The New Italian and British Empires

Point 5 of the 29 points of the contract for the new government of Italy agreed to by its two leaders DiMaio and Salvini is a new radical step towards a revolutionary new role for all states. It sets up a “bank for investments” that finances “initiatives of public and strategic national interests” and supplies “credit for companies operating in developing Countries”. This is what China is already doing globally on a massive scale. The Chinese government itself is creating the capital and investing it globally through companies under its direct control. If China can do it, any state can do it. And if we read the trends correctly, every state now must do it. Why should Italy not use its banks and tax collections to create capital for profitable investments worldwide that benefit Italians? Why should not the American state I live in, Massachusetts, do the same? Up till now, the game of looking everywhere for profitable investments has been exclusively under the control of private individuals directing corporations. Point 5 looks like a game changer for Italy. Remember when Italy under Mussolini found it profitable to invade Ethiopia? That game is over. China has already invaded Ethiopia with investments using capital created by its government. Italy’s government can now do the same. It can fund enterprises run by Italians and send them off worldwide looking for profits for Italians. The only problem is that Italy or Massachusetts, as states in unions of states, do not have their own currency like China and their money supplies can not easily be increased to create new capital for investment. This means that neither Italy nor Massachusetts can be major players in the new game like China unless they are given the power by the central governments of their unions to freely create and invest new capital. This also means among other things that Britain, the UK, with its own currency and the freedom to act in its own interest by its brexit from the European Union may be the only honcho that can fight meaningfully with the Chinese for the new empires of the future created by state-supplied capital. The political leaders of the UK are in a position to create a new British Empire by providing their citizens with state-created capital to invest globally rather than as in the past by invading foreign states using gunships.

Daniel McNeill usoftheworld.com

The United States of the World, The Theater of the Impossible, The End of All Beginnings, books by Daniel McNeill, are for sale at:amazon.com/author/graceisall

How Richard Nixon Saved Communism

Richard Nixon won a seat in Congress in 1948 by denouncing the communist threat in California where there were very few communists. His hatred of communism came across to us as sincere even though we all knew that America was so diverse with so many governments that communism would never succeed here. As President during the last years of the Vietnam War, history gave him a chance to kill communists. His massive bombing of Cambodia killed a lot of them. Then in 1972 he spied a chance to kill a whole communist system. He visited China and opened it up to capitalism and free enterprise. Massive cheap Chinese labor and industrial technologies imported or stolen from developed economies was the knife needed to lop off the head of the red menace. We are now almost 50 years into Nixon’s anti communist foreign policy in China and a capitalistic tool invented in America is now being used successfully by the communist Chinese government to buy up corporations globally. Tricky Dick Nixon gave China along with free enterprise the trick America used to produce gigantic economic growth: keep increasing the country's money supply even though the new capital created is not based on some prior real collateral value.. The trick worked. America advanced titanically by using money created freely based on nothing to finance production that justified the free expansion of the money supply by producing real wealth by real industrial output. Every foreign nation received the American capital-raising trick as a working part of free-enterprise capitalism by relating the value of its currency to the dollar. Everyone could create all the money they wished as long as they were willing to take the consequences if they used it badly. While China created a money supply only for its local national business enterprises who cared how they created it or who controlled the use of the new supplies of capital?  Corporations develop in advanced economies with new money based on nothing but that’s okay. That’s how the trick works. That’s how capitalism frees businessmen to be creative and along with their economic freedom political freedoms are supposed to follow. So let’s ask a simple question: how does a Chinese businessman, Mr. X, buy a technologically-advanced German manufacturing business for say 55 million euros? Has Mr. X climbed his way up the free enterprise competitive ladder so successfully that he has 55 million (speaking figuratively) in his pockets? Well, the story of how Mr. X got such deep pockets is long and complicated but the answer is true and short, no. His pockets are full because behind him is a chain of financial organizations and interconnected agencies that are difficult to pin down exactly but do in fact go back at some point directly to the dictatorial communist government that tricky Dick majestically adorned with capitalism and free enterprise. It’s still capitalism but free enterprise is out the window because the playing field is no longer level if corporations must compete without government aid to acquire fresh capital while a powerful central Chinese communist government can effortlessly create all the capital it needs and ship it all over the globe where there are enormous opportunities for any organization with a lot of capital to create a lot more by buying up technologically-advanced local corporations.State capitalism on a grand scale was first tried in Germany under Hitler. It showed the world that capitalism works fine when a central government creates most of the capital and distributes it to its carefully selected subordinates. Political freedom is out the window in China along with President Nixon’s naive belief that free enterprise was enough to defeat a tyrannical communist political system.

Daniel McNeill usoftheworld.com

The Theater of the Impossible, The End of All Beginnings, The United States of the World, books by Daniel McNeill, are for sale at:

amazon.com/author/graceisall