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How the rich get richer – money in the world economy | DW Documentary

Exploding real estate prices, zero interest rate and a rising stock market – the rich are getting richer. What danger lies in wait for average citizens? For years, the world’s central banks have been pursuing a policy of cheap money. The first and foremost is the ECB (European Central Bank), which buys bad stocks and bonds to save banks, tries to fuel economic growth and props up states that are in debt. But what relieves state budgets to the tune of hundreds of billions annoys savers: interest rates are close to zero. The fiscal policies of the central banks are causing an uncontrolled global deluge of money. Experts are warning of new bubbles. In real estate, for example: it’s not just in German cities that prices are shooting up. In London, a one-bed apartment can easily cost more than a million Euro. More and more money is moving away from the real economy and into the speculative field. Highly complex financial bets are taking place in the global casino - gambling without checks and balances. The winners are set from the start: in Germany and around the world, the rich just get richer. Professor Max Otte says: "This flood of money has caused a dangerous redistribution. Those who have, get more." But with low interest rates, any money in savings accounts just melts away. Those with debts can be happy. But big companies that want to swallow up others are also happy: they can borrow cheap money for their acquisitions. Coupled with the liberalization of the financial markets, money deals have become detached from the real economy. But it’s not just the banks that need a constant source of new, cheap money today. So do states. They need it to keep a grip on their mountains of debt. It’s a kind of snowball system. What happens to our money? Is a new crisis looming? The film 'The Money Deluge' casts a new and surprising light on our money in these times of zero interest rates.

Protecting Financial Stability: Lessons from the Coronavirus Pandemic

Jackson, Howell Edmunds and Schwarcz, Steven L., Protecting Financial Stability: Lessons from the Coronavirus Pandemic (June 30, 2020). Duke Law School Public Law & Legal Theory Series No. 2020-39, Harvard Business Law Review, Available at SSRN: or Note: Its stunning how many legal changes have been made in the financial sphere "because of the coronavirus epidemic"

"Biden Cuts Social Security" (The Intercept) Actually, its the GATS agreement we signed more than two decades ago, and the TISA that they probably will revive soon that do it. Medicare is likely to get the same treatment too. See elsewhere on this site.

The Intercept (the destination of the link) doesn't mention this but GATS (and TISA, which is likely to be revived) makes all deregulation in committed services (like financial services) permanent (Yes, both are considered to be in competition with the banking and insurance industries - financial services) Making cuts so costly and difficult to reverse they will become permanent. This has been planned for a long time as shown by the trade literature. here is lots on this site. Voters should refuse to swallow this rigged Kool Aid. Oh, but everything that happens in the WTO is not subject to voting.

WTO Conflict with Financial Re-Regulation

The General Agreement on Trade in Services does impose limits on many developing countries’ ability to regulate the financial sector. A response to the article “Regulatory Freedom under GATS: Financial Services Sector” by BK Zutshi, which argued otherwise. (by Todd Tucker and Jayati Ghosh)

Interpreting the General Agreement on Trade in Services and the WTO Instruments Relevant to the International Trade of Financial Services: The Lawyer's Perspective

25 N.C. J. Int'l L. & Com. Reg.1 (1999). by J. S. Jarreau, This is a very good essay on the GATS financial services provisions, especially their history and where they sit in the general GATS and WTO millieu. These additions to the GATS are of extreme relevance to anybody hoping to bring about any of the changes which US progressives want, which unfortunately have been locked down by the GATS, without the nation's ever having been informed. So if you are interested in those areas, "single pauer" (a tierless, national universal healthcare system, which is really the only way to gain sustainable universal healthcare within the GATS, - This requires we withdraw/modify relevant commitments via Article XXI) Also, banking, expansion of student loans, and loan forgiveness, free college, etc. Many things conflict with the new constraints GATS created.

