Thinking about my previous post, Joe Firestone: Another Danger of the TPP: It Sacrifices Monetary Sovereignity and taking into account Murphy’s Law, I started to wonder if signing the TPP could bring on Armageddon.
I decided to look up the major foreign holders of US Treasury securities.
Here is the Murphy’s Law scenario. Suppose we decide to devalue the dollar to bring our wage rates more in line with the countries where all our jobs are being outsourced. Supposing some of those countries decided to sue us before one of the tribunals established by the TPP. Their claim is that by devaluing our dollar, we will be harming their profits and the value of their holdings of our currency. It seems pretty obvious that their claim is true, and our sole purpose for taking that action is to take back some of those jobs and lower the value of our foreign debt.
So what could they sue us for? Japan holds $1.2 trillion of our foreign debt and will be one of the major signatories of the TPP. China holds another $1.2 trillion of our foreign debt. China will not be a signatory of TPP, but I bet they could buy lots of companies in countries that will be signatories. That would give them standing before one of the tribunals.
Rather than demanding immediate payment of $2.4 trillion, they could just hold us hostage and control our major policies.
I have come to a new understanding of Murphy’s Law. It is not just by chance that everything that can go wrong, will go wrong. It is that if you give an adversary a brand new weapon that they could use against you, then they will use it. Do you want to hold your breath hoping they won’t? You could turn blue in the face just from that.