very interesting analysis of globalization reposted from Greg Pena...Greg Pena Globalization is in big trouble and the elites know it. Unfortunately, the collapse of globalization will most likely end in turmoil and war, which we have seen for some time now: Michael Pettis wrote this back in 2001, just two weeks before the 9/11 terrorist attacks: “Following most such market crashes, the public comes to see prevalent financial market practices as more sinister, and criticism of the excesses of bankers becomes a popular sport among politicians and the press in the advanced economies. Once capital stops flowing into the less developed, capital-hungry countries, the domestic consensus in favor of economic reform and international integration begins to disintegrate. When capital inflows no longer suffice to cover the short-term costs to the local elites and middle classes of increased international integration – including psychic costs such as feelings of wounded national pride – support for globalization quickly wanes. Populist movements, never completely dormant, become reinvigorated. Countries turn inward. Arguments in favor of protectionism suddenly start to sound appealing. Investment flows quickly become capital flight.” Recently, he said there was one other forecast he should have made back then; it is this: “[A]fter the globalization process had been reversed we were likely to see an upsurge in war, revolution, conflict and social unrest.”
Posted on: Wed, 28 May 2014 11:35:22 +0000
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