Blaming China for America’s economic woes is like blaming China for destabilizing Afghanistan. It simply doesn’t work, said Andrew Gavin Marshall, a research associate at the Centre for Research on Globalization in Montreal, Canada. Instead, he argued US currency itself is at fault for destabilizing the global system.

“Really, they [US leaders] just want to take the blame off themselves,” said Marshall. “In 2008 a global financial nuclear bomb went off. At first the shockwave spread around the world and it shook the world economy to its very foundations, and now the nuclear fallout is spreading around the world.”

According to Marshall there is no such thing as a recovery. The world is in a lull period, but is headed for a global great depression.

“We’re at the beginning of the end,” he said. “Warren Buffett, one of the top billionaires in the world, in 2006 said that what’s going on it class warfare and his class is winning. So, that’s what’s going on; the dismantling the middle classes, which exist only in debt.”

There is a global lack of confidence in the US economy. Other economies, especially developing economies, are trying to protect themselves internally while also integrating with one another to defend against the decline of the US.

Marshall explained that the US is in decline and we are entering a new era without a superpower as a mean to create a globalized structure that balances power. 

Although the US economy is down, Brazil, India and some others are beginning to rise, according to Mark Weisbrot, the co-director of the Center for Economic and Policy Research in Washington, DC.

He explained that the IMF is run by the more developed economies, like Japan, the US, and those in Europe, while developing nations have almost no say at all.

“The IMF is really just run, because the United States has 17 percent of the votes and together with the high income countries, they have basically a majority. They’ve just run it as basically a rich country club for all these years,” said Weisbrot.

However, the US has lost most of its influence in South America and other individual regions, and will continue to do so over time. Proposed changes or possible changes to the IMF will have little impact on how the specifically IMF operates.

“You have maybe 5 percentage points what will shift. It’s not going to change it. Even if Europe gives up one or two seats on the executive board,” he said.

As the developing countries continue to grow international institutions like the IMF will become more and more out-dated, but will still remain powerful.

Watch the full interview with Paul Craig Roberts

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The US economy is losing jobs rapidly, having only created new jobs in the domestic non-tradable services field, which include waitressing, bartending, barbers, and nurses explained Paul Craig Roberts, a former Reagan administration official.

“We were told that we were going to have a new economy based on financial services, based on innovation, research, development. We were going to come up with all the new products that the rest of the world would make. But in fact, those jobs have never appeared,” said Roberts. “The American economy is descending into a third world economy in which the only jobs available are domestic services.”

On the other side of the world, traditional third world economies like India have entered an IT boom with their own versions of Silicon Valley. Americans are traveling elsewhere for work.

“Americans have been betrayed by their government, by their economists, who are all on the take from the corporations,” Roberts added.

We are entering the beginning of new era where the jobs simply are not in America anymore. They have move to India, China and other developing markets.

“The US economy is simply disappearing and is becoming more third world by the day,” said Roberts.

While the developing nations rise, the United States slides.

Watch the full interview with Webster Tarpley

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There is a wave of protectionism mounting in the world’s major economies. Countries are looking to target globalization, managing their national currencies and combat speculation, that’s according to investigative journalist Webster Tarpley.

“The currency wars are not new. The US and the British for the past 12 months have been trying to destroy the Euro; they’ve failed. They have also been trying to drive the Chinese currency up,” he said.

As US dollar goes down, China goes too. The Chinese economy is attached to the US dollar, explained Tarpley. This puts pressure on Japan and others who are also impacted, leading them to force the Yen down to maintain competitive in the world market.

“The Brazilians are fighting the speculators with a 4 percent tax on people who come in and buy bonds. And, it’s thought that Thailand may soon take the lead in imposing actual capital controls,” said Tarpley.

Tarpley argued that the globalization system needs to be fought. He said the world needs to return to a system of fixed parodies similar to the structure under the previous Brenton Woods system.

“Peg the Chinese to the US as an island of stability,” said Tarpley. “Restore a system of fixed parodies so you’d have some certainty what the values of currency would be down the road. And again, The US is the biggest enemy of this, and the British along with them but for other countries it would be beneficial.”

He added, “Wana be like China, do what they do. They block capital flows into China.” “Why not imitate that?”

The international community needs a new world monetary conference, a new Brenton Woods to restore stability to the system, argued Tarpley.

“The International Monetary Fund is a failure,” said Tarpley. “Globalization is a failure, let’s end it, let’s end this system.”