Home » Posts tagged 'globalization' (Page 3)

Tag Archives: globalization

“This reminds me of the late 1960s when we experimented with low rates and fiscal stimulus to keep the economy at full employment and fund the Vietnam War. Today we don’t have a recession, let alone a war. We are setting the stage for accelerating inflation, just as we did in the late ‘60s.”
—Paul Tudor Jones

As soon as the GOP followed its long-promised tax cuts with damn-the-deficit spending increases (who cares about the kids, right?), you knew to be ready for the Lyndon B. Johnson reminders.

And it’s worth remembering that LBJ pushed federal spending higher, pushed his central bank chairman against the wall (figuratively and, by several accounts, also literally) and eventually pushed inflation to post–Korean War highs.

Inflation kept climbing into Richard Nixon’s presidency, pausing for breath only during a brief 1970 recession (although without falling as Keynesian economists predicted) and then again during an attempt at wage and price controls that ended badly. Nixon’s controls disrupted commerce, angered businesses and consumers, and helped clear a path for the spiraling inflation of the mid- and late-1970s.

So naturally, when Donald Trump and the Republicans pulled off the biggest stimulus years into an expansion since LBJ’s guns, butter and batter the Fed chief, it should make us think twice about inflation risks—I’m not saying we shouldn’t do that.

But do the 1960s really tell us much about the inflation outlook today, or should that outlook reflect a different world, different economy and different conclusions?

I would say it’s more the latter, and I’ll give five reasons why.

1—Technology

I’ll make my first reason brief, because the deflationary effects of technology are both transparent and widely discussed, even if model-wielding economists often ignore them. When some of your country’s largest and most impactful companies are set up to help consumers pay lower prices, that should help to, well, contain prices.

…click on the above link to read the rest of the article…

Globalization’s Deadly Footprint

February 26, 2018

Globalization’s Deadly Footprint

That pollution is bad for our health will come as a surprise to no one. That pollution kills at least 9 million people every year might. This is 16 percent of all deaths worldwide – 3 times more than AIDS, tuberculosis and malaria combined, and 15 times more than all wars and other forms of violence. Air pollution alone is responsible for 6.5 million of these 9 million deaths. Nearly 92 percent of pollution-related deaths occur in low- and middle-income countries. All this is according to the Lancet Commission on Pollution and Health, a recent report by dozens of public health and medical experts from around the world. This important report is sounding the alarm about a too-often neglected and ignored ‘silent emergency’ – or as author Rob Nixon calls it, ‘slow violence.’

In one media article about the report, the Lancet’s editor-in-chief and executive editor points to the structural economic forces of “industrialisation, urbanisation, and globalisation” as “drivers of pollution.” Unfortunately, however, the report itself doesn’t elaborate upon this crucial observation about root causes – in fact, when it moves from documentation of the pollution-health crisis to social-economic analysis, some of the report’s conclusions go seriously awry, espousing debunked ‘ecological modernization theory’ and reinforcing a tired Eurocentric framing that paints the industrialized West in familiar ‘enlightened’ colors, while the ‘developing’ countries are portrayed as ‘backward’.

For example, one of the Commission’s co-chairs and lead authors Dr. Philip Landrigan (for whom I have the greatest respect for his pioneering work in environmental health), points outthat since the US Clean Air Act was introduced in 1970, levels of six major pollutants in the US have fallen by 70 percent even as GDP has risen by 250 percent. According to fellow author Richard Fuller, this sort of trend proves that countries can have “consistent economic growth with low pollution”.

…click on the above link to read the rest of the article…

Nine Reasons Why Globalization Can’t Be Permanent

February 1, 2018

Nine Reasons Why Globalization Can’t Be Permanent

Since the late 1990s, globalization has seemed to be the great hope for the future. Now this great hope seems to be dimming. Globalization sets up conflict in the area of jobs. Countries around the world compete for development and jobs. If there is not enough cheap-to-produce energy to go around, huge wage disparity is likely to result.

