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Except not, because the US does not have any capital plant left that's worth shit, outside the armaments industry. And most of the countries that the American capital plant has been relocated to (other than China) are in Korea, which will be a Chinese client about ten seconds after the commencement of hostilities, and Indochina, which is a region where China can stir up a whole lot of trouble even under an all-out naval blockade.

The US  doesn't need its own capital plant to survive a conflict with anyone because it has a military capable of securing all of the resources it needs from anyone else. While China's borders are just China's borders, as far as political control over resources goes, America is effectively borderless due to its unique, global military reach. Unless a country today opts out of American empire by opting out of trade, America's military really does make all other countries mere constituencies of an American polity.

While China and other countries may be only able to politically secure economic resources within its nation-state borders, the global network of bases, ships, and aircraft that the US has allow it to secure anything it needs from anywhere just by buying it and shipping it.  No one else has that capacity, and until they do, the world pretty much has to follow the leader.

Korea won't go with China, because China can't protect its trade-based economy like the US Navy can, and without US and EU markets, Korea faces famine and devastation.  Korea therefore, like China, also has no choice of allies.  Beating America at its own game really is the best strategy out of a very limited set of options available to would-be imperialist competitors to American power today.

by santiago on Tue Jul 20th, 2010 at 09:23:07 PM EST
[ Parent ]
Were the USA to undergo a financial collapse from which the current measures cannot save it, much of its military reach would be curtailed. Most fallen empires declined economically, at least on a relative basis, before they fell militarily.

As the Dutch said while fighting the Spanish: "It is not necessary to have hope in order to persevere."
by ARGeezer (ARGeezer a in a circle eurotrib daught com) on Tue Jul 20th, 2010 at 09:55:01 PM EST
[ Parent ]
This is true, but that's something that can take a thousand years to happen, as it has with multinational political systems or empires in the past, including the Chinese themselves. Financial collapse is not the same thing as economic collapse, though.  After all, it's just money we're talking about in a financial collapse, a mere contrivance for getting people to organize real resources among themselves. A financial system collapse is just a  collapse in one set of rules for doing things, and that can have real and severe consequences, but it can be repaired a lot easier than, say, an ecological disaster like we might face from unchecked global warming, for instance.
by santiago on Tue Jul 20th, 2010 at 10:36:28 PM EST
[ Parent ]
an ecological disaster like we might face from unchecked global warming, for instance.

Or a worst cast outcome from Macondo Prospect, such as a tsunami triggered by a giant methane burp followed by  subsidence, driving H2S, SO and methane before it at the speed of sound towards the coast, followed by a wall of water and accompanied by a series of explosions when ever an appropriate mix of methane and oxygen is achieved.

As the Dutch said while fighting the Spanish: "It is not necessary to have hope in order to persevere."
by ARGeezer (ARGeezer a in a circle eurotrib daught com) on Wed Jul 21st, 2010 at 12:04:02 AM EST
[ Parent ]
Financial collapse is not the same thing as economic collapse, though.

The thing is that the American economic collapse has already happened and should be treated in the past tense.

What's keeping the American empire going is its mental capture of the European elites and its control of the financial system. For a country whose only significant civilian economic activity is finance, financial collapse is a generalised economic collapse.

- Jake

If you only spend 20 minutes of the rest of your life on economics, go spend them here.

by JakeS (JangoSierra 'at' gmail 'dot' com) on Wed Jul 21st, 2010 at 03:36:51 AM EST
[ Parent ]
that's something that can take a thousand years to happen,

Or that can happen in well less than a century, as with the U.K. and its Empire - 1914 to 1948 or 1956. The US empire may date from 1898 to 1971 or 2001 or ???? More generously, perhaps from 1803 to ????

As the Dutch said while fighting the Spanish: "It is not necessary to have hope in order to persevere."
by ARGeezer (ARGeezer a in a circle eurotrib daught com) on Wed Jul 21st, 2010 at 09:49:28 PM EST
[ Parent ]
The US  doesn't need its own capital plant to survive a conflict with anyone because it has a military capable of securing all of the resources it needs from anyone else.

