The Fallacy of Western Economics西方经济学谬论.docx

The Fallacy of Western Economics西方经济学谬论.docx

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TheFallacyofWesternEconomics西方经济学谬论

TheFallacyofWesternEconomics;SlaveryinDisguise

byGhassanKadiforTheSakerBlog

Economicsisnotascience.Economicscannotbeexpressedinmerereproducibleandpredictablemathematicaltermsasinthecaseofphysics.

PhysicsandmathematicsaresubjectsandmanifestationsoftheUniversalLaw（LogosinGreek）,whilsteconomicsisahuman-madesystemthatisbasedongreedandfear.ThefatherofeconomicsAdamSmithinhisfamousbook“TheWealthofNations”,triedtoestablisheconomic“laws”.These“laws”arestillacceptable250yearslater,butthose“laws”arenotmorethanindicationsthatpointtoprobabilitiesratherthantheaccuratepredictabilitythatphysicallawsprovide.

Economicsismadetolooklikeaverycomplexfieldofknowledgethatonlysavvyandseasonedeconomistscandaretrytounderstand.Whatmakesitlookdauntinglydifficult,especiallybythosewhoneverstudiedit,isthatnotonlyitsso-called“laws”areelasticandunpredictable,butalsobecauseofthevaguenessandmystiquethatsurroundit.Wherebothvaguenessandmoneyconverge,enterindividualsandnationsthataregreedyenoughandpowerfulenoughtocapitalizeontheshadesofgreyintheirfavour.Thusfar,theyhavebeenabletocommittheworstkindoftheftthatexceedsbyfaranycorporatethefteverexposed,letalonepossible.

Simplyput,theworldeconomyisbasedonkeepingrichnationsrichandpoornationspoor.Thisisafact,butthereisnolawofeconomicsthatexplainsthisand/oradmitit,becausetheso-called“laws”ofeconomicshavebeensetinstonebytherichnations.Andevenifeconomicsacknowledgessuchinequities,giventhatits“laws”haveatotallackofmorality,suchprofiteeringwouldberegardedassmartbusinessandsuccessfulmarketing.

Wearetoldthatthevalueofanycountry’scurrencyisareflectionofitswealth.Wealthis,oratleastusedtobe,describedintermsofthecountry’sresources,manufacturingbaseandexports.Whenhistoricallypowerfulnationshadlittleresourcestogeneratemorewealth,theydevelopedtheirmanufacturingindustriesandventuredoverseas,capturedcolonies,robbedtheirresourcesandturnedthemintorawmaterialthattheirindustriescouldusetogenerateexportandwealth.

Yetnow,manyofthosesameformercolonizershavelittleornoresourcesleft,littleornomanufacturingbaseleft,littleexports,buttheycontinuetobeconsideredwealthyandtheircurrenciesstillrankhigh.Theyhavehigh“GrossDomesticProducts”（GDP）andhigh“PerCapitaIncomes”.Thisisintotalcontradictiontothe“laws”ofeconomythatdefinewhatmakesrichnationsrich.

Ontheotherhand,therearemanynationsthatareresource-richandhaveveryastrongmanufacturingbaseandhighexports,butyettheyareconsideredtobepoor.Thisisalsointotalcontradictiontothe“laws”ofeconomicsthatdefinewhatmakespoornationspoor.

Itisnotasecretthatindustrialgiantslikesay,Nike,paysitsVietnamesemanufacturer$2-3forapairofshoesandthensellsitfor$100.Thevirtualslavelabourcontextiswellknown.Whatisrarelyeverspokenabouthowever,isthedecisionofWesternnationstokeepthecurrenciesofpoornationslowinadeliberateattempttokeepthempoorandtomakesurethattheycanbeusedascheapmanufacturersinordertofeedtheirowngreedandremainlookingwealthy.

Globalizationcomesintothescenetogivethisinequalitylongevityandsustainability,andofcoursefavouringthewealthynationsandmaintainingtheirstatusquo.OneUSDollarcouldbeworth20,000VietnameseDongsandwhatbuysastandardservice,sayahair-cut,inVietnamwouldnotbeenoughtobuyahair-cutintheUSAasthecurrencyvaluesaresodifferent,butglobalizationdoesnotallowpoorernationstobasetheireconomiesontheirownincomestandards.

AworkerinVietnamorIndonesiaispaidthehourlyratedictatedbytheeconomyofhiscountry,butthepurchasepowerofhisDongand/orRupiahisdictatedbythetokenvaluethatwealthynationsdecidetogivethosecurrencies.Thisis“justified”bygivingmanyguisesandnamesthatfraudulentlyreflecthonestyandtransparency;namesthatalsounderpinasystemofrewardingachievers.Theyusetermssuchas“freeeconomy”,“freetrade”“openmarket”,“competitiveness”and“laws”suchas“supplyanddemand”,allinamannertosugar-coatsuchinhumanediscrepancieswithaveiloflawfulnessandjustice.

Whilsttherelativelyneweconomicterm“PurchasingPowerParity”（PPP）accountsfordiscrepanciesinlocalcostandproductivitiesbasedonlocalanddomesticparametersratherthaninternationalones,inrealterms,itdoesnotputfoodonthetablesofpoornationsanddoesnotfeedemptybellies.Inrealterms,itisnothingshortofa“feel-good”potionanddoesnotgetreflectedonpoornations’standardoflivingandinternationaleconomicstatusandclout.