We know from physics and history that economies need to grow, or they collapse. The wage disparity that high-wage countries have been experiencing in recent years is evidence that the world economy is already reaching energy limits. There are no longer enough jobs that pay well to go around. Any drop in energy supply is likely to worsen the job situation.

Most observers miss this problem, because they expect high oil prices to signal energy limits. This time, the signal is low wages for a significant group of workers, rather than high oil prices. This situation is possible in a networked economy, but it is not what most people look for.

Unhappy citizens can be expected to react to the wage disparity problem by electing leaders who favor limits to globalization. This can only play out in terms of reduced globalization.

History and physics suggest that economies without adequate energy supply can be expected to collapse. We have several recent examples of partial collapses, including the Great Depression of the 1930s and the collapse of the Soviet Union. Such collapses, or even more extensive collapses, might occur again if we cannot find energy alternatives that can be quickly scaled up to replace oil and coal in the very near term. These replacements need to be cheap-to-produce, non-polluting, and available in huge quantities.

The story that the economy doesn’t really need a growing supply of very cheap-to-produce energy is simply a myth. Let’s look at some of the pieces of this story.

…click on the above link to read the rest of the article…

From Degrowth to De-Globalization

January 25, 2018

From Degrowth to De-Globalization

By Jim Carter/Pixabay

The rise of far-right globalization criticism requires a new role for the Degrowth movement. ‘Progressive De-Globalization‘ could be the counter-project that is urgently needed.

After the German and Austrian elections, it becomes clear once more that the rise of the new far-right is not a temporary phenomenon. Neither the difficult Brexit negotiations nor the missteps of Donald Trump are stopping new nationalism’s upward trend, as one could have hoped. Consequently, Yannis Varoufakis [1] diagnosed the long-term emergence of a nationalist international: nationalist and far-right authoritarian leaders, parties, movements, NGOs and media that are gaining ground and interconnect on a global scale. They bring about what left-wing mass movements and parties were not able or willing to do in the ten years since the financial crisis: they formulate an alternative to the discredited ideology of neo-liberalism. A strong narrative of national empowerment, paired with religious, racist, anti-feminist and anti-ecological resentments is becoming a serious challenger of neoliberalism’s TINA principle (“There Is No Alternative”). Although the new far-right questions only some aspects of neoliberal economic policy and radicalizes it in other aspects, it nevertheless acts as an ideological countermovement to the neoliberal and post-democratic political model.

The far-right as a Degrowth-phenomenon

The nationalist international has more to do with Degrowth – understood as an empirical state, not as a political demand – than it first seems. Decelerating growth or even stagnation have become the new normal in in the countries of the global North. While neoliberal globalization has created new centers of growth in the global south since the 1980s, growth slowed down in the north. Stagnating wages, precarious jobs, growing inequality – the subjective relationship between economic growth and quality of life eroded. It seems natural to make sense of the new right as a countermovement to the rise of new economic powers. In the western “relegation societies” [2], those forces are gaining in strength that can credibly promise to secure the relative prosperity that is left or even a return to past golden ages.

…click on the above link to read the rest of the article…

Regime Change and Globalization Fuel Europe’s Refugee and Migrant Crisis

January 21, 2018

Regime Change and Globalization Fuel Europe’s Refugee and Migrant Crisis

Right-wing populists are exploiting the migration issue in both the United States and Europe, but dismissing their arguments would be a mistake. Instead, an honest assessment of the economic and regime-change policies that fuel migration is needed, reports Andrew Spannaus.

Anti-establishment political forces in the both the United States and Europe have seized on the issue of illegal immigration, seen by many voters as a threat to both economic well-being and cultural identity, as a key component of their electoral strategies. While Donald Trump has made the wall with Mexico one of his priorities and has worked to uphold a ban on immigration from a number of Muslim nations, in Europe, numerous political parties have been following this script for many years.

Main irregular border crossing routes into Europe. Source: European Union

Drawing on the economic anxiety of the middle class, tied to fear of being undercut by low-wage work and worries concerning terrorism and cultural changes, anti-immigrant sentiment has become a key weapon of right-wing populist forces. These forces have drawn on the narrative of governing elites that pursue their own, limited interests, while seeking to hold down the majority of society through policies that rob them of both economic opportunity and their cultural heritage.

