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:
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