  1. Not to put too fine a point upon it, but the only wars the US has won since Hiroshima are Grenada, the first iteration of Iraq and Panama...

  2. There is a world of difference between denying a capital plant to someone else and actually capturing it in a usable condition. As far as I'm aware, the latter hasn't been done since the War.

  3. It takes five to ten years to train the specialists that staff the capital plant. Beating other people's specialists over the head and stealing theirs doesn't do you any good if you have no domestic cadres of skilled workers to employ it.

If your point is that the US controls the high seas, then that's true as far as it goes, but it only goes as far as the rail net does not. A year or two of concerted effort by Russia and China and China will be shipping Ukrainian grain across Siberia by land. Expensive? Yes. Impossible? No. Particularly not if they have nothing else productive to do with their steel, on account of a trade embargo.

Korea won't go with China, because China can't protect its trade-based economy like the US Navy can,

It's not about "going with China," it's about not being able to prevent China from going in there and taking it over. In a working or not so working condition...

- Jake

If you only spend 20 minutes of the rest of your life on economics, go spend them here.

by JakeS (JangoSierra 'at' gmail 'dot' com) on Tue Jul 20th, 2010 at 10:20:31 PM EST
[ Parent ]
Remember, empires don't need to win wars, just to survive them, for military strategies to be successful.  And you don't need to defeat China to prevent China's access to resources. You just have to be able to dissuade the world's ship owners, even Chinese ones, from doing business with China, which an aircraft carrier battle group is really good at.

You're right about Russia and Korea, but it's still the same catch-22 situation.  If China invades Korea, but has no access to the resources it needs, then famine occurs in Korea as well as China, so Korea will always stick with America, and Chinese contesting power with America is off the table.  So if China were to get cozy enough with Russia to be able to secure resources without a need for ocean transport (just as the US was able to do (and Napoleon was not) without worrying about England in the 19th century) then, yes, you have a scenario for the end of the empire.  

Hence, US geopolitical strategy should be, and likely is, to keep that kind of relationship from ever occurring. That's where policy matters and mistakes can be made.  Empires aren't deterministic organisms. People have to actually be smart enough to keep them working.  My point is that really the only way American power can fall in our lifetimes is if American political leadership screws up.  Without American mistakes, China can't overtake her, so it's America's game to lose, not China's game to win.

There is no inevitability in China's rise here, and that was even the thesis of Giovanni Arrighi in his otherwise anti-American tome about China's rise. China still has to solve the currently insurmountable problem of how to retain access to global resources without the military capability to do so.  Without an American (or climatic, perhaps) calamity, China isn't likely to ever get the capacity to be independent of American power, even if it becomes a more powerful constituency for American political leadership to deal with. At the rate China is rising, however, it should be able to overtake Israel within the next decade or two, I think. /snark

by santiago on Tue Jul 20th, 2010 at 11:50:19 PM EST
[ Parent ]
The US financial elite, along with that of the UK, is following its own dynamic, which is not likely to allow it to take the niceties of geopolitics into account unless it allows them to continue to earn 15%+ returns. The fact that they dominate the governments in their respective countries greatly increases the chance of social catastrophe. Until or unless these elites are sufficiently housebroken to work within a framework with needs other than their own this will remain the case.

As the Dutch said while fighting the Spanish: "It is not necessary to have hope in order to persevere."
by ARGeezer (ARGeezer a in a circle eurotrib daught com) on Wed Jul 21st, 2010 at 01:42:46 AM EST
[ Parent ]
What if the world's financial elite decides to move itself to Singapore?

By laying out pros and cons we risk inducing people to join the debate, and losing control of a process that only we fully understand. - Alan Greenspan
by Migeru (migeru at eurotrib dot com) on Wed Jul 21st, 2010 at 02:36:28 AM EST
[ Parent ]
Then the rest of the world embargoes Singapore until they die.

