Episode 24 August 16
CLP Topic: Crony Capitalist Vichy Republicans
Our podcast today uses the recent caustic comments of Karl Rove about President Trump to place those comments into the bigger picture of Republican Party promotion of globalism.
Globalism is a political movement that puts the financial interests of a one-world government first, not America first. Both the Democrats and the Republicans collaborate to promote globalism, but for different reasons.
The podcast raises the issue that Rove is a globalist Republican, who used the agencies of government, for 8 years, in the Bush administration, to reward special corporate interests, who fund the Republican Party.
Rove hates Trump and hates Trump’s national economic policy mission.
When Rove came out of his rat hole, during the week of the shootings, to join left-wing Democrats in condemning Trump’s racist language, he was making common cause with the socialists in order to attack Trump’s national economic ideology.
More broadly, the National Republican Party supports globalism because it benefits large corporations who fund the Party.
The NAFTA deal, the Korea deal, the China World Trade Organization deal would not have passed without GOP majority votes, as two-thirds of the House Democrats opposed the trade deals.
The initial Most Favored Nation status for China in 1979, passed with major support from globalist Republicans, and the renewal of MFN in 2000 passed in the House, with 167 Republicans and 73 Democrats.
The correct term for Rove is not RINO, because the term RINO implies that there is some other shadow Republican Party, other than the National Republican Committee.
A more accurate, descriptive term for Rove is crony capitalist. All RINO Republicans are globalist crony capitalists, who collaborate with socialist Democrats to promote globalism.
Our podcast concludes that the major political conflict in America is between political interests that support the advancement of globalism, and political interests that support Trump’s national economic sovereignty policy mission.
In order to support the national sovereignty mission, it will take a more robust strategy than the one offered by Lou Dobbs that voters merely change their voter registration from Republican to unaffiliated to restore the sovereign national economic values in America.
Dobbs has the right analysis that the American political, business and academic elites are waging an outright war on Americans, and that neither the Democrats nor the Republicans are looking out for the interests of the American middle class.
But, Dobb’s idea of registering as “unaffiliated” is woefully inadequate to address the fundamental issue that globalism is the single greatest threat to American sovereignty.
After the citizens had re-registered from Republican to unaffiliated, they would still only have two globalist parties to vote for.
- The globalist socialist model of the Democrats
- The globalist crony capitalist model of the Republicans.
American citizens do not have the choice of voting for a political party that promotes the national economic interest against both global socialist Democrats and global crony capitalist Republicans.
Dobb’s strategy would be stronger if he advocated a strategy to create a political movement to promote American economic sovereignty.
I am Laurie Thomas Vass, and this is the copyrighted Citizen Liberty Party News Network podcast for August 16, 2019.
Our podcast today is under the CLP topic category Crony Capitalist Vichy Republicans, and is titled, Understanding Karl Rove’s Crony Capitalist Attack on President Trump.
The most recent podcast of the CLP News Network is available for free. The entire text and audio archive of our podcasts are available for subscription, at the CLP News Network.com.
The Economic Devastation of Republican Globalism.
The pursuit of a one-world global economy is the single biggest cause of the economic devastation on the American middle class.
The shift to globalism parallels the dramatic increase in corporate lobbying and influence of corporations, since the late 1980s. As the corporate global interest grew, the connection of the American government to the “consent of the governed” diminished.
Rove and Bush presided over an intensification of the economic damage inflicted on middle class citizens with their implementation of the China World Trade Organization protocol.
The Republican fraud about trade with China was in promoting the idea that a communist dictatorship would abide by legal agreements.
American treatment of a communist enemy requires a different approach to protecting American economic interests, and Trump is trying to unravel the economic damage caused by the globalist Republican fraud that China could be trusted.
Robert E. Scott, an economic scholar at the Economic Policy Institute, begins to answer the question of what political forces in America were responsible for negotiating the terrible trade deals that Trump is trying to undo.
Scott begins his work by explaining the economic costs to citizens of the trade deals.
The growth of U.S. trade with China between 2001 and 2017 was responsible for the loss of 3.4 million U.S. jobs, including 1.3 million jobs lost since 2008.
