My View: The Trans-Pacific Coup d’Etat

“I believe that it is better to tell the truth than a lie. I believe it is better to be free than to be a slave. And I believe it is better to know than to be ignorant.”
~ H. L. Mencken

By Catherine Austin Fitts

I have been studying the barrage of international agreements currently under negotiation by the G-7 and selected allies, namely the Trans-Pacific Partnership, its companion agreement, the Transatlantic Trade and Investment Partnership, and the Trade in Services Agreement.

We have prepared a Special Report on the Trans-Pacific Partnership (TPP), interviewed Congresswoman Marcy Kaptur (D-Ohio) (published early to support the successful effort to stop fast track authority in the House last Friday) and discussed this agreement at length with Dr. Joseph Farrell in our quarterly interview.

The TTP agreement currently before the U.S. Congress represents a fundamental re-engineering of global legal structures. Ultimately, it seeks to re-engineer constitutions and federal and local laws to revise the relationship between corporations and sovereign governments. In truth, it is far more a treaty than a trade agreement.

While it is impossible to know for sure – because the document itself is secret – it is clear to me that this agreement is a flagrant violation of the US Constitution. Most certainly, the process being used to pass the agreement is also a violation of the US Constitution – it represents a new round in the “financial coup d’etat.”

With the bailouts complete, we are witnessing the next step in shifting power and resources from Global 2.0 to Global 3.0.

The real (but unstated) goal of the Trans-Pacific Partnership agreement is the build-out of a transnational legal system designed to:

1. Re-organize the constitutional and legal structure of the Anglo-American alliance and its G-7 allies;
2. Build a “wall” to ensure that governments cannot claw back resources from private investors and corporations to fund operations, outstanding debt or retirement liabilities;
3. Secure intellectual capital protection for a new wave of corporate and private patents and technology, including breakthrough energy, GMO seeds, biotech and weaponry, much of which has been funded by or transferred from governments;
4. Protect corporate valuations from their externalities – general liabilities or expenses created by their operations or the introduction of new (possibly harmful) technologies, products and services;
5. Promote a new round of privatization on highly favorable terms to corporations and private investors;
6. Aggregate a greater percentage of the small farm and small business economy into large corporations;
7. Continue to shift the relationship between capital and labor in favor of capital;
8. Increase corporate powers to override national, state and local laws and regulation;
9. Increase secrecy and immunity for Global 3.0.

Organize the G-7 and Smaller Allies
Once this consolidation is complete, Mr. Global will turn his attention to Asia. The build-out will continue with the Regional Comprehensive Economic Partnership or RCEP, which looks to be even worse than the TPP.

Put up a Wall
As we have described for more than a decade here at Solari, the bailouts, disappearing money from the US government and the black budget have shifted trillions in money, assets, technology and intellectual capital from Global 2.0 into corporate and private investment hands in Global 3.0; and sovereign governments have been exhausted with debt and retirement liabilities. I believe that the TPP and its companion agreements will erect a “wall” to make it much more difficult for governments to claw back resources from corporations (including those resources shifted illegally). Governments, communities and citizens will now be left to struggle through on their own.

For those holding sovereign and municipal bonds, please take note.

Secure Intellectual Capital
The TPP will create a corporate-controlled trans-national system which can own, control and manage intellectual capital with little interference or regulation from sovereign governments. As powerful, new breakthrough technologies come our way – energy, DNA and biotech, artificial intelligence and robotics – it is urgent for Mr. Global to create regulatory and legal mechanisms which will strengthen the 3.0 investment structure and protect it from sovereign governments and 2.0 obligations, regulations, liabilities and litigation. This freedom of private investors and corporations from public accountability will coincide with the build-out of the full Internet system (probably between 2020-25) with all 7 billion people connected. This will facilitate the distribution and adaptation of everything from global currency to new products and services.

Aggregate
Large corporations will increase their power to aggregate a greater percentage of local economies now managed by government and small business and small farmers. This is likely to increase equity market valuations, while shrinking GDP relative to what would occur with more market oriented economics.

Secrecy
The TPP will increase the power of Mr. Global and the “breakaway civilization” to maintain a non-transparent, global governance system run primarily by private investors and their corporate interests. The black budget and the technology and secrets it holds is disappearing behind the corporate veil.  This is the kind of secrecy which will allow private corporations to maintain their own intelligence and security forces: i.e. private armies.

Additional Points:

The process of implementing the TPP has been very similar to Treasury Secretary Paulson’s proposal for the first round of bailouts: extraordinary secrecy, high-pressure lobbying, and possibly other forms of “legal” blackmail.

My prediction: If all three proposals go into place, G-7 equity markets will rise – but this will not contribute to a stronger economy overall. Expect sovereign and municipal bond markets to be looking down the barrel of even bigger deficits and liabilities. The race to lock up ownership and control of precious metals, land and other strategic commodities will accelerate.

While the vote to fast track the TPP was defeated in the House last Friday, this is not over. The House has indicated they intend to vote on Fast Track Authority on Thursday, June 18th. Contact your Congressman!!!!

Update: The House passed Fast Track on Thursday, the bill goes back to the Senate. Call your Senator!!!!

To help you communicate with Congress, here is the EFF link:

• Call Your Representatives to Stand Against the TPP Fast Track
  http://act.eff.org/action/house-vote-on-tpp-fast-track-is-today-call-now

Resources:

• A Solari Report with Congresswoman Marcy Kaptur (includes audio)
• The Trans-Pacific Partnership Agreement and Trade Promotion Authority