As we wait for a set of imponderables all the way to January 20, 2021, perhaps an angular approach to what may lie ahead for the world economy is best offered by fiction.
Enter Billions, season 5, episode 2, dialogue written by Andrew Ross Sorkin.
Axe: “You know they call us traders ‘gamblers’. The world’s economy is one big casino, fueled by a giant debt bubble and computer driven derivatives. And there’s only one thing better than being a gambler at a casino. ”
Wags: “That’s being the house.”
Axe: “That’s right. There’s a systemized machine out there, sucking capital from localities and injecting it into the global markets, where it can be used to speculate and manipulate. And if something goes wrong there are bailouts and bail-ins, federal aid and easing. Where the government doesn’t hunt you down, but instead gives you a nice soft net to land in.”
Wags: “That’s your answer to the fireside chat: You want to become a bank.”
Axe: “I want to become a bank.”
Wags: “In order to rob it?”
Axe: “In order that I don’t have to.”
-----------------------------------------------------------------------------------
Four geoeconomic summits compressed in one week tell the story of where we stand in these supremely dystopian times.
The (virtual) signing of RCEP in Vietnam was followed
by the equally virtual BRICS meeting hosted by Moscow, the APEC meeting hosted
by Malaysia, and the G20 this
past weekend hosted by Saudi Arabia.
Cynics have not failed
to note the spectacular theater of the absurd of having the Top 20 – at least
in theory – economies discussing what is arguably the turning point in the
world-system linked to a beheading-friendly desert oil hacienda with a 7th century mentality.
The Riyadh declaration did its best to lift
the somber planetary mood, vowing to deploy “all available policy tools” (no
precise details) to contain Covid-19 and heroically “save” the global economy
by “advancing” global pandemic preparedness, vaccine development and
distribution – in tandem with debt relief – for the Global South.Best
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Not a peep about The
Great Reset – the Brave New World scheme concocted by Herr
Schwab of Davos and fully supported by the IMF, Big Tech, transnational Big
Capital interests and the oh so benign Prince Charles. Meanwhile, off the
record, G20 sherpas moaned about the lack of real global governance and
multiple attacks on multilateralism.
And not a peep as well
about the real life vaccine war between the expensive Western candidates –
Pfizer, Moderna, AstraZeneca – and the much cheaper Russia-China versions –
Sputnik V and Sinovac.
What seems to be the
case is that any agenda – sinister or otherwise – fits the one-size-fits-all
vow by the G20 to provide “opportunities of the 21st century
for all by empowering people, safeguarding the planet, and shaping new
frontiers.”
The House of Xi
At the G20, President Xi Jinping did not waste the chance –
after RCEP, BRICS and APEC – to once again emphasize China’s priorities:
multilateralism, support for WTO reform, ample international cooperation on
vaccine research and production.
But then, in tandem with reducing tariffs and facilitating the
trade of crucial medical supplies, Xi proposed a global health QR code – a
sound way to restore global travel and trade: “While containing the virus, we
need to restore the secure and smooth operation of global industrial and supply
chains.”
Predictably, there
were howls about neo-Orwellian intrusion, comparing the QR code with the
exceptionally misunderstood Chinese credit system. Herr Schwab’s Great Reset in
fact proposes something similar, with even more neo-Orwellian overtones,
disguised under an innocent “Covid Pass” app, or highly secure “health
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What Xi has proposed amounts to just a mutual recognition of
health certificates, issued by different nations, based on nucleic acid tests.
No gene altering vaccines coupled with nanochips. These QR codes, incorporated
to health apps, are already used for domestic travel in China.
Chinese officials have made it very clear that Beijing has been
working as the representative of the Global South inside the G20. That’s
multilateralism in action. And the multilateralist drive extends from RCEP –
signed between 15 nations – to the brilliant Sun Tzu maneuver of China now
accepting even the Comprehensive and Progressive Agreement for Trans-Pacific
Partnership (CPTPP), the successor of the Obama-promoted and Trump-detonated
TPP.
This revival – a case of Make TPP Chinese Again – can be
envisaged because Beijing not only has mastered how to contain Covid-19 but is
also recovering in lightning speed. China will be the only major economy growing
in 2020 – de facto leading the world to a tentative post-Covid paradigm.
What the APEC meeting made crystal clear is that with East Asia
graphically hitting the economic limelight, as seen with RCEP, much vaunted US
“leadership” inevitably diminishes.
APEC promoted a
so-called Putrajaya Vision 2040, condensing an “open,
dynamic, resilient and peaceful” Asia-Pacific all the way to 2040. That neatly
ties in with the three accumulated five-year Chinese plans all the way to 2035,
approved last month at the CCP plenum in Beijing.
The emphasis, once again, is on multilateralism and an open
global economy.
Few are more capable
to capture the moment than Professor Wang Yiwei at the Institute of
International Affairs at Renmin University, who wrote the best Chinese book on
the Belt and Road Initiative (BRI). Wang stresses how China is in a period of
“strategic opportunity” and is now “the most powerful leader of globalization”.
China’s emphasis on multilateralism will “activate the connectivity and
vitality of a trade platform like RCEP”. Buy New $15.99(as of 07:17 EST
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Stranger than fiction
Now compare all of the above with Trump at the G20 tweeting
about the election dystopia and privileging golfing instead of discussing
Covid-19 containment.
And then there’s
The Elements of the China Challenge, the new
74-page delusional epic concocted by the office of secretary Mike “We Lie, We
Cheat, We Steal” Pompeo.
Diplomatic howls
comparing it with the notorious George Kennan “long telegram” that codified the
containment of the USSR in the Cold War are nonsense. Chinese Foreign Ministry reaction was
more to the point: this was concocted by some “living fossils of the Cold War”
and is doomed to end up “being consigned to the dustbin of history”.
President Xi Jinping, at RCEP, BRICS, APEC and the G20,
concisely laid out the Chinese case: multilateralism, international cooperation
on multiple fields, an open global economy, due representation of Global
South’s interests.
As we wait for a set of
imponderables all the way to January 20, 2021, perhaps an angular approach to
what may lie ahead for the world economy is best offered by fiction.
Enter Billions, season 5,
episode 2, dialogue written by Andrew Ross Sorkin.
Axe: “You know they call
us traders ‘gamblers’. The world’s economy is one big casino, fueled by a giant
debt bubble and computer driven derivatives. And there’s only one thing better
than being a gambler at a casino. ”
Wags: “That’s being the house.”
Axe: “That’s right. There’s a systemized machine out there, sucking
capital from localities and injecting it into the global markets, where it can
be used to speculate and manipulate. And if something goes wrong there are
bailouts and bail-ins, federal aid and easing. Where the government doesn’t
hunt you down, but instead gives you a nice soft net to land in.”
Wags: “That’s your answer to the fireside chat: You want to
become a bank.”
Axe: “I want to become a bank.”
Wags: “In order to rob it?”
Axe: “In order that I don’t have to.”
Reprinted with the author’s
permission.
Copyright © Asia Times
https://www.lewrockwell.com/2020/11/no_author/dragon-flies-eagle-crashes-at-geoeconomic-summits/
