The Seeds of Conflict: Anglo-American and Chinese History
"It is this Anglo-American axis (a 'special relationship') that has dominated the Western world for the past 150 years. It is a secretive and closely guarded group of families and individuals with enormous wealth derived from the implementation of mercantilist central banking. In recent years, America has provided the military power and to a large extent the corporate vehicles that have projected the 'one world' vision of the Anglo-American elite throughout the West, and even to Africa and Asia." – The Daily Bell, Glossary
Today in the 21st century as China again takes its rightful place as one of, if not the leading nation in the world we see many neoconservative "experts" warning of a clash of interests and civilizations between China and the West. Recent history shows us how the neocons took over traditional GOP foreign policy and they have never discovered a war or conflict they didn't like. The Middle East, Asia and now Africa are experiencing wars and conflicts designed to advance their foreign policy at the point of a gun using American troops as cannon fodder for their global economic and political agenda.
In the Defense Planning Guidance document prepared by Paul Wolfowitz, this statement of neoconservative thought states the following for American foreign policy: "Our first objective is to prevent the re-emergence of a new rival, either on the territory of the former Soviet Union or elsewhere, that poses a threat on the order of that posed formerly by the Soviet Union. This is a dominant consideration underlying the new regional defense strategy and requires that we endeavor to prevent any hostile power from dominating a region whose resources would, under consolidated control, be sufficient to generate global power."
The neocons view the Chinese military budget, equal to maybe 10 percent of the American budget, as a direct threat to the interests of the United States. Second, they are now positioning US foreign policy and direct military action against a major Chinese ally, Iran, the number one supplier of oil to China.
The Western View of China is Wrong
If you ask most people in the West about China, they know it has the world's largest population, owns more US dollar denominated Treasury debt than any other nation and invented fireworks, paper and maybe the printing press. It was historically a poor country, partially colonized by Great Britain and other western nations who brought Christianity, modern development and the best of civilization to a backward nation filled with starving people. China suffered badly during the Japanese invasion prior to World War Two and was an ally until Mao and the communists took over. Today it is a growing world power beginning to flex its military and economic muscles and this is a threat to western dominance.
The Chinese View and Real Situation is Somewhat Different
Actually, for most of world history, China was the wealthiest and most sophisticated nation or people on the planet. Read The Travels of Marco Polo back in 1295 to get an idea of the advances of the Chinese civilization. It produced more iron than all of Europe combined until the 20th century, and the people dressed in silk and lived in comfort hundreds of years ahead of Europe. From moveable type 400 years ahead of Gutenberg, suspension bridges, paper and printing, gunpowder, chess, the plow and many other innovations, China led the world.
Of course, China had its ups and downs and government mismanagement, all factors we are familiar with in the West today, and during a weak period Western interests gained a foothold in China. The British led the way and their mercantilism and trade with China, initially for tea, when combined with sugar from their Caribbean holdings basically addicted the entire British Empire to the modern-day stimulant of tea drinking.
The British Empire was Built upon Mercantilism and Addiction
"Mercantilism is the use of the state to fulfill one's personal objectives and self-interest. The use of the state, conflating private with public, allows the individual or small group to obtain clout that would otherwise not be feasible.... Mercantilism, the realizing of private goals for individuals or small groups through public means, has a long and ancient history, doubtless as long as humankind itself." – The Daily Bell, Glossary
While some modern-day conspiracy theorists describe the US government as a narco-republic because of the participation of American foreign and domestic intelligence services as well as criminal and law enforcement elements in the drug trade, this is far from the truth. In actuality, American criminals and law enforcement working together with the prison lobby have helped to make America the prison capital of the world, dwarfing the per capita prison populations of all Third World countries combined, including China and Russia.
The dirty truth is the US, with less than 5 percent of the world's population, has almost 25 percent of the global prison population and much of this is a direct result of drug offenses targeting mostly the poor and minority populations.
British Empire Funded by Opium
Still, the real narco-republic in world history isn't the United States, Mexico, Colombia or other transit points to the artificially created drug epidemic in the United States. This dubious honor actually goes to the British Empire, as their Bengal-to-China opium business during the time of Queen Victoria grew into the world's largest commodity trade during the 19th century. Opium accounted for almost 20 percent of the Empire's total revenue, yet opium was just the tip of the addictive trade.
In the United States and the British Empire addictive substances were the major business of British mercantilism. For example, the original British colonies like Jamestown and Virginia were economically unfeasible before the smoking of tobacco caught on in Europe and smoking and snuff created a cash crop from America.
Later, sugar from British Caribbean colonies was added to the British consumption of tea from China and the entire Empire became addicted to tea. But there was a problem. Unlike in the Americas where cotton and tobacco were traded for British manufactured goods, China simply said no to foreign imports.
