th Century Imperialism: Gunboat Diplomacy "I spent 33 years and four months in active military service and during that period I spent most of my time as a high class muscle man for Big Business, for Wall Street and the bankers. In short, I was a racketeer, a gangster for capitalism. I helped make Mexico and especially Tampico safe for American oil interests in 1914. I helped make Haiti and Cuba a decent place for the National City Bank boys to collect revenues in. I helped in the raping of half a dozen Central American republics for the benefit of Wall Street. I helped purify Nicaragua for the International Banking House of Brown Brothers in 1902- 1912. I brought light to the Dominican Republic for the American sugar interests in 1916. I helped make Honduras right for the American fruit companies in 1903. In China in 1927 I helped see to it that Standard Oil went on its way unmolested. Looking back on it, I might have given Al Capone a few hints. The best he could do was to operate his racket in three districts. I operated on three continents."[28] (Major General Smedley Darlington Butler, USMC, three-times nominated, twice awarded, the Medal of Honor. Single-handedly infiltrated and exposed a plot by big capitalists to overthrow President Roosevelt in 1934 and set up a fascist dictatorship in America)

21 Latter 20 th Century Imperialism: Social Systems Engineering "I don t see why we need to stand by and watch a country go communist due to the irresponsibility of its own people. The issues are much too important for the Chilean voters to be left to decide for themselves." (Henry Kissinger); "Not a nut or bolt shall reach Chile under Allende. Once Allende comes to power we shall do all within our power to condemn Chile and all Chileans to utmost deprivation and poverty." (Edward M. Korry, U.S. Ambassador to Chile, upon hearing of Allende"s election) "Make the economy scream [in Chile to] prevent Allende from coming to power or to unseat him" (Richard Nixon, orders to CIA director Richard Helms on September 15, 1970) "It is firm and continuing policy that Allende be overthrown by a coup. It would be much preferable to have this transpire prior to 24 October but efforts in this regard will continue vigorously beyond this date. We are to continue to generate maximum pressure toward this end, utilizing every appropriate resource. It is imperative that these actions be implemented clandestinely and securely so that the USG and American hand be well hidden..." (A communiqué to the CIA base in Chile, issued on October 16, 1970.)

22 Interview of Zbigniew Brzezinski National Security Adviser in the Carter Administration Q: The former director of the CIA, Robert Gates, stated in his memoirs ["From the Shadows"], that American intelligence services began to aid the Mujahedeen in Afghanistan 6 months before the Soviet intervention. In this period you were the national security adviser to President Carter. You therefore played a role in this affair. Is that correct? Brzezinski: Yes. According to the official version of history, CIA aid to the Mujahedeen began during 1980, that is to say, after the Soviet army invaded Afghanistan, 24 Dec 1979. But the reality, secretly guarded until now, is completely otherwise: Indeed, it was July 3, 1979 that President Carter signed the first directive for secret aid to the opponents of the pro-Soviet regime in Kabul. And that very day, I wrote a note to the president in which I explained to him that in my opinion this aid was going to induce a Soviet military intervention.

23 Brzezinski Continued Q: Despite this risk, you were an advocate of this covert action. But perhaps you yourself desired this Soviet entry into war and looked to provoke it? B: It isn't quite that. We didn't push the Russians to intervene, but we knowingly increased the probability that they would. Q: When the Soviets justified their intervention by asserting that they intended to fight against a secret involvement of the United States in Afghanistan, people didn't believe them. However, there was a basis of truth. You don't regret anything today? B: Regret what? That secret operation was an excellent idea. It had the effect of drawing the Russians into the Afghan trap and you want me to regret it? The day that the Soviets officially crossed the border, I wrote to President Carter: We now have the opportunity of giving to the USSR its Vietnam war. Indeed, for almost 10 years, Moscow had to carry on a war unsupportable by the government, a conflict that brought about the demoralization and finally the breakup of the Soviet empire. Q: And neither do you regret having supported the Islamic [intégrisme], having given arms and advice to future terrorists?

