Towards A Nationalist Economic Policy

Suggesting that managed inflation and currency devaluation are pathways to greater national prosperity is bound to invite howls of derision. But critics may be ignoring factors, which, if acknowledged, might point towards consensus. At the least, it might provoke a more useful discussion.

With that in mind, here are four economic realities in America today:

1 – Despite that the word “fiat” is often used as a term of derision, all currencies are fiat unless backed by redeemable commodities. China is stockpiling gold amidst rumors they may try to tie the Renminbi to gold. Good luck with that.

2 – Throughout history, nations with the ability to sustain capital formation through financial innovation are the ones that succeeded. Prudently managed fractional reserve lending, a financial innovation, enables far more liquidity in the economy.

3 – The biggest engine of liquidity is not printing currency – there’s only about five trillion in actual printed US dollars extant in the world – it is debt formation, backed by collateral, that finances massive projects and asset acquisitions.

4 – American has been on a borrowing binge since the 1980s and total market debt – consumer, commercial and government – now stands at nearly 3.5 times GDP. This level of debt is unsustainable.

On this final axiom there should be agreement. As for the others, concerned observers might agree to disagree. Suffice to say that the economic disruption, and unintended consequences, that would accompany transition to a commodity backed currency […] Read More

How the Left Embraced Globalization

On November 30, 1999, the largely theoretical question of globalism exploded into reality with the spectacle of 50,000 demonstrators shutting down a major meeting of the World Trade Organization in Seattle. News coverage of this unexpected sensation, with expertly rendered video montages of police phalanxes, black-clad anarchists, smashed glass, snarled traffic, accompanied by animated commentary, provided American television media with a daily potboiler for a few days. Then globalism was again forgotten.

In 1999, America’s progressive Left viewed globalism as the root cause of poverty, environmental destruction, and the disintegration of ancient cultures. They perceived globalism as the movement by multinational corporations, and their client organizations, the supranational World Trade Organization, the International Monetary Fund and the World Bank, to control the development and growth of supposedly sovereign nations.

Instead of allowing developing countries the opportunity to grow diverse, self-sufficient economies, in the hallowed name of “free trade,” they were force-fed loans that required them to spend on mega-projects, cash crops, mines, dams, low-wage manufacturing plants—all built by multinationals that destroy the economic independence of the countries they enter.

In 1999, Americans who bought running shoes produced by slave labor overseas, ate hamburgers made from cattle that grazed on the lands of a former rainforest, or drank coffee grown in pesticide drenched monocrops where cloud forest once stood, could only with effort conceive of such remote despoliation. What was obvious was the cheap footwear, fast food, and excellent coffee.

Globalization, to the extent Americans thought about it at all, […] Read More