Wednesday, October 22, 2025

 

The War between Russia and Ukraine has been Brewing Since 1991

By Dr. Rodrigue Tremblay

(Author of the book about morals "The Code for Global Ethics" and his book about geopolitics "The New American Empire")


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PREFACE

The war in Ukraine is a senseless war that should not have happened with a minimum of judgement, understanding, and diplomacy.

Ukraine is a buffer state between Russia and NATO countries, armed by the United States.

Many politicians and journalists seem to have forgotten the real historical causes behind the Ukraine war.

In 1991, after the fall of the Soviet Union, the US Georges H. Bush administration reassured Russia that NATO would not expand "one inch" toward Eastern Europe, provided that Russia would not oppose the reunification of the two Germanies.

Germany was reunified, but subsequent US administrations soon began expanding NATO in the direction of Russia. After a coup that deposed the elected pro-Russian Ukrainian government, in February of 2014, there was even a decision to have Ukraine, a former member of the USSR, join NATO.

This was part of an American neoconservative plan to encircle Russia in order to weaken it geopolitically, militarily, and economically.

That was crossing a red line that the Russian government could not accept, because it meant having NATO missiles at Russian's borders—just as in 1962, the US Kennedy administration could not accept having Soviet missiles in Cuba, only 90 miles from Florida.

When all efforts failed to reverse the encirclement policy—including a last-ditch diplomatic effort in December of 2021—on February 24, 2022, Russia illegally invaded the neighboring Russian-speaking regions of Ukraine.

In short, if we consider all the decisions that led to this war, it is difficult to come to any other conclusion than that it was a provoked war.

(The following article with more details was published on March 3, 2022.)

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"I think it is the beginning of a new Cold War... I think the Russians will gradually react quite adversely and it will affect their policies. I think it is a tragic mistake. There was no reason for this whatsoever. No one was threatening anybody else. This expansion would make the Founding Fathers of this country turn over in their graves. We have signed up to protect a whole series of countries, even though we have neither the resources nor the intention to do so in any serious way." George F. Kennan (1904-2005), American diplomat and historian, (in an interview with Thomas L. Friedman in the New York Times, May 2, 1998, about the U.S. expansion of NATO)

[NATO's goal is] "to keep the Russians out [of Europe], the Americans in and the Germans down." Hastings L. Ismay (1887-1965), first NATO Secretary-General (1952-1957)

"We [the State Department] have invested over $5 billion to assist Ukraine in these and other goals that will ensure a secure and prosperous and democratic Ukraine." Victoria Nuland (1961- ), Under Secretary at the State Department, in a speech, Dec. 13, 2013.

"The North Atlantic Alliance continues to expand, despite all our protests and concerns... Despite all that, in December 2021, we made yet another attempt to reach agreement with the United States and its allies on the principles of European security and NATO's non-expansion. Our efforts were in vain... For the United States and its allies, it is a policy of containing Russia, with obvious geopolitical dividends. For our country, it is a matter of life and death, a matter of our historical future as a nation." Vladimir Putin (1952- ), Speech to the Nation, Wednesday, Feb. 23, 2022.

The tragic and illegal war of aggression launched by Russia (pop. 146 million) against Ukraine (pop. 44 million), its neighbor, on Thurs. February 24, 2022, has raised much emotion and many reactions in the West, and for good reasons.

Most people would much prefer that international conflicts between states be settled through diplomacy, or at the very least, through peaceful arbitration. Unfortunately for humanity, this is not yet the case. It is inadmissible that wars of aggression still rage today. In the end, it is ordinary people, the poor and the young, in particular, who end up paying, often with their lives, for the mistakes and failings of so called 'leaders'.

At a time when weapons are increasingly lethal and destructive, it would appear that there is no longer any credible arbiter in the world to avoid military conflicts. This makes for dangerous times.

Therefore, several questions come to mind.

Will Europe, which was a large battlefield in the first half of the 20th Century, become embroiled in military conflicts again, in the 21st Century? Has the United States, which controls NATO, pushed that alliance's expansion into Eastern Europe and Russia too far? Why do the institutions of peace that the world created after World War II seem to have withered away to the point of being incapable of preventing wars? Is it still possible to reform these institutions in order to prevent the world from falling back into the practices of past centuries?

Considering the complexity of today's world and the divergent interests involved, it could be useful to identify the main reasons for the deterioration of international order over more than the last quarter of a century, especially since the collapse of the Soviet Union, in December 1991.

• There is a clear danger of repeating the mistakes of the past in isolating countries from international life

The brinkmanship policy of isolating, humiliating and threatening foreign countries is a very dangerous approach in international relations. Such a policy, pursued against Germany by the French and other allied powers after World War I (1914-1918), through the imposition of heavy war reparation payments on Germany, is credited with having created the conditions that ultimately led to World War II (1939-1945).

Today, the world is again facing a European war between Russia and Ukraine, a war that should have been avoided, with a little more goodwill, leadership and perspicacity. Also, such a war of aggression illustrates very clearly how humanity risks returning to the geopolitical situation that prevailed before the Second World War.

It was a time when the League of Nations was paralyzed; much like the United Nations is today. It was also a time when major nations had been humiliated during the aftermath of World War I. They harbored resentment towards the victorious countries, which, in their eyes, only looked after their own narrow interests.

Let us remember that the United Nations was created in 1945 to prevent wars. But in the 21st Century, wars of aggression are still with us. Only during the past twenty years, the world has seen two major wars of aggression, both illegal under the U.N. Charter: the invasion of Iraq on March 20, 2003, by the United States and the invasion of Ukraine by Russia on February 24 of this year.

This may be an indication that the politico-legal system put in place in 1945 to prevent war is not working, at a time in human history when a war involving nuclear weapons could be more than catastrophic.

• The dangerous mentality prevailing today at the State and Defense Departments in the U.S.