24 Brzezinski Continued B: What is most important to the history of the world? The Taliban or the collapse of the Soviet empire? Some stirred-up Moslems or the liberation of Central Europe and the end of the cold war? Q: Some stirred-up Moslems? But it has been said and repeated: Islamic fundamentalism represents a world menace today. B: Nonsense! It is said that the West had a global policy in regard to Islam. That is stupid. There isn't a global Islam. Look at Islam in a rational manner and without demagoguery or emotion. It is the leading religion of the world with 1.5 billion followers. But what is there in common among Saudi Arabian fundamentalism, moderate Morocco, Pakistan militarism, Egyptian pro-Western or Central Asian secularism? Nothing more than what unites the Christian countries. [This interview was published in French in Le Nouvel Observateur (France), Jan 15-21, 1998, but it is believed not included in the edition sent to the United States. Translation from original French by Bill Blum, author of "Killing Hope: US Military and CIA Interventions Since World War II" and "Rogue State: A Guide to the World's Only Superpower".]

25 21 st Century Imperialism? "When all the intelligence was sorted, weighed and analyzed, Tenet and Pavit agreed there were three major threats to American national security. One was Osama bin Laden and his al Qaeda terrorist network...A second major threat was the increasing proliferation of weapons of mass destruction...Third was the rise of China, especially its military, but that problem was 5 to 15 or more years away.(Plan of Attack by Bob Woodward, p.12)

26 An Allegory About Neoliberalism and How and For Whom it Really Works Imagine a race between two runners. Imagine that Runner A is held back while Runner B is advanced 80% of the way around the track toward the finish. Now imagine that Runner A is suddenly released to run the race, with no reference to having been held back or why, and, only when Runner B is only 20% away from the finish of the race, is Runner A then turned loose to compete in the race. Suppose Runner A is even told by Neoclassical theoreticians that if he does not win the race, that he is now totally free to run, this will be taken as evidence of Runner As own inferiority, laziness and lack of fitness to run the race. And suppose further that the rules of the race only apply to Runner A while the referees of the race are in the employ of and/or related to Runner B.

27 Now Extend The Previous Allegory Suppose the winner of the previous race (any question who that will be?) starts out in Race II at a position 90% ahead of the start line or 10% from the finish line while the loser of the previous race, Runner A, starts at the start line or say even 10% ahead of the previous start line, and each is told again, that he or she has an equal opportunity to run the race. Any question who will win race 2? Now imagine that this race has life and death consequences on many innocents and even the fate of the planet hangs on it. Inequalities, are self-reinforcing and self-reproducing especially in market-based systems, where access to political power, information, specialized technologies, patents, copyrights, guanxi etc are all commodities for sale to some and denied to others who either lack purchasing power and/or are subject to embargos.

28 Pillars of Neoliberalism & Imperialism Fiscal Policy discipline: a) Slashing Social Programs and Safety Nets for the Poor (increase labor-power market surpluses puts downward pressure on real wages while increasing productivity) b) Government expenditures to socialize costs and risks of foreign enterprises whose profits remain privatized, centralized, concentrated, and transferred out. c) Priority on export and other earnings on foreign debt repayment and debt rescheduling; d) demand-pull inflation mitigation seen as top priority over reduction of unemployment; e) deficit and debt peonage acts as fiscal straightjacket

29 Pillars of Neoliberalism & Imperialism Redirection of public spending from subsidies ("especially indiscriminate subsidies") toward broad-based provision of key pro-growth, pro-poor services like primary education, primary health care and infrastructure investment a) Particular focus on development (uneven and unbalanced) of infrastructure in service to foreign capital (plant to port) b) Draconian Cuts in Social Safety Net Expenditures c) Development of Economic Zones or Enclaves oriented toward metropolitan economies and creation of derivative demand for imports of high-tech and high value-added commodities from metropoles and exports of low-tech and low value-added semi- manufactures or raw materials to the metropoles

30 Pillars of Neoliberalism & Imperialism Tax reform – broadening the tax base and adopting moderate marginal tax rates; a) Increasing uses of regressive taxes (sales and value-added) and decreased use of progressive taxation in general and marginal tax rates of upper brackets in particular b) Tax regimes are moderately progressive de jure (on paper) but regressive overall de facto (in fact) c) Increased use of tax shelters, loopholes, tax code complexity and accelerated depreciation etc for upper income brackets and corporations. (increases demand for foreign consulting and finance capital services and hides regressive nature of tax code)

