At the centre of the crisis too is the contradiction between US imperialism and the people of the Third World. This is exemplified by the fact that the consumption of the US, including its gargantuan military expenditure, is being funded from the savings of China, other East Asian countries, and the Gulf oil producers. Though US imperialism is still dominant worldwide, its economic dominance has long been in decline, tending to make this parasitic extraction ever more unsustainable. (Dogged insurgencies in countries under US military occupation have played a significant role in further undermining US hegemony, preventing it from achieving its strategic-economic aims, forcing it to increase its military expenditure abroad, and deepening its dependence on foreign inflows.) The waning of the US’s economic and political power too underlies the current crisis. However, the pattern of trade in recent years (giant US trade deficits, giant trade surpluses of certain Third World countries) and the perverse pattern of financial flows (from the poor to the rich countries) have not been brought about by the US elite on their own, but with the help of the elites of the Third World; and the latter too have flourished unprecedentedly therefrom. These patterns represent, in a sense, a compact between the elites of different worlds against their people, who are the losers in the entire scheme.