Analysts and decision makers at the U.S. State Department and at the Pentagon rely on war games with simulations of military strategies of action-reaction, using computers, as if foreign policy were a kind of video game. That leaves little space for rational thinking, human feelings and imagination.

Relying on such 'games' is very dangerous because such a use of programmed computers could lead to huge mistakes in real life, and because they can make destructive military hostilities seem trivial and inconsequential.

• NATO as a substitute to the United Nations

After the fall of the USSR, in 1991, some so-called 'planners' in the American government saw an opportunity to place the U.S. government as the sole arbiter of international foreign relations in the post-Cold War world. They viewed the United Nations as a cumbersome body where five countries (USA, Russia, China, U.K. and France) held sway over the U.N. Security Council with their veto.

The idea was to rely on the 'defensive' NATO, created in 1949 to secure peace in Europe, with the goal of countering the threat posed then by the Soviet Union. It was believed, no doubt rightly, that NATO would be more favorable than the U.N. to U.S. interventions in the world. However, contrary to the U.N., NATO is a war machine, which has no legitimate mechanism to bring about peace.

Even though in the past the U.S. government has often had the backing of the United Nations for its interventions abroad, humanitarian as well as military—the Korean War (1950-1953) was a good example of the latter—things changed in 1999. Then, under President Bill Clinton, U.S. Armed Forces started a bombing campaign against Yugoslavia, under the NATO flag, but without the authorization of the U.N. Security Council. This was a precedent.

Since that questionable decision, all U.S. military interventions abroad have been conducted under the cover of NATO, and not under the U.N. Charter. And that is where the world stands today.

• Why the beleaguered Russia is in a position similar to defeated Germany in the 1930's

The shock of the fall of the Soviet Union was to Russia what the shock suffered after its defeat in the First World War was for Germany. In both cases, these involved large populations subjected to foreign interference, lasting several years. The interests of these two countries were ignored in the new international order.

The fall of the Soviet Union raised two fundamental questions. The first: What would become of the two military defense alliances, the Warsaw Pact of 1955 and the North Atlantic Treaty Organization (NATO) of 1949? Both were organizations of mutual assistance, mainly military, against each other during a period of Cold War (1945-1989). The second: How to achieve the reunification of West Germany and the German Democratic Republic (GDR)?

From a geopolitical standpoint, these two questions were interrelated, especially from a Russian point of view. Russia conserves the historical memory of having been invaded by two great armies, by France under Napoleon, in 1812, and by Germany under Hitler, in 1941.

The fall of the Soviet Union meant the automatic dissolution of the Warsaw Pact. Would the same be true of NATO? Not necessarily.

Indeed, for the U.S. government, NATO was its main source of influence in Western Europe. Containing the Soviet Union was not the only objective in creating NATO. Therefore, the George H.W. Bush administration and its Secretary of State, James Baker, had no intention of dismantling NATO.

On the Russian side, the position was that if NATO continued to exist, either as a defensive or an offensive military alliance, it was essential that it commit to not expanding into Eastern Europe and not threaten Russia.

Declassified documents show that the government of George H.W. Bush, through his Secretary of State James Baker, and the governments of major member nations of the alliance, were willing to promise the Russian government that NATO would not expand into Eastern Europe, as long as the Russian government accepted the reunification of the two Germanys (1990-1991). History has recorded the colorful expression of James Baker, on February 9, 1990, to the effect that NATO would not expand "one inch Eastward".

• The growing influence of neoconservatives (neocons) in U.S. foreign policy

American foreign policy changed dramatically in the 1990's, notably under the Democratic administration of Bill Clinton (1993-2001), and even more so under the Republican administration of George W. Bush (2001-2009).

Even though President George H.W. Bush used to dismiss the neocons, at least those working in the U.S. government, as "the crazies in the basement" a small group of them did succeed in dominating American foreign policy later on. Their ideas provided the foundations of 'The New American Empire', (which is also the title of a book I wrote in 2004).

The neocon hegemonic mantra was very simple: The United States should take advantage of the demise of the Soviet Union and of its unparalleled military power to impose a "Pax Americana" similar to the Pax Romana during the Roman Empire.

In short, the United States must take advantage of its status as the undisputed military superpower in a unipolar world and adopt a very interventionist foreign policy, while putting emphasis on "national greatness". And above all, they rejected any policy of accommodation or détente with Russia, just as they had done toward the USSR.

Armed with this doctrine, subsequent U.S. administrations, from the Bill Clinton administration on, have more or less followed its dictates. In particular, they have de facto abandoned the U.N. as the arbiter of world peace, and instead have increasingly relied on NATO to impose a Pax Americana.

• The coup that overthrew the Ukrainian government in 2014

There is an important event not to forget. In 2014, there was a coup in Ukraine that overthrew the pro-Russian government of President Viktor Yanukovych, elected four years earlier, with strong support from the Russian-speaking population in the eastern part of the country.

The above quote of American Under Secretary of State for European Affairs, Victoria Nuland, would indicate that the U.S. government had spent billions of dollars to support various organizations in Ukraine.

In the fall of 2013, a protest movement called the 'Maidan Revolution' began peacefully in Kiev, the country's capital. The protestations were directed against the Ukrainian government and its refusal to sign a bilateral commercial trade agreement with the European Union. However, things escalated when initially peaceful protests turned violent, in February 2014. Then, despite elections being scheduled for May of the same year, the Ukrainian parliament summarily dismissed the incumbent president and formed a new government.

That episode may help in understanding the future turn of events in Ukraine.

• The war between Russia and Ukraine is to a large extent a response to the progressive military encirclement of Russia by NATO

Since 1991, Russia has opposed NATO's eastward expansion and has many times requested security guarantees that this would not happen.

Nevertheless, in spite of promises made by the George H.W. Bush administration and other governments, some subsequent U.S. administrations did go ahead and expand NATO eastward.