The sentiment is significant and growing, contributing to the growth in support for populist causes in a series of recent elections in Europe – including in Germany and Austria – as well as a noticeable shift in attitudes towards immigration in the past two years, even among more moderate segments of the population.

A major factor has been the recent surge in migrants coming from the Middle East and Africa – mainly the consequence of the disastrous “regime change” wars starting with the invasion of Iraq in 2003, through to the more recent conflicts in Libya and Syria – and the resulting perception of an impossible-to-stop “invasion” that is changing the character of Europe.

…click on the above link to read the rest of the article…

Beyond Cynicism: America Fumbles Towards Kafka’s Castle

December 27, 2017

Beyond Cynicism: America Fumbles Towards Kafka’s Castle

On America’s ‘long emergency’ of recession, globalization, and identity politics.

Credit: alisafarov/Shutterstock

Nobody knows, from sea to shining sea, why we are having all this trouble with our republic. — Tom McGuane

Can a people recover from an excursion into unreality? The USA’s sojourn into an alternative universe of the mind accelerated sharply after Wall Street nearly detonated the global financial system in 2008. That debacle was only one manifestation of an array of accumulating threats to the postmodern order, which include the burdens of empire, onerous debt, population overshoot, fracturing globalism, worries about energy, disruptive technologies, ecological havoc, and the specter of climate change.

A sense of gathering crisis, which I call the long emergency, persists. It is systemic and existential. It calls into question our ability to carry on “normal” life much farther into this century, and all the anxiety that attends it is hard for the public to process. It manifested itself first in finance because that was the most abstract and fragile of all the major activities we depend on for daily life, and therefore the one most easily tampered with and shoved into criticality by a cadre of irresponsible opportunists on Wall Street. Indeed, a lot of households were permanently wrecked after the so-called Great Financial Crisis of 2008, despite official trumpet blasts heralding “recovery” and the dishonestly engineered pump-up of capital markets since then.

With the election of 2016, symptoms of the long emergency seeped into the political system. Disinformation rules. There is no coherent consensus about what is happening and no coherent proposals to do anything about it. The two parties are mired in paralysis and dysfunction and the public’s trust in them is at epic lows.

…click on the above link to read the rest of the article…

Globalization is Poverty

October 16, 2017

Globalization is Poverty

Marc Riboud Zazou, painter of the EIffel Tower 1953Central bankers have never done more damage to the world economy than in the past 10 years. One may argue this is because they never had the power to do that. If their predecessors had had that power, who knows? Still, the global economy has never been more interconnected than it is today, due mostly to the advance of globalism, neoliberalism and perhaps even more, technology.

Ironically, all three of these factors are unremittingly praised as forces for good. But living standards for many millions of people in the west have come down and/or are laden with uncertainty, while millions of Chinese now have higher living standards. People in the west have been told to see this as a positive development; after all, it allows them to buy products cheaper than if they had been made in domestic industries.

But along with their manufacturing jobs, their entire way of life has mostly disappeared as well. Or, rather, it is being hidden behind a veil of debt. Still, we can no longer credibly deny that some three-quarters of Americans have a hard time paying their bills, and that is very different from the 1950s and 60s. In western Europe, this is somewhat less pronounced, or perhaps it’s just lagging, but with globalism and neoliberalism still the ruling economic religions, there’s no going back.

What happened? Well, we don’t make stuff anymore. That’s what. We have to buy our stuff from others. Increasingly, we lack the skills to make stuff too. We have become dependent on nations half a planet away just to survive. Nations that are only interested in selling their stuff to us if we can pay for it. And who see their domestic wage demands go up, and will -have to- charge ever higher prices for their products.

…click on the above link to read the rest of the article…

Why Wages Have Lost Ground in the 21st Century

August 31, 2017

Why Wages Have Lost Ground in the 21st Century

The problem with stagnant wages is our socio-economic system requires ever-higher incomes to function.

