Abstract

A major contradiction of globalisation lies in the universalisation of the imperatives of international finance-capital. The ascendancy of international finance has kept inter-imperialist rivalry under check since the past few decades, and imperialist nation-states under its imperatives have displayed greater unity under the leadership of the US. But the dominance of speculative finance and the deflationary impact it generates, threatens to precipitate worldwide recession. The US is trying to pre-empt any potential competition in this milieu, by pursuing an aggressive and unilateralist military policy of endless war. However, the capacity of the US to sustain such high levels of military expenditure and debt-induced consumer spending is circumscribed by the fragility of the dollar hegemony in the backdrop of the growing indebtedness of the US vis-à-vis the rest of the world. Re-appearance of recessionary conditions in the US would be set the stage for inter-imperialist contradictions as well as the contradiction between imperialism and the Third World to play themselves out and create possible ruptures in the present world order.