The Globalization Genie's Long Left The Bottle

Tyler Durden's picture

Submitted by Raul Ilargi Meijer via The Automatic Earth blog,

The world is facing the “first lost decade since the 1860s”, said Bank of England governor Mark Carney this week. Arguably good for soundbite of the day, but the buck stops there. The only way that buck could have kept rolling would have been for Carney to take a critical look at himself and his employer(s), but there was none of that.

The Canadian import governor has no doubts about anything he’s done, or if he does he shows none. Instead he puts the blame for all that’s gone awry, on some -minor- elements of what he think globalization means, not with the phenomenon itself, or his enduring support for, and belief in, it. The problem with that is it’s indeed belief only; he can’t prove an inch of what he says.

Globalization is an act of faith inside a politico-economic belief system, and all it needs according to Carney and many others in his ‘church’ is a little tweaking. That globalization itself could be the driving force behind Brexit, Trump and the defeat of Italian PM Renzi does not enter into the faith’s ‘thought’ system.

Neither does the possibility that globalization is what it is, in and of itself, a process that in the end cannot be tweaked. That globalization is simply yet another form of centralization that follows the same rules and laws all other forms do, where power and wealth always, of necessity, wind up in the hands of a few, through pretty basic centrifugal forces.

Carney Lays Out Vision to Revive Benefits of Globalization

Mark Carney launched a defense of globalization and set out a manifesto for central bankers and governments to boost growth and make the world economy more equal. The Bank of England Governor said they must acknowledge that gains from trade and technology haven’t been felt by all, improve the balance of monetary and fiscal policy, and move to a more inclusive model where “everyone has a stake in globalization.” Carney’s speech in Liverpool, England, comes amid rising disquiet about the state of the world economy and political status quo that helped propel Donald Trump to victory in the U.S. presidential election and boost support for the U.K.’s exit from the European Union.

 

Trump isn’t right to favor more protectionist policies in response to globalization , Carney said in a television interview broadcast after his speech. The answer is to “redistribute some of the benefits of trade” and ensure that workers are able to acquire new skills. “Weak income growth has focused growing attention on its distribution,” Carney said in the speech.

 

“Inequalities which might have been tolerated during generalized prosperity are felt more acutely when economies stagnate.” Describing the world as facing the “first lost decade since the 1860s,” the BOE governor said public support for open markets is under threat and rejecting them would be a “tragedy, but is a possibility.”

 

Carney also defended the central bank’s current policy stance. The BOE has faced criticism from politicians after officials took measures including cutting interest rates and expanding asset purchases in August to support the economy after Britain’s June vote to leave the EU. “Low rates are not the caprice of central bankers, but rather the consequence of powerful global forces, including debt, demographics and distribution,” he said, adding that they helped to prevent a deeper economic downturn.

People like Carney will insist that globalization spurs growth, right up to the moment where they’re either voted out or fired. And they’ll probably keep on insisting until their dying days. But why are we in that “first lost decade since the 1860s” then? Is that really only because ‘we’ failed to “redistribute some of the benefits of trade”, something that can allegedly be easily rectified by enabling workers to ‘acquire new skills’?

Where is the proof for that? And why have economies stagnated in the middle of the entire process of globalization? Is that solely because ‘some of’ the benefits were not distributed well enough? If that is so, and wealth distribution is the only problem with globalization, at what point do we redistribute ourselves into the realm of communism? Where’s the dividing line? It all feels mighty vague and unsatisfactory, and not a little goal-seeked.

Like a large part of the Brexit voters in Britain, millions of Italians have been on the losing side of globalism’s ‘benefits distribution’. And this weekend they found an outlet for their frustration about it. Like Brexiteers voted against Cameron and Osborne much more than they voted for anything in specific, and Trump won because Americans are fed up with the Obama/Clinton/GOP model, Italians voted against PM Renzi and his idea to take power away from parliament and give it to him.

Judging from poll numbers, they also seem to have gained confidence in Beppe Grillo’s, and the Five Star Movement’s, ability to do something real in politics. It has taken a while, and that makes sense because the movement doesn’t fit the model of politics as they’ve known it all their lives.


