Davos Elite Admit Globalization Is A Failure

Elites at the World Economic Forum’s annual meeting spent the week bickering about how best to address the rejection of globalization.

Elites at the World Economic Forum’s annual meeting in Davos, Switzerland, spent the week bickering about how best to address the rejection of globalization and the upending of the New World Order, a debate made doubly urgent for the terrified globalists by upcoming elections in Europe this year where anti-establishment parties stand to gain more ground.

International Monetary Fund chief Christine Lagarde – recently convicted on charges of misusing public funds – urged a list of policies from programs to retrain workers to more social spending, while other globalist elites admitted they are “terrified of democracy” and fretted that the people of the world will continue to reject their agenda.

Hedge fund billionaire Ray Dalio warned on a panel chaired by Bloomberg Television that “we may be at a point where globalization is ending, and provincialization and nationalization is taking hold.”

That leaves the global elite in Davos trying to patch together expensive remedies to make the current system of global trade, bankster criminality and corporate rule that the Davos club represents acceptable to the public at a time when figures like President Trump threaten to dismantle it by scrapping trade deals and introducing tariffs.

‘Higher taxes’

However some Davos attendees don’t seem to have fully appreciated the mood of the people. Richard Baldwin, professor of international economics at the Graduate Institute of International and Development Studies in Geneva, said elites should impose higher taxes on workers to pay for the costs of globalization. “There may just be a need to man up. We have to pay for the social cohesion that we need to keep our societies advancing, and accept that this may be a higher tax burden on people.

Bloomberg reports: Davos over the decades has become synonymous with globalization and open markets, but in the background this year is the failure of business and political elites to predict any of the seismic political events that shaped 2016. That has raised questions over whether they are capable of understanding and addressing the anti-establishment forces that have roiled the U.S. and Europe over the past year.

After Trump and Brexit, there are more votes coming this year. Elections are due in the Netherlands, France and Germany, with a possible early poll in Italy following a constitutional referendum where voters rallied against the government.

Elites Admit They Fear Democracy

Even in Davos, there are those who are ready to scrap major pillars of the postwar European order. Two Nobel prize-winning economists, Joseph Stiglitz and Angus Deaton, suggested that in Europe in particular, things need to change.

Stiglitz said that if the euro can’t be made to work, it should be dropped. Deaton, who has written on inequality in the global economy, said in an interview that the cleft between voters and their elected officials has never been wider. In part, he blamed the European Union.

Breaking up the European Union would certainly help, even though it would do a lot of other bad stuff,” he said. “There’s a sense of overreach. There’s the sense that people have very little control of what the EU does.”

The panel on middle-class anger saw former U.S. Treasury Secretary Lawrence Summers attacking Donald Trump while Dalio, founder of Bridgewater Associates, struck a more pessimistic tone than Lagarde.

I want to be loud and clear: populism scares me,” Dalio said. “The No. 1 issue economically as a market participant is how populism manifests itself over the next year or two.

Now at Harvard University, Summers said populism is “invariably counter-productive” for those it claims to help. “Our President has made four or five phone calls to four or five companies, largely suspending the rule of law, and extorting them into relocating dozens or perhaps even a few hundred jobs into plants in the United States,” Summers said.

Different Slogan

The panel also discussed how to combat the backlash against governments and the elite by taking back control of the political narrative.

Summers’s recipe for dealing with populism twisted Trump’s campaign slogan. “Our broad objective should be to make America greater than ever before,” Summers said. “That’s very different from making it great again.”

He suggested three major steps. First, “public investment on an adequate scale starting from infrastructure” also embracing technology and education; second, “making global integration work for ordinary people” and third, “enabling the dreams of every young American” including education, finding work and home purchasing.

And if that seems distant in the U.S., in Europe there may be even less chance of a big policy effort in a region still weary from the sovereign debt crisis, with budgets stretched and debt levels high.

Italian Finance Minister Pier Carlo Padoan told the panel that Britain’s departure from the European Union and Trump posed a challenge to policy makers.

They have a vision, we don’t have a vision in Europe, not a vision which is comparable in terms of powerful message,” he said. “Sorry to be pessimistic, but that is the case.

Baxter Dmitry

Baxter Dmitry

Baxter Dmitry is a writer at Your News Wire. He covers politics, business and entertainment. Speaking truth to power since he learned to talk, Baxter has travelled in over 80 countries and won arguments in every single one. Live without fear.
Email: baxter@yournewswire.com
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Baxter Dmitry
  • stephenverchinski

    I believe the banksters and hedge funders were in a game in which overreach, the forming of trusts, monopolies and restraints on trade were their doing. They thought they could make it all work from the top. They all should stop playing god.

  • stephenverchinski

    Actually the EU is under the thumb of NATO and the MIC whose banksters financiers cooperators have been stripping true democratic socialism from the face of Europe for generations. In 2008 they threw all of southern European social democracies into turmoil by their contamination of sovereign wealth funds with their derivatives. Greedy bunch of sociopaths. Ostracize them all.

  • Black Swan

    ” The Money Powers prey upon the Nation in times of Peace and conspire against it in times of adversity. The Banking Powers are more despotic than a Monarchy, more Insolent than Autocracy, more selfish than Bureaucracy. They denounce as public enemies all who question their methods or throw light upon their crimes.” Abraham Lincoln

  • Arno van Harskamp

    Symbologist here: And ofcourse they have to ‘flash’ their signs once more:
    -The right-angled curve pierces the 3 O’s of the 3 words.
    -Well, attach the curve to each of the O’s and look at what you get. 3x 6.
    -The thickened piece of the curve is to draw away attention from the previous elements so it’s not too attention grabbing.
    This time no 17 worked in there; Unless they’d offer up the hot-dogs for $17 each as a blow-out sale.