For instance, in 1999, the Clinton administration accepted that Poland, Hungary and the Czech Republic join NATO. In 2002, George W. Bush accepted seven more eastern countries (Bulgaria, Estonia, Latvia, Lithuania, Romania, Slovakia and Slovenia) into NATO. In 2009, it was Albania and Croatia's turn to join. The most recent adhesions to NATO are Montenegro, in 2017, and North Macedonia, in 2020.

Things went even further when, in December 2014, the Ukrainian parliament voted to renounce its non-aligned status, a step harshly condemned by its neighbor Russia. Ukraine—a former Soviet republic, which became independent in 1991—has made it clear that it wishes to join NATO. And more recently, in 2021, Ukraine became an official candidate for NATO membership. The rest is history.

• Conclusion


In these troubled times, an outside and independent moral authority should perhaps intervene to prevent the world from falling into the abyss of military conflicts. Possibly, an invitation could be made to either the Secretary General of the United Nations, António Guterres, or to Pope Francis, to serve as conciliator, in order to stop the ongoing war between Russia and Ukraine, before the Ukrainian people suffer irreparable loses, and before other countries intervene and turn the conflict into a world war.

And afterwards, the world had better recapture the spirit of 1945 and set about reforming its international institutions so that they are truly capable of preventing destructive wars, not in theory but in practice.


International economist Dr. Rodrigue Tremblay is the author of the book about morals "The code for Global Ethics, Ten Humanist Principles" of the book about geopolitics "The New American Empire".

He holds a Ph.D. in international finance from Stanford University.

Please visit Dr. Tremblay's site or email to a friend here.

Posted Wednesday, October 22, 2025, (initially published on March 3, 2022.)

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Monday, August 4, 2025

 

Monday, August 4, 2025

The Moral Legacy of Hiroshima and Nagasaki / 80th anniversary of the atomic bombing of August 6 and 9, 1945

By Dr. Rodrigue Tremblay, Emeritus professor of economics, Université de Montréal

"We have discovered the most terrible bomb in the history of the world. It may be the fire destruction prophesied in the Euphrates Valley Era, after Noah and his fabulous Ark.... This weapon is to be used against Japan ... [We] will use it so that military objectives and soldiers and sailors are the target and not women and children. Even if the Japs are savages, ruthless, merciless and fanatic, we as the leader of the world for the common welfare cannot drop that terrible bomb on the old capital or the new. ...  The target will be a purely military one... It seems to be the most terrible thing ever discovered, but it can be made the most useful." Harry S. Truman (1884-1972), 33rd U.S. President, (Diary, July 25, 1945)

"The World will note that the first atomic bomb was dropped on Hiroshima a military base. That was because we wished in this first attack to avoid, insofar as possible, the killing of civilians."
Harry S. Truman (1884-1972), 33rd U.S. President, (radio speech to the Nation, August 9, 1945)

".. In [July] 1945... Secretary of War [Henry L.] Stimson, visiting my headquarters in Germany, informed me that our government was preparing to drop an atomic bomb on Japan. I was one of those who felt that there were a number of cogent reasons to question the wisdom of such an act. ...The Secretary, upon giving me the news of the successful bomb test in New Mexico, and of the plan for using it, asked for my reaction, apparently expecting a vigorous assent...During his recitation of the relevant facts, I had been conscious of a feeling of depression and so I voiced to him my grave misgivings, first on the basis of my belief that Japan was already defeated and that dropping the bomb was completely unnecessary, and secondly because I thought that our country should avoid shocking world opinion by the use of a weapon whose employment was, I thought, no longer mandatory as a measure to save American lives.
It was my belief that Japan was, at that very moment, seeking some way to surrender with a minimum loss of 'face'. The Secretary was deeply perturbed by my attitude."
General Dwight Eisenhower, Supreme Commander of the Allied Forces in Europe and 34th U.S. President from 1952 to 1960, (Mandate For Change, p. 380)

"Mechanized civilization has just reached the ultimate stage of barbarism. In a near future, we will have to choose between mass suicide and intelligent use of scientific conquests [...] This can no longer be simply a prayer; it must become an order which goes upward from the peoples to the governments, an order to make a definitive choice between hell and reason."
Albert Camus (1913-1960), French philosopher and author, August 8, 1945"

As American Christians, we are deeply penitent for the irresponsible use already made of the atomic bomb. We are agreed that, whatever be one's judgment of the war in principle, the surprise bombings of Hiroshima and Nagasaki are morally indefensible."
The American Federal Council of Churches' Report on Atomic Warfare and the Christian Faith, 1946

"It is my opinion that the use of this barbarous weapon at Hiroshima and Nagasaki was of no material assistance in our war against Japan... The lethal possibilities of atomic warfare in the future are frightening. My own feeling was that in being the first to use it, we had adopted an ethical standard common to the barbarians of the Dark Ages."
William Leahy, Chief of Staff to Presidents Franklin D. Roosevelt and Harry S. Truman (“I Was There”, p. 441).


Next Wednesday and Saturday will mark the 80th anniversary of the U.S. nuclear bombing of the Japanese cities of Hiroshima and Nagasaki on August 6 and 9, 1945. The following is a reproduction of an article originally published on August 12, 2010.

When U.S. President Harry S. Truman decided on his own to use the atom bomb, a barbarous weapon of mass destruction, against the Japanese civilian populations of the cities of Hiroshima and of Nagasaki on August 6 and on August 9, 1945, the United States sided officially on the wrong side of history. 

Indeed, U.S. President Harry S. Truman (1884-1972) gave the green light to drop the atomic bomb on the Japanese city of Hiroshima, which then had a population of approximately 350,000. He also gave the order to repeat the carnage three days later and to drop a second atomic bomb on the city of Nagasaki, a then population of 240,000. During these two attacks, more than 210,000 people died in horrific circumstances in these two Japanese cities.

It seems that no consideration of basic human morality entered into Truman's fateful decision, only military considerations and a geopolitical reason, i.e. to prevent the victorious Soviet Union in Europe from invading Japan and force a partition of the country, just as has happened in Europe with Nazi Germany.