Wikipedia

Also, there are many Italians who have largely agreed with much of what Grillo has been saying all along, but were deterred by the way he delivered it. Ask an Italian and they’re likely to say “too angry, too rude” when it comes to Grillo. And it’s true, his style doesn’t seem to fit in with the rest. But then that’s also exactly his forte. Because there comes a point when everything that does fit in, becomes suspect.

The old guard, from Renzi to Berlusconi to the socialists, will double their efforts to keep Grillo out of the center of power now. President Mattarella is in on it: he asked Renzi to stay on as PM until after the budget has been pushed through, and is then likely to install another technocrat government, tasked with changing laws with the express intent of making it harder for Grillo to get into power.

And Renzi, of course, is on the same wavelength as Carney, and the entire EU -and global- cabal: globalize, reform, re-distribute ‘some benefits’, execute more austerity, rinse and repeat.

What’s particular about Italy in this sense is what it has been able to preserve, unlike most other nations. That is, Italy has a lot of small enterprises, often family owned, with highly skilled workers. That doesn’t fit today’s globalization model, since it’s deemed not competitive enough when you’re forced to fight for market share.

But if globalization, and the entire growth model, is over anyway, as I’ve often asserted, it’s a whole different story. If that is true, the country had better save what’s left of its business model, because it’s ideal for a post-centralized world. ‘Workers’ wouldn’t have to ‘acquire new skills, and leave old and proven skills to be forgotten and gather dust.

The world is changing rapidly and that will become even a lot more evident in 2017. The incumbent economic and political systems, as well as their proponents and cheerleaders, are on the way out. They have all failed miserably. What comes next will be profoundly chaotic for quite a while, and that will be perilous. There is not one single (belief) system to replace them, there will be many and they will often clash.

In some places, the political right will prevail, in others the left. In most, from the look of things, neither will, if only because at the end of the day both left and right are still part of incumbent systems. Europe has a number of elections coming up and in at least some of these, parties from outside the incumbent systems will come out on top.

Whether they can then go on to form governments is perhaps another story; the system will not give up easily. But it is done. Carney’s recipe of ‘some’ redistribution of wealth and acquiring new skills is widely shared in power circles, and that will be the system’s undoing. All it has to offer is more talk about more growth and more globalization, and while people protest only the latter, neither is on offer.

One of the tools the media use to discredit anything that comes from outside the system is to label it all ‘populist’. It’s a miracle it hasn’t become a honor label yet. In Europe, all new rightwing parties (a label in itself) get called populist, Le Pen, Wilders, Frauke Petry in Germany, the Lega Nord in Italy. But so does someone like Beppe Grillo, who politically has nothing in common with these people.

Moreover, many of their ideas are not to the right of existing parties at all. Despite some of his views, new French Republican candidate François Fillon is not called a populist, ostensibly because he’s from a large incumbent party, but so are Trump and Sanders in the US, and they do get called populist.

Empty labels, fake news and oceans of debt keep the systems -somewhat- going for now. But the genie’s long left the bottle. The ‘incumbents’ have failed their people for far too long, most of all economically. And they keep on claiming that everything will be alright, everyone will be better off if only we execute more globalization, and give them all a few pennies more.

It really is too silly to be true that that is what existing systems and their servants are still trying to make everyone believe. While it is so obvious that so many have long stopped believing. You would think they’d change their messages to reflect that change in society. But they don’t know how. And it’s that very inability that feeds those pesky ‘populists’.

The same François Fillon could be a contender in France against anti-EU Le Pen because he’s expressed doubts on Brussels. Dutch PM Rutte has cautiously critiqued the union too. But those shifts in words if not real opinions come far too late. Britain has said No and there’s zero chance that more nations will not do the same. Just give them the option, give them a vote.

The only way to keep Europe from descending into chaos is to abandon the EU, lock the doors and throw away the keys. The same is true on a global scale, with all the globalist trade agreements that most people have long lost faith in. We will either see a peaceful transition to a system not based on centralization, or we will not see peace, period.

And to think economic meltdown hasn’t even truly started yet, has been kept hidden behind a wall of debt, and so many people are already so fed up with the whole shebang.

