Friday, 31 January 2020

WHY PAUL KRUGMAN IS PERENNIALLY AND INFALLIBLY WRONG

In a fresh Opinion in The New York Times, Paul Krugman chides Trump Admin trade supremo Wilbur Ross for opining that the imminent collapse of the Han Chinese Rat bubble economy - a speculative financial house of cards if ever there was one - will drive investment and jobs to the US.

Of course, Krugman is quite right to point out that any recession or depression in Ratland will not be positive for any of the globalised industrial capitalist economies - such is the extent of supply-chain integration that Western capitalists have imposed on humanity, to the extent that the global labour force has more than doubled (!) since the 1980s. This horrifying fact alone would serve to explain everything that has happened to world capitalism in the last forty years: the growth and survival of the Western bourgeoisie to the point where it has cornered nearly all the wealth and resources available on Earth; the contemporaneous rise of a virulent totalitarian kleptocratic and belligerent Dictatorship in China that is now running out of "Lebensraum" (Hitler's notion of "living space") and devoting nearly all its resources to its military-industrial complex so as to be able to arrogate violently to itself any and all resources in the planet. Despite this, and indeed because of this - because of the obscenely abhorrent accumulation of social wealth in the hands of very few capitalists - the enormous, fantastic appreciation in real assets - from real estate, to commodities, to financial assets , especially Treasury bonds - has resulted in a tremendously inflationary asset bubble and lowering of productivity and living standards that now threatens systemically the very survival of global capitalism!

As we have often remarked in this Blog, Krugman is an economist. And despite his strenuous attempts to broaden his analytical horizon to other more political spheres, the more he tries, the more evident is his lack of knowledge and perspicacity in these broader fields of intellectual and analytical endeavour. What Krugman entirely fails to notice this time is the fact that "wealth" - including the accumulation of capital through profitable capitalist investment - is always and everywhere a relative notion - because it refers to one's ability to command social resources, above all human living labour, in competition - that is to say, against - all other capitalists, be they individuals or nation-states.

In other words, Krugman, as a naive professorial Nobel laureate, is thinking of "wealth" in absolute terms, whereas Wilbur Ross - who is a clever mercantilist rogue - is thinking in terms of Realpolitik! YOUR DEATH IS MY LIFE! (In Latin, the law of the jungle is, mors tua, vita mea!) AND WILBUR ROSS IS MAGNIFICENTLY RIGHT! Because if we Westerners are to survive, the very first thing we must do is NOT think in terms of abstract "wealth" - which is a meaningless concept in the end (Keynes, "In the long run we're all dead"), but rather think in terms of how we can annihilate our mortal enemies - first and foremost the Han Chinese Rats! And this is why Wilbur Ross is entirely correct in asserting that the eventual demise of the Chinese Dictatorship and its Han Chinese Rat Evil Empire will entail and engender the triumph of the West, which is much to be preferred and be conquered and imposed upon our enemies if humanity itself is to have a future at all! Cheers.



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