There are two places to go to read this story. Naked Capitalism has the headline Joe Firestone: Another Danger of the TPP: It Sacrifices Monetary Sovereignity. New Economic Perspectives has the headline How Can Our Senators and Representatives Vote for Giving Away Our Monetary Sovereignty?
Let’s see if giving you the first and last paragraphs can give you a clue as to the magnitude of this blunder.
Right now the US fulfills the three essential conditions for monetary sovereignty: 1) it issues its own non-convertible currency, 2) which it allows to float on international currency markets; and 3) it owes no debts in any currency other than dollars. Because it is monetarily sovereign, and can always meet its obligations the US can never be forced into insolvency.
Which brings us back to our erstwhile Representatives and Senators in Washington. How they can even consider Fast Track Authority for the President without extensively considering and debating the sovereignty-infringing aspects of the TPP is beyond me. Its potential infringement on Monetary Sovereignty is only one of these. There are many others, as well. And it is hard to understand how people who swear fealty to the United States can justify their apparent complete lack of concern for these issues when they make trade agreements.
In one fell swoop, a decision in a single case could force a $350 billion dollar debt on our country and the complainant could insist on payment in Chinese yuan.
If, after seeing the financial collapse of 2008/2009, you realize the magnitude of Bill Clinton’s blunder in doing away with the Glass-Steagal Act, you should contemplate how the TPP could be a blunder of far larger magnitude. What is surprising is that it has taken this long for someone like Joe Firestone to expose the full implications of the Investor State Dispute Settlement (ISDS) tribunals that are set up by the TPP.
All the phoney issues the Republicans raise about our debt to ourselves in our own currency could be made to come true by changing that debt to be in a foreign currency of the lender’s choice after we have incurred a debt we didn’t even know we had incurred.