Nearly three-fourths (74.4 percent) of the jobs lost between 2001 and 2017 were in manufacturing (2.5 million manufacturing jobs lost).
The trade deficit with China in the computer and electronic parts industry caused the loss of 1,209,000 jobs, in America.
Between 2001 and 2011 alone, growing trade deficits with China reduced the incomes of directly impacted workers by $37 billion per year, and in 2011 alone, growing competition with imports from China and other low wage-countries reduced the wages of all U.S. non–college graduates by a total of $180 billion.
The $180 billion per year in reduced wages is roughly equivalent to the increase in corporate profits of corporations doing business in China.
Between 2008 and 2013, as a cumulative effect of all trade policies, a total of 32,000 manufacturing plants in America closed, and 6 million manufacturing workers lost their jobs.
For every job directly lost in manufacturing, as a result of the trade deals, another 1.7 jobs were lost in the indirect supply chains that used to operate in America.
In other words, the cumulative effect of all trade deals was the 12 million jobs lost in the 32,000 manufacturing plants that closed, and another 17 million jobs that were lost in the supply chains that used to service and support the closed manufacturing plants.
While Scott’s research addresses the primary economic damage to American manufacturing and the contribution manufacturing makes to American economic growth, his work tends to under-emphasize the effect that the loss of manufacturing has on the American comparative advantage of technology innovation.
Manufacturing causes the creation of new technical knowledge, and the workers and supply chains in manufacturing diffuse that knowledge throughout the economy.
Because of their convoluted communist system, the Chinese are incapable of coming up with their own form of technological innovation, and therefore, must steal intellectual property and technology from the American companies that trade with them.
The way that Republican crony capitalism trade was implemented allows the Chinese to steal this American asset, which is equivalent to giving away America’s comparative economic advantage in technology innovation in order to reap short term profits for American corporations.
Prior to 1992, manufacturing supply chains created and diffused technology knowledge that was the precursor to economic growth. Economic growth is caused by the introduction of new products.
Technical change causes new income flows to be created where none had existed before. Part of the new income is a result of increased productivity, meaning that output increases with reduced inputs in the production unit.
The new technology products create new future markets that create new flows of income.
Part of the new income is in the form of profits related to new goods produced by new production units.
Another part of the income is in the form of wages and salaries paid to people who work in the new units, who spend their incomes in the local economy, creating income and employment multipliers.
After 1992, America manufacturing companies lost the ability for technology innovation, America also lost the skills in the workforce that created new products and diffused knowledge throughout the economy.
Economic growth caused by technical change is a result of capital investments made by entrepreneurs in new production units create new interindustry relationships and new market relationships that did not exist before.
The reason the U. S. economic rate of growth has been so low since 1992, is that the Republican crony capitalists managed to destroy the rate of capital investment in technology innovation by shifting that part of the knowledge creation and diffusion over to China.
The Political Model of the Crony Capitalist Republican Party
Henry Kissinger described NAFTA as not so much a trade treaty, but the architecture of the New World Order. The New World Order replaces sovereign territorial values of American citizens with global interests.
In other words, the new world order of a one-world government fits the new ideology of global corporate crony capitalism, so beloved by Karl Rove and the RNC.
With the change in perspective about the mission of the national government to promote crony capitalism, the corporate leaders shifted their allegiance from being citizens of America to citizens of the world.
The shift in allegiance and loyalty of U. S. corporations coincides with a shift in the Republican economic arguments that supports the trade deals.
Political support from crony capitalists for China emphasizes the improvement in China’s welfare not the welfare of U. S. citizens.
For example, the Business Software Alliance released a statement after the China WTO vote,
“Today’s vote represents an unprecedented victory for the high tech industry, the American workforce, and the citizens of China. In approving PNTR status for China, the House of Representatives has paved the way for a better, more informed China. Technology fuels communication, and communication fuels change. The Internet will foster ideas and communication in China, hence, it is critical that the U.S. high tech industry be granted full access to this market.”
Prior to 1992, the theory that supported global trade was based upon an economic concept called the national social welfare function. The goal of trade policy was to use trade to improve the welfare of American citizens, who lived in the defined geographical territory of the nation.