And everybody else lives happily ever after.

- Jake

If you only spend 20 minutes of the rest of your life on economics, go spend them here.

by JakeS (JangoSierra 'at' gmail 'dot' com) on Wed Jul 21st, 2010 at 04:21:41 AM EST
[ Parent ]
And you don't need to defeat China to prevent China's access to resources. You just have to be able to dissuade the world's ship owners, even Chinese ones, from doing business with China, which an aircraft carrier battle group is really good at.

Only if you are prepared to interdict all shipping in the Sea of Japan. That will hit Korea and Russia as well. Now, Korea you can live without, but unless Russia actively collaborates in your embargo - and they have no particular incentive to do so - China can run their commerce under Russian cargo manifests and in Russian bottoms (the Vladivostok Global Shipping Company and the East Siberian Industrial District Consolidated Import/Export Company would suddenly become the most productive enterprises in the world...). So you'd have to be prepared to interdict Russian-flagged vessels sailing out of Vladivostok. The Russians will not be happy about that.

You're talking about a generalised confrontation with all of Asia here.

You're right about Russia and Korea, but it's still the same catch-22 situation.  If China invades Korea, but has no access to the resources it needs, then famine occurs in Korea as well as China, so Korea will always stick with America, and Chinese contesting power with America is off the table.

No, it means that Korea will not be the ignition point of such a conflict. But once the conflict does escalate to the point of naval blockade

So if China were to get cozy enough with Russia to be able to secure resources without a need for ocean transport (just as the US was able to do (and Napoleon was not) without worrying about England in the 19th century) then, yes, you have a scenario for the end of the empire.

It's not a matter of being cozy - if the Americans join Israel and Somalia as state sponsors of piracy and target Russian-flagged vessels, they're going to get a lot more cozy than they are real fast. It's a matter of building the relevant infrastructure. It's a question of whether the infrastructure to transport enough crop far enough can be built fast enough for the Chinese political system to survive a blockade.

There is no inevitability in China's rise here,

I actually agree with you on that.

What is happening right now to strengthen China's hand is that American industry is being moved to China. Mechanically, what happens is that China sells industrial goods to the US at discounted prices (through a variety of means, including but not limited to maintaining currency discounts) and uses the proceeds to buy the raw materials that make up the American colonies' tribute, in order to power Chinese industry. The reason that China is trading with the US rather than buying raw materials directly from the producers is that by discounting against the Americans, they incentivise the movement of the American industrial base to China (at the cost of selling their products for less than the full value).

It is always in the US' power to stop this process by changing policy away from favouring finance and towards favouring industry.

If and when that happens (and I predict that it will happen when the US runs out of civilian industry to ship overseas, because they will be understandably reluctant to ship their armaments industry overseas), the game changes. Then China no longer has any incentive to sell stuff to the US at a discounted price, and every incentive to deal bilaterally with the American colonies.

China then faces opportunities and challenges. To take the opportunities first, they can nationalise the Chinese-based holdings of transnational companies with relative impunity, since the only reason that those transnats are currently being treated according to the American rules is the prospect of them moving more of their operations to China. In the face of determined industrial policy, that prospect radically diminishes. The Americans are going to piss and moan about that, just as the British bitched a lot when Putin renegotiated their transnats' fraudulent Yeltsin-era contracts. But like the British, they will suck it up, because the alternative - a generalised trade war with all of Asia - is more expensive.

China can also begin to demand the full price for their goods from the Americans - they won't need to be hyper-competitive anymore, because there is no serious prospect of getting more of the American industrial plant (and for the same reason, they can always erect trade barriers to avoid losing what they have).

