May 14Liked by Godfree Roberts

I don't think the USA is looking for a real war, as you said, they can't carry it off. Rather, they'd like a proxy war, or failing that some act extreme enough that they can use their NGO operations to cut off relations between China and a sufficient trade block to both slow China's growth and to retain the neo-colonies to feed off of until Western Vampire (ie: finance/rentier) Capitalist find a new home for their coffins they sleep in at night.

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May 19Liked by Godfree Roberts

The hero of the GDP in China are the engineers from either the military and civil sector. Meanwhile US's GDP hero is a cancer patient undergoing a costly divorce.

When the shipyard at Shanghai produced five Type-55 class Missile Cruisers within 3 months, US will matched the GDP produces simply with 50 law firms and hundreds of student debts.

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For me probably the clearest and most profound consequence of decades of neoliberal economic policy (aside from investment choices) is the fatal undermining of the very ability for government to function. Even if the US could afford to wage war against China (clearly impossible), it simply no longer has the ability (the human infrastructure) to plan and organize even a far more modest undertaking. This a country that cannot even organize construction of a few kms of high-speed rail.

I'm curious about that "health deficit". How does one determine whether people are not participating in the labor force specifically for health reasons?

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May 14·edited May 14

I'm not sure that your point about war financing and its consequences holds water. As I understand it acute hyperinflations in the real economy are triggered in countries whose externally held debt is not denominated in their own currency. This is not the case in the US where the only thing that was 'hyperinflated' during the period of ZIRP was the price of financial assets. The real issue for a US war economy is deindustrialization and the rest of the world turning off the commodity taps to the US (see collapse in levels of US strategic petroleum reserves, etc.).

This, of course, is not to say that the US/West will not experience persistent levels of inflation / loss in quality of life as critical commodities become increasingly inaccessible. This inflation will not be addressable through any levels of interest rates.

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