Life After Debt
Editor’s note:
Ensign is designed to bring you fresh and interesting articles each and
every day, mostly with attractive pictures. But if you have been watching you have
noticed we are still dropping in at least two text articles each week on important
issues. Mario deSantis discusses education in his article tomorrow and today’s
editorial on the economic system is not light reading. The reason for these diversions
toward the heavy duty stuff is simple, to ignore the important things is irresponsible
and may even be dishonest. The articles about serious matters you will find in Ensign
are not the final answer but the contributors to Ensign and I feel strongly
about these matters and feel it our responsibility to pass on some interpretation
of things to you. |
September 26, 1998
By Timothy W. Shire
The Western world has long had a fascination with compartmentalising things, sorting
the things we do, the things we think about and the way our lives are driven into
categories. Though this makes it easier to study in college, it also leads to some
dangerous presumptions about reality. The perception of what is happening is so
often shaped by the perspective of the viewer and if that person has a specialised
education and background, that will greatly influence the sort of conclusions that
are drawn.
Politics and the lives of politicians have figured pretty prominently in the news
lately and many suggest that those elements should not be integrated. Similarly,
the economic system we live in and our political governmental institutions make a
big effort to separate themselves, or at least operate at what they hope is an arms
length condition. When it comes to the lives of us in a real operational world it
doesn’t matter much if its politics, economics, geography or personal behaviour,
everything is locked, bound and fused together in a concert of impossible complexity.
In several articles in Ensign Mario
deSantis has discussed the philosophical concepts set forth
in the "The
Web of Life" by Fritjof Capra, it is this holistic
all encompassing framework we need to preface the material which follows.
The policies of government and political leaders do not exist in a vacuum and have
built each of their policies upon experiences and popular attitudes and beliefs as
they have come and in turn become unfashionable. For almost all of the history of
mankind, the primary government structure has been authoritarian clique or individual
strong man or woman rule. This is not only the situation in the past, but is still
the predominant method of organising government all over the world. Western Europe
and North America stand out as exceptions rather then the majority when it comes
to following some form of democratic
principles. Two of the world’s largest countries today
actually
Two of the world’s largest countries
today actually have no government at all, but are shuffling along in crisis to crisis
confusion
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have no government at all, but are shuffling along in crisis
to crisis confusion (India and Russia). For over fifty years, a significant number
of world countries governed themselves in what was described as “communinism” though hardly close to the actual ideals of that political movement,
China, The Soviet Union, Cuba and Yugoslavia all struggled along with their versions
of what looked like an “ordered” form of government.
The Western governments of Britain, United States and Germany declared their steadfast
belief in the capitalist, or free market system. With the collapse of the Soviet
Union and what has been referred to as liberalisation of other so-called communist
countries
the importance of businesses, corporations
and investment capital has begun to dominate the lives of all earthlings
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the importance of businesses, corporations and investment
capital has begun to dominate the lives of all earthlings. Adam
Smith, an eighteenth century English economist spelled
out the credo of capitalism, “let things alone” government is suppose to govern and
let business be business. Of course in Adam Smith’s time this didn’t work any better
then it does now because as the eighteenth century ended the air of Northern Europe
was becoming unbreathable and labour practices of the factory owners and mining companies
had to be controlled not for humanitarian reasons but because the work force was
at a point where productivity and skill were seriously affected.
Mexicans and Californians struggle
for each breath they take and child and slave labour is hardly a thing of the past
in third world countries
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That has to be the exciting thing about human beings, though
they can make things seem different, nothing really changes much. The reforms that
swept through Western Europe in the early nineteenth century were a part of what
is our culture today, but the resurgence and dominance of business once again is
pitting people against profits as Mexicans and Californians struggle for each breath
they take and child and slave labour is hardly a thing of the past in third world
countries.
While the western world condemned the communists for the controls their form of government
imposed on its people producing what were clearly authoritarian, perhaps even totalitarian
regimes, the modern tyranny of business running wild is beginning to seem just as
menacing.
the government of United States
jumped in and rescued the business with three billion dollars
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The concept of a free market system was to let business have the freedom to develop
and earn profits for its owners and investors without the interference of government.
The financial chaos about to be visited upon this free market economy is apparently
being caused by government interference. Japan’s large banks (the world’s largest)
are in deep trouble but because of their size Japan’s government can not let them
fail and is propping them up artificially. Yesterday, one of the largest investment
firms on Wall Street crashed and burned, the very brightest and best businessmen
in the United States failed, but instead of the company being wiped out by its own
errors, the government of United States jumped in and rescued the business with three
billion dollars.
In Canada we are witnessing four of the nations seven largest banks form two large
merged businesses. Their explanation for this is to give them the ability to work
and compete in the world marketplace. They want to be like the large Japanese banks,
some fear their size will make them so large that they will be able to do whatever
they want and know that the government of their country will have to support whatever
bad investments and risky loans they make.
Over simplification of these issues
is a natural consequence of trying to explain a system that may defy explanation.
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Over simplification of these issues is a natural consequence of trying to explain
a system that may defy explanation. Similarly, the directions and trends in both
the economy and the marketplace are the result of a huge number of factors, by themselves,
some elements, though contributing to the overall affect, are unlikely to be the
crucial conditions, but working together the web of commerce and business investment
it would appear many financial institutions are defying gravity, at least temporarily.
sk.politics
Fri, Sep 25, 1998 6:15PM
Did anybody else catch the CBS supper news with Dan Rather tonight?
They had a story about a farmer in Montana. He was seeding his last crop of winter
wheat as he felt he will be out of business next year. He also said 1/4 to 1/3 of
the American farmers will go out of business in the next year. They ended up the
segment by saying the cause of the low price there ($1.80 U.S.) is subsidized Canadian
wheat and beef coming down there. $1.80U.S. sounds like more than we are getting
for an initial payment. If anybody can tell me what subsidies we get in Canada,
please post a reply to this. I think we pay 100% of the handling and rail freight
now or am I missing something.