31 Pillars of Neoliberalism & Imperialism NED and the Infrastructure of Democracy The National Endowment for Democracy: Revisiting the CIA Connection The National Endowment for Democracy (NED) was established in 1984 with bipartisan support during President Reagans administration to foster the infrastructure of democracy – the system of a free press, unions, political parties, universities around the world.[8] Considering Reagans well documented misunderstanding of what constitutes democratic governance,[9] it is fitting that Allen Weinstein, the NEDs first acting president, observed that in fact A lot of what we [the NED] do today was done covertly 25 years ago by the CIA.[10] So for example, it is not surprising that during the 1990 elections in Nicaragua it is has been estimated that for every dollar of NED or AID funding there were several dollars of CIA funding.[11] By building upon the pioneering work of liberal philanthropists (like the Ford and Rockefeller Foundations) – who have a long history of co-opting progressive social movements – it appears that the NED was envisaged by US foreign policy elites to be a more suitable way to provide strategic funding to nongovernmental organizations than via covert CIA funding.[12] Indeed, the NEDs new emphasis on overt funding of geostrategically useful groups, as opposed to the covert funding, appears to have leant an aura of respect to the NEDs work, and has enabled them, for the most part, to avoid much critical commentary in the mainstream media. ("Democratic Imperialism": Tibet, China, and the National Endowment for Democracy by Michael Barker)

32 Dispersion of Freedoms De jure Concentrated Imperial Power De facto Siemens, one of the biggest industrialists and financial kings in Germany, told the Reichstag on June 7, 1900, that the one-pound share is the basis of British imperialism. [5] This merchant has a much deeper and more Marxist understanding of imperialism than a certain disreputable writer who is held to be one of the founders of Russian Marxism [21] and believes that imperialism is a bad habit of a certain nation.... (V.I. Lenin Imperialism The Highest Stage of Capitalism) [5] [21]

33 Dispersion of Ownership De jure Concentration of Control De facto It is characteristic of capitalism in general that the ownership of capital is separated from the application of capital to production… The head of the concern controls the principal company (literally: the mother company); the latter reigns over the subsidiary companies (daughter companies) which in their turn control still other subsidiaries (grandchild companies), etc. In this way, it is possible with a comparatively small capital to dominate immense spheres of production. Indeed, if holding 50 per cent of the capital is always sufficient to control a company, the head of the concern needs only one million to control eight million in the second subsidiaries. And if this interlocking is extended, it is possible with one million to control sixteen million, thirty-two million, etc. [3] [3] As a matter of fact, experience shows that it is sufficient to own 40 per cent of the shares of a company in order to direct its affairs, [4] since in practice a certain number of small, scattered shareholders find it impossible to attend general meetings, etc. The democratization of the ownership of shares, from which the bourgeois sophists and opportunist so-called Social- Democrats expect (or say that they expect) the democratization of capital, the strengthening of the role and significance of small scale production, etc., is, in fact, one of the ways of increasing the power of the financial oligarchy. (V.I. Lenin Imperialism the Highest Stage of Capitalism) [4]

34 Stock Dispersion Smaller %s of Total Stocks Needed for Control of Assets Holding Company 10% voting stock Subsidiary A 10% voting stock Subsidiary C 10% of voting stock Subsidiary D 10% of voting stock Subsidiary B 10% of voting stock Subsidiary E 10% of voting stock

35 Political Pluralism (De jure) + Vote Dispersion Oligarchy and Plutocracy As a matter of fact, experience shows that it is sufficient to own 40 per cent of the shares of a company in order to direct its affairs, [4] since in practice a certain number of small, scattered shareholders find it impossible to attend general meetings, etc. The democratization of the ownership of shares, [votes] from which the bourgeois sophists and opportunist so-called Social-Democrats expect (or say that they expect) the democratization of capital, the strengthening of the role and significance of small scale production, etc., is, in fact, one of the ways of increasing the power of the financial oligarchy. (V.I. Lenin op cit) [4]

36 Multiple Political Parties and Voter Cynicism Less not More Democracy Take the U.S. 2000 Presidential Election decided by one vote (buy the U.S. Supreme Court 5-4) with three of the U.S. Justices (Scalia, Thomas and OConnor) who voted for Bush, in violation of 28 USC 455 which demanded their recusal from the case for clear conflicts of interest which they refused to obey) With 50% of age-eligible potential voters voting, for two parties that have only nominal differences, and with the winning candidate getting 50% of the votes, that candidate wins with only.50 x.50 or 25% of age- eligible population voting for him or her. With three parties, as with Clinton in 1992, his mandate was even less.

