by Phillyguy for The Saker Blog
The US emerged from WWII as the world’s preeminent military and economic power. All of the pillars supporting US power are now threatened by decades of neoliberal economic policies, spending vast sums of taxpayer money propping up financial markets, the military and attainment of economic/military parity by the Russia-China-Iran axis. In this essay, I link the continuing economic and social decline in the US/EU (collectively referred to as the ‘west) to an increasingly reckless US foreign policy, the role corporate media serves in promoting these policies to the American/EU public and the rise of Russia, China and other countries in the global south.
This is a continuation or my previous article, linking US economic decline and global instability . Briefly, the US emerged from WWII as the world’s leading economic and military power. Since that time, US global power has rested on: 1) unrivaled military and economic power, 2) control of world’s energy reserves (primarily in the Middle East), and 3) maintaining the dollar as the world’s reserve currency. Following the conclusion of WWII in 1945, the US had the world’s largest economy and was the major ‘growth engine’ for western capitalism for the next 3 decades. In the mid-1970s, this began to change as US corporate profits began to stagnate/decline, a direct consequence of spending large amounts of taxpayer money on wars on the Korean Peninsula (1950-1953) and Vietnam (1955-1975) and increased competition from rebuilt economies in Europe, primarily Germany (Marshall Plan) and Asia- Japan, South Korea (Korean and Vietnam wars) and more recently China. Starting in the early 1980s, the US financial elite began pressuring policy makers to pursue neoliberal economic policies, including multiple tax cuts for the wealthy, financial deregulation, austerity, attacks on the poor and labor and outsourcing manufacturing jobs to Mexico, China and other low-wage platforms. The Soviet Union officially dissolved on Dec 26, 1991. This was viewed by the US ruling elite as the removal of the major rival to US global power and would allow unrestrained actions of the American military to invade and occupy countries which are rich in natural resources and/or occupy geo-strategic locations and expand NATO into Eastern Europe up to the Russian border. Since 1991, US/NATO have been involved in conflicts in Yugoslavia, Persian Gulf/Iraq, Afghanistan, Pakistan, Somalia, Libya, Syria, Yemen and Ukraine .
Role of Corporate Media
First Amendment of the US constitution-
‘Congress shall make no law respecting an establishment of religion, or prohibiting the free exercise thereof; or abridging the freedom of speech, or of the press; or the right of the people peaceably to assemble, and to petition the Government for a redress of grievances.’
It is commonly stated that the press (aka the proverbial ‘4th estate’) in the US is ‘free’ and ‘independent’ and ‘essential for the functioning of a free society’, serving as a ‘watchdog’ on government actions and policies and vital to protect the ‘liberty’ of American citizens. As is often the case, things are not always as they seem.
In a recent interview with Brian Berletic, Mark Sleboda commented that “Western media is in ‘lockstep’ with government on foreign policy to a degree that would make real dictators blush” . While there is no doubt that Western (read corporate) media is indeed promoting US foreign policy, it is not the US government that formulates these polices, rather they are formulated and developed by the ruling elite, using corporate-funded foundations and ‘think tanks’, academic institutions and prominent politicians. These include the Council on Foreign Relations (CFR), Rand Corporation, Rockefeller Foundation, American Heritage Foundation, Atlantic Council, Brookings, Center for Strategic and International Studies (CSIS). Academic institutions such as The Kennedy School (Harvard), Hoover Institution (Stanford), Walsh School of Foreign Service (Georgetown) and School of Advanced International Studies (Johns Hopkins) not only provide ‘experts’ and government officials, such as Wendy Sherman (Kennedy School) current US Deputy Secretary of State in the Biden Administration, they serve as training grounds for government officials and corporate management, some of whom are employed by above listed universities and foundations.
Once formulated, these policies are ‘sold’ to the American public by a compliant and well-disciplined media. Approximately 90% of US media is controlled by six large corporations- Comcast, Walt Disney, AT&T, Paramount Global, Sony, and Fox, with a combined market cap of circa $500 billion  . Like other large corporations, media conglomerates have the same class interests as the financial elite, i.e., promoting policies which increase corporate power and profits and maintain US global hegemony. So called ‘public’ media, such as National Public Radio (NPR) and the BBC, in the UK, function in a similar manner. Corporate media is closely integrated with large financial interests and serves as a ‘cheerleader’ for the Pentagon and US foreign policy.
