Cuba, Nicaragua, and Venezuela are today threatened by US imperialism. The first salvo of the modern Age of Imperialism started back in 1898 when the US seized Cuba along with Puerto Rico and the Philippines in the Spanish-American War.
The Age of Imperialism, as Lenin observed, is characterized by the competition of the various imperial powers for dominance. That inter-imperialist rivalry led to World War I. Lenin called those putative socialists who supported their own national imperialist projects “social imperialists.” Social imperialism is a tendency that is socialist in name and imperialist in deed. Imperialism and its social imperialist minions are still with us today.
US Emerges as the World’s Hegemon
The United States emerged after World War II as the leading imperialist power. With the implosion of the Socialist Bloc around 1991, US hegemony became even more consolidated. Today the US is the undisputed world’s hegemon.
Hegemony means to rule but even more so to dominate. As the world’s hegemon, the US will not tolerate neutral parties, let alone hostile ones. As articulated in the Bush Doctrine, the US will try to asphyxiate any nascent counter-hegemonic project, no matter how insignificant.
In the Caribbean, for instance, the US snuffed out the leftist government of Grenada in 1983 in what was code named Operation Urgent Fury. Grenada has a population smaller than Vacaville, California.
The only powers that the world’s hegemon will tolerate are junior partners such as Colombia in Latin America. The junior partner must accept a neoliberal economic regime designed to serve the interests of capital. Structural adjustment of the economy is demanded such that the neoliberal “reforms” become irreversible; so that you can’t put the toothpaste back in the tube.
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CAMBRIDGE – Default is back. Sovereign finances weathered a wrenching global recession and a collapse in commodity prices surprisingly well over the past few years. But failed economic models cannot limp along forever, and the slow bleeding of the economies of Puerto Rico and Venezuela have now forced their leaders to say “no mas” to repaying creditors.
Earlier this year, Puerto Rico declared bankruptcy. At the time, the United States commonwealth had about $70 billion in debt and another $50 billion or so in pension liabilities. This made it the largest “municipal” bankruptcy filing in US history.
The debt crisis came after more than a decade of recession (Puerto Rico’s per capita GDP peaked in 2004), declining revenues, and a steady slide in its population. The demographic trends are all the more worrisome because those fleeing Puerto Rico in search of better opportunities on the US mainland are much younger than the population staying behind. And in September, at a time of deepening economic hardship, hurricane Maria dealt the island and its residents an even more devastating blow, the legacy of which will be measured in years, if not decades.
More recently, in mid-November, Venezuela defaulted on its external sovereign debt and debts owed by the state-owned oil company, PDVSA. Default on official domestic debt, either explicitly or through raging hyperinflation, had long preceded this latest manifestation of national bankruptcy.
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