Their leader, the Son of Heaven, wrote King George III in 1793: "We posses all things. I set no value on objects strange or ingenious, and have no use for your country's manufactures." Great Britain had addicted their entire population to the stimulation of tea and sugar but China surprisingly demanded silver as payment for the tea. This created a permanent drain of gold and silver from the British Empire to China and a gigantic balance of payments deficit resulted that threatened the future solvency of the British Empire. This situation is very similar to China's holdings of US Treasury debt today.
Since the Chinese wouldn't import British manufactured goods, London needed something to export to China to reduce the deficit. First, the British Empire's solution was to invest huge sums of money into opium farming and production and in the colony of India they created over a million registered opium farmers. Then, taking tobacco from other colonies they mixed opium with the tobacco and in due time addicted the majority of the Chinese population to opium, through intermediaries. Now Great Britain had their export to China with which to cover tea imports.
China subsequently lost more silver in the 30 years up through 1850 than Britain had paid for tea in the previous 125 years. The Chinese economy was destroyed but then the Son of Heaven finally moved to halt the opium trade by making it illegal and enforcing the prohibition. This again threatened the survival of the British Empire. Queen Victoria dispatched a British navy to force China to push their illegal drugs sales. This caused the two opium wars, one lasting from 1839 to 1842 and the other from 1856 to 1860. During these wars Britain occupied and took the port of Hong Kong to improve opium distribution to the Chinese.
"Almost every person...not connected with government is employed in the opium trade." – Sir John Francis Davis, governor of Hong Kong from 1844 to 1848
Thus, the Chinese addiction to opium and the opium wars were British government policy and it is doubtful many in the West understand what happened, while it is likely all Chinese are aware of this part of their history with the West.
Opium Trade was Big Business for Americans
Also, it wasn't just England involved; many Americans in New England also made their fortunes in the opium trade after the slave trade was outlawed. For example, Franklin Roosevelt's grandfather, Delano, made most of the family fortune in the Chinese opium trade.
He was not alone. Many of the wealthy New England families built their fortunes on slave and opium trading. In fact, most of the American Ivy League universities were funded to a great degree when dirty money from the slave and opium trade was washed and then use to build new reputations for these families.
For example, John Cleve Green donated much of his opium profits to Princeton University, Abiel Abbott Low used his opium fortune to finance the construction of Colombia University, John Murray Forbes financed the Bell Telephone Company, Joseph Coolidge's son organized the United Fruit Company and his grandson was the founding executive officer of the Anglo-American Council on Foreign Relations. This is just the tip of the iceberg in showing how many among the power elite made their fortunes with the China opium trade.
The Roosevelt Family, Opium and China Legacy
Franklin Roosevelt was born into the elite lifestyle of a family of wealth and privilege in Hyde Park, New York, with major financial interests in railroads. Most of the real family wealth, however, had been made earlier by Roosevelt's grandfather, Delano, in his involvement with the opium trade in China.
An interesting aside is the China trade and resources of another kind, oil, would in turn dominate the later President Roosevelt's determination to create a war with Japan. The original Japanese aggression against China that helped lead up to World War Two was actually initially created by secret negotiations by another Roosevelt, President Teddy Roosevelt. He privately and unconstitutionally urged the Japanese to "civilize" both China and Korea by invading and creating a Japanese-style Monroe Doctrine for Asia. Eventually this culminated in the formation of the "Greater East Asia Co-Prosperity Sphere," which became the organization used by Japan to run its puppet governments in the occupied nations.
The Tea, Silver and Opium Connection
Americans generally do not understand their own history, much less past international economic and foreign military actions. As is always the case, politicians hire and control publishing houses and the news media in order to sanitize history, extoll their virtues and demonize the losing opposition. The British Empire as well as all major nations do the same.
As the United States is headed toward increased conflict and economic competition, it is important that we understand the history of China and their history of having been ravaged by the Anglo-American establishment during tough times similar to what we are facing as a nation today. The US is an over-indebted, declining world power, losing its manufacturing base and world reserve currency status against the rising power of China.
America should resist efforts by the neocon think tanks and lobbyists to pull us into a direct confrontation with China due to our misguided Middle East foreign policy. The costs of such an outcome would be heavy and burdensome to our nation and people. Remember, what goes around comes around, and in the case of China I would expect them to give what they earlier received from the West.
Posted by Danny B on 09/27/12 10:21 PM
Just an update. Iran and Russia will sell oil to China NOT in dollars.
Canada and Mexico will sell oil to China NOT in dollars. Then, there is Venezuela.