Jim Spencer |
You no doubt have heard about the various prairie American
governors reacting to the unhealthy state of their farm economy with imposed restrictions
on imports from this country. These interventions are in direct contravention of
international trade agreements yet are occurring for political as well as economic
reasons.
the real problem is the unusual
behaviour of investment capital which is devaluing most currencies other then the
US dollar
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Though there are various smoke screen reasons for these actions
the real problem is the unusual behaviour of investment capital which is devaluing
most currencies other then the US dollar, thus making imports real bargains in the
United States and under cutting domestic production.
Here we are in an agricultural community far from Wall Street and the supposed big
time, yet the produce of this community is actually selling well below prices that
were received for the same products during the worst part of the depression of the
thirties when relative values are considered. Is there some factor that we can point
to that might explain these apparent problems? There is and it is one of those obvious
things that we are ignoring it because just as stated in this article these must
be complex issues and the problem can’t be that simple. The problem is neither political
nor economic it is developmental.
When you hear the people who are convinced that “world” trade, “world” class business,
“world” market place is a universally accepted credo discuss the “world” economy
they do so from their perspective. The term “level playing field” is like an infection
in their vocabulary and yet they ignore the overwhelming inequality that exists.
At the heart
The
term “level playing field” is like an infection in their vocabulary and yet they
ignore the overwhelming inequality that exists.
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and basis of economic tension and financial instability is
the simple and incontrovertible fact that the world as it now exists, is more diverse,
more uneven and there is more disparity then perhaps at any time in recorded history.
The proponents of “free trade” the free flow of goods and investment, are a group
people who’s eyes have not been off their monitors nearly enough.
The reason all of this talk about trade being “good” came about was the economic
marvel of this century. Japan was defeated after its adventure at world military
domination in 1945, from the ashes of its cities, two of which glowed in the dark,
it has risen to be one of the most wealthy countries on the whole earth. It did
so with aggressive industrialisation, excellent products and favourable trading practices.
The Japanese sell their manufactured goods and protect their domestic market, they
have been the masters of tariff protection and restricted international marketing
in their own country.
It is amazing that our political
leaders have marched to this free trade piper when there is not a shred of evidence
to suggest that it is a successful concept.
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Japan’s prosperity is a result of the exact opposite of what
North Americans hope to achieve with their Free Trade and NAFTA
deals. It is amazing that our political leaders have marched
to this free trade piper when there is not a shred of evidence to suggest that it
is a successful concept. They have ignored the reality of the under developed third
world countries being the majority, they have ignored the migration of capital and
employment to those areas where the restrictions are the least in evidence and the
political structures are the most authoritarian.
The concept of free trade is barren and the American Governors are right. The enormous
difference between peoples and lands of this earth is go great that without some
controls and common sense the wealth of the planet will become even more concentrated
then it already is, in the hands of fewer and fewer companies and their shareholders.
without some controls and common
sense the wealth of the planet will become even more concentrated then it already
is
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Canada and Russia with their vast lands and equally vast resources distributed all
over the place, need to have subsidised equalised transportation systems. China
and India with their incredible abundance of people must have special conditions
to feed themselves and maintain subsistence. France, Germany and Italy with their
diversified economies must support their agriculture to ensure that the way of life
of their people continues and their countries can support itself in time of need.
The world trade and commerce of this last portion of the twentieth century is
developed
countries are loaning money on an unprecedented scale to these impoverished countries
and the burden of that debt condemns them to perpetual destitution.
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devastating Africa. Development and improved standards of
living are retreating rather then advancing on the whole continent and there are
similarities in South America. To make things worse, the wealthy developed countries
are loaning money on an unprecedented scale to these impoverished countries and the
burden of that debt condemns them to perpetual destitution. The International Monitory
Fund (IMF) represents itself as the saviour of failed economies. Countries go broke
and yet continue to function because there is life after debt as the IMF gives them
loans to keep the payments coming for ever. Instead of bankruptcy and economic ruin
they perpetuate long term remorseless poverty.
Just as the Reform bills of Industrial Revolution Britain were absolutely required
t
Without reform bills on a “world scale” development
and civilise life will not be possible.
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o create an industrial and productive country so there is a
need for trade restrictions and similar world level “Bill of Rights” to create a
healthy vigorous human population throughout this world. Without reform bills on
a “world scale” development and civilise life will not be possible. Ultimately Britian's
reforms produced not a more civilised working class but brought about the development
of the middle class, the transient economic class which offered society the prospect
of mobility from poverty to less poverty. It was that middle class that produced
France’s revolution, that made the manifest destiny that became the United States
and is non existent in under developed countries of the world.
Not wanting to make this a sociology 100 paper on the emergence of the middle class,
the bottom line is that without shaping up the poor nations of planet earth,
Violent terrorism is not a gesture
of politcal anger, it is an act of economic and political desparation.
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all of its residences are putting themselves at risk and the
time is quickly approaching where we can no longer accept things as they are. You
see "globalisation" is not just an economica and industrial concept it
is also a public health and civil order issue. Violent terrorism is not a gesture
of politcal anger, it is an act of economic and political desparation. People with
nothing to lose are willing to commit acts of horror because it doesn't matter.
My mom actually said “you finish that, there are children going to bed hungry in
India.” She was of course right, just as every mother who says that, but there will
be more people here going to bed hungry if the people in all those Indias around
the world keep on going to bed hungry. It is in our own self interest to see that
things get better. If that means that General Motors and Conrad Black have to take
12% profits instead of 18%, so be it!