And every nation but one signed on. A hundred and fifty-five nations agreed to a kind of form of blackmail, which is that you want to sell cars to the U.S., you want to sell, you know, orange juice to the U.S., you’re going to have to go along with deregulating your banking system, accepting our derivatives junk, our junk bonds and our junk derivatives, and opening up your sectors to Goldman Sachs and JPMorgan, so that Morgan, Citibank, and others are allowed to operate internationally. The effects, of course, have been disastrous.
It’s a stunning allegation, but it’s one that increasingly appears to be backed by solid evidence: the United States “exported” bad banking practice in exchange for importing everything from bananas to Bentleys. But there’s more.
Speaking to Truthout’s Jaisal Noor, muckraker/author/progressive Greg Palast made an interesting claim: that the United States allowed China to send us junk parts in exchange for junk bonds, inadvertently crippling the Detroit economy in the process.
By the way, even when we look at the destruction of Detroit, China signed the agreement, agreed, okay, we’ll open up our banking sector to derivatives and your toxic junk, but we want your auto parts industry in return. So we basically handed over the auto-parts industry to China. That was their deal. Two million manufacturing jobs shifted to China from the U.S., and auto-parts was a big part of it, which led to the–. One of the reasons why the city of Detroit went bankrupt despite the auto bailout is that auto parts did leave for China. So, you see, there’s direct repercussions of this type of secret connivance between our officials and banks. It’s a very dangerous business. And for Summers to have been in the middle of organizing this and coordinating this and not revealing this–they’re allowed to have these meetings, but they can’t do it in secret–it raises questions about whether this guy should be the central banker of the United States.
This is the sort of allegation which offers a very simple answer to a very complicated question, and perhaps for that reason it should taken with anything from a grain to a lick of salt. This isn’t a centrally planned economy and the government can’t just “shift” two million jobs. Still, it’s worth discussing, particularly as the not-quite-totally-open Chinese auto market continues to require a couple pounds of flesh with each imported American product.