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Current U.S. conflict: What is it really about?

A Chinese-Canadian Twitter user known as Jacob had this explanation of the current January 2021 U.S. and global conflict.


Here it is unedited:

 

On January 6, 2021, the Congressional Election Results Verification Day, this struggle reached its craziest climax. This is not a simple struggle, not a simple conflict between presidential power change. This conflict that originated in the United States is not essentially a conflict between Trump and Biden, a conflict between the Republican Party and the Democratic Party, or a conflict between whites and blacks and minorities in the United States. It is not even entirely American. Conflict between.


How to understand this social crisis?


From a historical perspective: the 18th century was the struggle of the democratic revolution, the 19th century was the struggle of the world proletariat, and the 20th century was the struggle between countries (two world wars and the national independence movement).


And today's struggle is essentially a super struggle of the anti-establishment forces in the 21st century. What needs to be explained is that the "struggle" here does not refer to violence, war or identity confrontation, but conflict of interest.





The international order, economic globalization, and nuclear balance after World War II basically resolved conflicts between countries.





After the fall of the Soviet Union, wars and conflicts between major powers were basically eliminated, and the main contradictions have undergone subtle changes. In the United States, from the time of Bush Sr., the establishment of the two parties in the United States shook hands, talked and laughed, and had an extraordinary understanding. They have jointly ruled the three powers of the United States and the Federal Reserve for 26 years. This is the era of American establishment dictatorship.


Globally, the global establishment with the Democratic Clinton family and the Republican Bush family as the core has created a new unfair global order with the help of global forces (multinational corporations, financial and technological giants) and credit currency.





On the one hand, they established the torii in the name of globalization, and on the other, they made the noise of national contradictions to confuse and conceal.


This struggle is a resistance to the bad old order of globalization. Let’s see, the two sides of this struggle: On one side are complex anti-Trump forces. They are mainly bipartisan establishments, multinational companies, financial giants, technology giants, traditional media and the three major social media forces FB, Twitter, YouTube, urban elites, blacks and some minorities, the most Lower class people, new immigrants and illegal immigrants, Keynesians, intellectuals in universities.



On the other side are more than 70 million Trump supporters. They are mainly white Americans, Christians, middle class, local business owners, urban business operators and local manufacturing workers.


The anti-Sichuan forces are the creators and beneficiaries of the old order of globalization, and can be collectively referred to as "global establishment forces." The core force among them is the financial and technological multinational giants. Nearly 200 American business leaders issued a joint letter asking Congress to confirm Biden's election.



These business leaders include BlackRock, Blackstone, Deloitte, KPMG, United Airlines, MasterCard, Pfizer, Goldman Sachs, Microsoft and other corporate CEOs. Their true identities are not American business leaders, but international giants.


They also include establishments in European and overseas markets, such as Merkel in Germany and Macron in France.


It is not easy to expose the power of the global establishment in the 21st century. They seem to be very successful, noble, elegant, inspirational, orthodox, and full of self-cultivation and enviable; their career seems to be a masterpiece of global advanced technology, contract spirit, free market and economic globalization. Their actions seem reasonable and legal, logical and ethical.



In a constitutional democracy, you can hardly find reliable evidence of how the establishment and Wall Street colluded. They are using "reasonable rules" to construct unfair advantages. They very "smartly" used two major constitutional loopholes: the global order and the credit currency and central bank system. Of course, these two vulnerabilities were also designed by them.

This round of globalization order is dominated by the global establishment, including international trade order, financial order, population migration system, and so on. Because the global order exceeds the constitutional scope of the country, coupled with information asymmetry and deliberate noise, they can "legally" create an unfair global system.



The unfairness I am talking about is not unfairness between countries, but class unfairness, that is, the unfairness between the global establishment forces and local enterprises, workers, consumers, the middle class and the people. Therefore, this is a struggle between local forces and international rule-makers (not truly global forces).



There are three main points of this unfairness: One is that the establishment uses the national system to restrict population movements, but helps capital establish an administrative monopoly in overseas markets.




Many people mistakenly believe that the tragedies of local workers and consumers are the result of global competition and the general trend. In fact, on the contrary, these tragedies are the result of anti-globalization and anti-free markets.