Not surprisingly, major broadcasters, the paper of record (NYT), Wall St. Journal (WSJ), Washington Post, etc. are little more than a sounding board for the US ruling elite and thus, function primarily as the ‘ministry of propaganda’ for large financial interests. Any reporter, military analyst, aka ‘TV General’, etc. who ‘steps out of line’, such as telling the truth about the military debacle facing Ukraine will either be severely reprimanded or find themselves out of a job. Some examples-
2) David Sanger (Harvard graduate) is chief Washington correspondent for the NYT and also a member of the Council on Foreign Relations (CFR) , whose members include corporate executives, bankers, and other representatives of the ruling elite.
3) David Ignatius (Harvard graduate) is a foreign affairs columnist for the WaPo and has close ties to the intelligence community- CIA and Pentagon.
Sanger and Ignatius serve as pundits for US global power, promoting the use of military force to promote American interests.
When you do not toe the corporate line…………
4) Gary Webb was a journalist working for the San Jose Mercury News. In 1996, Webb published a series of articles, “Dark Alliance”, describing how Nicaraguan Contra rebels, working closely with the CIA, supplied crack cocaine to the Black community in Los Angeles and used proceeds from these sales to purchase weapons to overthrow the government of Daniel Ortega’s Sandinista National Liberation Front. Following publication of the Dark Alliance series, corporate media became hysterical, denouncing Webb, effectively ruining his career; he committed suicide in 2004 
5) Julian Assange- In 2010, Wikileaks, founded by Julian Assange, published a series of leaks obtained from Chelsea Manning, a U.S. Army intelligence analyst, documenting US war crimes in Iraq and Afghanistan. Following publication of these leaks, the American government began a criminal investigation into WikiLeaks. In 2010, Sweden issued an arrest warrant for Assange over allegations of sexual misconduct. To avoid extradition, Assange sought refuge in the Ecuadorian embassy in London. In 2019, Assange was arrested by British police at the Ecuadorian embassy and transferred to Belmarsh, a Category-A men’s prison in London. Up to this point, Julian Assange had not been formally charged. However, on May 23, 2019, the United States government charged Assange with violating the Espionage Act of 1917 and is currently awaiting potential extradition to the US .
The US has been almost continuously involved in overt and covert military conflicts since 1940 and as a result, war and associated violence has been normalized and institutionalized by corporate media to the point, where these policies are readily accepted by a relatively docile and ignorant American public. When foreign governments deemed hostile to US corporate interests limit press ‘freedom’, they are immediately labeled as repressive/terrorist regimes and potential candidates for direct attack and ‘regime’ change by the US State Department. Apparently, what is ‘good for the goose’ is ‘not good for the gander’. As pointed out above, any journalist that threatens the American empire risks losing their job, imprisonment and/or death.
Accelerating Decline of late-stage American Capitalism
Multiple factors have contributed to the decline of American economic power. These include economic policies, spending astronomical amounts of taxpayer money on the military and war, social instability and rise of China-Russia-Iran axis.
Since the mid-1970s, US policy makers have pursued neoliberal economic policies- financial deregulation, austerity, tax cuts for the wealthy, attacks on labor and job-outsourcing, which has resulted in the massive growth of the FIRE sector of the economy composed of finance, insurance, and real estate. These polices precipitated the Global Financial Crisis (GFC) 2007-2008, the largest financial shock since the Great Depression. Rather than resolve the severe structural problems confronting American capitalism which created this crisis, the FED used the Treasury as a de facto taxpayer-supported ‘piggy bank’ (the FED cannot print money) to prop up equity markets, bonds, over-priced real estate and [still] insolvent banks. To put this in perspective, since 2009, the FED has injected over $40 trillion into financial markets, increasing the wealth of the financial elite, the proverbial ‘1%’. Not surprisingly, over the last 5 years, US government deficits have increased circa $2 trillion annually, currently exceeding $30 trillion (Fig. 1); this figure does not include municipal, corporate or consumer debt. This begs the obvious question of how long can the FED continue this orgy or money printing and debt? Note- for comprehensive background information on the FED’s financial activities, see Wall Street on Parade .