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froze25's picture

Fool me once shame on you, fool me 10,023,403 times, start running mother fucker.

LawsofPhysics's picture

Plenty of opportunities around as the old model for civilization is not sustainable and falls apart...

Got trabable skills, integrity, and a good WORK ethic?

You better motherfucker.

froze25's picture

Learn electrical engineering, doesn't have to be extreme but if you can read a circuit schematic and understand how transistors operate you will be light years ahead of the competition. Fixing Shit will be in high demand.

LawsofPhysics's picture

Yep. Just like what happened in the former Soviet Union.

froze25's picture

Exactly, some of the best repair guys one of my vendor uses are all ex-soviet engineers.

Diatom's picture

Best mechanics in the world are Cuban... Think about it...

 

LyLo's picture

Ugh.  I was going to point out that it's fifth grade science: EVERYONE should know how to do that.  What do you mean, learn?  Seriously, if you are old enough to read ZH, you should have known about basic electrical circuits for several years.

Then I remembered which country I live in.

techpriest's picture

I have a PhD in chemical engineering, yet I didn't learn circuits until I did so as a hobby. When I was just out of school and had just started to prep, I was still able to get through a 2-day power outage by rigging up a bunch of 1-watt LEDs, which charged via solar panel during the day. That particular hobby project turned out to be super helpful.

Also, thinking back to grad school, I remember some of the students, all A students in undergrad, not knowing how to use a wrench and really struggling to build their bench reactor. I was not from an academic family so things like tearing apart law mowers in the spring really helped.

Encroaching Darkness's picture

In my Master's program I took a course on renewable energy, including fuel cells. The instructor bought one as a kit, input hydrogen + oxygen get water + electrical power. It took a week to put it together, largely because we had to make sure all the school safety rules were followed: the available tool shed was deemed too small to contain any concentration of hydrogen (explosion potential), so we had to drill a hole through the outside wall, run the tubing inside from the cylinder outside and be sure to keep the doors open while running. Hydrogen would have shot straight up to the ceiling and dispersed through the eave vents if not immediately ignited, but locating a hole saw / drilling / running tubing took three days longer than the whole project should have.

The M.E. student I was working with did a good job bending tubing, supporting the cell, etc. The cell came with a power curve, input this much H2 and O2 and get this much power. But it didn't; in fact, it gave no power at all. I said, "You've built it horizontally; let's try turning it vertically in case water has built up a puddle on top of the cell membrane". The M.E. student said, "It can't; the velocity would blow the water out of there". I said, "Humor me; it surely can't give us any LESS power!". He did; we cranked it up and it rode the curve religiously, the prof was delighted that the demonstration project was a success, and the M.E. student learned something (as did I).

Now I have a set of cheap solar panels from Harbor Freight in my preps. It may not save the world, but I'll be able to read after the sun goes down.

cougar_w's picture

Forget about electrical circuits; learn how to wire a house.

I wired a house. Twice.

Practical skills FTW.

BuddyEffed's picture

I'm an EE. Suggest you minor in circuits, but major in hand to hand combat, hunting, fishing, foraging, and impromptu shelter construction , and running like a motherfucker.

Make sure your precious metals include some stainless steel for blades and sharp edges.

Croesus's picture

The political class constantly needs to create new justifications for its own existence...

Uzda Farce's picture
Uzda Farce (not verified) Croesus Dec 8, 2016 5:07 PM

Mark Carney is a leading member of the "Coalition for Inclusive Capitalism" founded by billionaire Lynn Forester de Rothschild, owner of The Economist, member of the Rockefeller/CFR, and BFF of Hillary Clinton.

http://www.inc-cap.com/about-us/

http://www.inc-cap.com/bio/mark-carney/

CompassionateConservative's picture

This whole opposition to globalism is just pure and simple racism from white people.  We can stop it by just banning hate speech, fake news sites like this one, guns, and by scrapping the bill of rights.  Why do you white goyim think that you're so special?  I say that if chinese or mexican goyim are cheaper then lets just send the factories there.  Goyim are goyim and you uppity white racist nazis are our biggest threat quite frankly which is why I, as a progressive compassionate conservative in the mold of Ronald gun grabbin', amnesty grantin' Reagan take heed of the words of the great Barbara Lerner Spectre and see the clear need for white genocide.  

