It Is Financial Colonialism

The big deal for the last 25 years, probably longer, is that phenom called globalization.  Most think it is some sort of financial benefit for those with all the cash…..and there are those that think it is a bane on mankind.

But really….what is it?

Globalization is a process of interaction and integration among the people, companies, and governments of different nations, a process driven by international trade and investment and aided by information technology. This process has effects on the environment, on culture, on political systems, on economic development and prosperity, and on human physical well-being in societies around the world.

But policy and technological developments of the past few decades have spurred increases in cross-border trade, investment, and migration so large that many observers believe the world has entered a qualitatively new phase in its economic development. Since 1950, for example, the volume of world trade has increased by 20 times, and from just 1997 to 1999 flows of foreign investment nearly doubled, from $468 billion to $827 billion. Distinguishing this current wave of globalization from earlier ones, author Thomas Friedman has said that today globalization is “farther, faster, cheaper, and deeper.”

This current wave of globalization has been driven by policies that have opened economies domestically and internationally. In the years since the Second World War, and especially during the past two decades, many governments have adopted free-market economic systems, vastly increasing their own productive potential and creating myriad new opportunities for international trade and investment. Governments also have negotiated dramatic reductions in barriers to commerce and have established international agreements to promote trade in goods, services, and investment. Taking advantage of new opportunities in foreign markets, corporations have built foreign factories and established production and marketing arrangements with foreign partners. A defining feature of globalization, therefore, is an international industrial and financial business structure.

Okay that hurt!

All that definition is just so much BS……in reality it is a financial colonialism.

About here it is perfectly fine to scratch your head and utter a ….HUH?

This is an interview with the author of a new book…….

The “have” nations increase profits for their corporations at the expense of grievously underpaid workers in developed nations. The developed nations call this globalization, John Smith argues in his book Imperialism in the Twenty-First Century: Globalization, Super-Exploitation, and Capitalism’s Final Crisis. In this interview with Truthout, Smith discusses his contention that globalization is just neocolonialism by another name.

Source: Globalization Is Just a Contemporary Word for Financial Colonialism

An interesting concept and makes sense if one takes the time to actually read the interview…


6 thoughts on “It Is Financial Colonialism

  1. It always bothers me in a way when someone explains complex issues like global markets and fluctuating economies using irritating terms like “capitalists”, oppressed nations, “corporate” this that and the next thing.. as if it all were pointing fingers at everything bad about money… and sounding like a revolutionary. This guy actually sounded like a Marxist wannabe. One thing that is always true about economics is the one variable.. the unpredictability of human nature, which generally leads to unpredictable events… all affecting some level of an economy.
    Globalization has a lot of facets and should be gradual in order to minimize some of the negatives this author pointed out in the interview. All these red state folks who voted for Mr. Wizard are allegedly displaced factory workers because of jobs going elsewhere. In fact, many of their jobs fell to automation, and this big effort by Trump to get all those jobs back is just going to fall flat because of automation. In all of this sad and sour job outlook for factory workers the country’s GDP is doing well. Such is globalization. But we really need to invest in some level of job re-training or job re-alignment to the newer markets to make the public less affected negatively. Ugh.. this is getting too long.. and I’m tired. 🙂

    1. Did you drink a Red Bull? LOL Henry George had a good take on trade….I think it is a form of colonialism for we have countries lining up…us against them….so to speak. I need my coffee…..chuq

  2. hehe.. Red Bull.. you know, I’ve never even tried that stuff… yet. I would agree his “colonialism” concept is a practical definition but that could also be explained away as market competition.. us against them. Colonialism in most forms I am aware of is in fact economic. if not strategic. (who is Henry George? The link was an interview with John Smith.. did I miss something?) Smith’s take on trade is far more thought out than I could ever do so I would have to defer to his far more applied knowledge on the subject. While the article never reported anything, I am guessing it’s in the book.. regarding how all this can be ‘fixed” for the future.

    1. George was a 19th century economists that came up with the LVT theory of economics…he has a book on free trade….pretty good reading….chuq

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