General Dwight Eisenhower, Supreme Commander of the Allied Forces in Europe and 34th U.S. President from 1952 to 1960, said it in so many words: "...the Japanese were ready to surrender and it wasn't necessary to hit them with that awful thing."  (Newsweek, November 11, 1963). It seems that military man Eisenhower was more ethical than Freemason small-town politician Harry S. Truman regarding the fateful decision.

In being the first country to use nuclear weapons against civilian populations, the United States was then in direct violation of internationally accepted principles of war with respect to the wholesale and indiscriminate destruction of populations. Thus, August 1945 is a most dangerous and ominous precedent that marked a new dismal beginning in the history of humanity, a big moral step backward.

In future generations, it most certainly will be considered that the use of the atom bomb against the Japanese civilian populations of Hiroshima and Nagasaki was a historic crime against humanity that will stain the reputation of the United States for centuries to come. It can also be said that President Harry S. Truman, besides lying to the American people about the whole sordid affair (see official quotes above), has left behind him a terrible moral legacy of incalculable consequences to future generations of Americans.

Many self-serving reasons have been advanced for justifying Truman's decision, such as the objective of saving the lives of American soldiers by shortening the war in the Pacific and avoiding a military invasion of Japan with a quick Japanese surrender. That surrender came on August 15, 1945 and it was made official on September 2 with the signing of the Japanese Instrument of Surrender, nearly one month after the bombing of the cities of Hiroshima and Nagasaki. 

Nazi Germany had capitulated on May 8, 1945 and World War II was already over in Europe. There was also the diplomatic fear that the Soviet Red Army could have invaded Japan, as they had done in Berlin, thus depriving the United States of a hard fought clear-cut victory against Japan.

But by the end of July 1945, according to military experts, the Japanese military apparatus had de facto been defeated. It is also true that the militarist Japanese Supreme Council for the Direction of the War was stalling with the aim of getting better capitulation terms hoping for a negotiated settlement, especially regarding the future role of their Emperor Hirohito as formal head of state.

In Europe, the allies had caused a recalcitrant Nazi Germany to accept an unconditional surrender and there were other military means to force the Japanese government to surrender. The convenient pretext of rushing a surrender carries no weight compared to the enormity of using the nuclear weapon on two civilian targets. 

And even if President Truman was anxious to demonstrate the power of the atom bomb and impress Soviet allies—and possibly also assert himself as a political figure vis-à-vis previous President Franklin D. Roosevelt, who had died a few months earlier, on April 12, 1945—this could have been done while targeting remote Japanese military targets, not on targeting entire cities. It seems that there were no moral considerations in this most inhuman decision.

Conclusion

Since that fateful month of August 1945, humanity has embarked upon a disastrous nuclear arms race and is rushing toward oblivion with its eyes open and its mind closed.
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International economist Dr. Rodrigue Tremblay is the author of the book about morals "The code for Global Ethics, Ten Humanist Principles" of the book about geopolitics "The New American Empire", and of his recent book, in French, "La régression tranquille du Québec, 1980-2018". 

He holds a Ph.D. in international finance from Stanford University.

Please visit Dr. Tremblay's site or email to a friend here.

Posted Monday, August 4, 2025. 

*** To receive new postings of Dr. Tremblay's articles, 
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© 2025 Dr. Rodrigue Tremblay



Tuesday, July 1, 2025

 

Donald Trump's Autocratic One-Man Government Regime is Doomed to Failure, but Not Before a Lot of Chaos and Destruction

Tuesday July 1, 2025

By Dr. Rodrigue Tremblay, Emeritus professor of economics, Université de Montréal

"I won't be a dictator, except for day one.Donald Trump (1946- ), during an interview with Fox News, December 6, 2023.

"If it is forced to defend itself (the U.S.) or its allies, we will have no choice but to totally destroy North Korea." Donald Trump (1946- ), in a speech at the United Nations, September 19, 2017.

"If they [Iran] don't make a deal, there will be bombing. It will be bombing the likes of which they have never seen before." Donald Trump (1946- ), in a NBC News phone interview, March 30, 2025, with similar threats repeated on June 15, 2025, on his social media site Truth Social.

"We will tariff and tax foreign countries to enrich our citizens." Donald Trump (1946- ), in his inaugural speech, January 20, 2025.

"Trade wars are good and easy to win.Donald Trump (1946- ), comment made on Twitter, March 2, 2024.


I- Every hundred years or so, there seems to be a cycle of the death of a democracy and the rise of a dictatorship in an important country

The British historian Arnold Toynbee (1889-1975)) observed that "civilisations die by suicide, not by murder", as a result of moral decay, social strife or failure to adapt.

The same could be said of democracies. They are born, grow, prosper, age, and sometimes collapse and give way to plutocracies or to dictatorships. This is especially likely when democracies fail to solve major economic and social problems.

Indeed, over the past few centuries, a political revolution or a wave of collective madness or of collective ignorance have occasionally led to a dictatorship in a given country. At the beginning of the 19th century, this was the case in France, in 1804, with the consecration of Emperor Napoleon Bonaparte (1769-1821), of Corsican origin.

In the 20th century, it was Russia's turn to have a revolutionary government, led by Vladimir Ilyich Lenin (1870-1924), after the creation of the Soviet Union in 1922. This was followed by Joseph Stalin's (1878-1953) absolute dictatorship from 1924 to 1953. —Then Italy descended also into a totalitarian dictatorship in 1925, under Benito Mussolini (1883-1945) —followed by Germany, in 1933, with the rise to power of the dictator of Austrian origin, Adolf Hitler (1889-1945).

—In the 21st century, against all odds, it is the United States that is now facing the prospect of an autocratic government.

It is always a challenge for a democracy to survive over time. Given the right circumstances, even the best constitutions can be violated and trampled upon.