They established the World Trade Organization, but they did not maintain the fairness of world trade. Tariff protection, financial subsidies, land concessions, credit concessions, financial entry barriers, capital circulation restrictions, Internet restrictions, restrictions on the movement of population elements, etc.


These unfair rules have created excellent conditions for multinational companies, technology giants, and financial giants. Monopoly environment. The establishment and multinational companies are sitting on monopolistic profits, and the local people have suffered greatly.


The second is that the establishment has maintained a huge gap between the current account and the capital account for a long time, causing the price of imported assets to inflate, boosting the soaring of the assets of multinational companies, finance, and the wealthy, and weakening the wealth of local enterprises, workers and the middle class.


The long-term monopoly in the international market has led to huge trade deficits or surpluses, causing serious imbalances between the current and capital accounts, distorting the global economy, and also distorting the local economic structure and social patterns.


Under the protection of monopoly, overseas markets have long-term trade surpluses, and huge amounts of foreign remittances accounted for the issuance of massive amounts of currency, triggering a surge in domestic assets, mainly real estate prices. Foreign exchange in overseas markets pushes up the price of American financial assets by buying American financial assets. This is equivalent to inflating the wealth of the rich, plundering the wealth of the middle class, and at the same time brewing huge financial risks.


The third is that the establishment uses high welfare and low inflation to buy the votes of the bottom people. The tax, asset prices and debt risks caused by this are passed on to the local middle class, but multinational companies and wealthy people are allowed to legally avoid taxes on a global scale.



High welfare and low inflation are good medicine to appease the poor. The income tax of local companies cannot run away, and the payroll tax cannot run away from workers. The establishment has lowered capital gains tax, and multinational giants enjoy "tax havens" overseas.




As you can see, this is a part of the establishment group combination boxing. The establishment allows multinational companies to enjoy monopolistic profits overseas, and allows the bottom of the country to enjoy high welfare, and then the local middle class pays for it. Effective up and down, the middle class was hollowed out. If the 19th century is the struggle of the world proletariat, then the 21st century is the struggle of the world middle class.


The underlying reason here is the contradiction between the national system and globalization. The process of globalization is a process of continuous transfer of national sovereignty to the outside world, and a process of continuous weakening of the national system. However, the establishment has mastered state power and is unwilling to see economic globalization weaken the power in their hands. They have established an anti-liberal and anti-globalization order to consolidate their power.


In the past three decades, especially after the 2008 financial crisis, another ruling force of the global establishment is the credit currency and central bank system.


After the disintegration of the Bretton Woods system in 1971, the U.S. dollar became a credit currency and lost the hard constraints of gold. Monetary expansion has no substantial constraints. In the Greenspan era, coinage has gradually become a political tool of the global establishment. The supporter behind the establishment is the fast-growing Wall Street Investment Bank.



In 1999, Clinton and Greenspan promoted the introduction of the "Financial Service Modernization Act", which ushered in the era of mixed financial industry in the United States. At the time, more than half of the officials in the Clinton administration's cabinet came from Wall Street. Among them, Treasury Secretary Rubin became the co-president of Citibank one month after the "Glass-Steagall Act" was repealed, with an annual salary of $15 million and 1.5 million stocks.



In the era of Bush Jr., he appointed Keynesian Bernanke as Chairman of the Federal Reserve and appointed former Goldman Sachs President Paulson as Treasury Secretary. When the financial crisis broke out, these two "great saviors" used taxpayers' money to rescue big banks, financial giants, and financial markets.


During the 2008 financial crisis, Bernanke led the Fed to directly purchase large amounts of US Treasury bonds and real estate bonds. The establishment has formed a fundamental institutional alliance of interests with Wall Street and multinational companies.


Now let’s see who is the sponsor behind the establishment: In 2016, Wall Street brokers and investment banks donated as much as US$88 million to Hillary Clinton, while Trump only had US$20.8 million, a four-fold difference. In 2020, this gap will further widen. As of September, Wall Street had donated US$51.1 million to Biden, but only US$10.5 million had been donated to Trump, a five-fold difference. The Super Political Action Committee led by George W. Bush also invested money in Biden.



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