Lyman54's picture

Tell that to the Mexican cattle farmers or corn growers.  They will tell you how much NAFTA screwed  them.

TheWrench's picture

"This whole opposition to globalism is just pure and simple racism from white people. "

Nice Try; FAIL

Ghordius's picture

now this is an excellent article by an author that I usually lambast here. one little lambasting from me on this phrase:

"And Renzi, of course, is on the same wavelength as Carney, and the entire EU -and global- cabal: globalize, reform, re-distribute ‘some benefits’, execute more austerity, rinse and repeat.

What’s particular about Italy in this sense is what it has been able to preserve, unlike most other nations. That is, Italy has a lot of small enterprises, often family owned, with highly skilled workers. That doesn’t fit today’s globalization model, since it’s deemed not competitive enough when you’re forced to fight for market share. "

disagree on "more austerity". I ask for balanced budgets. just frigging balance budgets, for criminy

agree on the rest when it comes to the Small and Medium Enterprises (SME) of the eurozone but...

... it's not the globalization model that forces companies "to fight for market shares"

that's the financialization model. based too much on stock markets and megabanks. in the words of Marine Le Pen, that's "hyperliberalism"

there is one city that propagates that model, hard, and that's NY, in Wall Street. followed by London since Maggie Tatcher brought us the "Big Bang", which transformed the City's financial firms, often family owned and fairly small... into tentacles of megabanks

as long as you don't make a difference between financialization and globalization... you are dancing to the megabanker's tunes

and no, talking about "globalism" is actually even worse, and makes the picture of what is really happening even more distorted

LyLo's picture

See, my understanding was that basic capitalism forces companies to fight for market shares.

And that globalization led directly to financialization as a form of bureaucratic control for companies that were already on decent footing to stifle their competition and further indebt their customers.  Basically, without financialization--which is far more than the stock market and banks--nobody benefits from globalization without being obvious colonial conquerors, which is out of style. 

Could you kindly explain what globalism minus financialization would look like and how it could possibly function, for those of us lacking your clarity on the subject? 

Ghordius's picture

your understanding is that of an economy based on Big Biz
market share is only relevant where companies are big enough to be relevant, in a market, and if you get a premium* for market share, for example through a stock market, best if fuelled by cheap credit

does a Mom & Pop shop care about market share? no
does a small farmer? does a builder?

(*) like: I pay more for that stock because they cornered a market (or only a solid share of it) and the entry barriers are high

Bryan's picture

Pride, greed and hubris is so ingrained in the human psyche that it's almost impossible to detect it in yourself, yet very easy to detect in others.

Ghordius's picture

"The same François Fillon could be a contender in France against anti-EU Le Pen because he’s expressed doubts on Brussels. Dutch PM Rutte has cautiously critiqued the union too. But those shifts in words if not real opinions come far too late. Britain has said No and there’s zero chance that more nations will not do the same. Just give them the option, give them a vote.

The only way to keep Europe from descending into chaos is to abandon the EU, lock the doors and throw away the keys. The same is true on a global scale, with all the globalist trade agreements that most people have long lost faith in. We will either see a peaceful transition to a system not based on centralization, or we will not see peace, period. "

what centralization? that of the EU? please, pull the other one, it has bells on. particularly since for example a country like France is already incredibly centralized. France out of the EU would be more centralized, not less

here the author is trying to pull wool on the reader's eyes. yes, we can abandon the EU. but it would not make globalization go away

sure, any european country could shut it's borders to trade... wait. there it is. we can't. we need trade. autarchy is thinkable for countries like the US, continental sized ones

... and there it is. yes, european countries could shut a bit borders... if they stick together. and so, it would have to be - hold for it - something like the EU

now consider this: the UK is exiting the EU and... already there is the talk there that the EU is protectionistic versus "third countries"

a case of wanting that cake and eating it too. dear author, you have to decide. is the EU for globalization, against globalization or... a way for some countries to cope with globalization? I'd suggest you think about that third way of explaining a trade and regulatory alliance that pisses off so many big players

Ecclesia Militans's picture

I hate to admit it, but I am agreeing with Ghordius again.  Something afoot in the world-wide aether I am guessing....