History is there to remind us that democracy, that is, in the time-honored phrase of President Abraham Lincoln (1809-1865), when we have a "government of the people, by the people and for the people" (in his Gettysburg Address on November 19, 1863), is not necessarily a fundamentally natural and stable reality.

In fact, oligarchies, plutocracies, would-be dictators and their allies may sometimes find it to their advantage to seize power in a country and to subjugate the population. [N.B.: The average intelligence quotient in a large population, i.e. the IQ score, is around 100. (It is currently in decline in Western countries.) Therefore, there could be many possibilities for some unscrupulous people to manipulate large segments of the population to their advantage.]

II-Donald Trump the Politician: His dangerous character and personality flaws

The current occupant of the White House, Donald Trump (1946- ), seems to have ambitioned to transfer his one-man business model into a one-man US government model, and thus satisfy his innate fixation and low instincts for predation, extortion, exploitation and domination.

Moreover, it has been widely reported that his first wife Ivana confirmed that he kept a book of Nazi dictator Adolf Hitler's speeches, 'My New Order', on his bedside table.

There could be some similarity between Trump's authoritarianism and anti-democratic and neo-imperialist tendencies, and those of past dictators, considering his hyper egotistical personality and his populist and ultra-nationalist, sometimes violent, rhetoric.

The aid and support that D. Trump gave to the insurrectionists of January 6, 2021, and to their assault on the Capitol in their attempt to reverse the electoral results of 2020, and the fact that he pardoned almost all of them on January 21, 2025, add weight to this assessment.

Moreover, Donald Trump is the first person criminally convicted to occupy the White House, and he has also been condemned 34 times as a felon besides being widely considered an autocrat.

III- Donald Trump would seem to be unqualified to be President of the United States

One would have to be asleep, blind, deaf or very distracted not to see that politician D. Trump is not a normal and balanced individual, let alone a steady person of integrity, empathy, decency, competence, humility, prudence and responsibility.

Since his inauguration on January 20, 2025, Donald Trump has been a factor of chaos unto himself and a great source of political, economic and financial instability, not only for the United States but for all countries that have relations with his country.

With his impetuous pronouncements, his lies and boastings, insults, incendiary threats and bully tactics, D. Trump has revealed a whole series of personality disorders that should be of concern in a head of government. —He doesn't seem to have friends, only servants and potential enemies whom he insults in order to discredit them, humiliate them, destabilize and silence them. 

Moreover, while acting as an autocrat, like other autocrats before him, Donald Trump can be expected to launch his country into unprovoked and illegal wars of aggression against other nations, if this is to his advantage.

Conclusion

Democracy is presently threatened in some Western countries, notably in the United States.

There is a real danger that the ominous move to plutocracy on the date of January 21, 2010, when the U.S. Supreme Court opened the floodgates to unlimited amounts of money in American electoral politics, could one day lead to the instauration of an autocratic form of government in the United States.

The risk exists that current President Donald Trump and his administration of sycophants and rich oligarchs could push the US Constitution aside and could behave as de facto autocrats, thus imposing a one-man centralized Trump administration, while challenging the courts to stop them.

There is also a very great risk that such an individual, deeply self-centered, constantly self-congratulating and lacking in judgment and morals, could become the most serious risk to peace, creating chaos not only in his own country but also in the world.

As a general rule, an incompetent politician who surrounds himself with competent advisors can get by. However, if he is short-sighted enough to surround himself with like-minded people, failure becomes a certainty and disasters are bound to follow.

Let us hope that Americans could have the courage to save their country and save their Constitution, their democracy, and the rule of law, as well as their freedom and their prosperity. The world would only be a better place for it.

__________________________________________________________________

International economist Dr. Rodrigue Tremblay is the author of the book about morals "The code for Global Ethics, Ten Humanist Principles" of the book about geopolitics "The New American Empire", and of his recent book, in French, "La régression tranquille du Québec, 1980-2018". 

He holds a Ph.D. in international finance from Stanford University.

Please visit Dr. Tremblay's site or email to a friend here.

Posted Tuesday, July1, 2025. 

*** To receive new postings of Dr. Tremblay's articles, 
please send Subscribe, to jcarole261@gmail.com

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_______________________________________________________

© 2025 Dr. Rodrigue Tremblay


Wednesday, June 4, 2025

 

Global Economic Chaos: Multilateralism VS Unilateralism and their Consequences

Wednesday June 4, 2025

By Dr. Rodrigue Tremblay, Emeritus professor of economics, Université de Montréal

"After all, an overvalued dollar gives us the ability to buy foreign goods at lower prices. And the existing volume of exports brings more yen and euros than they would if the dollar were more competitive.Martin Feldstein (1939-2019), American economist.

"The power of taxation by currency depreciation is one which has been inherent in the State since Rome discovered it. The creation of legal-tender has been and is a government's ultimate reserve; and no state or government is likely to decree its own bankruptcy or its own downfall, so long as this instrument still lies at hand unused." John Maynard Keynes (1883-1946), British economist.

"By a continuing process of inflation, governments can confiscate, secretly and unobserved, an important part of the wealth of their citizens...There is no subtler, no surer means of overturning the existing basis of society than to debauch the currency. The process engages all the hidden forces of economic law on the side of destruction, and does it in a manner which not one man in a  million is able to diagnose." John Maynard Keynes (1883-1946), British economist.

Leaders of major countries can approach international economic relations from two main perspectives. Firstly, they can adopt a multilateral economic cooperation format or the multilateralist way, in order to reach a large and stable consensus about international solutions to problems and to resolve issues. Secondly, they could opt instead to rely on a more expedite and more risky way, the go-it-alone or the unilateralist way, which runs the risk of being conflictual and chaotic.

Since World War II, both approaches have been tried, in 1944, 1971, 1985 and 2025.

1- The 1944 Bretton Woods system

In July 1944, under the leadership of the Democratic Franklin D. Roosevelt administration (1933-1945), forty-four nations were convened for a conference in Bretton Woods, in the US state of New Hampshire, with the purpose of establishing a post-war international monetary and financial system, later known as the Bretton Woods system.