Liberalisation of Financial Services - by Stephen Woolcock

"Negotiations on a permanent agreement on financial services in the GATS are scheduled to be completed by mid December 1997. The prospects of success this year are better than in previous attempts in 1993 and 1995, but there is still much to do in a short time and still much work to be done. The current negotiations are shaped by compromises made during the Uruguay Round negotiations in order to get both developing country and US support for the approach adopted in the GATS. These compromises mean that there is no internal, liberalising dynamic in the negotiations. For the negotiations to succeed it is therefore necessary for all the key participants, which in the case of financial services effectively means some 30 WTO Members, to show the political will needed. "

FDI and the right to regulate: Lessons from trade law

The problem of domestic regulation versus international trade and international investment. Note: This is part of a larger PDF - THE DEVELOPMENT DIMENSION OF FDI: POLICY AND RULE MAKING PERSPECTIVES Proceedings of the Expert Meeting held in Geneva from 6 to 8 November 2002

progressive liberalization

the entire text of GATS' 'progressive liberalization' (Part IV) Progressive liberalization (along with similar concepts like standstill/rollback, the ratchet effect, or "trade creep") Lock in all deregulation, preventing re-regulation, nomatter what people vote for in afflicted countries. Once a service has been privatized, countries get a situation that they cannot afford to reverse. This traps them in a race to the bottom whose only endgame is a complete capture of government where government is replaced by corporate rule, because re-regulation of corporations is prohibited by trade treaties. Inhabitants have to move to other countries that have not adopted the particular bad policies yet. But not under Mode 4, because Mode 4 disenfranchises and disempowers workers. There really is no acceptable option.

A look at the "affordable" "health insurance" the global corporate state has in store for the poorer of us.

Surprised? The US health care system is literally on a very "fast track" to total and mandatory crapification, in the form of shedding by the government of all "moral hazard" by the pretext of irreversible services liberalization (total one way, binding privatization and globalization). Weve already been sold down the river - starting decades ago with GATS. Negotiations to pile it higher and deeper - until our hands look just like the sculpture on the beach in Punta Del Este where it all began, back in September 1986, are ongoing. And have been for all that time. This is not a little thing, its a global war on the very idea of a middle class. Far more thefts in the form of more "trade and investment agreements" are ongoing. Its an urgent race by the world's oligarchies to steal as much as possible before people wise up, and in the US, both Fast Track expires, and the November election. We could see announcements within the next couple of weeks. True to form, we and many other countries are being fed an endless pile of bullshit. This ad - from Hindu Business Line was actually more informative than many US ads for similar "crapsurance" -if you read between its lines. Read it.

The "Prudential Exception" In The GATS After The Case Argentina – Financial Services

Alexandre Marques da Silva Martins - "Experience has shown there has been a need for prudential measures to be imposed on financial services. The global financial crisis of 2007-08 is quite an emblematic example. Therefore, states and financial institutions have united to establish standards as for financial services like the Basel Committee. Only one case about prudential measures in the realm of financial services has been decided thus far at the WTO. In this case, adjudicators heavily utilized the recourse to the ordinary meaning of the main GATS expressions surrounding the prudential measures. This recourse may limit the aid that international norms other than the WTO legislation may provide when resolving issues related to the GATS prudential exception. Still according to the adjudicators, the prudential exception at issue is of evolutionary nature, evolving over time to adapt to particular situations. Besides, there has to be a rational relationship between the measures and their reasons."

Sanya Reid Smith explains what TISA does in a way people should be able to see blocks Medicare For All

A new Medicare For All (as opposed to one that pre-existed GATS and the WTO) seems to conflict with everything TISA stands for. Note that TISA is also supposed to be merged with GATS in the future. Medicare For All would be a ""new monopoly" (forbidden by GATS) and a "state owned enterprise" that "affects trade in" "financial services" (health insurance for example) Altering the conditions of competition, and it also would potentially be trade distorting. It also would not be "no more burdensome than necessary" (to ensure the quality of the service) as the WTO GATS requires. The scope of those affected would likely also be seen as far too large for any government measure. As long as we are in these deals it would likely have to be the least possible.

Analysis of TISA's Annex on Financial Services

By Jane Kelsey - This is an excellent analysis of the aims of this far reaching and anti-democratic "agreement" that *nobody* would agree with. It is nothing less than a global coup that lowers global standards to a least common denominator, shredding professional standards, accountability and expectations of fairness in financial services, and lowering wages and working conditions. Note: Don't confuse this Annex with GATS' Annex on Financial Services.

“That’s All They’ve Got?” (PCGTW 2010) "What Latest WTO Secretariat Paper on Financial Crisis Does and Does Not Say About GATS Disciplines on Financial Regulation"

March 15, 2010 by Todd Tucker and Public Citizen Global Trade Watch: "On February 3, the WTO issued a document that many in Geneva call the “non-response” to over a year of growing questions from WTO member countries and others about the connection between the rules of the General Agreement on Trade in Services (GATS) on financial services and the global economic crisis. 1 Indeed, this was the Secretariat’s first major study 2 in nearly 12 years about the WTO’s financial service rules. 3 The new paper is a disappointment to anyone hoping for a convincing rebuttal to charges that the WTO’s General Agreement on Trade in Services (GATS) promotes financial services deregulation...