TuPhat's picture

Ghordius is somewhat correct but he is equating trade deals that are beneficial with 'globalization'.  That is not what the globalists want.  The trade is only a means to an end for them.  They want total control.

imapopulistnow's picture

While Trump will remain committed to the working class, his advisors are also going to give him compelling macro arguments for globalization. How they reconcile these two into a policy that supports the working class will be what plays out.

TuPhat's picture

Trumps appointments are very worrying.  It looks like he is preparing to crack down on any type of dissent in the US.

wisehiney's picture

It would be cool if they would export some of that nice little cheap coolie pussy to over here.

Jethro's picture

Dude....no. If you want that, go there and partake. Don't bring it here

wisehiney's picture

can amazon return the unused portion?

LyLo's picture

Dude, it's the comebacks to replies that make you earn your moniker.  Kudos. 

Quit making me spit coffee through my nose.   XD

Lyman54's picture

The globalization train was derailed over a year ago.  People like Carney are always behind the curve when the old economic models die.

Amun's picture

He is still behind the curve telling "news" of flat incomes that anyone on the street new 5 years ago.

UK salaries for skilled jobs are not flat, they are today 20-25% lower than they were 10 years ago in 2006 in nominal terms, i.e without accounting for inflation. Oh, that is, if you can find that skilled job that has 100 applicants for.

 

You really have to be a governor of the BoE advised by useless Oxbridge researchrs to know shit about what is going on in the economy.

moorewasthebestbond's picture

Will Brexit morph into Bremain? Enquiring minds want to know.

Amun's picture

Britain does not have 2mln of under-class khazarian "ashkenazis" to stage a repetition of the 1917 Russian revolution.

Having said that, Bremain will create the necessary conditions for social riots on a scale not seen in modern British history.

Jethro's picture

People like Carney won't be happy until everybody looks Filipino, and we have negative GDP.

sheikurbootie's picture

I just want to stop these fucking mexicans (and OTM) from being here illegally.  Build a giant fucking wall.

LyLo's picture

Personally, I care slightly less about the illegals: if the rich people insist on exploiting the politically disenfranchised so they don't have to watch their own brats, that's on their conscience.  I'd rather they didn't, but they're generally bad people anyways so it's not like this is what condemns them.

However, my husband is in IT.  He's a professional with many, many years in the field, a lot of education and certifications, and loads of talent.  He finally is making almost a living wage.  (Still less than my cousin was offered straight out of highschool in the 90s after being fired for crashing a golf cart at a zoo, and no this isn't counting 'inflation' but just straight $-$.)  They are constantly hassled to sign up for classes with the local community college to 'further their education'...  On our own dime, of course, with no benefit to doing so besides the bosses having one less reason to complain for a month or two.  Many of his colleagues use payday lending to get through the month, and everyone is constantly told how easy it would be to replace them.

Wanna guess who they threaten to replace them with?  (I'll give you a hint: it ain't the illegals.)

cougar_w's picture

The trick here is to get out of classic IT and into cloud operations. Public cloud like Amazon AWS and Microsofts Azure. Helps to learn about VMware, they have a free version for desktop use. Read up on microservices, CaaS, PaaS.

Hardware virtualization is current, but already not the future. Traditional hardware belongs to the past and is Chinese now. No money there, end of story.

He should learn everything he can about Docker, and container tech in general. VERY hot right now.

Amazon Lambda (function-as-a-service) is set to absolutely take over the modern world. My startup was doing that too, we got bought up to take over a larger company's internal docker/container play. But everyone is talking about Lambda. Huge shake up in the works. Amazon/AWS/Lambda is all about public cloud and microservices. Nothing else matters. Everything is changing. Get on the train or get ready to be run over. The money is 100% cloud ops.

sister tika's picture

"The Bank of England Governor said they must acknowledge that gains from trade and technology haven’t been felt by all, improve the balance of monetary and fiscal policy, and move to a more inclusive model where “everyone has a stake in globalization.”

