Free Trade and the Suicide of a Superpower (Part 1)

This article was originally written in 2012 as a followup to the material I first wrote about pertaining to US trade policy in my banned 2006 book, America's Financial Apocalypse.  This book was not only the ONLY book in the world to have accuractely forecast nearly every major event related to the blow up of the real estate bubble and stock market, but also detailed numerous wide ranging topics that promised to adversely impact the US if not corrected, including the nation's healthcare system, soaring college costs, pension underfundedness, Social Security and of course, US trade policy. 

When President Bush was preparing to leave the White House during the peak of the financial crisis, he was instructed by his globalist handlers to preach the “we must guard against protectionism” line so as to reinforce the continuation of the propaganda campaign once Obama entered office.

This line was taken directly out of the mandates from the United Nations, International Monetary Fund and other organizations comprising the globalization establishment.

When Obama entered the White House, rather than restructure free trade as promised, he actually expanded it into South Korea, promising it would protect thousands of U.S. jobs. Now he is pressing forward with the secretive and controversial Trans-Pacific Partnership, claiming once again that it will benefit Americans; more lies from Washington.

Ever since the financial crisis of 2008, the establishment has been preaching the need to guard against protectionism. They insist that the continued expansion of globalization offers the solution to the economic nightmare created by Wall Street. They have been especially adamant about this view after sensing the permanent breakdown of the European Union.

At the same time, Washington failed to pass real Wall Street reform, ensuring that more fraud will materialize in due time. Most Americans have no idea what’s going on because they remain in the grasp of the media-entertainment complex. They continue to be distracted by celebrities, sports figures, gossip, trash TV and social media. They are lied to by talking heads, which convince them that their vote matters.

In reality, the U.S. is governed by two-party fascist regime which takes its orders from the various figure heads of the Jewish Mafia. Most Americans have already forgotten that no one from Wall Street is in jail for defrauding the globe and creating a depression. Nations like China and Iran would have long since served these criminals with real justice.

The establishment has been committing further economic extortion through austerity and monetary easing. For advanced nations, these policies have created a hidden form of protectionism that benefits corporations.

The victims of this campaign have been the working-class, who have lost their homes and jobs. They are also facing huge cuts to benefits and pensions. Savers have also been adversely impacted to a variable degree due to the loss of purchasing power of their currency. As bad as things are, it will be the next generation that gets hit the hardest.

Various rounds of monetary easing by the Federal Reserve have also caused uncontrollable currency appreciation and inflation in nations like Brazil and Vietnam, respectively. But all is not bad for these nations because they have benefited greatly from America’s free trade policy for a number of years. 

Free trade is the primary economic pillar of globalization. It was created by corporate executives and Wall Street tycoons in order to exploit economic and other policy differences between the U.S. and its trading partners for the purpose of boosting corporate profits. Although this system of commerce had been planned for decades, it only became practical during the technology revolution of the 1990s.

The U.S. launched the first phase of globalization with the passage of the North American Free Trade Agreement in the early 1990s. Europe soon followed with the official formation of the European Union. Since then, global trade has been expanded many times, and in each case the results have been the same.

While free trade has certainly benefited large corporations, the United States has suffered the loss of millions of good jobs; jobs paying middle-class wages, due to the effects of unfair trade, otherwise referred to as free trade. It has been this pillar of globalization that has largely been responsible for the widening wealth and income gap.

The negative effects of free trade have been evident from the start. But most Americans have only noticed the impact after an asset bubble has imploded. For instance, just over a decade ago when the dotcom bubble created by Wall Street and the Federal Reserve finally popped, the ill effects of free trade became all too apparent. As economic demand plummeted, inventories piled up and jobs vanished. The vast majority of these jobs never returned.

Washington’s response to this recession was for the Federal Reserve to engineer another asset bubble. Fueled by false demand, this bubble led to millions of jobs in construction, real estate, banking, finance, and related industries. Things looked good to those who were unaware what was really going on. They simply focused on their incomes, home values and stock portfolios.