It was based on the US dollar being tied to gold, while the latter could be sold to and bought from other governments at the agreed price of $35 per once. Other convertible currencies were being pegged to the US dollar through stable exchange rates to be altered only in cases of "fundamental disequilibrium", under the supervision of the International Monetary Fund (IMF).

2- The making of the US dollar fiat currency

The Bretton Woods monetary system lasted 27 years, until the Republican Richard D. Nixon administration (1969-1974) decided, on its own, to modify it substantially.

Indeed, on August 15, 1971, the US Nixon administration unilaterally announced that the US dollar was no longer convertible into gold. That meant that the dollar was no longer backed by gold and had become a fiat currency, under the control of the American Federal banking system.

Other countries reacted to the unilateral American decision by adopting floating exchange rates for their own currencies. Countries that were oil exporters and members of the Organization of the Petroleum Exporting Countries (OPEC) caused a quadrupling of the international oil price, an energy crisis and a rise of inflation worldwide. This was the main cause of the severe and global 1973-1975 recession. It also meant the end of the post-WWII economic boom.

The entire1970 decade was a period of rampant inflation, high unemployment and of slow economic growth, a situation of stagflation. Indeed, when the oil price doubled in 1979, this was followed by two successive economic recessions in 1980 and 1981-1982.

3- The Plaza Accord of New York City in 1985

In the aftermath of the severe 1981-1982 economic recession, the Republican Ronald Reagan administration (1981-1989) feared the US dollar was overvalued, especially relative to the Japanese yen and the German Deutschmark, under the pressure of international demand for dollar assets.

In order to avoid the pitfalls of the 1971 Nixon's unilateral approach, the Reagan administration convened the G-5 countries of France, West Germany, Japan, the United Kingdom and the United States. The purpose was to relieve the pressure on the US dollar and to weaken the dollar in order to reduce the mounting U.S. trade deficit.

The result was the joint agreement of the Plaza Accord, which was signed on September 22, 1985, at the Plaza Hotel in New York City. It called for allowing the US dollar to depreciate through a coordinated intervention in currency markets. It lasted until the Louvre Accord ended it, in February 1987.

4- There is an international loss of confidence in the Trump administration 2.0 and its economic policies

Before President Donald Trump's inauguration on January 20, 2025, the US economy, by most economic indicators, had been the most prosperous among most if not all Western economies; its rate of real economic growth (2.8%) in 2024, was higher than other advanced economies; its unemployment rate was at a virtual full employment level (4,0%), and its inflation rate was still stable and under control (2.9%).

Nevertheless, President Trump has been wreaking havoc on the American economy and is disrupting the international trading system with his inflammatory statements. Some of them are truly confusing and incoherent.

Indeed, the flip-flopping uncertainty surrounding the imposition of unilateral tariffs on imports from various countries, as well as the insults, threats, and even ultimatums issued against these countries, are severely harming business investment, employment and business decisions in general. In addition, it slows down multilateral international trade, shakes financial markets, and undermines the United States' reputation around the world.

Similarly, the Trump administration is pursuing conflicting and even contradictory economic goals, such as wishing to depreciate the US dollar in order to improve the US trade balance, while at the same time wishing to preserve the international reserve status of the dollar and threatening other countries who seek to abandon the dollar in their international transactions with more American financial sanctions and additional punitive tariffs.

A large public budget deficit, financed in part by foreign borrowings, tends to create an external trade deficit.

However, for years, the U.S. federal government has been accumulating budgetary deficits upon deficits. (The last year there was a surplus was 2000.) In which case, the sale of Treasury bonds to foreign investors appreciates the dollar, and this encourages imports and harms exports, resulting in a chronic trade deficit in the U.S. balance of payments. —If the Trump 2.0 administration wants to reduce the U.S. trade deficit, it should balance the federal budget.

Currently, some foreign creditors holding dollar assets, especially those from China and Japan, are increasingly losing confidence in the Trump administration. They have begun to offload some of their dollar-denominated securities and will be reluctant to purchase new U.S. debt. The result will be a rise in 10-year and longer-term interest rates, which will be a major threat to US economic growth, especially in the US housing market.

5- The high risks of resorting to unilateral provocative trade policies and threats

The Trump administration 2.0 has chosen to impose unilateral tariffs on imports of foreign goods from many countries by presidential decrees (using the pretext of a situation of national security). The implied purpose is to raise public revenues, presumably in order to cover the fiscal cost of renewing the large tax cuts for corporations and for richer Americans, enacted in 2017.

As it should have been expected, such a unilateral approach incited other nations to retaliate and to raise reciprocal tariffs against American exports. Such a dangerous trade war could easily lead to a lose-lose economic proposition for all countries of the world, as international trade contracts and economies also contract.

President Trump's tariffs are bound to push domestic prices up and any net outflow of capital from the U.S. would depreciate the dollar. These are two causes of inflation. However, because the trade war will hurt American exports and slow down economic growth, the net result would likely be a situation of stagflation. That is why an OECD report predicts that not only would most countries be losers in Trump's trade war, but that the United States will suffer the most.

Indeed, considering the high levels of public indebtedness coupled with high unfunded public obligations (unfunded future pensions and other expenditures, etc.) the next decade could force many governments to rely on inflation and to a debasement of their fiat currencies, to lower the real burden of their public debts and obligations.

It seems that there still is some costly confusion about Trump's global trade war and about who can levy tariffs in the United States. An important federal court recently ruled that Donald Trump's sweeping tariffs based on an obscure federal emergency powers law is an abuse of power, since the US Constitution reserves the right to impose taxes to the House of Representatives. Indeed, on May 28, the U.S. Court of International Trade suspended most of the tariffs imposed through executive orders and stated that President D. Trump has exceeded his constitutional powers. 