TRANSLATION: Lube up plebs and bend over a little further, so we can shove this big dick up your ass a little deeper.

TuPhat's picture

Sister, what would the pope say about that translation?

sister tika's picture

I don't think he would approve.

messystateofaffairs's picture

Globalization, like Socialism, are flawed concepts from the get go. You will never convince their adherents of that though, and should not waste time trying. Socialists will always want their free lunch with a big helping of forced love and globalists will always want big brother to wipe their ass, although wiping is not what big brother has in mind.

I'm in favor of a system that allows individuals to opt out of "contributing to" and "benefitting from" from Socialism and Globalism. 

Eventually free people, defined as forced redistribution free people who pay for everything they take via open voluntary trade, will have to cede from the Moocher's, stop arguing with them, and move forward without them. Then they will be free to "tweak" their romantic failures in infinte loops.

Amun's picture

"under the general conditions of commodity production and private property, the “business operations” of capitalist monopolies inevitably lead to the domination of a financial oligarchy."

 

"Imperialism, as the Highest Stage of Capitalism"

https://www.marxists.org/archive/lenin/works/1916/imp-hsc/ch03.htm

"It is characteristic of capitalism in general that the ownership of capital is separated from the application of capital to production, that money capital is separated from industrial or productive capital, and that the rentier who lives entirely on income obtained from money capital, is separated from the entrepreneur and from all who are directly concerned in the management of capital.

Imperialism, or the domination of finance capital, is that highest stage of capitalism in which this separation reaches vast proportions. The supremacy of finance capital over all other forms of capital means the predominance of the rentier and  of the financial oligarchy; it means that a small number of financially “powerful” stand out among all the rest."

 

 


A. Boaty's picture

The Globalists have had their day. The time has long since passed to return to local control. They cannot force us to export everything we produce, and import everything we consume. We will not simply stand around getting clipped like a bunch of suckers. The drop off in global trade reveals their weakness. Local control advocates have an opportunity to implement their agenda.

BP_in_FL's picture

Agreed, but don't expect the globalists to just go away.  They never give up the con.  They always look for subtle ways to make the message sound more palatable.  And they wholly rely on repetition to engrain their message in the subconscious of the culture.  Early forms of climate change propaganda began more than 40 years ago.  To those who recognize it as propaganda it's laughable.  Unfortunately an entire generation has now ingested it from birth and they've (largely) accepted it as legitimate even though there's no proof for it.

DuneCreature's picture

Take back control of your own country, economy and culture.

But first (or simultaneously) you need to be able to think and reason above monkey level.

(-(-(-(-( -- TV Is A Weaponized Mind Control Device --)-)-)-)-)

This is a GOOD video, people:

(https://www.youtube.com/watch?v=5ixwC6tm_Cc)

I have worked on mind control projects for the intel comm spooks.

I can tell you first hand they own your brain (mind) if you watch much TV at all. ..... They can turn you into a zombie killer robot or dimwit blob of Silly Putty at the flip of a switch. ... Go ahead and laugh. ... If you are in the special about 6 - 12% of the population you have every right to laugh because the TV techniques just don't work on you. I am fortunately, in that group myself. (One of the reasons I was recruited to work on their mind control projects. I could sit through hours of video editing work and not go into mental meltdown. I saw several others do the mind meltdown thing in spades right in front of me.). ... For all the rest of you, get ready, because you are about to find out the hard way how true the statement that they totally own your mind really is.

We worked off of a body of work started in the original MTV days. If you are old enough you might recall how disturbing that kaleidoscope of images and sound effects was when you first saw and heard that seething mess. .. Over time you became conditioned to the chaos on the screen until finally you barely noticed what it was doing to your thought processes.

This mind control stuff really works, people.

Just a friendly warning to parents with small children you don't want to see turned into drooling psychos.

The same warning applies to that smart phone in your hand too, BTW.

Live Hard, If You Want To Maintain Control Of Your Life, Lose Or Severely Limit The TV And Smart Phone. Die Free

~ DC v4.0