Wall Street banks reaped huge profits from this scam. But when the bubble burst there were no claw-backs. Consumers got hosed. This has been a repeating cycle ever since the formation of the financial industry by the Jewish Mafia. It’s how the game is played. 

Now that this bubble has imploded, the toxic effects of free trade have once again become apparent. Unfortunately, too many Americans are unaware that U.S. trade policy remains as the nation’s fundamental economic problem. They have been lied to by economists, politicians and other members of the establishment. Despite countless programs aimed at job creation, the unemployment rate remains high.

Right-wing policy makers, corporate shills and their media partners continue to insist that the unemployed lack the required skills demanded by the work place. This is but another lie, as confirmed by data. The left-wing counterpart of the U.S. fascist regime insists that tepid economic demand has been responsible for the lack of job growth.

Although low demand is certainly part of the problem, the fundamental reason for the persistently highly unemployment rate is due to U.S. trade policy. This can be readily seen by those who have noted that corporate giants continue to hire overseas, while ramping up plans for huge expansions in years to come. These destructive trends are never mentioned by the controlled media in the U.S.

Southeast Asia and Latin America have also reaped tremendous benefits from U.S. trade policy. The difference is that most citizens of these nations have seen their living standards soar over the past decade. Thus, higher living standards in the developed world have come at the expense of America’s working and middle class. And Washington has sat by doing nothing to stop the hemorrhaging of jobs and living standards.

To better understand the impetus behind free trade, we must go back in time. During the oil crises of the late-1970s and early-1980s, Japanese imports began flooding into the U.S. Meanwhile, Japan prevented imports from America by erecting huge tariffs and other trade barriers.

Washington realized that U.S. manufacturing would not be able to compete with Asia. But this did not take the architects of globalization by surprise. They had been planning this takeover since the end of World War II. Finally, an opportunity arose. The response from bureaucrats, corporate executives and bankers was to push for Washington to radically change how it viewed intellectual property laws.

Although the governing laws had been in existence for hundreds of years, radical changes in intellectual property legislation during the 1980s greatly improved the ability to receive compensation and/or damage awards for third-party use of more complex intangible assets such as patents. However, Southeast Asia remained largely noncompliant. [1]

By the mid-1990s, intellectual property had become a significant component of profits for many corporate giants. Instead of earning a profit by employing a labor force which made goods, corporations could make money from ideas and proprietary information, much of which had been funded by tax payers. This in itself catalyzed the relocation of manufacturing abroad.

Since the 1980s, the U.S. economy has shifted from manufacturing- to serviced-based because it allows corporations to slash operational costs by shifting facilities and jobs to nations that do not play by the same rules as the U.S.

In addition, America’s service-based economy opened the door for banks to design new financial transactions, which extracted even more money from consumers and businesses. This added to the rapid growth of the consumer credit markets which began to boom by the early-1990s.

[1] Compliance with intellectual property law has been an issue for years, especially in Southeast Asia. But now that Asia is more connected into the globalization shell game, intellectual property enforcement is making new strides.

Continued here Part 2

See Also:

Free Trade And The Suicide Of A Superpower (Part 2)

Free Trade And The Jewish Mafia

Ford As A Crystal Ball For America

Ford: Playing Its Last Hand?

GM Lines Up for Its Take

Washington's War Against America's Middle Class

Video: Educating A Libertarian Hack From Harvard

7 Myths About US-China Trade and Investment 

The Scam Called Globalization

The Dirty Secret about Hedonics & Globalization

Thailand, Globalization and Real Estate Economics

America. What Went Wrong? (Part 1)

America. What Went Wrong? (Part 2)

America's Second Great Depression

America's Eroding Job Quality

The Death of Labor Unions in America

 Death of America

Record Profits and the Huge Sucking Sound of American Jobs