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     Dec 16, 2008
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CHINA'S DOLLAR MILLSTONE, Part 5
Restoring China's national destiny
By Henry C K Liu

Part 1: Breaking free from dollar hegemony
Part 2: Developing China with sovereign credit
Part 3: History of monetary imperialism
Part 4: Gold, manipulation and domination

Different nations profess different destinies at different stages of their history. The United States had its "manifest destiny" of territorial expansion from the War of 1812 to the beginning of the Civil War in 1861. In 1845, influential columnist John L Sullivan published a piece entitled "Annexation" in the Democratic Review, in which he urged the young United States to annex the Republic of Texas, composed of all of present-day Texas, plus portions of

 

New Mexico, Oklahoma, Kansas, Wyoming and Colorado, because it was "our manifest destiny to overspread the continent allotted by Providence for the free development of our yearly multiplying millions," which generally excluded Native Americans, Mexicans and African Americans who were at the time mostly slaves.

In 1837, belligerent American settlers in the Mexican state of Coahuila y Tejas, led by settler Sam Houston, a fugitive from Tennessee, won independence from Mexico in a secessionist war instigated by the US, proposed voluntary annexation to US president Martin Van Buren, who refused the request since the US anticipated that it would lead to war with Mexico. Texas then withdrew the annexation offer in 1838 to declare itself as an independent nation called the Republic of Texas, recognized by the US, Britain, France and the Netherlands. In 1843, Britain opposed US annexation of Texas, but president John Tyler signed the treaty of annexation with the Republic of Texas in April 1844 despite Mexican leader Antonio Lopez de Santa Anna's warning that annexation would be "equivalent to a declaration of war". But the US senate overwhelmingly rejected the annexation on June 8 by a vote of 35 to 16, failing the constitutional requirement of a two-thirds majority in the Senate to confirm a treaty with a foreign state.

James K Polk, a strong territorial expansionist, won the presidency in November 1844. Tyler, knowing the Senate would not ratify the annexation treaty, changed course and had his allies in Congress submit an annexation bill of Texas as a territory in a joint resolution in December. With president-elect Polk's quiet support, Congress approved annexation of Texas as a territory on February 28, 1845, even though the Republic of Texas had been recognized by the US as an independent state since 1843.

The March 1845 vote on the joint resolution in the Senate was passed 27 to 25. Tyler signed the Joint Resolution into law, which called for annexation of Texas to be concluded by the end of December 1845. On December 29, 1845, president Polk approved Texas's admission to the Union not as a territory but as a state. However, as this was done via a Joint Resolution of Congress, rather than a treaty between states, some scholars believe the annexation is unconstitutional and illegal under international law.

A factor in the Texas annexation discussions in the US was that the northern states realized there would be two new slave-state senators after Texas was admitted as a state. Although Mexico had outlawed slavery completely years prior to Texas independence, slavery was allowed to continue in Mexican Texas and continued to exist in Texas during its years as an independent republic.

Mexico broke off diplomatic relations with the US in 1845 over the issue, which eventually led to the Mexican-America War the following year. The Treaty of Guadalupe Hidalgo ended the war when the victorious US ratified the treaty on March 10, 1848. The treaty allowed the US to purchase California and other areas from Mexico on the condition that Americans would honor Mexican culture and values, a condition US settler promptly ignored. The annexation of Texas was highly controversial amongst the states and contributed to widening American sectionalism leading up to the Civil War. Later, "manifest destiny" served as moral justification for US imperialist expansion into Central America and the Pacific during the Age of Imperialism.

Nineteenth-century Prussia viewed its destiny as the unification of the German people into a modern nation state to overcome tribal rivalry encouraged by foreign interference. Bismarck exploited German nationalism, which had been frustrated by the failure of the revolutions of 1848, to unify a fragmented Germany in 1871 to build a German empire to rival that of Britain.

British national destiny under Queen Victoria from 1837 was to transform an island kingdom into a global empire, which would last for more than a century until 1947. The destiny of France under Louis XIV in 1643 was to forge a powerful nation state out of medieval feudalism. The destiny of Napoleonic France in 1769 was the construction of a multinational continental world order under French cultural and political leadership based on the ideals of the French Revolution.

The destiny of the Ottoman dominion during the 15th and 16th centuries was to maintain peace in a multi-ethnic world under the aegis of Islam. The destiny of the Holy Roman Empire in 962 AD was to establish and maintain a Christian political order in Europe under an elected Holy Roman Emperor. The destiny of Qin dynasty China in 221 BCE was to forge a unified Chinese nation.

The national destiny of modern China
China's The national destiny of modern China since the beginning of the 20th century has been the restoration of the country to its rightful historical position in the modern world order. Up until the age of Western imperialism, which spanned from mid-19th century to mid-20th century, China had been a continuous cultural fountainhead and economic dynamo throughout its recorded history of four millennia without taking on the belligerent hubris of a modern superpower.

Today, New China has steadfastly declared that it will never assume the aggressive role of a superpower. New China aims to spread the Chinese vision of an equitable world order not by force of arms but by example of its commitment to build an equitable harmonious society within its borders and in a world order. The national destiny of New China is inseparable from China's socialist root to protect and develop the common interest of working people even in feudal dynastic days and from which it has derived invincible strength to defeat Western imperialism.

