In full it reads:
The studies in this book present evidence that the quest for growth in GDP and corporate profits has in fact worsened the lives of millions of women and men.While there is much to criticize about GDP as a method to calculate "aggregate" wealth of a nation (See China's pseudo GDP numbers), this is not likely Kim's concern with GDP. He is anti-real growth and climbing standards of living. In short, he sounds like a Castro-type commie.
The same goes for his use of the term, corporate profits. He is not likely thinking of bankster profits, but profits in general, even from companies that earn their profits honestly by providing desired goods and services to consumers.
“Dr Kim would be the first World Bank president ever who seems to be anti-growth,” said William Easterly, professor of economics at New York University, according to the Financial Times. “Even the severest of World Bank critics like me think that economic growth is what we want.”
The quest for growth and proft will change to be a quest for regional security, stability and sustainability.
ReplyDeleteFor the last forty years, the world has known neo liberal credit, which came via the Milton Friedman Free To Choose Script of floating currencies, where the US Dollar was the global reserve currency; and as a result capitalism thrived, which was experienced as a free market economy in the United States and socialism in Europe; with the standard of living of Republicans and European Socialists rising dramatically and the economic wannabes such as Libertarians salivating and whimpering.
But the global tectonic economic and political plates have shifted as fears of sovereign default, and fears of diminished global growth have arisen. The bond vigilantes a have called sovereign interest rates higher, as is seen in the Flattner ETF, FLAT, falling and the Steepner ETF, STPP, rising. And the currency traders are selling world currencies, DBV, and emerging market currencies, CW, with the result that the US Dollar, $USD, traded by the 200% ETF, UUP, is rising .
An authoritarian tsunami is on the way. Look and see, a coup d etat is underway in the EU, Revelation 6:1-2. Fate, Revelation 2:26-27, is passing the baton of sovereignty from sovereign nation states to the EU ECB and IMF Troika, with the result that the global governance of EU UK and US hegemony is ending, and a ten toed kingdom of regional global governance is forming, with the first toe being the Euro zone.
Export dependence has been a major characteristic of the Milton Friedman Free To Choose floating currency regime since its introduction in 1991, when the US went off the gold standard. For forty years, there has been an intensification of global integration through trade.
A global trade bubble has formed because the US Dollar has been the defacto reserve currency, and because a debt trade has recycled dollars into US Treasuries, ZROZ, EDV, TLT, with the result that a global government finance bubble has formed, as is seen in the ETFs, BWX, and EMB, growing over the years.
China, YAO, CAF, FXI, became an export super star. India, INP, and South Korea, EWY, rose to be export giants; the former because of low wages and the latter because of ingenuity. Brazil, EWZ, saw exports grow. Australia grew as a major exporter of commodities. Sweden became a major exporter to the EU. Russia, RSX, became a major exporter of oil and natural gas. Mexico, EWW, was a strong exporter. Hot money flowed in Brazil Banks, BRAF, and India Banks, EPI.
As inflationism has turned to deflationism, the bullwhip effect, cited by Lakshmah Achuthan of ECRI, writing in the Yo Yo Years, is at hand. Yoyo risk is at its maximum. Through trade synchronization, there is coming a strong unwinding of global trade, with asset price deflation, competitive currency devaluation, deleveraging out of commodities, and debt deflation in bonds.
Because of the yo yo effect, what was global trade will become regional trade, featuring regional bartering and currency exchanges.
Regionalization is the new direction of globalism. Regional blocs will form based upon regional framework agreements where leaders meet in summits, waive sovereignty, and pool sovereignty to establish regional global governance.
The dynamos of growth and profit that powered capitalism are winding down; and the dynamos of regional security, stability and sustainability are powering up regional global governance.
Do you have a link to Jim Yong Kim's book containing this quote?
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