Category Archives: Globalization

Beware, the Borderless Tax Man Cometh

Yves here. Readers presumably know that the US departs from the practice of pretty much every country in the world in taxing its citizens on worldwide income. Spain is breaking new ground in making citizens and residents declare foreign assets…which most see as a precursor to taxation. And of course, a move to tax out of country income or assets will increase the interest of countries to do more intensive snooping into the financial affairs of their inhabitants.

Will Snowden Revelations About Spying on Foreign Governments Undermine the European and Pacific Trade Talks?

Despite all the consternation in the US about Edward Snowden’s revelations about the extent and intensity of snooping in the United States, it isn’t clear that the surveillance industry is even breaking a sweat. But the government and public uproar in Europe about US snooping on its supposed allies may change that pronto.

Advocates Oppose Senate Immigration Bill Over Escalation of Border Militarization

This segment focuses on some elements of the Senate bill that appear to be under the radar as far as media coverage is concerned. First is that the bill does not provide a path to citizenship for a significant portion of the current illegal immigrant population (frankly that’s been a feature of past immigrant “reform” bills too; the Hispanic community may have been promised more than it was ever going to have delivered on this front). Second is that is includes a large budget to militarize the border with Mexico.

South Africans Plan to Protest Obama’s Crimes Against Africa During Presidential Visit

An Obama tour of Africa is likely to provide a marker of he is perceived in the rest of the world, although any negative reports are unlikely to get much play in our lapdog media. But since Obama was shunned in the recent G-8 conference, it’s going to be interesting to see how his African hosts muster up the appearance of enthusiasm during his visit.

Yanis Varoufakis: The Death of Direct Bank Re-capitalisation: Europe’s (Newest) Day of Shame

The idea was to de-couple the banking from the debt crisis. The reality is that they propose to do nothing of the sort. And deposits are now officially at risk.

Pepe Escobar: Why American Worries about “Containing China” Are Off the Mark

Yves here. As China has become more powerful economically, and is building up its navy (a substantial navy is a precondition of being a true superpower), some pundits have taken to anticipating a world where US cedes dominance to China over a protracted and likely unstable transition period, using the decline of the British Empire and the rise of American influence as a guide.

That’s unlikely to be the right frame of reference.

Sherrod Brown Wimps Out on Secret Trade Negotiations In USTR Vote; Elizabeth Warren Takes Risk in Bucking Obama

Has Sherrod Brown started to follow Obama’s lead in the bait and switch category? Elizabeth Warren showed a lot more spine than he did in an trade-related vote on Wednesday.

Wolf Richter: One Part Of Japan’s Abenomics Salvation Is Already A Fail

Japan’s attack in the Currency War was supposed to make it more competitive in international trade – but that, it failed to do. In fact, the opposite occurred.

More Obama Administration Secrecy: Rep. Grayson Can’t Discuss Classified Trans-Pacific Partnership Draft

OK, you remaining Obama fans: tell me why we should trust the biggest baiter and switcher in the history of the Presidency, particularly when he insists on unprecedented levels of secrecy? Because he has nice teeth and cute kids?

Wolf Richter: Germany Grapples (Again) With The Choice Between Its Constitution And The Euro

Yves here. The consensus view among experts, despite considerable public opposition in Germany, is that the German Constitutional Court will not upend the Eurozone bailout mechanisms by ruling in favor of challenges to their legality. This confirms the policy issue that Dani Rodrik flagged in 2007: you can’t have national sovereignity, democracy, and deep integration of markets at the same time. You can have at most two of the three. Sadly, Europe looks ready to settle on only one on that list.

China to Build Panama Canal Bypass Through Nicaragua

Yves here. Reader From Mexico often chides readers in comments who like try to depict Argentina and other Latin American states as failures, when the ones who have distanced themselves from American/neoliberal policies have made solid social and economic progress.

This piece highlights a tangible indicator of the wane of US influence in the Americas.

IMF Rethinks Sovereign Defaults, Again

By Delusional Economics, who is determined to cleanse the daily flow of vested interests propaganda to produce a balanced counterpoint. Cross posted from MacroBusiness

Chile’s Recent Lead Negotiator on Trans-Pacific Partnership Warns It Could Be a “Threat to Our Countries”

An important article in the Latin American press peculiarly has not gotten the attention it deserves. Or perhaps not so peculiarly, given the Obama administration’s intention to keep the Trans-Pacific Partnership negotiations as far out of the public eye as possible.