The challenge - and where the Americans can make monkey business for China - will be diverting colonial tribute from the American colonies to China while no longer paying the Americans a cut. But they are not entirely powerless here. The Americans keep their colonies not by virtue of military superiority - they have the capacity to wreck a colony, but not really to conquer it in any useful condition. Mostly they keep their colonies in line by bribing the local strongmen and then saddling them with unpayable debts... both activities denominated in US$ (and the way the Americans have traditionally saddled their colonies with unrepayable debts has been by building infrastructure projects with revenues in local currency but financed by loans denominated in US$ - but there's no reason why the Chinese can't play that game too).

Take away the post-Bretton Woods monetary system, and you take away the American empire.

- Jake

If you only spend 20 minutes of the rest of your life on economics, go spend them here.

by JakeS (JangoSierra 'at' gmail 'dot' com) on Wed Jul 21st, 2010 at 04:17:02 AM EST
[ Parent ]
Those are good points, but you don't need an embargo on all trade, or even to stop shipping in the Sea of Japan to cut off China from both its markets and its resources.  You just need to prevent the Chinese from being able to have secure access to Mideastern oil, American soybeans, African minerals, and foreign markets for exports. Depending on Russian contraband during a conflict with the world's largest navy isn't what secure means, so just the threat of it actually takes the war option off the table for Chinese authorities.  It's a piece of Chinese wisdom, after all, that says, "A winning general achieves victory first and then goes to war, while a defeated general goes to war first and then seeks victory." Without secure access to the resources its newly modern economy now needs, war isn't an option for China any more.  The US doesn't face the same constraint, however, even if war isn't a realistic option for America either.

But I agree with you completely on the need for the US, and the West in general, to break its relatively recent addiction to financing wealth instead of creating it through industry if remaining powerful in the world is important to them.  Long term, allowed to continue, poor industrial policy will doom an imperialist project.

by santiago on Wed Jul 21st, 2010 at 08:44:08 AM EST
[ Parent ]
santiago:
So if China were to get cozy enough with Russia to be able to secure resources without a need for ocean transport (just as the US was able to do (and Napoleon was not) without worrying about England in the 19th century) then, yes, you have a scenario for the end of the empire.  
So, what came of The Shanghai Cooperation Organization?

That was a diary by by richard carlucci on May 11th, 2006. There was also Hot Summer for Mr Bush by FarEasterner on May 22nd, 2006; and Afghanistan neglected - and now Russia and China want US out by Jerome a Paris on July 7th, 2005. But 2006 was a different era and after the Global Clusterfuck started we haven't heard a lot about the SCO. Is it still alive? Can it be revived? Does it matter?

By laying out pros and cons we risk inducing people to join the debate, and losing control of a process that only we fully understand. - Alan Greenspan

by Migeru (migeru at eurotrib dot com) on Wed Jul 21st, 2010 at 06:04:05 AM EST
[ Parent ]
the only wars the US has won since Hiroshima are Grenada, the first iteration of Iraq and Panama...

You don't have to win a war (in the conventional sense of achieving your stated objectives) in order to wreck a country and deny its resources to everyone else.

By laying out pros and cons we risk inducing people to join the debate, and losing control of a process that only we fully understand. - Alan Greenspan

by Migeru (migeru at eurotrib dot com) on Wed Jul 21st, 2010 at 02:34:04 AM EST
[ Parent ]
another demagogical statement. I think the writer needs to go back to basics and return only armed with facts before coming out with such kind of assertions.
by FarEasterner on Wed Jul 21st, 2010 at 05:00:41 AM EST
[ Parent ]
???
by santiago on Wed Jul 21st, 2010 at 08:45:34 AM EST
[ Parent ]

The US  doesn't need its own capital plant to survive a conflict with anyone because it has a military capable of securing all of the resources it needs from anyone else. While China's borders are just China's borders, as far as political control over resources goes, America is effectively borderless due to its unique, global military reach. Unless a country today opts out of American empire by opting out of trade, America's military really does make all other countries mere constituencies of an American polity.

I fully agree with santiago's description of the asymetry of the relationship between China and the US. China has to play by the rules of the game, as set by the dominant power. The US can isolate any country form the rest of the world; no country can do that to the US.