Another court, on Thursday May 29, also blocked the Trump administration from levying any tariffs on imported goods under the so-called April 2 "Liberation Day" orders. (But the chaos continues, since a federal appeals court has temporarily reinstated Trump's tariffs for now!)

Conclusion

To end the current global economic chaos, a return to a multilateral approach to international economic relations would be needed.

If this is not done, the unilateral and irresponsible approach of the current US administration in its international economic relations could lead to the collapse of the multilateral system of international trade and finance. Indeed, since its inauguration, the Trump administration has acted as if it wanted to erect a Tariff Curtain around the United States.

Since 1945, no other American administration has been so intent on isolating the United States from the rest of the world economically, while adopting inward looking policies.

As the disastrous experience of the 1930's clearly demonstrates, if the Trump administration persists in relying religiously on a policy of unilateral and punitive tariffs against other nations, and as other nations retaliate, this is likely to trigger a global financial and economic slowdown, which would benefit no country. As a consequence, the next decade could also be a repeat of the 1970's economically, but also possibly even worse.

Indeed, any unilateral attempt to reshape the global trading and financial system to benefit only the United States is a pipe dream, which is likely to hurt the entire world economy and especially the United States.

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International economist Dr. Rodrigue Tremblay is the author of the book about morals "The code for Global Ethics, Ten Humanist Principles" of the book about geopolitics "The New American Empire", and of his recent book, in French, "La régression tranquille du Québec, 1980-2018". 

He holds a Ph.D. in international finance from Stanford University.

Please visit Dr. Tremblay's site or email to a friend here.

Posted Wednesday, June 4, 2025. Updated Friday, June 13, 2025.

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Wednesday, May 14, 2025

 


The Growing Complexity of Democratic Societies and Industrialized Economies: The Risk of a Vicious Cycle of Problems and Crises

Wednesday May 14, 2025

By Dr. Rodrigue Tremblay, Professor Emeritus of economics at the Université de Montréal

"Once a complex society enters the stage of declining marginal returns [marginal economic costs higher than marginal economic benefits], collapse becomes a mathematical likelihood, requiring little more than sufficient passage of time to make probable an insurmountable calamity." Joseph A. Tainter (1949- ), American anthropologist and historian, (in his book, The Collapse of Complex Societies 1988). 

"All who attain great power and riches, make use of either force or fraud; and what they have acquired either by deceit or violence, in order to conceal the disgraceful methods of attainment, they endeavor to sanctify with the false title of honest gains." Niccolò Machiavelli  (1469-1527), Italian political philosopher and author of The Prince, 1513, (in Florentine Histories, 1526, book III, ch. 13).

"There is no question tariffs can be an act of war to some degree and could cause inflation... Trade should not be a weapon." Warren Buffet (1930- ), renowned American investor, comments made on March 3, 2025, in a TV interview with CBS News and at the Berkshire Hathaway's annual meeting on May 3, 2025.

Since the beginnings of the first Industrial Revolution in the mid-18th century (initially in Britain in 1750-1760), and later in France and in other countries), democratic societies and industrial economies have tended to become increasingly complex, moving from subsistence agricultural and artisanal systems to stages of urbanization and increasingly sophisticated technological advances. 

In the 19th century, advances in means of transportation with the advent of steam-powered ships and trains stimulated industrial specialization and international trade. In the early 20th century, it was the availability of petroleum-based liquid energy that propelled the automobile and aircraft industries. Subsequently, energy generated by hydroelectricity served as a propellant not only for widespread electrification but also enabled the emergence of new industries.

Similarly, important economic, technological and institutional progress was a powerful factor of the post WWII period, especially from 1945 to the early 1970's, which saw a boom of general economic prosperity and of social progress.

Later on, the advent of the Internet and satellites also played a significant role in communications and the economic and financial globalization that followed. And now, in the 21st century, the revolution in Artificial Intelligence and automated robotization could upend the way businesses and industries operate.

However, studies by various writers on civilizations and their growing economic and political complexity have identified a number of causes and factors that could lead to a slowdown, if not a decline, in the economic order and efficiency of the previous century. There is a fear that neglected or unresolved problems, intellectual confusion and social disintegration could lead to widespread chaos and to a period of political and social disruption and economic stagnation.

More specifically, historians and social scientists such as Arnold J. Toynbee (The Study of History, 1962), Joseph A. Tainter (The Collapse of Complex Societies, 1988), Jared Diamond (Collapse: How Societies Choose to Fail or Succeed, 2005), and Samuel P. Huntington (The Clash of Civilizations, 1992) have highlighted the risks and vulnerabilities that can arise when economic and political systems become increasingly complex and bureaucratized, and increasingly fall victim to unforeseen domestic or external demand and supply shocks.

In which case, the well-being and economic prosperity of an entire population in some industrial societies could be at risk. The collapse of the Soviet Union under the weight of the contradictions of its economic and bureaucratic system, in 1991, serves as a reminder that such collapses or declines did occur many times throughout history.

A first question therefore arises: even if we limit our thinking to the most important economic factors, could the same causes that brought about the collapse of ancient complex economies and societies in the past possibly apply to some industrial societies of today? Secondly, as a caveat, it is also useful to remember that once a process of decadence is set in motion, it may take a few decades before it is fully realized.

I) Public sector debt levels and the debt trap problem

Some spendthrift Western governments have tolerated persistent fiscal deficits over the last decade, especially since the 2008-2009 Great Recession. In so doing, they run the risk of letting their public debt, as compared to the underlying economy, reach unsustainable and counterproductive levels.

Such fiscal laxity raises intergenerational issues. Indeed, public debts are a form of deferred taxation. This could mean higher taxes in the future. 

In the short-run, this could also lead an economy into a debt trap, that is, a situation where a vicious cycle of large fiscal deficits and higher public debt levels as a percentage of domestic production, coupled with rising borrowing costs, does not stimulate but rather slows down the economy.

Indeed, a fiscal crisis looms on the horizon when public debt reaches levels that are too high relative to an economy's gross domestic product (GDP).