In other words, the sovereignty of American economic interests took priority over the welfare improvement of the other nations, and over the selfish financial welfare of global corporations.
With the shift to globalism, after 1992, the American social welfare function was replaced with a globalist welfare function. The goal of trade policy for crony capitalists was aimed at improving the global welfare, which coincided with the improvement in their own private corporate welfare function via a borderless global trading platform.
The one-world government model of globalism replaces the concept of “consent of the governed,” in a representative republic, with adherence to international agencies that are not a part of the American government structure.
The loss of citizen sovereignty occurs in three main policy areas.
- Fast Track loss of consent.
The use of fast track trade policy limits Congressional representative’s ability to amend a trade deal. President Bush used fast track to enact many of the disastrous trade deals that Trump is seeking to amend. Those deals would not have been enacted under the traditional system of a representative republic.
- WTO legal authority over U. S. contracts and private property.
The WTO creates a global quasi-judicial system to adjudicate disputes between countries. Elected representatives in the U. S. do not represent citizens in these global agencies. The use of quasi- judicial systems as a guide for contracts and property rights, refers to the international convergence of rules, regulations, as a replacement for U. S. judicial precedence.
For example, Congress granted China most favored nation status in 1980. At that time, Chinese-American trade was guided by a U. S. law called, the Jackson–Vanik amendment of 1974.
The 1974 law made trade deals with China contingent on meeting certain human rights metrics.
After the passage of Most Favored Nation status, the Jackson–Vanik rules on promoting civil rights for Chinese citizens did not apply, leading directly to the brutal deaths of Chinese citizens in Tiananmen Square, in 1989.
- S. Supreme Court decisions based upon foreign and international law and agreements and not based upon the U. S. Constitution.
Beginning with a series of decisions in the U. S. Supreme Court, after 1992, the majority began using foreign law to support their decisions on U. S. constitutional issues.
The decisions included:
- Lawrence v. Texas (anti-sodomy law,)
- Thompson v. Oklahoma (death penalty) and
- Sosa v. Alvarez -Machain (Alien Torts Act)
Justice Scalia said that foreign law has no place in interpreting U.S. law, but the 3 decisions indicate a trend, consistent with globalism, that transnational judicial forums are replacing sovereign U. S. Constitutional law.
The main reason that the Republican Party has never been held accountable for inflicting the damage on American citizens with their crony capitalist trade deals is due to the way they were able to hide the impact of their policies on the American middle class.
The crony capitalist Republicans were able to make the political argument that the national welfare would be improved through “free trade”, but in fact were using the special interest political system to improve their own welfare.
In other words, following the theory of James Buchanan, the welfare that the crony capitalists were maximizing with the trade deals was their own, purchased at the irreparable economic damage on the rest of the citizens.
For example, Harris Miller, President of the Information Technology Association of America, said,
“China is a $48 billion marketplace for technology products, growing at a compound annual rate of 30 percent over the last seven years. Today’s historic bi-partisan vote will mean more jobs for American workers, new customers for the U.S. technology industry, and better information and communications for the people of China,”
The top 10 U. S. companies that benefit the most from trade agreements with China are:
- Skyworks Solutions (Chips).
- Wynn Resorts (Casinos)
- QUALCOMM (Chips)
- Broadcom (Chips)
- Micron Technology (Chips)
- NVIDIA (Chips)
- YUM! Brands (Restaurants)
- Avago Technologies (Chips)
- Applied Materials (Chip Equipment)
- Texas Instruments (Chips)
These are the main U. S. companies that have shifted their allegiance, from U. S. citizens to citizens of the world, in order to reap financial reward from the trade deals.
These 10 companies rely on a business trade association, called the Business Roundtable, to do lobbying for the trade deals.
Among the leadership of the Business Roundtable are:
- Ajay Banga, CEO of Mastercard,
- Mary T. Barra, CEO of General Motors
- Michael S. Burke, CEO of AECOM
- Wes Bush, CEO of Northrop Grumman
- Mark J. Costa, CEO of Eastman,
- Jamie Dimon, CEO of JPMorgan
- Brian T. Moynihan, CEO of Bank of America
- Mark A. Weinberger, CEO of Ernst and Young
Notable in the Business Roundtable leadership are the representatives of the nation’s largest banks and investment companies.