Military Spending and War
Since its inception, the US has been built on theft and violence, justified by ‘Christian’ religion and ‘White man’s burden’. The first permanent British settlement in North America was established in Jamestown, Virginia in 1607. A decade later, African slaves were introduced by Dutch slave traders. Over the next 250 years, the US government would continue stealing land and displace/murder circa 90% of the indigenous population. In the mid-19th century, the US had the world’s leading economy, largely built on cotton produced by Black slaves . Fast forward 150 years, the US has been almost continuously at war since 1940. 911 was a godsend for the military- US taxpayers have spent circa $21 trillion ($7.2 trillion going to military contractors) on post-911 militarization  . The military appropriation for 2023 exceeds $760 billion. Despite this taxpayer largess, the Pentagon has not ‘won’ a war since 1945, was forced out of Afghanistan after spending $2 trillion, and confronts looming strategic debacles in Iraq, Syria, Libya, Yemen and Ukraine. This has vividly shown the rest of the world the limits of American military power. Unfortunately, after expending so much financial and human capital, the Pentagon appears incapable of extricating itself from these conflicts as doing so is an admission of failure and by extension military weakness. This was clearly seen following Joe Biden’s decision to remove US troops from Afghanistan in 2021 and the push-back he received from corporate media and people in Congress.
Political Chaos and Social Instability
We frequently hear that US society has progressed to the point, where the country appears to be increasingly ungovernable. Indeed, American society is plagued by economic inequality, racism and ubiquitous violence. The American working class has watched their standard of living plummet- a result of decades of neoliberal economic policies, including job outsourcing, austerity, stagnant income growth and since the Covid 19 pandemic, high inflation, reflected by increasing costs for rent, transportation, energy, groceries, medical care and other necessities. To put this in perspective, 60% of Americans do not have $500 in savings and thus are one expensive car repair, medical emergency or job loss away from financial ruin. At the same time the wealth of American billionaires has increased circa $1 trillion during the Covid19 pandemic. Not surprisingly in 2016, Donald Trump skillfully exploited the justifiable anger and frustration of working people, stating that he would ‘Make American Great Again’, blaming American economic problems on immigrants from Mexico and Latin America and China’s economic rise.
Rise of BRICS/SCO and US/NATO debacle in Ukraine
We are seeing the continued rise in the global power and influence of Russia, China and allied nations, on multiple fronts, including organizational, economic and militarily. The BRICS and Shanghai Cooperation Organization (SCO) are expanding. Original BRICS members included Brazil, Russia, India, China and South Africa. Iran and Argentina have applied for admission, while the Kingdom of Saudi Arabia (KSA), Turkey and Egypt are applying for entry next year. SCO is the largest regional economic institution in the world, covering 60% of Eurasia with a population > 3.2 billion and combined GDP of member states circa 25% of global total. Trade between BRICS and SCO member states is increasingly being carried out using local currencies.
The Mir payment system operated by the Russian National Card Payment System  is a direct competitor to Visa and Mastercard and now accepted throughout the Russian Federation and in 13 countries including India, Turkey and South Korea and will soon be used in Iran. BRICS nations are developing a global currency for international trade that will directly compete with the dollar . Russia is developing a new international trading platform for precious metals: the Moscow World Standard (MWS) . The Russian Finance Ministry believes this new independent international structure will ‘normalize the functioning of the precious metals industry” and serve as an alternative to the London Bullion Market Association (LBMA; https://www.lbma.org.uk),  which for years has been accused of systematically manipulating the price of precious metals markets to depress prices . Collectively, these policies have been designed to significantly reduce the dependence of economies in Russia, China, India and other countries in the Global South on the US/EU and eliminate dependence on the US dollar and Society for Worldwide Interbank Financial Telecommunications (SWIFT) system  for international trade. No doubt this is being done in close collaboration with China’s Belt and Road Initiative (BRI) whose goal is to connect Asia with Africa and Europe via land and maritime networks with the aim of improving regional integration, increasing trade and stimulating economic growth  . This trajectory has been accelerated following enactment of US/EU sanctions on Russia, Iran and China.