Normally, when public debt is not excessive, i.e. when the public debt-to-GDP ratio is relatively low, any additional public spending financed by borrowing propels economic growth upwards. The public spending multiplier, or Keynesian multiplier, is then greater than unity, meaning that one dollar of additional public spending produces an increase of more than one dollar in overall economic spending (public and private) and higher economic growth.

However, empirical studies by economists Reinhart & Rogoff (2010) show that when the public debt-to-GDP ratio for an economy reaches 90%, a debt trap is likely to appear, because the multiplier of public spending may then not exceed 1.0, which means that one additional dollar government spending produces less than one dollar of economic growth.

The main reason is that unproductive debt service (interest and repayment) comes to occupy a growing share of the public budget. This can lead to an increase in interest rates and taxes and force a contraction in public spending. The economy may then find itself in a situation of economic stagnation and inflation, which is the definition of stagflation.

The worst thing to do in such circumstances is to finance current public expenditures with more debts, rather than through taxes.

The average public debt level of the 38 OECD member countries, measured as the public debt-to-GDP ratio, after exceeding 120% in 2020, was still above 100% in 2024, according to official data. Countries with a public debt-to-GDP ration above 100% are Japan, Greece, Italy, the United States, France, Portugal, Spain, Belgium, the United Kingdom, and Canada.

Over-indebted governments will not be in a good fiscal position to cope with a major economic crisis in the future.

II- Other leading indicators of economic trouble ahead

Economic leading indicators can provide early warnings of changes in the direction of an economy in the coming months or years. Examples can be sudden changes in monthly jobless claims, a rise in the ratio of new part-time jobs to new full-time jobs, a decline in consumer confidence, a decline in new orders for manufactured goods or a general increase in tariff barriers, etc.

Such indicators could signal when a potential economic downturn or a recession is about to unfold.

The current economic and financial environment is special because for months, many leading indicators have been pointing to an economic downturn, but partly because of unusually high public deficits, most economies have shown some resilience and a recession has been postponed.

In the past, when this has occurred, such as in the late 1970's, the subsequent economic recession was more severe than usual. In fact, there were two important worldwide economic recessions in 1980 and 1981-1982.

Therefore, the lesson of history seems to be that when an important rise in public debt postpones artificially the onset of a recession, the next economic downturn risks being even more severe.

III- The Trump administration's disruptive tariffs and on-coming job losses

In 1930, American tariffs in the republican sponsored Smoot-Hawley Act turned an economic recession into an economic depression for both the United States and for the world economy.

Politically, it also brought down the U.S. Republican Party. The Democrat Party took over power in 1933, with the Franklin D. Roosevelt administration and its New Deal. Democrats remained in power for twenty years, until in 1953, when the Republican Party under Dwight D. Eisenhower regained power.

Some ninety years later, the Republican Trump administration's unilateral tariffs on imports risk upending international trade again for years to come.

This could possibly lead to a 'Trump Slump' and the loss of millions of jobs, not only in the United States but also around the world, if short-run partisan political considerations were to prevail over long-term economic logic.

IV- The climate crisis, the energy crisis and international migrations of populations

In the past, a major cause of productivity gains and economic growth has been access to cheap and reliable sources of energy. Whether coal, mainly for steam engines in ships and trains, or liquid energy derived from oil and gas for automobiles and airplanes, or electricity from hydroelectric or nuclear power, these energies have increased labor productivity tenfold and raised living standards.

Nowadays, climate warming that is expected until the end of the century to be the cause of more floods and droughts, threatens to disrupt the economies of several countries, as well as international agricultural supply chains.

For environmental reasons, governments are seeking to discourage the use of polluting fossil fuels and replace them with renewable energies such as solar and wind power, which are less reliable and often more expensive. Higher energy costs could act as a brake on future economic growth.

For underdeveloped economies with high population growth, population migration to economies with high living standards is likely to intensify. Such migration is already causing serious problems of social and cultural integration, particularly in Europe and North America.

V- Incompetence, improvisation and confusion in some governments

There is a daily demonstration that there is currently in the United States a dysfunctional, chaotic and erratic federal government that is dangerously unhinged, especially as it is bent on launching a risky international trade war, which irresponsibly threatens to severely contract world trade and upend numerous national economies.

In Europe, especially within the Euro zone, some countries seem to have de facto moved away from the statutory limits imposed on their public budget deficits and indebtedness. 

All this could have something to do with the increased influence of big money into the working of the political system in some countries. The often lack of expertise of many of the world's most powerful leaders in situations of conflicts of interests has become a great challenge to the principles of good public governance, as this is reflected in their policies and decisions.

Conclusion

Modern economies and societies have become ever more complex systems, especially in the Western world. Multiple factors may contribute to their decline, involving economic, political, fiscal, environmental, demographic, speculative, social and cultural crises. There has been an expansion of public or semi-public bureaucracies and monopolies, which can progressively interfere with personal liberties and private businesses. 

Simultaneous crises could cascade into one another, building up to a point that could overwhelm otherwise long-standing institutions, impeding their ability to maintain order, stability and prosperity.

The best way to prevent a decline in Western economies and societies is to address their unsustainable fiscal, economic, political, demographic and social imbalances, which are increasing. This would require a greater awareness of the problems and crises looming on the horizon.

Currently, public sectors in many Western economies and societies are overburdened and are producing diminishing returns for the resources invested. If such a situation were to continue, in a context of rampant inflation and economic stagnation, it would not be surprising if a collapse could one day occur in their welfare state socio-economic system.

__________________________________________________________________

International economist Dr. Rodrigue Tremblay is the author of the book about morals "The code for Global Ethics, Ten Humanist Principles" of the book about geopolitics "The New American Empire". 

He holds a Ph.D. in international finance from Stanford University.

Please visit Dr. Tremblay's site or email to a friend here.

Posted Wednesday, May 14, 2025

*** To receive new postings of Dr. Tremblay's articles, 
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