Whistleblowing in a Foreign Key: The Consistency of Ethics Regulation Under Sarbanes-Oxley with the WTO Gats Provisions

By Stewart M. Young - United States Attorney's Office - District of Utah Abstract This Article discusses the consistency of the legal regime established by the Sarbanes-Oxley Act, and the ethical regulations proposed by the SEC, in relation to the legal services portion of the World Trade Organization's (WTO) General Agreement on Trades in Services (GATS). It discusses the GATS and its effect on the legal services market in general. It then examines how the ethics commitments in the United States Schedule of Commitments to GATS are treated. It examines the new ethical responsibility requirements imposed by the Sarbanes-Oxley Act and the subsequent proposals by the SEC. It concludes by demonstrating that the ethical requirements imposed by the Sarbanes-Oxley Act and the SEC are not consistent with the United States' obligations under GATS regarding legal services. This Article also discusses possible approaches to reconciling the proposed rules with GATS and action that might be taken by WTO member countries, including under the dispute resolution provisions of the WTO agreements. The ultimate conclusion of this Article is that the SEC-proposed standards as applied to nondomestic law firms are potentially irreconcilable with GATS, and likely to create friction between the United States and a number of our trading partners. The most important purpose of this Article is to analyze the inconsistency of the Sarbanes-Oxley Act and the proposed SEC rules with GATS. Second, this Article can be read as a case study for the domestic imposition of ethical standards on the trade in services and legal services field in general. Third, this Article will potentially add fuel to the fire for implementing international ethical standards in certain global service industries, including the legal services field in particular. Keywords: Sarbanes-Oxley, SEC, World Trade Organization, WTO, General Agreement on Trade in Services, GATS, ethics regulation


(A student paper that is mostly about states rights and their potential conflict with GATS. However its quite useful because the author seems to have collected references from many other essays and papers in one place, and formatted them for legal citation. Won an ABA award.) by Ethan Marks in Tort Trial & Insurance Practice Law Journal Vol. 50, No. 1 (FALL 2014), pp. 129-154 Published by: American Bar Association "This paper placed first in the 2014 law student writing competition of the Tort Trial & Insurance Practice Section" (RIP Nicholas Skala)

Can’t Pay Back, Won’t Pay Back: Iceland’s Loud No

Silla Sigurgeirsdóttir and Robert H Wade – Le Monde Diplomatique The people of Iceland have now twice voted not to repay international debts incurred by banks, and bankers, for which the whole island is being held responsible. With the present turmoil in European capitals, could this be the way forward for other economies? The small island of Iceland has lessons for the world. It held a referendum in April to decide, more or less, whether ordinary people should pay for the folly of the bankers (and by extension, could governments control the corporate sector if they depended on it for finance). Sixty per cent of the population rejected an agreement negotiated between Iceland, the Netherlands and the UK to pay back the British and Dutch governments for the money they spent to recompense savers with the failed bank Icesave. That was less resistance than the first referendum last spring, when 93% voted no.

GATS Annex on Financial Services

This document potentially endangers the US's Social Security, Medicare and other safety net programs if they are partially privatized and compete with commercial entities. It is part of the GATS and its explained well by Patricia Arnold in her essay on GATS and Financial Regulation (Public Citizen). It contains a slightly different definition of 'services supplied as an exercise of governmental authority' than GATS Article 1:3 does, which applies in certain situations. To understand it you should also read Nicholas Skala's 2009 paper in the International Journal of Health Services and the Understanding on Commitments in Financial Services. You can also find a bit more material online if you search on the phrase "Fu Lung" or "Fu Lung Group" in the context of financial services+WTO or the Uruguay Round. It seems an effort is made to make information on FTAS difficult to find for outsiders.

Lori Wallach discusses 'standstill' in this short video on Democracy Now

Note: THIS ALSO APPLIES TO TODAY'S US HEALTH INSURANCE, because it is a financial service, and Please also read the glossary entry for "negative list" because the two are functionallly the same, a freeze on any new regulation. So blocking any new public services and locking in any and all privatization, etc, of existing ones. TISA will do that and its standstill dates will go back to tthe 1990s, so its ceiling will likely leave new regulations like the ACA, out. The status quo for health insurance in 1998 was very bad.