37 Pillars of Neoliberalism & Imperialism Competitive exchange rates; a) Translation, we believe in free markets when it suits us and administered exchange rates or other prices when that suits us. b) The exchange rate of the U.S. Dollar has always been about the political-hegemonic as well as economic role of the dollar. The U.S. dollar has in many ways been overvalued since Bretton Woods 1944. c) falling dollar is supposed to stimulate exports unless loss of general confidence in the dollar causes decreased willingness to demand and hold dollars thus not only dollar meltdown, but lacking dollar reserves, countries decrease demand for U.S. exports and trade deficits rise instead of falling with a falling dollar.

38 Pillars of Neoliberalism & Imperialism Questions: Trade liberalization – liberalization of imports, with particular emphasis on elimination of quantitative restrictions (licensing, etc.); any trade protection to be provided by law and relatively uniform tariffs a) How about trade restrictions based on Cold War mentalities and machinations such as dual-use technology embargos, state-sponsored consumer boycotts etc? b) Who writes and [selectively] enforces the laws? c) How many hidden methods of protectionism are routinely applied?

39 Pillars of Neoliberalism & Imperialism Liberalization of inward foreign direct investment; Translation: The U.S and others following neoliberal prescriptions will only reinvest their profits if given a free hand to determine where, when, how much and in what sectors regardless of the implications on overall growth and development imperatives of the nation in which the reinvestment is directed. Not only does this undermine national sovereignty, but it leaves room for all sorts of social systems engineering schemes. This is demanded but not practiced by the U.S. and some of its allies

40 Pillars of Neoliberalism & Imperialism Privatization of state enterprises; Fact: The history of capitalism everywhere involves the socialization of costs and risks of accumulation of capital (which is not merely adding to capital stock but expanded reproduction of the basic power relations and structures and institutions of capitalism) while the returns of accumulation remain privatized and increasingly concentrated and centralized. Privatization used to acquire and control social assets cheaply as well as to hollow out the industrial and manufacturing bases of potential competitors. Also enhances roles of foreign finance capital in recapitalization of newly privatized entities

41 Pillars of Neoliberalism & Imperialism Deregulation – abolition of regulations that impede market entry or restrict competition, except for those justified on safety, environmental and consumer protection grounds, and prudent oversight of financial institutions; and, Fact: No system, socialist or capitalist is sustainable without regulation. The question is the de facto and not de jure nature of regulation and regulation by whom and for whom.

42 Pillars of Neoliberalism & Imperialism Legal security for property rights. a) In the U.S. according to a recent U.S. Supreme Court decision, the state can exercise Eminent Domain against the private property rights of one corporate entity on behalf of another private entity under the banner of social benefits. b) Property rights are also routinely used as weapons: patents and copyrights granted or assigned for imperial power projection purposes and denied for the same purposes. c) All sorts of schemes de jure (on paper or in law) have no correspondence to what exists de facto (in fact)

43 Pillars of Neoliberalism & Imperialism Restraint on Unions and Unionization a) Increases in both relative and absolute surplus value b) Increased fear-based productivity c) Decreased working class resistance to policies d) Increased roles of labor aristocracy e) Rollbacks in real wages, benefits, workplace safety f) Decreased worker resistance to imperial adventures g) Reductions in tenure and workplace job security and due process rights

44 Pillars of Neoliberalism & Imperialism Tight Money Policies (anti-Inflationary even at expense of higher unemployment) While low inflation rates can favor consumers, they favor recipients of property real incomes (rents, interest, profits and dividends more). When inflation rates are relatively low, lowers interest rates for borrowing for investment, reduces interest rates which drives up bond prices and stock prices… Under the trade-off between unemployment and inflation, supposedly reducing inflation via tight money means higher unemployment. At present the U.S. is pursuing unprecedented easy money policies yet with rising stagflation (BOTH higher inflation and higher unemployment).

