Friday, 1 October 2010

trade war or tradewar?

Following yesterday's video on Peter Schiff and his "so funny" look at repaying debts I received a video (Newsy) on a number of experts discussing the possible consequences for the US economy caused by the Levin/Yuan Bill; it being bark or bite?

All true, but late, very late, somehow too late, isn't it? Paul Krugman puts it into the right context but then even he is coming in 76 minutes past twelve with his wisdom.

Trade war? Fine! In its "cold" and unlimited form this goes on ever since the ones that are now called Neo-Libs have started to globalise what was global anyway but controlled; true, often over controlled, i.e. protected by rules and rights, by duties and customs, export and import regulations. With other words, the Neo-Libs shot way beyond what was supposed to describe "open markets" but eliminated all controls; they banned protection leaving everything and anybody unprotected and highly praised  the "free markets' society" as the master of all religions.

There is some parallelism in the procedures and methods to how the biggest nonsense..., the EURO, was born and imposed upon a bunch of economies that couldn't be any more different and had proved so ever since 1949. Still, the EURO was a means to a similar end.

In what one could describe a joint-venture like community of interests the Neo-Libs joined up with the guardians of those emerging markets that offered the most liberty, i.e. possibilities. Above all China (PRoC) with its reddish-brown regulated paper currency and negligible social rights and cost offered all of that and more and was/is paradise for transferring jobs boosting global payers' margins; at the same time they allowed know-how, formerly utmost protected and safe guarded, to cross all borders and contracts at will but by purpose! Here is an example of how openly China follows its aims today! There are many more examples from toys to clothes, PCs to mobiles, airplanes to trains. And then there is the military expense.

Don't anybody think that this is to criticise China or blame it of being unfair or suchlike! The opposite, think about the path China took the last two, three, four decades - sure, invited and supported by those who trade(-d) in coffin ships, that sold our assets and souls - but with China taking every single opportunity to climb the stairs unflinching and fearlessly mutating from what once was a farming Red China into the number one work-bench, exporter and financier of the world; if one digs deep enough one will find China amongst the top three, max five, in any of the races for any kind of resource from energy to ore and food to water, not to forget: land.

So a bill accusing China of predatory currency policy is the one and only globalism joke; I hear China laughing but thinking while not expecting to be paid back. It is all very old news and if anything it underlines the impotence of a  desperate world power choking on its accumulating failures and its professional and/or ignorant and/or seduced politicians competing for a warm seat.

If the problem was to be really addressed it had to be a global approach to same setting global rules - something that neither Brussels wants to address in reference to the EU and an imploding EURO nor the US and its Neo-Liberal intelligence dislodged far from Joe Blow.

That's how near or far we all are from globalism.

Carpe diem.