Wind power

by Jerome a Paris (etg@eurotrib.com) on Thu Jul 22nd, 2010 at 08:57:39 PM EST
[ Parent ]
It would be insane for China to challenge the US militarily, but neither is China helpless because of the USA's great military power. In many ways it could be said that China is the greatest free rider of all on US military power. Even in Afghanistan the US provides the security, however poorly, and China makes off with many of the richest mineral deposits.

China's government has the great advantage of being able to conduct policy without particular regard for popular sentiment, and can always play the Chinese nationalism and Han exceptionalism cards to good effect. And they have the advantage of powerful cultural traditions that, well played, bolster the government -- so long as the economy keeps working.

Something from the I Ching relevant to the US-China relation comes to mind:

The Taming Power of the Small

"The yielding obtains the decisive place, and those above and those below correspond with it: this is called THE TAMING POWER OF THE SMALL."*

Subtle and inscrutable these Chinese. The Book of Changes is thought to have taken shape in the centuries before Confucius and is basic to Chinese culture and habits of mind. China will play to its own advantages, which are considerable, when it can, while accommodating US advantages where it must.

For now probably advantage China. They have the currency reserves, a growing economy and the ability to conduct foreign policy strategically, even if they play by US rules. Meanwhile the USA is run by a cabal of pirates and is constrained to act and react according to the short term needs of that constituency. The Chinese undoubtedly think us to be barbaric fools, even if dangerous and powerful fools.

Time will tell just how valuable our military power is in this relationship. But we cannot readily use it to immediately get whatever we want. Most frustrating.

*From the Wilhelm/Baynes translation, Princeton, 1961

As the Dutch said while fighting the Spanish: "It is not necessary to have hope in order to persevere."

by ARGeezer (ARGeezer a in a circle eurotrib daught com) on Fri Jul 23rd, 2010 at 12:43:00 AM EST
[ Parent ]
ARGeezer:
Subtle and inscrutable these Chinese. The Book of Changes is thought to have taken shape in the centuries before Confucius and is basic to Chinese culture and habits of mind. China will play to its own advantages, which are considerable, when it can, while accommodating US advantages where it must.
In addition, China plays GoWeiQi, the West™ plays chess.

By laying out pros and cons we risk inducing people to join the debate, and losing control of a process that only we fully understand. - Alan Greenspan
by Migeru (migeru at eurotrib dot com) on Fri Jul 23rd, 2010 at 09:38:27 AM EST
[ Parent ]
the WestTM plays chess...

...when it isn't playing checkers.

As the Dutch said while fighting the Spanish: "It is not necessary to have hope in order to persevere."
by ARGeezer (ARGeezer a in a circle eurotrib daught com) on Fri Jul 23rd, 2010 at 01:44:32 PM EST
[ Parent ]
Or poker slot machines.


I've been accused of being a Marxist, yet while Harpo's my favourite, it's Groucho I'm always quoting. Odd, that.
by BruceMcF (agila61 at netscape dot net) on Sat Jul 24th, 2010 at 02:21:22 AM EST
[ Parent ]
The US  doesn't need its own capital plant to survive a conflict with anyone because it has a military capable of securing all of the resources it needs from anyone else.

With friends like Fox And Friends and the American Petroleum Institute ... who needs external enemies?

Seriously, if war is politics by other means, then the question if whether "America can survive a conflict with anyone" is a massive non sequiter when it seems increasingly plausible that American cannot survive business as usual, with the ongoing destruction of our industrial capacity and pillaging of our natural resources as thorough as any foreign occupier ever could aspire to accomplish.

I've been accused of being a Marxist, yet while Harpo's my favourite, it's Groucho I'm always quoting. Odd, that.

by BruceMcF (agila61 at netscape dot net) on Sat Jul 24th, 2010 at 02:26:44 AM EST
[ Parent ]

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