Monday, September 5, 2016

Why Are Free Trade Agreements Controversial?

First, because none of the agreements are about free trade, they are about managed trade.  Free trade is unilaterally imposed, never by any agreement.

Second, all agreements have winners and losers.  The winners all very much love the agreement, the losers very much hate what will happen to them if the agreement goes through.

Third, they are difficult to undo.  Once the damage of implementation is done, it is hard to recover a balance.

Globalization is not what people think or say it is, it is simply the export of the ex nihilo credit damage done overseas by the USA.  After wiping out USA small industry and manufacturing, the mega-biz dinosaurs went rampaging through other countries.  China and Venezuela are examples.  China was big enough and backward to absorb the shock, Venezuela was to small and too modern to take the hit.  Everyone else is somewhere in between.

It's dangerous to have a theory of everything, but you'll note all economic commentary gets around to credit, debt and interest.  So I am not the one who relates all the economic problems to that trio.  it is the experts who do.  I just point out rarely does anyone note that the underlying ex nihilo credit is the problem, a problem made exponential by the interest charged on it.

Globalization is only the damage done by ex nihilo credit.  Some benefit, most suffer. It is facilitated by "free trade" agreements.  That is why they are so controversial

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