One of the enduring mysteries for conventional economists is why wages aren’t rising for the bottom 95% even as unemployment is low and hiring remains robust. According to classical economics, the limited supply of available workers combined with strong demand for workers should push wages higher.

Why have wages for the bottom 95% lost ground in an expanding economy?We can start our search for answers by looking at a chart of wages going back 44 years to the early 1970s. Note that the top 5% began pulling away in the 1980s, when financialization and globalization took off, and accelerated in the 1990s tech boom and the early 2000s housing bubble. The bottom 95% benefited from these booms, but at a much more modest level: wages for the bottom 95% almost returned to 0% gain as opposed to actual declines.

But after the wheels fell off the bubble in 2008/09, the “recovery” since then has seen wages for the top 5% soar and the wages for the bottom 95% crater. (This chart is for males; the next chart reflects family income.)

Here’s family income going back to the postwar boom of the late 1940s and 1950s. Note the structural change in the early 1970s and the stagnation in all income levels since 2000:

The forces that gathered steam in the 1970s, 80s and 90s that pressured wages are well-known: financialization, which benefited the top echelons at the expense of the increasingly burdened debt-serfs; globalization, which pitted American workers against an ever-expanding global work force of low-paid employees, and automation/software, which expanded from the factory floor into service sectors.

…click on the above link to read the rest of the article…

Jackson Hole and the Appalachians

August 27, 2017

Jackson Hole and the Appalachians

Henri Cartier-Bresson Trafalgar Square on the Day of the Coronation of George VI 1937

The Jackson Hole gathering of central bankers and other economics big shots is on again. They all still like themselves very much. Apart from a pesky inflation problem that none of them can get a grip on, they publicly maintain that they’re doing great, and they’re saving the planet (doing God’s work is already taken).

But the inflation problem lies in the fact that they don’t know what inflation is, and they’re just as knowledgeable when it comes to all other issues. They get sent tons of numbers and stats, and then compare these to their economic models. They don’t understand economics, and they’re not interested in trying to understand it. All they want is for the numbers to fit the models, and if they don’t, get different numbers.

Meanwhile they continue to make the most outrageous claims. Bank of England Governor Mark Carney said in early July that “We have fixed the issues that caused the last crisis.” What do you say to that? Do you take him on a tour of Britain? Or do you just let him rot?

Fed head Janet Yellen a few days earlier had proclaimed that “[US] Banks are ‘very much stronger’, and another financial crisis is not likely ‘in our lifetime’. “ While we wish her a long and healthy life for many years to come, we must realize that we have to pick one: it has to be either a long life, or no crisis in her lifetime.

…click on the above link to read the rest of the article…

The United States and The Race for Global Hegemony

December 24, 2016

The United States and The Race for Global Hegemony

The previous article focused on the definition of an international order, globalization, geopolitical theories and how this has changed the notion with which a nation exercises control over a foreign country. In this second part I intend to examine the various geopolitical theories, their translations into modern concepts, and practical actions that the United States have undertaken in recent decades to aspire to global dominance.

The Strategy Of Rimland

Keeping in mind the geopolitical theories discussed in my previous article, we understand that in order to achieve control over the so called-Heartland, Washington has often resorted to the Spykman theory (Rimland). This is because the US has repeatedly found it extremely difficult to directly control the powers that occupy the geographical space described in the Heartland theory of Mackinder, namely Iran, Russia and China.

The US has repeatedly tried to ensure that nations composing the Inner Circle (Rimland) remained under their control so as to indirectly control the Heartland and encircle it.

In this sense, Europe was conquered thanks to the Second World War and the American intervention against Nazi Germany. The end of World War II saw Europe become an integral part of the US Atlantic system, an important part of surrounding the Heartland.

The expansion and conquest of other areas of the Rimland (Inner Crescent) continued during the Cold War in Asia through wars in Korea and Vietnam. But its failure left serious doubts about Washington’s ability to sustain its military power projection so far away from home, trying to occupy foreign countries with troops on the ground. There were limits to seeking to rule the world.