45 Soft, Hard and Smart Power PD User at 2009-04-18 11:22:37 Comment on Obama shows his smart powerObama shows his smart power IP 97.120.92. The only kind of "power" that is truly "smart", in the long-run, is that which is non-hegemonic and does not subjectively seek the power it objectively has. This is the "power" that comes from good example, from non-hypocrisy, from modesty, from honesty, from being in the real service of the people and from solid performance. When the U.S. establishment, in both political parties, talk about "smart power", what they really mean is not simply "smart"--and thus effective--combinations of soft and hard power; what they really mean is more effective forms of hegemonic power but that do not appear as nakedly hegemonic and previously. But their focus is on power with reference to "smart" only in terms of that which enhances their long-term ability to apply either soft or hard power depending upon their tactical imperatives which are about strategic hegemony. This imperial concept of "smart" power, China has wisely denounced and rejected. The U.S. and other nations that seek hegemonic forms of power, still have not learned how illusory and self-negating such forms of power are.

46 Soft, Hard and Smart Power Obama shows his smart power As an addendum to my previous comments above, Secretary of State Hillary Clinton in recent U.S. Senate testimony, was asked about "smart" power and was given a quote from some source that said "smart power may use soft as well as hard power, but it is anything but soft or weak." to which Hillary Clinton noted that she had just taken or written down that quote to use later. These folks still do not get it: all attempts in human history at building hegemonic empires have failed; simply, because of the rising and prohibitive costs and crises of imperial overreach on the one hand, and the fact that contradictions generated by and within imperial power projections abroad, and by and within contradictions in the home metropoles, are also dialectically tied together and feed each other. The Government of China, and the Chinese People, victims of imperial hegemony over many centuries, have understood this and have wisely rejected any hegemonic intentions or desires.

47 Advice from my Father Do not ever show up to a gunfight with a knife. Do not ever wind up the only honest person in a dirty card game.

48 Neoimperialism is a New Face or Mask of Imperialism Not a New Essence PD User replied at 2009-05-01 12:59:57 Any war founded on lies, engineered pretexts, cherry picked intelligence and violations of the same international demanded for law protection of that nation going to an illegal war of aggression, must be stopped immediately with those who caused that war brought to justice and the victims helped. There is no "winning" or "leaving with honor" an illegal war, only staying and doing more crimes or leaving and stopping the crimes; there is no middle ground. During the election campaign he said he understood all of that and would begin immediate withdrawal of U.S. forces. But the war in Afghanistan, and the cross-border attacks in Pakistan are also illegal and founded on lies. The Taliban were partly a U.S. creation as was Al Qaeda. And as for 9-11, the broad masses of Afghanistan had nothing to do with it but are suffering horribly, while those really responsible for 9- 11 and other forms of terrorism, remain relatively safe from military actions. It must also be said, to be really honest, and that is terrorism is a set of tactics and not a particular enemy; and if terrorism is defined as calculated and/or highly likely forms of violence against non-combatants, then what are the imperial embargos against Cuba or the imperial encirclements and critical-resource-diverting (from development) threats of nuclear annihilation against China?

49 Hearts and Minds Cults (e.g. Falun Gong, Mormonism, Scientology Moonies) Research in neurobiology, cognitive psychology, evolutionary biology etc on perception management, manufacturing consent, thought identification mind control and manipulation; Culture Wars (journals, cultural exchanges, films, news, Voice of America, mainstream religion missionaries, NGOs, music, fashion styles, libertine lifestyles, childrens books, teaching English in China etc) Education (textbooks, university articulation agreements, professor and student exchanges, shared degree programs)

50 Talk at Tsinghua University Socialism versus Capitalism: Who Will Win? James M. Craven Member of Blackfoot Indian Nation 5 26 8 20 6B-301

51 What is your answer to the question Socialism vs. Capitalism Who Will Win? My answer was I do not know but I do know which must win if this planet and humanity are to surviveSocialism. Imperialism, Neo or Classical, will never tolerate, because they could never handle, truly free, fair, open and peaceful competition between systemsSocialism vs. Capitalism. Social Systems Engineering is about identifying and then exploiting the key vulnerabilities of a targeted nation for purposes of destabilization and overthrow of regimes and systems; and to engineer the supposed proof of the supposed superiority of Capitalism over Socialism and the supposed proof of the supposed backward and repressive nature of Socialism and Communism.

52 Di guo zhu yi de mian zhao he tang yi pao dan "Evil is no faceless stranger living in a distant neighborhood Evil has a wholesome, hometown face, with merry eyes and an open smile. Evil walks among us, wearing a mask which looks like all our faces. (The Book of Counted Sorrows)


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