Chinese political culture is based on the principle of "great harmony" da tong, in which individualism, both personal and institutional, is subordinate to community as a natural order. This natural order has been derived from four millennia of a living philosophical tradition in a nation with continuously functioning political-cultural institutions, as the geo-cultural, multi-ethnic center of the known world. Western capitalist democracy based on individualism is antithetical to Chinese socio-political culture. Mercantile values have not been highly placed in Chinese culture and society. Historically, over a period of four millennium, every time China deviated from this socialist tradition, the nation ended in decline.

Today, China is a modern nation state with one fifth of the world's population and the longest continuous civilization and history. This is why China continues to refer to herself culturally as zhong hua, which means "centric civilization of opulence", and politically as zhong guo, meaning "centric nation state". Modern China, organized politically as a communist nation in the heyday of Western capitalism, is a fusion of traditional Chinese communal political culture and Western dialectic materialism.

Mao Zedong, the greatest revolutionary leader in modern Chinese history, wrote in his 1937 essay "On Contradiction":
According to materialist dialectics, changes in nature are due chiefly to the development of internal contradictions. Changes in society are due chiefly to the development of the internal contradictions in society, that is, contradiction between productive forces and the relations of production, contradiction between classes and contradiction between old and new. It is the development of these contradictions that pushes society forward and gives the impetus for the supersedure of old society by new.

Does materialist dialectics exclude external causes? Not at all. It holds that external causes are the condition of change and internal causes are the basis of change, and that external causes become operative through internal causes. In a suitable temperature an egg changes into a chicken, but no temperature can change a stone into a chicken, because each has a different basis.

There is constant interaction between the people of different countries. In the era of capitalism, and especially in the era of imperialism and proletarian revolution, the interaction and mutual impact of different countries in the political, economic and cultural spheres are extremely great.

The October Socialist Revolution ushered in a new epoch in world history as well as in Russian history. It exerted influence on internal changes in the other countries in the world and, similarly and in a particularly profound way, on internal changes in China. These changes, however, were effected through the inner laws of development of these countries, China included.

In battle, one army is victorious and the other is defeated; both the victory and the defeat are determined by internal causes. The one is victorious either because it is strong or because of its competent generalship, the other is vanquished either because it is weak or be cause of its incompetent generalship; it is through internal causes that external causes become operative.

In China in 1927, the defeat of the proletariat by the big bourgeoisie came about through the opportunism then to be found within the Chinese proletariat itself (inside the Chinese Communist Party). When we liquidated this opportunism, the Chinese revolution resumed its advance. Later, the Chinese revolution again suffered severe setbacks at the hands of the enemy, because adventurism had risen within our Party. When we liquidated this adventurism, our cause advanced once again. Thus it can be seen that to lead the revolution to victory, a political party must depend on the correctness of its own political line and the solidity of its own organization.
Mao correctly predicted the fall of the Soviet Union as the inevitable outcome of the revisionism of the Communist Party of the Soviet Union.

The current global financial crisis that began in August 2007 is a manifestation of the internal contradiction of the dysfunctional globalized capitalist free market fundamentalism. On this "external cause" of global financial crisis, the Chinese Communist Party will be well advised to heed chairman Mao's warning about the importance of the correctness of its own political line to respond to China's "inner laws of development" in the context of external structural changes in the rest of the world.

Mao continued on the history of dialectics:
The dialectical world outlook emerged in ancient times both in China and in Europe. Ancient dialectics, however, had a somewhat spontaneous and naive character; in the social and historical conditions then prevailing, it was not yet able to form a theoretical system, hence it could not fully explain the world and was supplanted by metaphysics.

The celebrated German philosopher Hegel, who lived in the late 18th and early 19th centuries, made important contributions to dialectics, but his dialectics was idealist. It was not until Marx and Engels, the great protagonists of the proletarian movement, had synthesized the positive achievements in the history of human knowledge and, in particular, critically absorbed the rational elements of Hegelian dialectics and created the great theory of dialectical and historical materialism that an unprecedented revolution occurred in the history of human knowledge. This theory was further developed by Lenin and Stalin. As soon as it spread to China, it wrought tremendous changes in the world of Chinese thought.
Modern Chinese thought has been impacted by Marxism because, as Mao observed, external causes in the form of

Continued 1 2 3 4 5 


The Complete Henry C K Liu

Part 1: Breaking free from dollar hegemony

Part 2: Developing China with sovereign credit

Part 3: History of monetary imperialism

Part 4: Gold, manipulation and domination


1. China’s six-to-one advantage over the US

2. Pakistan's military takes a big hit

3. Gold fever sets in

4. It's always about the money

5. China taken off US missile hit list - again

6. Change or deja vu? Obama divides Iran

7. Honey, I switched the medication

8. Officially screwed by real inflation

9. Fallout from Pentagon's gaffe spreads

10. BOOK REVIEW: The fruit of a poisonous tree

(Dec 12-14, 2008)

 
 


 

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