One key fact is the centrality of the American financial system to the world economy – something that in turn rests on the importance of US-based banks and the role of the dollar as the pre-eminent global reserve currency. The US has standing in the Fifa cases because allegedly corrupt transactions were made through banks based in America.
.. Could this change? Possibly. But it would probably require the Chinese currency to become a global reserve currency to rival the dollar. That is why the IMF’s decision later this year about whether to include China in the basket of currencies from which it makes up its Special Drawing Rights will be keenly watched. Such a move would be a visible step along the road to turning the renminbi into a global reserve currency. That, in turn, might ultimately threaten the dollar’s unique position in the global system – and the power that it confers on the US.
.. But if the US Department of Justice says there is a serious case to answer, it still carries global credibility. The same benefit of the doubt would not be extended to a prosecutor in Moscow or Beijing.
China is certainly closing the wealth gap with America, just as Asia is closing the gap with the west. But the reputation of American institutions for integrity remains a vital intangible asset. It is that reputation that allowed the US to tackle Fifa.
Justice, In and Out of Uniform
Although Wuterich ordered his squad to “shoot first and ask questions later,” he was allowed to plead to a single count of negligent dereliction of duty, and his punishment amounted to only a reduction in rank and a pay cut.
.. If our justice system is a reflection of our society, why have we treated David Petraeus so differently from Jeffrey Sterling, and the marines at Haditha so differently from the Blackwater contractors at Nisour?
.. But as many commentators have pointed out in comparing Petraeus and Sterling’s cases, certain people are more likely to be punished. “If you’re politically well-connected or powerful, you don’t have to worry about being charged with espionage or leaking,” Jesselyn Radack, of the Government Accountability Project, told the Associated Press.
Did Laurence Tribe Sell Out?
“The role of advocate calls for constructing persuasive arguments that will generate favorable outcomes for clients. This is very different from the function [academics] perform as scholars.” In this manner, working for a client, over the long term, can prove corrupting, not just because of the money but because of natural human loyalty.
.. It may come as a surprise for those who regard Tribe as a progressive hero to learn that he also began to devote much of his time and effort to working for large corporate clients. In particular, Tribe developed a lucrative practice often premised on invoking his clients’ constitutional rights as “corporate persons” to try and avoid federal and state regulations.
.. In that sense, the current condemnation of Tribe can be seen as part of a larger progressive backlash against the use of the Bill of Rights to serve corporate interests.
.. When I asked Tribe whether he thought that his practice might have deviated too far toward the service of private interests, he responded, “My litigation practice over the past three decades includes only cases in which I thought I was advancing an important public interest through my advocacy.” Tribe, in other words, isn’t saying that his work is justified just because legal scholars should be given some latitude for paid work. He’s arguing, instead, that his work is part of his academic mission.
.. But for work to be considered in the public interest, it ought to be, at least in part, on behalf of clients who are in some way underrepresented, or present views that would not be heard. This is true of some of Tribe’s work; but in much of it he is empowering the powerful.
Born Red: Xi Jinping
Xi unambiguously opposes American democratic notions. In 2011 and 2012, he spent several days with Vice-President Joe Biden, his official counterpart at the time, in China and the United States. Biden told me that Xi asked him why the U.S. put “so much emphasis on human rights.”
.. Henry Paulson, the former Treasury Secretary, whose upcoming book, “Dealing with China,” describes a decade of contact with Xi, told me, “He has been very forthright and candid—privately and publicly—about the fact that the Chinese are rejecting Western values and multiparty democracy.” He added, “To Westerners, it seems very incongruous to be, on the one hand, so committed to fostering more competition and market-driven flexibility in the economy and, on the other hand, to be seeking more control in the political sphere, the media, and the Internet. But that’s the key: he sees a strong Party as essential to stability, and the only institution that’s strong enough to help him accomplish his other goals.”
.. The Communist Party dedicated itself to a classless society but organized itself in a rigid hierarchy, and Xi started life near the top. He was born in Beijing in 1953, the third of four children. His father, Xi Zhongxun, China’s propaganda minister at the time, had been fomenting revolution since the age of fourteen, when he and his classmates tried to poison a teacher whom they considered a counterrevolutionary.
.. At a Party meeting in February, 1952, Mao stated that the “suppression of counterrevolutionaries” required, on average, the execution of one person for every one thousand to two thousand citizens.
.. As the historian Mi Hedu observes in his 1993 book, “The Red Guard Generation,” students at the August 1st School “compared one another on the basis of whose father had a higher rank, whose father rode in a better car. Some would say, ‘Obey whoever’s father has the highest position.’ ”
.. They married the following year, and in 1989, after the crackdown on student demonstrators, Peng was among the military singers who were sent to Tiananmen Square to serenade the troops.
