“Free Trade” Run Amok: Canada Challenges U.S. Laws Reining In Banks


We noted in 2013 that the Trans Pacific Partnership (TPP) would let big banks run amok, and would increase the cost of consumer loans.

Ellen Brown asked last month:

Under the TPP, could the US government be sued and be held liable if it decided to stop issuing Treasury debt and financed deficit spending in some other way (perhaps by quantitative easing or by issuing trillion dollar coins)? Why not, since some private companies would lose profits as a result?

Under the TPP or the TTIP (the Transatlantic Trade and Investment Partnership under negotiation with the European Union), would the Federal Reserve be sued if it failed to bail out banks that were too big to fail?

[U]nder the Netherlands-Czech trade agreement, the Czech Republic was sued in an investor-state dispute for failing to bail out an insolvent bank in which the complainant had an interest. The investor company was awarded $236 million in the dispute settlement. What might the damages be, asks Firestone, if the Fed decided to let the Bank of America fail, and a Saudi-based investment company decided to sue?

Michael Snyder noted:

[TPP] would give Wall Street banks much more freedom to trade risky derivatives ….

We’ve all been proven right …

Specifically, Reuters reports today that Canada is trying to stop enforcement of America’s law prohibiting big banks from engaging in risky “prop trading” for the banks’ own gambling profit on Canadian debt:

The U.S. ban on its banks doing proprietary trading of Canadian debt likely violates an international agreement between the nations, Canadian Finance Minister Joe Oliver said on Wednesday, urging American lawmakers to adjust the so-called Volcker Rule.

The rule, meant to curb risky Wall Street trading seen to have worsened the 2007-2009 financial crisis, would stop U.S. banks from trading non-U.S. government bonds with their own money unless exemptions are met.

“I believe, with strong legal basis, that this rule violates the terms of the NAFTA agreement,” Oliver said of the North American Free Trade Agreement between Canada, the United States and Mexico.

“I hope the United States administration sees that changing the Volcker Rule is in its own best interests

TPP is NAFTA on steroids. If it passes, any ability of the U.S. to rein in the big banks will be lost

This entry was posted in Business / Economics, Politics / World News. Bookmark the permalink.
  • APRIL 1, 2015 Leaked TPP Investment Chapter Reveals Serious Threat to User Safeguards

    A newly leaked chapter of the Trans-Pacific Partnership (TPP) agreement from Wikileaks has confirmed some of our worst fears about the agreement. The latest provisions would enable multinational corporations to undermine public interest rules through an international tribunal process called investor state dispute settlement (ISDS). Under this process, foreign companies can challenge any new law or government action at the federal, state, or local level, in a country that is a signatory to the agreement.


    April 17 2015 TPP Trade Deal Would Curb Freedom Of Speech Online, Internet Activists Warn

    Internet freedom advocates are concerned that a vast new trade partnership supported by the Obama administration and placed on the path to fast-track approval by Congress Thursday will permit multinational corporations to crack down on freedom of speech and the right to privacy online. The complaints are aimed at a crucial part of the Trans-Pacific Partnership (TPP), a pact that could help shape President Obama’s legacy on economic issues.


    • ahuxley

      You are 100% correct, Molon, and I for one appreciate your learned contribution concerning this most crucial issue.
      Unfortunately your truth is falling on deaf ears.
      The corporate, fascist thugs have, with their choke-hold over media and educational institutions, reduced the masses to a mob of mentally meandering morons…
      It’s sad to say, but, they will succeed in completely enslaving the vast majority…

  • Ryan

    For 6 years the republicans have been calling Obama homosexual……
    Now the republican senate lines up to blow him.
    A global economy PRESUPPOSES global wages.
    You and Yours will work for Bangladeshi wages.
    ANYONE who supports TPP is a TRAITOR.
    You laughed at NAFTA and Ross Perot’s “giant sucking sound”
    You laughed at Ron Paul.
    Are you better off NOW ??????
    These TRAITORS have given away Our manufacturing base.
    NO nation ever had a strong military without a strong manufacturing base.
    This country is living off BORROWED Chinese money.
    “our” politicians are TRAITORS.

  • Mar 25, 2015 Ted Cruz: First President of the North American Union?

    Monday marked the start of the Next News Network’s Selection 2016 coverage as Senator Ted Cruz made it official with these colorful words captured by ABC News while speaking at Liberty University. Ted Cruz says he believes in you… that is why he’s running… but should we believe in him? Just who is Ted Cruz? After my quick hit news report on Monday the youtube comments section erupted.


    Timeline of the Progress Toward a North American Union

    Canadian, U.S., and Mexican elites, including CEOS and politicians, have a plan to create common North American policies and further integrate our economies. This plan goes by various names and euphemisms, such as “deep integration”, “NAFTA-plus”, “harmonization”, the “Big Idea”, the “Grand Bargain”, and the “North American Security and Prosperity Initiative”. Regardless of which name your prefer, the end goal of all of these plans is to create a new political and economic entity named the North American Union (NAU) that would supercede the existing countries.

    Vive le Canada ca offers the following timeline as a resource to educate the general public about the progress of the three countries toward a new North American Union (NAU).



  • jake

    how could the goverment be sued, as the federal reserve charter clearly states, ownership is comprised of several london , swiss, and vatican owned banks. it is a private corporation, so how could the government be held accountable for someones profit loss, based on fed actions. not even a scum sucking lawyer could sell that one