“American Miracle” Came to an End

The main reason for the aggravated reaction from the U.S. regarding many problems of international relations is rooted in the fact that the “American miracle” has come to an end.

Le Monde recently pointed out that Federal Reserve Chairman Ben Bernanke, “the great oracle of the American economy,” recognized [that] economic growth has slowed down and restoration of employment will occur slowly, causing disappointment. This acknowledgement came in his semi-annual report on currency policy. Certainly, this was followed by assurances that the Federal Reserve will do everything in order to stimulate activity. “This statement, while classic,” Le Monde writes, “is indistinct at the same time, as Ben Bernanke never specified what means the Central Bank can use to put the economic machine into motion.”

In the last half year, the Federal Reserve rested all hopes of exchanging its short-term treasury obligations for long-term securities. Having stimulated the currency economy, shooting billions of dollars into it, the Federal Reserve cannot go any further. If the inflationary process begins, then it will not stop for a long time.

As the French newspaper reveals humorously, the fault of the U.S. economic crisis lays, certainly, on the European economic crisis. The American tax system, which Bernanke thinks does not hold and should be revised in order to reduce the budget deficit. Until this day, Congress has fought to only increase the threshold of loans. It is dangerous to endlessly debate this. It is urgent that a cure is found for the economy, which is being suffocated by budgetary reductions and tax privileges. Otherwise, the U.S. should prepare for a “weak recession”; the International Monetary Fund has already reconsidered the forecasts of growth for the country toward a fall of 2 percent in the current year, and unemployment will not fall below 8 percent.

However, it is hard to find such a cure. The Federal Reserve could renew bond purchasing programs, as it already did twice, for the astronomical sum of 2.3 trillion dollars, “but it cannot further reduce the rate on the federal funds, aspiring for zero since 2008. These rates are so low that the Central Bank has very little effect in stimulating the economy,” explains Le Monde.

The last resort: address tax levers. In Bernanke’s report, the operative group working on overcoming the budgetary crisis gives panicked comments: according to the document, “risky development of budgets in states will lead to under-financing of health care, pensions, infrastructures and, also, [will] decrease the income and [lead to] inevitable reductions of the budget.”*

According to Europe, America will not avoid the economic chaos that it has caused, having infected the Old World with the same crisis. From here follows Washington’s nervous reaction to what is happening in the world.

Chinese news website People’s Daily Online noticed that Hillary Clinton has already visited more than 100 countries, overtaking the former record-holder Madeleine Albright, who visited 96 countries during her tenure in the post of the Secretary of State, and Condoleezza Rice, who visited 85 countries. The present U.S. secretary of state’s busy travel schedule is a symptom of the spreading crisis.

“The secretary of state of the United States of America,” writes People’s Daily, “is a unique position in the world that, in terms of duties is reminiscent of the minister of foreign affairs. However in states, with their foreign policy, the degree of importance of the secretary of state is much higher than other ministers. During recent years one can observe the presence of the U.S. in all controversial problems and the questions concerning profit. Why does the United States have so many affairs? Because they chase profit around the world.”

During the last 13 years the U.S. used “fists” to defend its interests in Europe, waged wars with Afghanistan, Iraq, Libya — and they were only at war with those who could not stand up to their pressure. “The United States considers that they won with dazzling success, strengthened self-confidence and started to sow threats worldwide,” notices People’s Daily. “In questions regarding Syria and Iran the U.S. is already losing self-control. The U.S. and the European states imposed sanctions for oil imports from Iran at the beginning of this year because of the Iranian nuclear problem. Tehran threateningly declared that if sanctions continue, it will resort to military force and block the Strait of Hormuz, which is a strategic element of oil transportation. America’s position is quite clear: if Iran resorts to military force, the United States, without doubt, will strike back.”

This danger is understood not only in Beijing — Russia also opposes the open violence over the Syrian state. How is America reacting? The same Hillary Clinton declares that the forces aspiring to eliminate Bashar Assad cannot be stopped by anybody and that if they get in their way, China and Russia “will pay the price.”