The reason President Trump is having a fight with the Federal Reserve over sovereignty is that the Fed responds to the global bankers, and not the sovereign national financial interests of citizens.
The main force that explains the Fed’s insane policy of quantitative easing is that the Fed sees itself as “Banker-for-The-World,” not Banker for the American sovereign national economic interest. Quantitative easing stabilizes the global financial system, but retards economic growth in America.
The Fed operates completely independent from the consent of the governed, and is not a branch of government within Madison’s system of checks and balances. Trump is fighting with an unelected elite who has more power to control economic policy than Trump.
Prior to 1992, the Fed’s policies could be seen as promoting a version of the national economic interest. After 1992, and especially after 2008, when the Fed gave away $1.7 trillion to crony capital corporations, the Fed promotes globalism.
The political model of crony capitalist influence in American politics is described in the diagram below. The diagram uses the Business Roundtable, (BRT), as the example of how the crony capitalist special interest model works, but in addition to the Business Roundtable, there are hundreds of other business groups that fund the RNC globalist mission.
This same model of special interests using front groups, like law firms, to funnel money to special interests works for Democrats. Hillary used the law firm of Perkins Coie as a pass-through entity to fund the creation of her fake Steele dossier.
The diagram describes that at the top of the model, individual corporations form a trade association to promote common special political interests, in this case promoting globalism.
The staff of the trade association prepares the legal documents and drafts legislation for consideration by members of Congress.
The staff of the association forms personal and professional relationships with outside lobbyist firms to implement the political strategy. In this case, the Business Roundtable (BRT), pays the lobbyist firm, Fierce Government Relations, a retainer of $250,000 per year.
Fierce Public Relations is only one, of 10 lobbyist firms, that are paid by BRT to provide management oversight of the political strategy. In total, BRT paid over $6 million in 2017 to outside lobbyist firms to provide assistance with implementing the BRT globalist mission.
The network of lobbyists use their personal relationships with elected representatives to provide the draft legislation prepared by the BRT staff.
The reason that the American public cannot figure out who to hold accountable for the trade deals is because this entire special interest model is hidden from public view.
In other words, the idea of “consent of the governed” is replaced by special interest crony capitalism. The elected Republican representatives listed in the diagram respond to the interests of the BRT, and not to the interests of citizens, who elected them.
This is my conclusion.
When Rove came out of his rat hole during the week of the shootings, to attack President Trump’s “white supremacy,” his hatred of Trump’s nationalistic policies was the real reason for the attack.
Rove is a political operative of the Republican National Committee, he is not on Trump’s team.
Rove took a free shot at Trump, just like the socialist Democrats, because Rove has more in common with the globalist vision of the Democrats than with Trump’s national economic mission.
The political model of special interest globalism is so deeply embedded into American politics that the idea of the “consent of the governed,” or “by the people, for the people,” seems archaic.
Trump is alone in his fight with global crony capitalist Republicans and they control the globalist agenda of the RNC.
Trump needs his own political party to promote the national economic interest because the Republicans are worthless allies with the fight with socialists and his fight with the globalists, crony capitalist corporate elites.
Recognizing the new reality of the new world order of the crony capitalist Republicans means that Trump must adopt a two-tiered economic policy. Global corporations who choose to be citizens of the world will be treated as citizens of the world.
Corporations that claim allegiance to the sovereign domestic economic mission will be treated differently in tax and legal issues than the globalist corporations.
Rove is a part of the “New World Order” described by Kissinger. And, to return to the advice of Dobbs about re-registering as unaffiliated, Trump’s national economic mission will require a more robust strategy to wrest political control away from the political elites on the Business Roundtable.
Reclaiming the American democratic impulse will require a new American political movement that aims to restore citizen and national sovereignty over unelected elites, who rule independent of the will of the citizens.
Dobbs would perform a more valuable public service if he turned his attention to leading this new American sovereignty political movement.
I am Laurie Thomas Vass, and this podcast is a copyrighted production of the CLP News Network
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