Thursday, February 02, 2006

The Market System and Shifting Alliances
President Bush, who was well-known for not travelling outside the country much at all, spoke a great deal in his state of the union on America's need to globalize and mix it up with the rest of the world. In fact, in his opinion it's America's duty to lead all other nations.

I haven't seen the film Syriana but from what I hear it portrays the US government's foreign policy as highly cynical and mercantilist, the very opposite of what a global leader should be. Or does it?

The plot involves an oil-rich Middle Eastern nation whose leader has made contracts with China to sell its oil at much higher prices than the US is currently paying. This leader is a genuine reformer who wants to use the increase in government revenue to benefit his citizens. The market system at work, in a sense. The CIA assassinates this leader so that his pro-American brother can assume power and continue the preferential treatment of America.

So, yes the Americans behave badly on the international stage. But what about the Chinese? In the real world, they back the genocidal regime of Sudan because of oil. They back the klepto-theocratic rogue regime of Iran because of oil. And they keep the American government and economy afloat via massive loans. But they need the American consumer to keep their economy growing.

I'm in the middle of reading Steve Coll's Ghost Wars which is partly about the CIA's support of the Afghan rebels in their war with the Soviet Union's invading force. Most of the weapons the CIA initially supplied to the rebels came from Communist China, a mortal enemy of the Soviet Union.

So, first the US formed an alliance with the Soviet Union against fascist Germany. Then it allied with radical Islam, a defeated Germany and Communist China against the Soviet Union. Now it's allied with Germany, Russia and China against radical Islam.

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