.. He was allowed to live in comfortable obscurity until his death, in 2002, and is remembered fondly as “a man of principle, not of strategy,” as the editor in Beijing put it to me.
.. He also paid special attention to cultivating local military units; he upgraded equipment, raised subsidies for soldiers’ living expenses, and found jobs for retiring officers. He liked to say, “To meet the Army’s needs, nothing is excessive.”
.. He soothed conservatives, in part by reciting socialist incantations. “The private economy has become an exotic flower in the garden of socialism with Chinese characteristics,” he declared.
.. Since 2002, the highest ranks of Chinese politics had been dominated by men who elbowed their way in on the basis of academic or technocratic merit.
.. “Party leaders prefer weak successors, so they can rule behind the scenes,” Ho Pin, the founder of Mingjing News, an overseas Chinese site, said. Xi’s rise had been so abrupt, in the eyes of the general public, that people joked, “Who is Xi Jinping? He’s Peng Liyuan’s husband.”
.. They speculate that Xi, in effect, went on strike; he wanted to install key allies, and remove opponents, before taking power, but Party elders ordered him to wait. A former intelligence official told me, “Xi basically says, ‘O.K., fuck you, let’s see you find someone else for this job. I’m going to disappear for two weeks and miss the Secretary of State.’ And that’s what he did. It caused a stir, and they went running and said, ‘Whoa, whoa, whoa.’ ” The handoff went ahead as planned. On November 15, 2012, Xi became General Secretary.
.. Xi believed that there was a grave threat to China from within. According to U.S. diplomats, Xi’s friend the professor described Xi as “repulsed by the all-encompassing commercialization of Chinese society, with its attendant nouveaux riches, official corruption, loss of values, dignity, and self-respect, and such ‘moral evils’ as drugs and prostitution.” If he ever became China’s top leader, the professor had predicted, “he would likely aggressively attempt to address these evils, perhaps at the expense of the new moneyed class.
.. They arrested China’s security chief, Zhou Yongkang, a former oil baron with the jowls of an Easter Island statue, who had built the police and military into a personal kingdom that received more funding each year for domestic spying and policing than it did for foreign defense. They reached into the ranks of the military, where flamboyant corruption was not only upsetting the public—pedestrians had learned to watch out for luxury sedans with military license plates, which careered around Beijing with impunity—but also undermining China’s national defense.
.. Many foreign observers asked if Xi’s crusade was truly intended to stamp out corruption or if it was a tool to attack his enemies.
.. Xi’s government has no place for loyal opposition.
.. Although Vladimir Putin has suffocated Russian civil society and neutered the press, Moscow stores still carry books that are critical of him, and a few long-suffering blogs still find ways to attack him. Xi is less tolerant.
.. So, if you want to stop Western values from spreading in Chinese universities, one thing you’d have to do is close down the law schools and make sure they never exist again.” Xi, for his part, sees no contradiction, because preservation of the Party comes before preservation of the law.
.. For years, American military leaders worried that there was a growing risk of an accidental clash between China and the U.S., in part because Beijing protested U.S. policies by declining meetings between senior commanders. In 2011, Mike Mullen, then the Chairman of the Joint Chiefs, visited Xi in Beijing, and appealed to his military experience, telling him, as he recalled to me, “I just need you to stop cutting off military relationships as step one, every time you get ticked off.” That has improved.
.. “Ever since Mao’s day, and the beginning of reform and opening up, we all talk about a ‘crisis of faith,’ ” the sense that rapid growth and political turmoil have cut China off from its moral history.
.. Xi’s ability to avoid an economic crisis depends partly on whether he has the political strength to prevail over state firms, local governments, and other powerful interests.
.. In 2005, Premier Wen Jiabao met with a delegation from the U.S. Congress, and one member, citing a professor who had recently been fired for political reasons, asked the Premier why. Wen was baffled by the inquiry; the professor was a “small problem,” he said. “I don’t know the person you spoke of, but as Premier I have 1.3 billion people on my mind.”
.. But, when the government announced the recipients of grants for social-science research, seven of the top ten projects were dedicated to analyzing Xi’s speeches
.. “I think, as intellectuals, we must do everything we can to promote a peaceful transformation of the Party—to encourage it to become a ‘leftist party’ in the European sense, a kind of social-democratic party.” That, he said, would help its members better respect a true system of law and political competition, including freedom of the press and freedom of thought. “If they refuse even these basic changes, then I believe China will undergo another revolution.”
.. Last year, it declared a “war against pollution,” but conceded that Beijing will not likely achieve healthy air before 2030.