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Slavoj Žižek: EU must create a new world order to stop Donald Trump

11 111 2139
13.06.2018

Trump’s impulsive decisions, such as his refusal to endorse the G7 declaration agreed upon in Quebec, are not just expressions of his personal quirks. Instead, they are reactions to the end of an era in the global economic system, reactions which are sustained by an incorrect understanding of what is happening. However, Trump’s misguided vision is nonetheless based on the correct insight that the existing global system no longer works.

An economic cycle is coming to an end, a cycle which began in the early 1970s, the time when what Yanis Varoufakis calls the “Global Minotaur” was born, the monstrous engine that was running the world economy from the early 1980s to 2008. The late 1960s and the early 1970s were not just significant for the oil crisis and stagflation; Nixon’s decision to abandon the gold standard for the US dollar was the sign of a much more radical shift in the basic functioning of the capitalist system.

Indeed, by the end of the 1960’s, the US economy was no longer able to continue the recycling of its surpluses to Europe and Asia because its surpluses had mutated into deficits. As a result, in 1971, the US government responded to this decline with an audacious strategic move: instead of tackling the nation’s burgeoning deficits, it decided to do the opposite, to boost deficits.

And who would pay for them? The rest of the world!

How? By means of a permanent transfer of capital that rushed ceaselessly across the two great oceans to finance America’s deficits. And these deficits thus started to operate “like a giant vacuum cleaner, absorbing other people’s surplus goods and capital.

While that ‘arrangement’ was the embodiment of the........

© RT.com