…click on the above link to read the rest of the article…

Geopolitics, Globalization and World Order

December 24, 2016

Geopolitics, Globalization and World Order

Understanding the objectives and logic that accompany the expansion of nations or empires is always of paramount importance in helping one draw lessons for the future

In this series of four articles I intend to lay a very detailed but easily understandable foundation for describing the mechanisms that drive great powers. To succeed, one must analyze the geopolitical theories that over more than a century have contributed to shaping the relationship between Washington and other world powers. Secondly, it is important to expound on how Washington’s main geopolitical opponents (China, Russia and Iran) have over the years been arranging a way to put a stop to the intrusive and overbearing actions of Washington. Finally, it is important to take note of the possibly significant changes in American foreign policy doctrine that have been occurring over the last twenty years, especially how the new Trump administration intends to change course by redefining priorities and objectives.

The first analysis will therefore focus on the international order, globalization, geopolitical theories, their translations into modern concepts, and what controlling a country’s sovereignty means.

Before examining geopolitical theories, it is important to understand the effects of globalization and the changing international order it entails, a direct consequences of US strategy that seeks to control every aspect of the economic, political and cultural decisions made by foreign countries, usually applying military means to achieve this objective.

Globalization and the International Order

It is important to first define the international order among nations before and after the collapse of the Berlin wall, especially focusing on the consequences of existing in a globalized world.

…click on the above link to read the rest of the article…

Obstacles to Trump’s ‘Growth’ Plans

November 30, 2016

Obstacles to Trump’s ‘Growth’ Plans

Theodor Horydczak “Dome of US Capitol through trees at night” 1943For the second time in a few weeks (see ‘End of Growth’ Sparks Wide Discontent), former British diplomat Alastair Crooke quotes me extensively, and I gladly return the favor. Crooke here attempts to list -some of- the difficulties Donald Trump will face in executing the -economic- measures he promised to take in his campaign. Crooke argues that, as I’ve indicated repeatedly, for instance in America is The Poisoned Chalice, the financial crisis that never ended may be one of his biggest problems.

Here, again, is Alastair Crooke:

We are plainly at a pivotal moment. President-Elect Trump wants to make dramatic changes in his nation’s course. His battle cry of wanting to make “America Great Again” evokes – and almost certainly is intended to evoke – the epic American economic expansions of the Nineteenth and Twentieth centuries.

Trump wants to reverse the off-shoring of American jobs; he wants to revive America’s manufacturing base; he wants to recast the terms of international trade; he wants growth; and he wants jobs in the U.S. – and he wants to turn America’s foreign policy around 180 degrees.

It is an agenda that is, as it were, quite laudable. Many Americans want just this, and the transition in which we are presently in – dictated by the global elusiveness and search for growth (whatever is meant now by this term “growth”), clearly requires a different economic approach from that followed in recent decades.

As Raúl Ilargi Meijer has perceptively posited, greater self-reliance “is the future of the world, ‘post-growth’, and post-globalization. Every country, and every society, needs to focus on self-reliance, not as some idealistic luxury choice, but as a necessity. And that is not as bad or terrible as people would have you believe, and it’s not the end of the world …

…click on the above link to read the rest of the article…

Alastair Crooke: ‘End of Growth’ Sparks Wide Discontent

October 16, 2016

Alastair Crooke: ‘End of Growth’ Sparks Wide Discontent

Notre Dame Gargoyle, Paris France, 19th century Former British diplomat and MI6 ‘ranking figure’ Alastair Crooke quotes my September 26 article “Why There is Trump” so extensively in this article for Consortium News that I thought I might as well post the whole thing here at the Automatic Earth too. The other sources he also quotes -John Gray, Stephen Hadley among them- help to put my points in a solid perspective, which is nice to see. I can only hope that this will open more people’s eyes to the fact that in the end of growth and centralization, we are witnessing the “most important global development in decades.”Here’s Alastair Crooke:

Raul Ilargi Meijer, the long-standing economics commentator, has written both succinctly – and provocatively: “It’s over! The entire model our societies have been based on for at least as long as we ourselves have lived, is over! That’s why there’s Trump.

