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🇷🇺 Sergey Glazyev: US is losing because its system of governance is 10 times worse than Southeast Asia; US wants a local nuclear war to regain hegemony; we have to create a very broad anti-war coalition; we will establish a new currency financial system
Thank you. I’d like to make our discussion a little bit more academic. Mr. Pushkov mentioned the laws of history. I’d like to mention the laws of history. It’s important to understand where we are.
We are at the stage of changing economic orders. Those changes happen through world wars. It started with the disruption of the Soviet Union and now it’s the disruption of Pax Americana. 30 years ago was quite a classic situation. 40 years ago we talked about it at our Academy of Sciences.
In 2008 it became clear that the world is following a habitual scenario. We call the economic order which is being disrupted “imperial.” There were two poles: the US and the Soviet Union. They were opposite from the political point of view but they both used money for unlimited crediting and they were quite similar in governing the world. It was imperial because the empires were doing it so that everybody could follow this example. The Soviet Union created similar systems in the Soviet Union. Now the People’s Republic of China has all the features of the Chinese Communist Party. The US created the world for transnational corporations.
The New World Order that’s coming we call “integral,” using the term coined by Pitirim Sorokin who said that Soviet imperialism and American capitalism will become a new society that’s going to be relieved of laws and would use all the positive features. It will be strategic planning and market competition. It would use the money controlled by the government, unlimitedly crediting investments. Public-private partnerships would be oriented toward maximizing the well-being of the people. It combines all the social interests of all social groups. The government is becoming the integrator. The idea is to raise the well-being. So this new system could be called “socialist” because common values are more important than private values. At the same time, it’s combined with traditional values. It’s not imperial. Here it’s national sovereignty. That’s international law.
Liberal globalization after Trump came to power was substituted by new protectionism. Instead of liberalizing economic regulations, the main locomotive for the growth of international trade was joint investments. A wonderful example is the Chinese approach which is “One Belt, One Road.”
Our focus proved to be true. The US is losing because its system of governance is 10 times worse than what was created in Southeast Asia. It’s agony. It’s agony—agony of the old center which is alone after the disruption of the Soviet Union. They cannot suggest anything to the world: not from the point of view of values, and not from the point of view of governance.
After 2008 the amount of cash grew fivefold. The money became economic bubbles. In China, it was also fivefold but it was going to different projects. The capital flows there are controlled by the government to improve competition. Based on those economic laws supported by empirical experience we can make a forecast that in the next 40-50 years there will be a new economic system. The core is there. It’s Southeast Asia. First of all, China and India. We can see that they are the largest democracy in the world and the largest Communist Party in the world. But from the point of view of governance, they’re quite similar—they use their special cultural features, they combine market and strategic planning in order to improve this well-being of their people, they’re not going to have war, but they’re going to have competition. In this case, it’s becoming bipolar so far.
It’s clear what’s going to happen with the West. It’s going to be greater chaos and falling down. This catastrophe is happening. In accordance with our forecast, this year is the turning point. Pax Americana doesn’t exist as a driver—a locomotive—of economic growth or as an example of a world order. What kind of world order can they suggest? They cannot suggest a new order. They can only suggest chaos. They try to make everything chaotic. But in Southeast Asia, they have an order. “One Belt, One Road” is 2/3 of the countries and that order is getting stronger.
We have the customs union. Now we have the Eurasian Economic Union. We celebrated the 15th anniversary of the Great Eurasian partnership. This is the main principle which was coined by our president. These principles of being mutually beneficial, having a voluntary approach, competitive advantages, and transparency. This is the foundation. It’s not a zero-sum game.
When we combine the Eurasian economic order with “One Belt, One Road” there are certain risks. The Americans can provide new chaos and conflicts. They really want Europe to have a nuclear war. They provoke us to use nuclear weapons. In order to have hegemony they want to have a local nuclear war in Europe initially. They believe that European wars are always good for the United States. This war so far helps them because they made Europe very poor and they are making money on this confrontation in Ukraine. To get rid of a catastrophic scenario: 5% probability here. 90% probability that there will be a new center in Southeast Asia.
The rest of the world is going to either join this core or become just some far-away country.
We understand what strategic planning is all about and how to use money to finance investment. Also currency control, no drain of capital, public-private partnership, well-being of the people, and so on. We have all that in our report. I will give you this report. Maybe your magazine is going to be interested in it.
In order to make this catastrophic scenario impossible we have to create a very broad anti-war coalition because this war is for brains, money, and territory. When it’s war to get money we lost a lot of assets, we lost a lot of provisions.
Americans are extremely strong because of the hegemony of US dollars. It’s not like yuan is going to substitute it. No. It will be a different currency financial system. We are going to launch a new currency which is going to be based on an international treaty. The currency cannot be used in the interest of one country or a group of transnational corporations. It must be a digital instrument based on a contract and every country must have the opportunity to issue this currency for international payments. Inside the countries, they’re going to use national currencies.
We suggest this type of currency. I believe that Russia, during its BRICS presidency, will provide a good impetus to its development and will establish a new currency financial system with a transparent mechanism. There will be no opportunity for American sanctions to work through banks.
Secondly, the foundation for an anti-war coalition is an agreement on information security. Russia is working hard to prepare a world convention on digital security. BRICS could take it. America is the number one cyber-terrorist in the world. But at least for us we could have real information safety, an embargo against the countries that conduct cyber terrorism.
I believe our president’s Great Eurasian partnership initiative is quite important.
— Sergey Glazyev, Member of the Board, Minister in Charge of Integration and Macroeconomics, Eurasian Economic Commission, speaking at “Polycentricity: The Norm of a Future World without Colonies or Hegemons” at the 27th St. Petersburg International Economic Forum.
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