Tuesday, May 25, 2010

U.S. Economic Expansion: Global Wars and the U.S. Industrial and Economic Might


Both the First World War and the Second World War managed to eliminate any economic rivalry or challenge to U.S. corporations. While Europe and Asia were ravaged by war, the U.S. inversely grew economically. U.S. industrial might grew by leaps and bounds, while the industrial capacities of Europe and Asia were destroyed by both Allied and Axis sides in the Second World War and by the Allies and the Central Powers in the First World War.

2. By the end of the the Second World War, the U.S. literally owned half the global economy through loans, American foreign investment and war debts.

3. U.S. economic expansion and the American export boom were unprecedented in the scale that took place during the period from 1910-1950, all of which was tied to the Eurasian warscape.

4. Also, it was also only the U.S. that had the economic resources to rebuild the economies and industrial capacities of Europe and Asia, which it did with strings attached. These strings involved favourable treatment of U.S. corporations, preferential trade with the U.S., and the setting up of U.S. branch plants.

5. 1945 was the beginning of Pax Americana. Even much of the foreign aid provided by the U.S. government (with the approval of Congress), to facilitate the reconstruction of European states, flowed back into the private bank accounts of the owners of U.S. corporations, because American firms were awarded many reconstruction-related contracts.

6. War had directly fuelled the industrial might of the United States, while eliminating other rivals such as the Japanese who were a major economic threat to U.S. markets in Asia and the Pacific.

7. Just to show the extent of the American objectives to handicap their economic rivals one should look at the handling of Japan from 1945 till about October 1, 1949. After the surrender of Tokyo to the U.S. on the U.S.S. Missouri and the start of the American occupation and administration of Japan, the Japanese economy began to rapidly decline because of the calculated neglect of the U.S. through the office of the Supreme Commander of the Allied Powers (SCAP). In economic terms, the Japanese case was initially very similar to that of Anglo-American occupied Iraq.

8. In late-1949 all this began to change. Almost overnight, there was literally a complete change, or a flip-flop, in U.S. policy on Japan. It was only after October 1, 1949 when the People's Republic of China was declared by Mao Zedong and the Communist Party of China that the U.S. began to allow Japan to recover economically, so as to use it as a counter-weight to China. As a side note, in a case of irony, the quick change in American policy regarding Japan allowed the U.S. to overlook the Japanese policy of not allowing foreign investment, which is one of the reasons for the economic success of Japan and one of the reasons why the financial elites of Japan form part of the trilateral pillar of the global economy along with the elites of the U.S. and Western Europe.

The “Open Doors” Policy of the Anglo-American Establishment

Anglo-American elites also made it clear that they wanted a global policy of “open doors” through the 1941 Atlantic Charter, which was a joint British and American declaration about what post-war international relations would be like.

It is very important to note that the Atlantic Charter was made before the U.S. even entered the Second World War.

The events and description above was the second clear phase behind the start of modern neo-liberal globalization; the first phase was the start of the First World War.

In both wars the financial and corporate elite of the U.S., before the entry of the U.S. as a combatant, had funded both sides through loans and American investment, while they destroyed one another. This included the use of middlemen and companies in other countries, such as Canada.

The creation of the U.S. Federal Reserve in 1913, before the First World War and the U.S. domestic (not foreign, because of the regulations of other states) de-coupling of the gold standard from the U.S. dollar in 1933, before the Second World War, were required beforehand for the U.S. domination of other economies.

Both were steps that removed the limits and restraints on the number of U.S. dollars being printed, which allowed the U.S. to invest and loan money to the warring states of Europe and Asia.

In reality, the Cold War did not start because of Soviet aggression, but because of a long-standing historic impulse by Anglo-American elites to encircle and control Eurasia.

Today this policy, which existed before the First World War and helped spark the Second World War, has not changed and Anglo-American elites, such as Zbigniew Brzezinski, still talk about partitioning Russia, the successor state of the Soviet Union.

Mahdi Darius Nazemroaya is a Research Associate for the Centre for Research on Globalization (CRG) specilizing in geo-politics and strategic issues.)


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