“There is no growth. There hasn’t been any real growth for years. All there is left are empty hollow sunshiny S&P stock market numbers propped up with ultra-cheap debt and buybacks, and employment figures that hide untold millions hiding from the labor force. And most of all there’s debt, public as well as private, that has served to keep an illusion of growth alive and now increasingly no longer can.

“These false growth numbers have one purpose only: for the public to keep the incumbent powers that be in their plush seats. But they could always ever only pull the curtain of Oz [Wizard of Oz] over people’s eyes for so long, and it’s no longer so long.

“That’s what the ascent of Trump means, and Brexit, Le Pen, and all the others. It’s over. What has driven us for all our lives has lost both its direction and its energy.”

…click on the above link to read the rest of the article…

The IMF and All The Other Losers

October 8, 2016

The IMF and All The Other Losers

Andre Kertesz Bumper cars at amusement park in Neuilly-sur-Seine, near Paris 1930I read a lot, been doing it for years, about finance and affiliated topics (a wide horizon of them), which means I’ve inevitably seen a wholesale lot of nonsense fly by. But for some reason, and I think I know why, Q3 2016 has been gunning for a top -or bottom- seat in that regard, and Q4 is looking to do it one better/worse.

Apart from the fast increasingly brainless political ‘discussions’ that don’t deserve the name, in the US and UK and beyond, there are the transnational organizations, NATO, IMF, EU and all those things, all suffocating in their own hubris, things I’ve dealt with before in for instance Globalization Is Dead, But The Idea Is Not and Why There is Trump. But none of it still seems to have trickled through anywhere that I can see.

The end of growth exposes the stupidity and ignorance of all but (and even that’s a maybe) a precious few (of our) ‘leaders’. There is no other way this could have run, because an era of growth simply selects for different people to float to the top of the pond than a period of contraction does. Can we agree on that?

‘Growth leaders’ only have to seduce voters into believing that they can keep growth going, and create more of it (though in reality they have no control over it at all). Anyone can do that. So ‘anyone’ who’s sufficiently hooked on power games will apply.

‘Contraction leaders’ have a much harder time; they must convince voters that they can minimize the ‘suffering of the herd’. Which is invariably a herd that no-one wants to belong to. A tough sell.

…click on the above link to read the rest of the article…

Why There is Trump

October 1, 2016

Why There is Trump

Dorothea Lange Family of rural rehabilitation client, Tulare County, CA 1938It’s over! The entire model our societies have been based on for at least as long as we ourselves have lived, is over! That’s why there’s Trump.There is no growth. There hasn’t been any real growth for years. All there is left are empty hollow sunshiny S&P stock market numbers propped up with ultra cheap debt and buybacks, and employment figures that hide untold millions hiding from the labor force. And most of all there’s debt, public as well as private, that has served to keep an illusion of growth alive and now increasingly no longer can.

These false growth numbers have one purpose only: for the public to keep the incumbent powers that be in their plush seats. But they could always ever only pull the curtain of Oz over people’s eyes for so long, and it’s no longer so long.

That’s what the ascent of Trump means, and Brexit, Le Pen, and all the others. It’s over. What has driven us for all our lives has lost both its direction and its energy.

We are smack in the middle of the most important global development in decades, in some respects arguably even in centuries, a veritable revolution, which will continue to be the most important factor to shape the world for years to come, and I don’t see anybody talking about it. That has me puzzled.

The development in question is the end of global economic growth, which will lead inexorably to the end of centralization (including globalization). It will also mean the end of the existence of most, and especially the most powerful, international institutions.

…click on the above link to read the rest of the article…

Tag Archives: globalization

Content

Post categories

Economic Links

Energy/Resource Links

Environmental Links

Geopolitical Links

Liberty Links

News Links

Other Links

Survival Skills

Post Archives by Category

Post navigation

Latest Posts