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Saturday, July 16, 2016

"The Resentment Will Explode" - In Dramatic Twist, McKinsey Slams Globalization

The IMF is getting nervous, and what it appears to be most concerned about, is a collapse of the status quo.

Moments ago, in a speech in Washington, IMF head Christine Lagarde said that "The greatest challenge we face today is the risk of the world turning its back on global cooperation—the cooperation which has served us all well. We know that globalization - and increased integration - over the past generation has yielded many economic benefits for many people."

The IMF is not alone: for years, consultancy giant McKinsey towed the party line as well saying in 2010 that "the core drivers of globalization are alive and well" and adding as recently as 2014 that "to be unconnected is to fall behind."

That appears have changing, and cracks are starting to form behind the cohesive push for globalization, at least among those who benefit the most from globalization.

In a stunning study released today, one which effectively refutes all its prior conclusions on the matter, McKinsey slams the establishment's status quo thinking and admits that the economic gains of changes in the global economy have not been widely shared lately, especially in the developed world. In the report titled "Poorer Than Their Parents? Flat or Falling Incomes in Advanced Economies" it finds that prospects for income growth have deteriorated significantly since the financial crisis, and that the benefits from globalization are now over:

This overwhelmingly positive income trend has ended. A new McKinsey Global Institute report, Poorer than their parents? Flat or falling incomes in advanced economies, finds that between 2005 and 2014, real incomes in those same advanced economies were flat or fell for 65 to 70 percent of households, or more than 540 million people (exhibit). And while government transfers and lower tax rates mitigated some of the impact, up to a quarter of all households still saw disposable income stall or fall in that decade.



Anonymous said...

Great News. Globalization hurts strong nations and rewards the week by shifting the wealth thru bogus ideology like global warming aka climate change.

Anonymous said...

Note "increased integration" which has caused so many problems worldwide.

Anonymous said...

Put a knife in Globalism/'new world order'...NOW.

lmclain said...

I liked the "has served us all so well."

She was referring to the international bankers, POLITICIANS, and corporate entities. They are absolutely GORGING themselves on money, property, and luxury consumables.
Joe Citizen is trying to figure out what to do after working 18 years at a factory that just moved to Mexico and laid HIM off.
How to pay the mortgage. How to feed his family. How to keep the lights on and the car running. How to pay the doctor. All on the wages provided by his TWO new PART-TIME jobs that have no benefits and, together, don't pay what he used to make (before "globalization" began serving him so well).
Life is a lot different when your toughest choice is whether you should buy that Lear jet or that private island in the Bahama's and NOT whether or not you'll be able to take your kid to the doctor.
If these vultures could make energy (and SELL IT for a profit) by burning humans alive, they would mount an advertising campaign so great that you would VOLUNTEER to be burned in that fire. Or put some laws in place that would end up with YOU in the fire - not them, of course.
They keep telling everyone how fantastic life is under the efforts of "globalization". "We the people" keep looking around and saying "WTF???"
Criminals, pirates, highwaymen, robbers, and thieves used to be hung in public and left on display as a warning.
Now they run for president and tell us how how happy we should be on a 1000 calorie diet.
I'm in favor of returning to the "hanging" of these slime.
Keep cheering!