The Matrix Exposed
Full article at the link.
Some teaser click bait to follow.
Now the subject of trade agreements always seems to elicit some very intense opposition to my own views. My claims have focused around the concept that so called Free Trade Agreements are anything but. These international trade agreements have two basic objectives. First is to create a cost arbitrage while negating the high risk proposition of undeveloped economies that naturally exists in a free market. Second is to protect the cost arbitrage from tariffs when targeting consumers back in developed economies. That’s really it. If you could lock those two objectives up on the back of a napkin the corporate interests would be happy for our legislators to sign it.
I’m about to prove that these trade agreements are the very essence of corporatism and together with fiat money have destroyed the natural self sustainment of capitalism through the requirement of private and public debt. In doing so corporatism has sabotaged the vast majority of American households thereby eradicating the capacity for economic growth. Leaving a tremendously precarious situation for those whose futures are not yet secured by fortune.
Note that labour cost arbitrage is not a real competitive advantage because it only works if government legislates away the naturally occurring free market risk. That is by definition, not a free market concept. So please, let’s stop calling these trade agreements ‘Free Trade’. And now think about a true capitalism cycle – Investment/production requiring profit, profit requiring consumption, consumption requiring income and income requiring investment – with only those parametres could firms profit if all firms implemented a labour cost arbitrage strategy?
And some charts too to back it up.
