Finance, War, and the Rule of Rogue Law

Tim Hayward

Something like a privatised global constitution governs financial relationships affecting the life prospects of everyone on the planet. Not only does this entrench the pursuit of interests that run counter to social justice, ecological sustainability, and even real economic productivity.[1] It is implicated in a further, fundamental and all-encompassing, problem. War.

I want to explore the connection, but, first, why speak of a privatised constitution? As Katharina Pistor shows, the very existence of finance has the form of a set of legal contracts underwritten by legal norms and institutionalized means of enforcing them.[2] A critical problem, for the vast majority of us, is that the people with most power over the financial system are the least bound by any socially or politically mandated norms. A global rule of law relating to finance is determined by a kind of supra-political order that itself has no constitutional oversight. An essentially…

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3 thoughts on “Finance, War, and the Rule of Rogue Law

  1. Excellent analysis by Tim Hayward. Thanks for sharing, Jerry.

    In following global news on international trade, I have observed the link between our wars and threats to the US dollar as the world’s reserve currency. This is made clear in the following excerpt from Hayward’s article.

    “As Rohini Hensman and Marinella Correggia explain, due the dollar’s status, currency that the rest of the world has to work and often even suffer to attain, the US has simply to print. So the US can rack up debts to an extent that no other country could. The downside for the US is that doing so has permitted the productivity of its national economy to decline to an extent that has perhaps not been fully appreciated. If the dollar were to lose its world reserve status, the supply of dollars worldwide would then so exceed demand that the lack of collateral would be exposed, thereby prompting a devaluation whose consequences could be catastrophic. The multiple business advantages of maintaining high military spending thus include the direct curtailing of attempts by resistant nations to undermine the status of the dollar.”

    I agree with Hayward’s conclusion: “I see no reason to believe that real justice for the world will readily be ceded by the powers that have created the global rule of rogue law.”

    Considering the negative impacts of anthropogenic climate disruption on economies within the US and worldwide, our globalized capitalist financial system is heading for a great implosion.

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    1. Rosaliene,
      Monetary issues are in reality the “elephant in the room” when it comes to war and peace – written about, identified and explained too rarely in relation to exactly how massive a factor largest-scale money and its control (here, the dollar) truly represents. Professor Howard provides a very valuable public service with the accurate views conveyed in this article, timely in that Venezuela has taken the major action of stepping away from the dollar, and for that he deserves much respect.

      One can only imagine what must be the staggering, concentrated family fortunes of those whose ancestors got in on the “ground floor” of international banking, the secret discussions through the decades and centuries resulting in wars of aggression, and the cumulative totals for death and destruction stemming from decisions arrived at in those talks. When only a single-digit number of individuals possess wealth equal to 3.5 billion people on Earth, it becomes clear the pendulum must begin moving away from harmful wealth concentration towards a much more beneficial sharing amongst humanity. Thanks, Rosaliene. Peace.

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  2. Pingback: Finance, War, and the Rule of Rogue Law — THE ONENESS of HUMANITY | Cochran Consulting

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