The Cost of Hegemony Is Beyond Reach

Undeterred by massive budget deficits from wars, a falling economy, and financial bailouts, the U.S. government has managed to start a new cold war with Russia. Last Friday, the Russian military announced that it was developing a new generation of ballistic missiles in response to the U.S. government’s decision to deploy ballistic missile defenses in Poland and the Czech Republic.

The "peace dividend" that the Reagan-Gorbachev accord provided has been squandered by an arrogant American government seeking world hegemony.

In 2002 the Bush regime unilaterally withdrew from the Anti-Ballistic Missile Treaty that the U.S. government signed with the Soviet Union in 1972. This treaty stabilized the "mutual assured destruction" that prevented the two military superpowers from initiating war, thus averting a nuclear holocaust for 30 years.

When the Soviet government released its Eastern European "captive nations," the U.S. government promised not to recruit the Baltic and Eastern European countries for NATO membership. The U.S. government pledged that NATO would not be brought to Russia’s borders. There would be a neutral zone between the Western military alliance and Russia. The American government broke this promise as quickly as it could, bringing former constituent parts of the Russian empire into the American empire.

Last October, Adm. Michael Mullen, chairman of the U.S. Joint Chiefs of Staff, went to Lithuania to give a guarantee to the Baltics of U.S. military intervention in the event of a Russian attack. Like the British guarantee that Chamberlain gave Poland in 1939, a guarantee that precipitated World War II, Mullen’s guarantee is worthless unless the U.S. government initiates nuclear war with Russia in defense of the tiny Baltic republics, which would be wiped out by the radiation fallout.

The U.S. has tried to incorporate the Ukraine and Georgia, constituent parts of Russia for centuries, into NATO. To clear the way for NATO membership, the Bush regime encouraged the American puppet ruler of Georgia to cleanse provinces, attached to Georgia by Stalin, of Russians in order to end secessionist movements. When Russian troops drove the American and Israeli trained and equipped Georgian army out of the Russian parts of Georgia, the U.S. government lied that Russia had invaded Georgia.

This malevolent lie was too much for the Russians and too much of the rest of the world. It was plain to all that the U.S., an aggressor state striving to encircle Russia with bases even to the edge of central Asia, had initiated a war that it then blamed on Russia. After Afghanistan, Iraq, Bush’s defense of Israel’s 2006 criminal attack on Lebanon, and Bush’s false claims of an Iranian nuclear weapon, few, if any, countries any longer believe pronouncements of the U.S. government. The U.S. is regarded worldwide as an aggressor state that lies through its teeth.

This means that unless China decides to play the U.S. and Russia off in order to emerge as the sole world power, there is no one to finance America’s side of the new cold war that the U.S. government has created.

The only other way Washington can finance a new arms race with Russia is to cancel Social Security and Medicare and repudiate its massive foreign debts. If Washington were to do this, the likely result would be revolution at home and isolation internationally.

For decades Washington has prevailed because the U.S. dollar is the reserve currency. It is the world’s money. This advantage allows Washington to purchase almost every other government. There are governments all over the world, from Europe to Egypt, from Ukraine to South Korea to Japan, that are owned by Washington. When Washington speaks of spreading freedom and democracy, Washington means it has purchased more governments to do its will.

These purchased governments do not represent their people. They represent American hegemony.

Now that the Great Hegemon is bankrupt and its economy is collapsing, thanks to unbridled greed, American influence is waning. The U.S. dollar cannot survive the massive red ink that the U.S. generates.

When the dollar collapses, the image of a strutting Washington as "the world’s only superpower" will evaporate. The evil that is the American government will find itself at war with its own people and those of the rest of the world.

Author: Paul Craig Roberts

Paul Craig Roberts wrote the Kemp-Roth bill and was assistant secretary of the Treasury in the Reagan administration. He was associate editor of the Wall Street Journal editorial page and contributing editor of National Review. He is author or co-author of eight books, including The Supply-Side Revolution (Harvard University Press). He has held numerous academic appointments, including the William E. Simon chair in political economy, Center for Strategic and International Studies, Georgetown University, and senior research fellow, Hoover Institution, Stanford University. He has contributed to numerous scholarly journals and testified before Congress on 30 occasions. He has been awarded the U.S. Treasury's Meritorious Service Award and the French Legion of Honor. He was a reviewer for the Journal of Political Economy under editor Robert Mundell.