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Jeff
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Why Globalization is a Problem
Aug 17th, 2018 at 7:48am
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In a nutshell, a very short and insightful exposition-

https://www.oftwominds.com/blogaug18/predatory-globalization8-18.html

A quote from the article-

"...I move my factory from my high-cost, highly regulated nation to the low-cost nation..."

The problem I see is that too much government, to much regulation and too many taxes that are too high make the U.S. uncompetitive in the world market.
  
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BobK71
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Re: Why Globalization is a Problem
Reply #1 - Aug 17th, 2018 at 8:47am
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'Free trade' is not a free market.  Since exchange rates are manipulated by central banks, and trade rests on prices, this kind of trade can't possibly be free.

What globalization does is to prop up the values of dollars, euro, and pounds by artificially suppressing the value of developing-country currencies.  If your dollars can buy goods cheap, you have confidence in them.  The values of these monies are the power base of the Western elites and they have had to resort to globalization in recent decades for their protection, that's all.

I respect Charles Hugh Smith.  He's one of the few serious anti-globalization commentators who see through 'free trade.'
  
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Re: Why Globalization is a Problem
Reply #2 - Aug 17th, 2018 at 8:27pm
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A big problem with globalization is that some US trading partners manipulate their currencies to gain unfair price advantage which increases their exports and decreases their imports. This hurts the US.

I guess that's basically what Bobk71 is saying.

WTO says this practice is illegal, but who will enforce that?  Who will point the finger at the cheaters?
  
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The Opposition
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Re: Why Globalization is a Problem
Reply #3 - Aug 17th, 2018 at 11:34pm
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I'll just ask you this, and it's out of genuine interest.

Is currency devaluation aggression?

Does any step from that to people picking the better choice in free world trade involve force?
  

This moral relativism of yours is exactly what lets government take this freedom, then that freedom, until we have lost them all.
-SnarkySack
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Jeff
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Re: Why Globalization is a Problem
Reply #4 - Aug 18th, 2018 at 8:42am
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The Opposition wrote on Aug 17th, 2018 at 11:34pm:
I'll just ask you this, and it's out of genuine interest.

Is currency devaluation aggression?

Does any step from that to people picking the better choice in free world trade involve force?
Fiat money is aggression. It would not exist without legal tender laws that force people to accept it. Inflating the money supply is a hidden tax that takes money from people by the actions of a private bank. It's aggression too. Deflating the money supply or devaluing the money is aggression. Everything about fiat money is aggression by the people who control the supply/value of the money. The distortions of the economy that result from fiat money are aggression.

Federalist No. 44: Madison
           "The extension of the prohibition to bills of credit must give pleasure to every citizen in proportion to his love of justice and his knowledge of the true springs of public prosperity. The loss which America has sustained since the peace, from the pestilential effects of paper money on the necessary confidence between man and man, on the necessary confidence in the public councils, on the industry and morals of the people, and on the character of republican government, constitutes an enormous debt against the States chargeable with this unadvised measure, which must long remain unsatisfied; or rather an accumulation of guilt, which can be expiated no otherwise than by a voluntary sacrifice on the alter of justice of the power which has been the instrument of it."


To me, your question seems to be, 'Is it aggression to stop aggression?' I say no. It is just to stop aggression.

Some more from Madison-

Federalist No. 62: Madison
           "Another effect of public instability is the unreasonable advantage it gives to the sagacious, the enterprising, and the moneyed few over the industrious and uninformed mass of the people. Every new regulation concerning commerce or revenue, or in any manner affecting the value of the different species of property, presents a new harvest to those who watch the change, and can trace the consequences; a harvest, reared not by themselves, but by the toils and cares of the great body of their fellow-citizens. This is a state of things in which it may be said with some truth that laws are made for the few, not for the many.

           "What prudent merchant will hazard his fortunes in any new branch of commerce when he knows not but that his plans may be rendered unlawful before they can be executed? What farmer or manufacturer will lay himself out for the encouragement given to any particular cultivation or establishment, where he can have no assurance that his preparatory labors and advances will not render him a victim to an inconstant government?"

  
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BobK71
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Re: Why Globalization is a Problem
Reply #5 - Aug 20th, 2018 at 10:08pm
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SkyChief wrote on Aug 17th, 2018 at 8:27pm:
A big problem with globalization is that some US trading partners manipulate their currencies to gain unfair price advantage which increases their exports and decreases their imports. This hurts the US.

I guess that's basically what Bobk71 is saying.

WTO says this practice is illegal, but who will enforce that?  Who will point the finger at the cheaters?


This is certainly true from the developing countries' point of view, but if the whole truth is that the USA has been helplessly under attack by developing countries, we have to ask the question, why was it allowed to continue over the decades?

The answer is that the US elites benefit tremendously from the arrangement, by being able to borrow cheaply, by someone else supporting the dollar with their blood and sweat, and by making a fortune through cost-cutting by the big corporations.

When developing economies become almost totally dependent on selling to the US, the US also gains leverage against their governments, and can make them adopt policies that further support the dollar.

In fact, I will go as far as saying that suppression of developing country currencies is near the core of the imperial system.  Western elites can't quite do it directly and still claim free-marketeer status, but they allow central banks around the world to do it for them, and give them tongue lashings and slaps on the wrist.
  
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BobK71
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Re: Why Globalization is a Problem
Reply #6 - Aug 21st, 2018 at 10:50am
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This is not to say that globalization is a risk-free or most preferred arrangement by the US elites.  The fact that it has allowed Trump to be elected is probably a big problem for them.

But I think it's the most preferred of the *available* avenues.  They would have preferred the strength of the dollar to come from real productivity in the US, but the American workforce had become expensive, demanding, and poor value (e.g. educational attainment peaked in the 1970s.)  The American population had over-indulged on their location at the imperial center during the postwar decades.

Instead of allying with US voters as during the immediate postwar period, there was a clear shift in the early 1980s by the top elites to ally with bankers and 3rd World governments to promote 'conservatism' at home and globalization abroad.  As the authors of 'Fragile by Design' (great book on the banking system, BTW) argue, the key driver of events is the nature of the 'winning alliance' at any given time.

I think it's not a coincidence that, after the 1850s when British real competitiveness peaked, we saw the 'first age of globalization,' British-led-gold-standard style.  And this allowed British hegemony to last a few more decades.

In a sense, the election of Trump was the cry of an alliance partner who just realized they have been dumped.
  
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Re: Why Globalization is a Problem
Reply #7 - Aug 21st, 2018 at 11:12am
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BobK71 wrote on Aug 21st, 2018 at 10:50am:
...when British real competitiveness peaked, we saw the 'first age of globalization,' British-led-gold-standard style.  And this allowed British hegemony to last a few more decades.

When the ailing US hegemony crumbles, who do you see emerging as the dominant leader of the New World order?
  
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Jeff
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Re: Why Globalization is a Problem
Reply #8 - Aug 21st, 2018 at 4:57pm
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SkyChief wrote on Aug 21st, 2018 at 11:12am:
When the ailing US hegemony crumbles, who do you see emerging as the dominant leader of the New World order?
After some sort of global nuclear war?

Do you imagine a peaceful transition to a new global hegemon? I can't.
  
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Re: Why Globalization is a Problem
Reply #9 - Aug 21st, 2018 at 10:37pm
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Jeff wrote on Aug 21st, 2018 at 4:57pm:
After some sort of global nuclear war?

Do you imagine a peaceful transition to a new global hegemon? I can't.
If you put a frog in a warm pot of water and slowly turn up the heat, he won't notice he's being cooked. We have been incrementally moving towards a one world government for decades.
  
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