However, what does bother more Chinese than Syrians is the development of events in East Asia, to which Washington also pays special attention. “Overnight, the United States attracted 22 countries to participate in joint military exercises of the Asia-Pacific region in Hawaii,” notes People’s Daily. And since July 6, Hillary Clinton visited nine countries of this region in 13 days, serving as a model of shuttle diplomacy.

The United States suddenly became concerned about the destiny of the Diaoyu Islands (also known as the Senkaku Islands) and other islands in the South China Sea. During her trip to the Asian and Pacific region, Clinton persistently emphasized that the U.S. has “radical interests” in the South China Sea and openly supports those members of Association of Southeast Asian Nations that have territorial claims to China. “Clinton wants to extend the influence of the U.S. on East sea as well,” continues People’s Daily. “She openly declares that although Washington cannot nominate itself to the sovereignty of the Diaoyu Islands, all of those islands are related to objects of the contract on mutual cooperation and safety guarantees between the U.S. and Japan.” And, as we know, Japan is considered to be the best friend of Washington in this part of the world, for now.

It is hard for anything to counter Beijing’s view of development. In its struggle for capturing and maintaining control over the world resources, the “global elite,” located in the U.S., are ready to sacrifice the interests of any country without excluding the United States. The growth of power and influence of “communistic China” embarrasses the conductors of “global control” in such a way that China interferes with their sovereign territory. And this indignation gets more and more sharp, sometimes taking grotesque forms.

For example, recently, American congressmen supported demonstrative burning of the U.S. Olympic team’s uniforms made in China. In the East such behavior is regarded as “loss of dignity.” Japanese newspaper The Diplomat wrote the following about this occurrence: “The Senate Majority Leader Harry Reid, Congresswoman Nancy Pelosi (both are Democrats), the Speaker of the House of Representatives John Boehner (Republican) and more senators and congressmen loudly condemned the decision of the U.S. Olympic Committee to use China-made sportswear made for the Olympic Games in London by the Ralph Lauren company, the sponsor of the Olympic committee of the USA. Senator Harry Reid, even urged the U.S. Olympic Committee to burn the uniform produced in China.”

“When legislators turn the Olympic uniform made in China into a political issue and use it irresponsibly as hysterical rhetoric to agitate public opinion, it does not only justify the contempt in which Congress is held in the U.S. and internationally, but it also undermines the long-term strategy of the U.S. concerning China. It goes without saying that such unjustifiable attacks on China are hypocritical. The decrease of blue collar workers and, in particular, employees of the textile industry, are caused, first of all, by technological progress and forces of the market, not by China. Even if the uniform of the U.S. Olympic team was not made in China, it would be made in Vietnam, Indonesia or India, but not in North Carolina.” The Japanese newspaper emphasizes the well-known fact of the moving of industrial production to the East, to Asia. The American politicians, as the newspaper says, apparently “did not consider the consequences of literally destroying Chinese goods. Had they done that, they would have had to go to work, probably, being literally naked. They would have to burn their favorite iPhone, iPad and MacBook Air (made in China) as well. They would have to invite the press so it would be convinced that there is nothing made in China in their houses. And what would their families have to do? Would they forbid their children and grandchildren to play with gadgets and toys made in China? It is doubtful that they are ready to live according to their convictions.”

Tokyo and Beijing may seriously disagree on many questions, but it does not stir “deep” within Asia, which well understands its central role in world industrial production, in order to be united in the rejection of American “new order.”

“Considering the deficiency of common sense in the U.S. Congress,” the Japanese write, “it is possible to expect that such self-destructive behavior will proceed. The good will of the Chinese people concerning the United States will thaw. It is doubtful that leaders of Congress realize the catastrophic strategic consequences of their senseless behavior, which has already become habit. It is even more doubtful that they are capable of learning something from their own mistakes…”

*Editor’s note: the original quotation, accurately translated, could not be verified.