Why Our War in Afghanistan May Mean the End of American Empire

By Tom Engelhardt, Tomdispatch.com. Posted February 6, 2009.

The phrase was originally used by Tom Wolfe. It was the brand name of the superhero action figures his protagonist's daughter plays with in his 1987 novel Bonfire of the Vanities. ("On Wall Street he and a few others -- how many? three hundred, four hundred, five hundred? had become precisely that... Masters of the Universe…") As a result, the label initially had something of Wolfe's cheekiness about it. In the post-Cold War world, however, it soon enough became purely self-congratulatory.

In those years, when the economies of other countries suddenly cratered, Washington sent in the International Monetary Fund (IMF) to "discipline" them. That was the actual term of tradecraft. To the immense pain of whole societies, the IMF regularly used local or regional disaster to pry open countries to the deregulatory wonders of "the Washington consensus." (Just imagine how Americans would react if, today, the IMF arrived at our battered doors with a similar menu of must-dos!)

Now, as the planet totters financially, while from Germany to Russia and China, world leaders blame the Bush administration's deregulatory blindness and Wall Street's derivative shenanigans for the financial hollowing out of the global economy, it's far more apparent that those titans of finance were actually masters of a flim-flam universe. Retrospectively, it's clearer that, in those post-Cold War years, Wall Street was already heading for the exits, that it was less a planetary economic tiger than a monstrously lucrative paper tiger. Someday, it might be a commonplace to say the same of Washington.

Almost twenty years later, in fact, it may finally be growing more acceptable to suggest that certain comparisons between the two Cold War superpowers were apt. As David Leonhardt of the New York Times pointed out recently:

"Richard Freeman, a Harvard economist, argues that the U.S. bubble economy had something in common with the old Soviet economy. The Soviet Union's growth was artificially raised by huge industrial output that ended up having little use. America's was artificially raised by mortgage-backed securities, collateralized debt obligations and even the occasional Ponzi scheme."

Today, when it comes to Wall Street, you can feel the anger rising on Main Street as Americans grasp that those supposed masters of the universe actually hollowed out their world and brought immense suffering down on them. They understand what those former masters of financial firms, who handed out $18.4 billion in bonuses to their employees at the end of 2008, clearly don't. John Thain, former CEO of Merrill Lynch, for instance, still continues to defend his purchase of a $35,000 antique commode for his office, as well as the $4 billion in bonuses he dealt out to the mini-masters under him in a quarter in which his group racked up more than $15 billion in losses, in a year in which his firm's losses reached $27 billion.

At least now, however, no one -- except perhaps Thain himself -- would mistake the Thains for masters rather than charlatans, or the U.S. for a financial superpower riding high rather than a hollowed out economic powerhouse laid low.

As it happens, however, there was another set of all-American "masters of the universe," even if never given that label. I'm speaking of the top officials of our national security state, the key players in foreign and military policy. They, too, came to believe that the planet was their oyster. They came to believe as well that, uniquely in the history of empires, global domination might be theirs. They began to dream that they might oversee a new Rome or imperial Great Britain, but of a kind never before encountered, and that the competitive Great Game played by previous rivalrous Great Powers had been reduced to solitaire.

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Tom Engelhardt, editor of Tomdispatch.com, is co-founder of the American Empire Project and author of The End of Victory Culture.

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