Butwhentheworkerofanationwithalowexchangerategoestobuybasiccommoditiesincludingfood,globalizationimpliesthathe/shewouldhavetopaytheinternationalpriceforrice,wheat,sugar,fuel,andmedications.Evenifsomeofthosecommoditiesareproducedlocally,internationalpricesapply,unlesstheyaresubsidizedbyone’sgovernment

Ononehandtheincomeceilingoftheworkerisloweredbytheperceivedinternationalvalueoftheirnationalcurrency,andthenontheotherhandthepurchasepowerofhis/herincomeisdictatedbyglobalterms.

ThesystemofworldeconomicspaysinDongsandRupiahandchargesinUSDollars.

GDP’sand“PerCapitaIncomes”ofnationsarenolongerbasedontherealwealthandproductivitiesofnations,butratheronarbitraryfiguresthatpowerfulnationsdeliberatelyimplementinwhichtheyovervaluetheirownproductivityandundervalueproductivitiesofpoorernations.

AndinanatmosphereofdiminishingWesternindustrialoutput,howdowealthynationsmanagetogeneratehighGDP’s,onemayask?

Well,theyresorttomanytricks,including“recycling”cheapimports.Forexample,aBelgianbusinessmancanimportT-shirtsfromChinaat$1each,andthenresellthemfor$20each.TheproceedsofhissalesturnoverareaccountedforinBelgium’sGDP,wheninfacttheactualproductivitywasimported.

Onceagain,wealthynationshidebehindthefaçadeofeconomicstojustifysuchdiscrepancies.Theyalsousetermssuchas“developedeconomy”tohidethecrimeofallowingthemselvestermsofreferencethathave“explanations”inthe“science”ofeconomy.Theythusgivethemselveshighereconomicstandardsovernationsthataredoomedtohave“developing”or“under-developed”tags.Ifthosetermsarestrippeddowntothecore,alltheyimplyisanewformofcolonialism,slaveryandinequitythatvaluesproductsandservicesnotontheirtruevalue,butonwhoprovidesthemtowhom.Suchterminologyfurthermoremakesitlooklikeitisduetotheirownfaultandpooreconomicmanagementthat“under-developed”and“developingcountries”areinthepredicamenttheyare,andthattheonusisonthemtodeveloptheireconomies.

Butthisisnotall.Internationalpricesofcommoditiessuchassugarandriceareindeedsubjecttointernationalcompetition,butthepriceoffuelisnot.

Fuelthatdrivesallenginesofproductivityhasapricethatisby-and-largefixedanddictatedbyoil-producingcountriesandgreedycartelslikeOPEC.Fordecades,OPEChadavirtualmonopolyandalicencetoprice-fixtheworld’smostvitalcommodity,untilnon-OPECproducerscameintothescene.Buttosaythatcurrentfuelpricesarejustandequitablewouldbeafarcry.

ThewealthynationsoftheWestrunontheprinciplesof“freeeconomy”,“openmarket”,“freetrade”and“competition”,butyettheverysameWestthatdoesnotallowmonopolyandprice-fixingisonethatendorsesandfeedsfromprice-fixingofpetroleumproducts.Domestically,highfuelpricesincurhightaxesandhighrevenuesforWesterngovernments,whichofcoursehurtthepoorsectoroftheWesterncommunitiesthemost.Andinternationally,highfuelpricesmeanthatpoornationsremainpoor.

Ifthewholeworldhadaunifiedandequitableeconomicsystemandtheterm“globaleconomy”wereapositiveandconstructivereality,avisittothedentistorbarbershouldcostthesameworldwide.Realitydictatesotherwise.Whatrealitydictatesisthatwhenabarberwhocharges50cforahaircutinMumbaigoestothepetrolstationorthepharmacyforexample,withoutgovernmentsubsidy,he’slikelytopaywhataNewYorkerpaysinUSDollars.

Andiftherewereafacefortheglobaleconomicthuggerythattheworldisreelingunder,ithastobetheUSDollar.Somemayarguethatitisthebanks,theRothschilds,andwhilstthisistrue,thevehicleofextortionandtheftistheUSDollar.WhenataxidriverinIndiagoestofillhistank,heisinadvertentlyhavingatransactioninUSDollars,andnotonedirectlywiththeRothschilds.

ItisquiteironicthattheUSDollarcontinuestohavecloutatatimewhenAmericahashugeeconomicproblems.Yet,withallthecripplingdebt,declaredandundeclared,adebtthatsomepunditsestimatetoexceed150trilliondollars,foraslongasthe“GreenBack”isthepreferredworldreservecurrency,Americawillcontinuetobeableto“weaponize”itscurrency.Indoingthishowever,andinimposingsanctionsonothernations,Americaisinadvertentlyspeedinguptheprocessofitsowneconomicdemise.WithtradeandotherorganizationssuchasBRICS,theSCO,the“RegionalComprehensiveEconomicPartnership”（RCEP）,manynationsarelookingforwaystoliberatethemselvesfromdependencyontheUSDollar.EventheEUisfeelingthebruntoftheheatandsearchingforalternatives.

Intheabsenceofaglobally-ac