A Super Economy That Owes Money to 95 States

Academic Nikola Popov surprised us with his latest book "Capital Against Capitalism."* Through analysis of the past and the present, he foresees the future of economic development under the conditions of a global economic crisis and provides insight into the impact that the crisis will have on the two most powerful economies — China and the U.S.

The hostility of the European elite toward America keeps on growing. A motherland and a guardian of modern-day civilization, Europe cannot accept following the rules of the game imposed by the U.S. during an act of misappropriation in its position as a superpower. The European community and the world cannot easily forget the devastating wars in Vietnam and Iraq, the enduring embargo against Cuba, the bombing in Yugoslavia and the military interventions in Latin America and in many other parts of the world. Historically, Europe is drained by military conflicts and cannot support American imperial raids with a light heart.

The bond binding Europe and the U.S. together is more than a common understanding of how to approach material values and resources. After World War II, Europe was a patient in a wheelchair. And here came the healer — the United States of America. With the help of the Marshall Plan, Europe’s economy came back to life. In the last 30 years, though, the Old Continent has gained momentum, and its economy currently outshines that of the U.S. The market now knows a common European currency — the Euro. Besides, today Europe is not only a partner of the U.S. but also an opponent who often expresses disagreement.

How does the United States of America fit into that changing picture? With its population of 300 million, its multiethnic composition and its claim to the position of a super state, the United States stepped into the shoes of a superpower that imposes its will onto the rest of the world. Megalomaniacal ideas and thoughts of world domination spread among the powerful of the day. America proclaimed its right to define who is a terrorist and who will bring evil to the world, to decide which countries support terrorism, and where military intervention is needed. In this respect, it is worth mentioning the wisdom of the commonly-respected German monarch Wilhelm II: “Instead of building a super-state, it is wiser to limit our intervention in the business of other states. Trying to be strong everywhere eventually diminishes your strength everywhere.”**

Globalization and Regionalization

“The two political tendencies are moving in opposite directions,"** writes the academic Popov. Globalization heads toward unifying the production process and the way business is run, while regional communities try to preserve the regionalism, the nationalism, and the details of their unique cultures and methods. The first regional union that formed after World War II is the European Union. Then, the Association of Southeast Asian Nations was put together, followed by the Latin American, the Arab, and the African communities. Each one of them is at a different stage of development.

It took China about 30 years to establish itself as the number two economic world power. During that period of time, its GDP grew 15-fold, and its exports multiplied 100-fold. In terms of economic growth and foreign exchange reserves, China has no competition. The technology and electronics sections of the economy have grown tremendously. China’s technology export is five times bigger than that of South Korea, Italy or France. According to the predictions of economic analysts, in 2020, China will produce 23 percent of the world’s GDP, U.S. 18 percent, Japan 4.5 percent and Russia – 3.2 percent.

The main goal of the state with the largest population on earth is a stable middle class. Following the example of many other countries, China has also committed to democratic reforms and a profit-oriented economy. Political efficiency has become the major criterion for success. During the Deng Xiaoping era, Chinese political leaders broke with the ideological messianism of Mao Zedong calling for “revolution from outside.”** Confrontation with the outside world has been replaced with rapprochement. The attention has been focused on solving internal problems and the efforts on the transition from a centrally-planned economy toward a market economy. China adopted a lot from the U.S., Japan and Europe — the neoliberal model, the market spirit, the entrepreneurship, the globalization of foreign trade. On its way, though, Beijing applies other countries’ experience in a selective manner.

“The American model of world domination is doomed to failure,”** states Popov in his book. He supports that challenging theory with the following reasoning: “American troops have been deployed in numerous parts of Europe, Asia and other parts of the world for more than half of a century. That gives Americans the feeling that they have authority these territories. Having the confidence that they have achieved the highest possible democratic model, they try to impose their will upon Europe. Even when pretending they wish to withdraw their troops, they do so only to cover up their true intentions.”**

How Has the U.S. Cultivated Its Leadership Confidence?

What pushed them to the top of world politics? World War II was a turning point for the American rise. During the war and especially after it, the U.S. economy was booming. Industrial production was operating on a full scale. Its GDP grew from $88.6 billion to $135 billion. Millions of talented and highly qualified professionals left Europe for the U.S. The rapid growth of wealth led to an even faster growth of the elite’s appetite. The politics of the Cold War militarized the economy at a rapid rate. The ever-growing defense budget almost hit a trillion dollars in 2010.

The process of globalization pushed Europe and the U.S. away from each other. Defense expenses have been on the rise. America has been supporting around 700 to 800 military bases in various parts of the world, adding up to an army of 300,000. The ever-growing deficit eventually hit $16 trillion. Now the U.S. owes money to 95 countries around the world, with China, Japan, Canada, Mexico and Russia as its most serious creditors. The overwhelming deficit forces the government to release unsecured bonds, which fuels inflation all around the world.

In the same time, the gap between the rich and poor is getting wider and wider. The poorest 20 percent of the population used to be 30 times poorer than the richest 20 percent in 1960. Today, it is 78 times poorer. The alarming statistics pushed the U.N. and FAO to release resolutions against poverty, with very limited impact.

A new economic crisis is coming in 2017, predicts Popov. “The society’s dynamic is incompatible with the appetite for bigger and bigger profit that capital brings about,”** one reads in his book. “The social aspects of the economy are widely ignored, especially in the process of profit distribution. The globalization of the economy works primarily for the benefit of developed countries and mainly for the U.S. Although the current global economic crisis has passed its climax, the development of regional economies is still misbalanced and unstable. The United Kingdom is on the downturn. Europe and the U.S. are still struggling with the crisis. The unemployment rate in the U.S. is 10.2 percent. More bailouts for big corporations lie ahead.”**

“The picture of future economic development shows that the wheels of American world domination ambitions don’t grab. Crises will come more often and will be more and more persistent. There will be a new economic crisis in 2017 that will last until 2025,”** predicts Nikola Popov. "Capital Against Capitalism" is a valuable reference book for academic research, but it is also an interesting reading for anyone interested in matters of international relations.


*Editor's Note: Nikola Popov is a Bulgarian author; however, the name of his book could not be confirmed.

**Editor's Note: These quotes, though accurately translated, could not be verified.