Over the last decade, the military power of Russia, China and Iran has greatly strengthened. The Russian military is a global leader in air-defense systems and hypersonic weapons, which are impermeable to any air-defense systems currently deployed by the US/NATO . Over the last 25 years, China has modernized its military, focusing on People’s Liberation Navy and Army Air Force  . China has developed a robust missile arsenal including intercontinental ballistic missiles (ICBMs) . The Pentagon now considers China a ‘formidable military force’ and a ‘major challenge’ to the US Navy in the Western Pacific. The Islamic Republic of Iran has also developed a formidable defensive military capability, which has positioned Iran as a major power broker in the region. The Center for Strategic and International Studies (CSIS) has concluded- ‘Iran possesses the largest and most diverse missile arsenal in the Middle East, with thousands of ballistic and cruise missiles, some capable of striking as far as Israel and southeast Europe.’ . Iran has repeatedly warned the US/NATO that it can target US military bases in the region, including Al Udeid base in Qatar, the largest US base in the Middle East. We are seeing increased assertiveness from the Russia-China-Iran axis in Syria, Ukraine and Western Pacific. This was clearly articulated by Russian President Vladimir Putin’s speech to the St. Petersburg International Economic Forum in June, declaring an end of “the era of the unipolar world” . The Pentagon is being increasingly challenged by the Russia-China-Iran axis in Eastern Europe, the Middle East and Western Pacific.
Ukraine- another US/NATO debacle
For background and historical information covering Ukraine and her relationship with Russia, see . Ukraine is the second largest country in Europe after Russia and occupies a strategic location in Eastern Europe, sharing a circa 2300 km (1227 mi) border with Russia  (Fig. 2). As of 2021, Ukraine had the second largest military (circa 200,000 military personnel), after the Russian Armed Forces, in Europe and has the dubious distinction of being one of the most corrupt countries in the world . Historically, the predominantly Russian speaking population in the Donbas region in eastern Ukraine has maintained close ties with Russia.
In February 2014, the US- instigated Maidan coup took place, replacing the democratically-elected President Victor Yanukovych with a Russia-phobic and far-right politician/economist/lawyer, Arseniy Yatsenyuk. Not surprisingly, the Ukrainian government was soon dominated by an alliance of far-right/fascistic organizations including the Right Sector and Svoboda and oligarchic parties, such as Fatherland. This was predictable, as these groups were the most virulently anti-Russian factions in Ukraine  and are still very active in the government and military  . Soon after the coup took place, the Donetsk and Luhansk Peoples Republics declared their independence, initiating the war in the Donbas. Over the next 8 years, the US/NATO would train circa 100,000 Ukrainian troops and channel $ billions in military aid , which was used to equip Ukrainian army and fortify positions adjacent to the Donetsk and Luhansk Republics  (Fig. 3). This buildup was accompanied by increased shelling of residential areas in the Donbas region by the Ukrainian military  , setting up a potential invasion of this region . In response to the escalating attacks by Ukrainian forces. Russia recognized the Donetsk and Luhansk Peoples Republics as sovereign states on Feb 21, 2022, just prior to the Russian invasion on Feb 24, 2022, describing this campaign as a Special Military Operation (SMO) . For an excellent overview of why Russia made the decision to invade Ukraine, see .
Going up against a well-trained, well equipped and an entrenched Ukrainian army, Russian forces have managed to take control of circa 20% (~47,000 square miles) of southern Ukraine and are incrementally removing Ukrainian forces from this region  (Fig. 3). Significantly, this territory contains prime agricultural and resource-rich land. It appears that Russia is planning on annexing littoral territory extending from the Donetsk/Luhansk region to Odesa . Once this happen, any future Ukrainian state will not only be land-locked and lack direct access to the Black Sea, it will also lose valuable land as well. Military analyst Andrei Martyanov  has pointed out the ‘combined West doesn’t have material and technological means of fighting Russia in Eastern Europe without losing catastrophically. Western weapons turned out to be nothing more than commercial items not designed to fight the modern war, plus–no Western economy, including the United States has the capability to produce them in needed quantities anyway.’
The collective west has responded to the Russian invasion by blocking the opening of the Nord Stream 2 energy pipeline, which would directly supply Russian natural gas to Germany, imposed sanctions on Russian energy exports and disconnected Russian banks from the SWIFT system. To the dismay of the US/NATO, these actions have led to large increases in EU energy costs while strengthening the Russian economy . Indeed, the paper of record (NYT) published a recent OpEd bemoaning the fact that despite western sanctions, Russia is making more money than ever on energy exports to China, India and other countries . Despite nonstop condemnation from the US and EU of Russia’s SMO in Ukraine, many nations have not criticized the war ; only 1/3 of UN members supported a new anti-Russia resolution this August . Thus, dwindling international support for Ukraine, coupled with success of the Russian SMO indicates that the country will not exist in its current form.