'Venezuela's oil is at the service of China,' Chavez, 58"
All those CBs can dump their not-needed now dollars.
China has melted down all their gold into 1 kilo bars,,, presumably so that they can circulate. They can easily produce a gold-backed Yuan for external trade.
The U.S. has to roll over $ 4 trillion in debt in the next year. You can bet that a lot of foreign CBS will take a pass.
U.S. GOV wants Berwanker to keep EVERYTHING going with printing.
Jim Willie, "the money velocity has
fallen dangerously even as money supply has tripled since August 2008, the gears of the USEconomy stripped, lacking industry from
which to gain traction"
The FED knows that this is the end-game.
Posted by Danny B on 09/18/12 11:09 AM
China is definitely headed for a hard landing. After the U.S.S.R. had it's hard landing, they sold every drop of oil that they could produce to get back up off the ground.
There was a recent move by China to sell oil in non-dollars. Russia said that they would supply all the oil that China wanted. They can get it from Iran also. That means that China plans to be an oil broker / distributor.
Iran and Russia will pull their oil out of the dollar market.
America already had to give exemptions to the Iran oil blockade. Just imagine what this latest move from China will mean.
EVERYONE can dump their dollars and buy with other currencies. This is undoubtedly a causus beli for America. A Sino-Russian oil cartel controlling that much oil will wipe out the idea of a petro-dollar. The Chinese are building a huge refinery in Saudi. That says something.
The U.S. can try to block Iranian oil sales. China can just resell it and mark it 'Brand X"
Advanced Russian and Chinese missiles insure that American can NOT prevail in a war. If America can not block China from the fertile lands in Africa, the petro-dollar is toast.
Click to view link
Posted by Spectator on 09/18/12 05:27 AM
Well done, sir.
Posted by countzero on 09/17/12 06:35 PM
Thank you, Mr. Holland, for your refresher course in History 101. Even though I was one of those who lived through a small part of that history (beginning with Franklin Delano Roosevelt) and enjoyed first-rate private schooling, THAT was not the history of China and Asia that I was taught. Since it is said that history is written the way in which those in power wish it to be, it is easy to understand why the Anglo-American cartel would have preferred we think of their efforts to "civilise" the people of Asia in terms of Manifest Destiny and the White Man's Burden ... . rather than what it really was - Mercantilist rape!
As for the current economic competition between China and the government of United States of America, that history is yet to be written. When that comes to pass, I would hope that there would be someone like you to keep straight the record of events, just as you have in this latest article.
Posted by taxesbyanyothername on 09/17/12 02:31 PM
Excellent article Ron. However China still has many problems, some of which they are actively worsening. Their generation of "little emperors" is likely to be followed by another. Almost no one in The West mentions or even realizes the extent of top soil errosion in China. The yellow loess is washing into the Yellow Sea at an enormous rate. Their efforts to stop it would be laughable if they were not tragic. Their system is schizophrenic, communism mixed with capitolism. The differences with the "systems" that are destroying The West are unmistakeable but so are the similarities.
Without a revolution the government control and corruption, including that of fiat money which has been their downfall so many times in the past, can only get worse.
As energised as China appears at present they are still just piggybacking on foreign economic demand and the innovations of The West. The present is not just a passing of the torch from one dominant civilization to another as has happened so many times before. Socialism in various guises has ravaged nearly every culture.
Interesting times indeed.
Posted by motohead42 on 09/17/12 01:22 PM
Interesting "update" on Chinese history, compared to what we are taught in the government schools.
In addition to the encouragement from T. Roosevelt to practice the "monroe doctrine" in the far east, the Japanese were also motivated internally to get rid of the British and their hated opium trade, thereby "liberating" china, korea and manchuria, etc... "Asia for the Asians" was the slogan of the times. Funny that the indigenous population didn't quite see it that way, which is natural when a foreign army invades, thereby creating a whole nest of problems. F. Roosevelt was able to take advantage of the friction between the Japanese Army and the native populations when it was in his best interests (read: oil and other commodities) to do so.
The distortions created by media mis-charactizations of the Japanese and the resulting attacks on Hawaii and the Phillipines unfortunately still linger with those that were alive during WWII.
Posted by Rrust on 09/17/12 08:50 AM
Thank you Ron Holland. --Much needed article touching on the histories that Anglo-Americans need to be reminded of regularly. Many *westerners* need a dose of humility, with regard to their true political evolution. Aahhh, yes… the workings of karma on scales large and small… nations and individuals… 'round and 'round it goes...
This strikes me as a truly inspired piece of work. --And good to see some names put forward.
Family and individual sanitizations are indeed marvellous to behold, and so readily-swallowed.