The director of the IMF, Christine Lagarde says that the TPP and TTIP must be passed, although she admits that the adoption of such agreements will widen the gap between rich and poor in the short term.
Globalism’s success depends on regions without nations and nations without borders. It feeds from countries whose governments have been thoroughly absorbed my regional, non-elected organizations who then transfer the power to global non-elected elites.
The reality described above is the reason why nationalism is demonized by international non-elected organizations, such as the IMF, the World Bank and the European Union. Countries with borders and independent governments pose an obstacle, and if the country is large enough, it poses a threat to globalism.
The notion that a country creates its own laws and manages its own resources and currency are repulsive for elite members who want to politically and economically conquer “belligerent” countries that dare have their own voice on their own affairs.
Today, nationalism and putting self-interest first is called protectionism, isolationism and globalist entities often warn against countries that seek independence from them, governments that prefer to disassociate themselves from the chains of eternal debt and serfdom.
Most governments are known for mortgaging the lives of their citizens by acquiring debt which later will have to be paid by unborn citizens in a true example of modern slavery. Those empty promises made during political campaigns, where powerful donors buy political candidates off in exchange for easy cash to run for office, condemn entire nations to perpetual debt.
Once in government, politicians that were bought off during the campaign, begin their hard work to favor donors and powerful interests while neglecting the will of the people.
Having a truly free and independent government, is key to containing its ever growing thirst for power. While a small, well-controlled bureaucracy may actually manage to work for the people, most governments tend to grow larger and more powerful and that power is always in the hands of special interests, not in the hands of the people.
Any call for nationalism or putting the interests of a nation first is portrayed by so-called leaders, as dangerous and unnecessary, because it directly affects the grip they have on the people. That is why movements such as BREXIT, Scottish and Catalan independence or renouncing treaties that destroy industry, trade and economic sovereignty are immediately by oligarchs, corporate leaders and the heads of international organizations.
Recent calls by Marie Le Pen, to leave the Euro zone, the move for Britain to exit the Euro system and Donald Trump’s plan to put America first above all other interests have been demonized by people like International Monetary Fund Director, Christine Lagarde.
While avoiding to mention Donald Trump by name, Lagarde said on Wednesday that the United States should “resist” any form of “protectionism”. Trump, the presumptive Republican candidate, has railed against the new free trade agreements and the damage that globalization has caused American workers, a groundbreaking speech among conservatives in which he coincides with Bernie Sanders.
The IMF today called to ratify these new agreements (TPP and TTIP) between Pacific Rim countries and Europe as it attempted to address another of the great debates of the American political campaign: the impoverishment of workers. Lagarde then called for raising the minimum wage.
The Fund added social burden to the message to also request a progressive tax reform. The “warnings”are contained in the report on the US, which is a kind of annual review that the IMF takes on the economies. The organization also issues a battery of recommendations.
According to the IMF, the diagnosis is uneven, as disparate as the economic health of citizens in the first global power. “The unemployment rate is at the lowest level since the eve of the Great Recession, 4.7%”, says the report, which can be considered full employment, with GDP stringing its seventh consecutive year expansion.
At the same time, the agency urges a stronger fight against poverty in the richest country in the world and calls for a federal minimum wage rise because “exclusion affects not only unemployed, but also many people with jobs but miserable wages.”
“The need to tackle poverty is urgent,” says the Fund. One in seven Americans lives in poverty, one out of five if it comes to children. And having a job is no guarantee of anything, since about 40% of the poor work. So the Fund calls for a more favorable tax treatment and a rise in the federal minimum wage.
It is the lacerating inequality that has given wings to populist calls such as those of Donald Trump and Bernie Sanders, who are considered by their parties as fringe candidates despite the massive support accumulated during the primary season. Both Trump and Sanders have had to deal with all kinds of fraudulent practices carried out by the political elite of the country to keep them out of the presidential race.
Sanders gave Hillary Clinton a tougher battle than expected but has already been overcome by the former Secretary of State. Although they differ in almost everything else, both Trump and Sanders have lambasted the new trade agreements as one of the causes of the destruction of industrial production as companies have left the US to countries where labor is cheaper.
On Wednesday, in a speech in New York, the Republican magnate blamed Hillary Clinton accused Hillary Clinton of “getting rich” at the expense of poor Americans.
Meawhile, the IMF defends the old and new agreements. “The free exchange of goods and services has been one of the characteristics of the economic success of the United States. New trade agreements such as the Trans Pacific Strategic Economic Partnership (TPP), serve to bolster and expand this principle as they go beyond the elimination of tariff barriers, which are already low, and include rules on investment, competition policy, intellectual property rights and regulations,” the Fund says.
Also in Europe the trade agreement has aroused enormous social rejection by the consequences that entails for workers in richer countries. This, in the language of the IMF is called “transition costs” for employment and income, which must be compensated with “temporary” aid for affected Americans. The Fund acknowledges that, in the first instance, the agreements will exacerbate the wealth gap in the United States.
Regarding immigration, the institution argues that there is potential for foreigners to compensate for the loss of an active European population in the country due largely to the aging of the population. The document also calls for “immigration reform” based on the skills of foreigners, but it doesn’t go into detail.
As many other globalist organization have done, the IMF has issued a warning regarding the possible exit of Britain from the EU. The IMF has issued a package of recommendations where it also calls for more public investment in infrastructure to boost business productivity, which has spent nearly two decades. The report also warns of future imbalances in public finances and calls for tax reform to improve the income of the public coffers and reduce inequalities. “Demographic trends and interest rates rising will cause higher fiscal imbalances over the medium term,” said technicians at the Fund, who estimate that public debt will begin to grow in 2019 and exceed 80% of GDP.
The Fund has reduced forecasts for US growth to 2.2% from 2.4% due to what it calls global uncertainty, among other things. However, the managing director told the press that the possible departure of the UK from the EU would lead to a recession. “A vote to leave the EU would have some effect on the US economy. How big it will be, is debatable. We agree with the president of the Federal Reserve, Janet Yellen, that it would not lead to a recession in the US,” said Lagarde.
In sum, the head of the IMF attempts to sell the same old ideas that have brought the global economy to the current situation. Larger, more powerful governments, higher taxes, more debt and the adoption of treaties and agreements that will further deteriorate the stability of nations worldwide. Lagarde wants measures that give more power to entities such as the one she leads and less decision-making power to the nation-States. She wants global rules for local governments and a centralized control of all human activity via trade agreements that have been proven to be disastrous for all countries that decide to sign it. The IMF itself has admitted that trade agreements such as the TPP and the TTIP will indeed widen the gap between the poorest and the richest people. Interestingly, the IMF report has nothing to say about what will happen in the long run after countries surrender their sovereignty to the corporations that have written the TPP and TTIP.