The decline of late-stage American capitalism has been ongoing since the mid-1970s, but has been accelerated by the GFC, Covid-19 pandemic, climate change and Russian SMO in Ukraine. Not surprisingly, the ruling elite and their representatives in Washington have responded by shifting the costs of this decline onto the public, who have watched their living standard plummet, homelessness increase , imposed reactionary legislation such as the criminalization of pregnancy by the US Supreme Court, ratcheted up state violence against working people and people of color, while engaging in an astronomically expensive and reckless foreign policy. It appears the ruling elite view the Russia-China-Iran axis as an intolerable obstacle to US global power, reflected in the ongoing war in Ukraine, which is a de facto proxy war between the US and Russia. US-imposed sanctions on Russian energy have driven global energy prices higher; natural gas prices in the EU are 14-fold higher than the 10-year average. As a result, the UK/EU are at risk of not having sufficient quantities of natural gas for the winter, while EU industry will not be competitive with their rivals in Asia, who are being supplied with cheaper Russian energy. This is going to lead to increasing unemployment and social instability in the Eurozone.
The continued presence of US troops in Iraq and Syria is a desperate attempt to maintain control over Middle East energy reserves. The continued recklessness of this occupation can be seen from the constant Israeli attacks on Syrian and Iranian-allied forces by Israel/US, increasing the chances of a war with Iran, which can rapidly escalate, potentially incinerating the entire Persian Gulf region. It appears the US is abandoning the ‘one-China’ policy’ that has guided relations between the two countries for nearly 5 decades and is preparing to recognize Taiwan as an ‘independent’ state, a redline for the Peoples Republic of China. No doubt, this was one motivation for sending House Speaker Nancy Pelosi, from ‘’liberal’ San Francisco, with a net worth exceeding $100 million, to visit Taiwan. The Pentagon is actively encouraging Japan, which is little more than a US stooge/vassal and still occupied by circa 50K US troops, to join in this effort . This begs the obvious question- did Japan learn anything from their defeat in WWII? As Glen Ford has pointed out, hegemons do not have ‘allies’ they only have subordinates .
The decline of late-stage American capitalism has progressed to the point where the very survival of the American empire is now contingent upon endless money printing to prop up financial markets and the military. This is becoming increasingly tenuous as this orgy of money printing and debt has created gigantic bubbles in every asset class- ‘everything bubble’, increasing inflation and threatening to derail the dollar’s role as world reserve currency and viability of western capitalism. Considering the weak state of US/EU economies, what economic incentives does the US have to encourage countries in the Indo-Pacific to reduce trade with China? Obviously, this is a nonstarter . The ruling oligarchy are well aware of US economic decline and in desperation, are attempting to directly confront the Russia-China-Iran axis, which has attained economic and military parity (superiority?) with US/NATO. Perilous times ahead.
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26. China is building more than 100 new missile silos in its western desert, analysts say
Image without a caption By Joby Warrick Washington Post June 30, 2021; https://www.washingtonpost.com/national-security/china-nuclear-missile-silos/2021/06/30/0fa8debc-d9c2-11eb-bb9e-70fda8c37057_story.html
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By Lev Golinkin The Nation Feb 22, 2019;
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44. Russia Is Making Heaps of Money from Oil, but There is a Way to Stop That
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48. U.S. presses Japan to cancel Constitution’s peace-clause. China and Japan must thus finally agree now, to avoid a war by Eric Zuesse The Duran Aug 25, 2022; https://theduran.com/why-a-deal-is-needed-now-between-china-and-japan/
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50. A New World Order is Looming and the West Doesn’t Like it by James ONeill Aug 24, 2022; https://journal-neo.org/2022/08/24/a-new-world-order-is-looming-and-the-west-doesn-t-like-it/
Figure 1: Total US Public Debt
Figure 2. Map of Ukraine
Figure 3. Military situation in Ukraine Aug 31, 2022
Figure 1. Total US public debt. Note that debt in Q1 2020 was $ 23.2 trillion while in Q2 2022 was $ 30.5 trillion, an increase of $7 trillion.
Source: Total Public Debt; https://fred.stlouisfed.org/series/GFDEBTN
Figure 2. Map of Ukraine
Source: US Department of Defense
Figure 3. Military Situation in Ukraine for Aug 31, 2022. Areas in Red are controlled by the allied forces of the Donetsk and Luhansk People’s Militia and Russian military.
Source: Ukraine interactive map; https://liveuamap.com