The G20 Meeting next week - United We Fall!
Today the first in a series of Federal Provincial first ministers meetings on the global economic crisis concluded in Ottawa, remarkable for its complete failure to give clear direction to the minority Harper Conservative Government on the eve of G20 meeting in Washington next week. Ed Stelmach of Alberta didn’t even show up.
The Provincial premier’s abandonment of their collective responsibility to the people of Canada gives Prime Minister Harper and Finance Minister Flaherty, what they want, a free hand. Their options include lining up with Treasury Secretary Henry Paulson and lame duck President Bush, the BRIC, (Brazil, Russia, India and China), President Sarkozy of France representing the EU, or British Prime Minister Gordon Brown representing British Banks. It could be any of the above because Prime Minister Harper has no unique plan to protect Canadians.
As far as Finance Minister Flaherty is concerned, his work is done. Canadian banks cleared out $25 billion of mortgage debt from the books and transferred it to Canada Mortgage (the taxpayers) without any requirement imposed on the banks to begin lending to stimulate the economy. Pensioners, unemployed, cash strapped governments and companies are “on their own.” Case closed.
Then why bother going to the G20? It was formed in 1999 and accounts for 85% of global production. Members are the seven major industrialized countries, Britain, Canada, France, Italy, Japan, Germany and the United States, plus Argentina, Australia, Brazil, China, India, Indonesia, Mexico, Russia, Saudi Arabia, South Africa, South Korea, Turkey and the European Union.
Harper and Flaherty have to go because 2008 is not 1999. The capitalist world has changed. Brazil’s finance minister, Guido Mantega asserts that major industrial countries had zero growth in the past year and emerging economies such as Brazil, China, Russia, India, grew by 6.1%. Emerging economies account for 75% of global economic growth.
To underline the point, a $700 billion U.S. Government bail out package is being used to create “three colossal U.S. global financial giants” Citigroup, JP Morgan Chase and Goldman Sachs positioning the U.S. to compete with the EU and other G20 competitors. The reorganized U.S. banking system was brokered by U.S. Treasury Secretary Henry Paulson, a Wall Street enforcer going back to the days of Richard Nixon and you guessed it, the former CEO of Goldman Sachs.
The Paulson bailout rewards “Crony Capitalism’s” insiders. The Paulson bail out is not aimed at stopping the thievery of US workers pensions or put the 6.1% of US citizens out of work back to work. It is aimed at perpetuating and accelerating more plunder of the U.S. treasury (another $14 billion was transferred today to AIG the U.S. cashed strapped banking insurance company) before President elect Obama takes over on January 20th. 2009 and is handed the mess.
In contrast to the U.S. policy of rewarding the sub-prime criminals, China announced yesterday it had invested $586 billion, about 18% of its GDP into protecting its economy that will be spent on low-rent housing, infrastructure in rural areas as well as roads, airports and railways. It will also provide low interest loans to cashed strapped companies. China has a GDP of $3.3 trillion with a growth rate of around 7%. The investment is projected to boost China’s growth rate by another 2% next year to maintain its status as the fourth largest economy in the world. The effect of China’s action was an immediate upturn in global markets that helped stabilize metal and oil prices.
If the first minister’s meeting in Ottawa had done the same, agree to invest 18% of Canada’s GDP to stimulate the Canadian economy that would set aside a national recovery fund of about $280 billion Cdn. That figure is a little more than half of what the federal government will spend on U.S.-NATO wars and militarizing the Canadian economy over the next twenty years.
An opportunity has been missed. The first ministers have failed the Canadian people. Instead of putting Canadian interests first, they have allowed Harper and Flaherty to engage in what is certain to be an inter-imperialist brawl between the EU and the USA with the non-belligerent states attempting to come up with a workable plan. Depending on Harper and Flaherty to support a plan favourable to Canadian workers and farmers is wishful thinking.
All bets are off. If you are inclined to make one, bet on Harper supporting whatever U.S. cockamamie plan is floated next.
Left Turn Canada!
Today the first in a series of Federal Provincial first ministers meetings on the global economic crisis concluded in Ottawa, remarkable for its complete failure to give clear direction to the minority Harper Conservative Government on the eve of G20 meeting in Washington next week. Ed Stelmach of Alberta didn’t even show up.
The Provincial premier’s abandonment of their collective responsibility to the people of Canada gives Prime Minister Harper and Finance Minister Flaherty, what they want, a free hand. Their options include lining up with Treasury Secretary Henry Paulson and lame duck President Bush, the BRIC, (Brazil, Russia, India and China), President Sarkozy of France representing the EU, or British Prime Minister Gordon Brown representing British Banks. It could be any of the above because Prime Minister Harper has no unique plan to protect Canadians.
As far as Finance Minister Flaherty is concerned, his work is done. Canadian banks cleared out $25 billion of mortgage debt from the books and transferred it to Canada Mortgage (the taxpayers) without any requirement imposed on the banks to begin lending to stimulate the economy. Pensioners, unemployed, cash strapped governments and companies are “on their own.” Case closed.
Then why bother going to the G20? It was formed in 1999 and accounts for 85% of global production. Members are the seven major industrialized countries, Britain, Canada, France, Italy, Japan, Germany and the United States, plus Argentina, Australia, Brazil, China, India, Indonesia, Mexico, Russia, Saudi Arabia, South Africa, South Korea, Turkey and the European Union.
Harper and Flaherty have to go because 2008 is not 1999. The capitalist world has changed. Brazil’s finance minister, Guido Mantega asserts that major industrial countries had zero growth in the past year and emerging economies such as Brazil, China, Russia, India, grew by 6.1%. Emerging economies account for 75% of global economic growth.
To underline the point, a $700 billion U.S. Government bail out package is being used to create “three colossal U.S. global financial giants” Citigroup, JP Morgan Chase and Goldman Sachs positioning the U.S. to compete with the EU and other G20 competitors. The reorganized U.S. banking system was brokered by U.S. Treasury Secretary Henry Paulson, a Wall Street enforcer going back to the days of Richard Nixon and you guessed it, the former CEO of Goldman Sachs.
The Paulson bailout rewards “Crony Capitalism’s” insiders. The Paulson bail out is not aimed at stopping the thievery of US workers pensions or put the 6.1% of US citizens out of work back to work. It is aimed at perpetuating and accelerating more plunder of the U.S. treasury (another $14 billion was transferred today to AIG the U.S. cashed strapped banking insurance company) before President elect Obama takes over on January 20th. 2009 and is handed the mess.
In contrast to the U.S. policy of rewarding the sub-prime criminals, China announced yesterday it had invested $586 billion, about 18% of its GDP into protecting its economy that will be spent on low-rent housing, infrastructure in rural areas as well as roads, airports and railways. It will also provide low interest loans to cashed strapped companies. China has a GDP of $3.3 trillion with a growth rate of around 7%. The investment is projected to boost China’s growth rate by another 2% next year to maintain its status as the fourth largest economy in the world. The effect of China’s action was an immediate upturn in global markets that helped stabilize metal and oil prices.
If the first minister’s meeting in Ottawa had done the same, agree to invest 18% of Canada’s GDP to stimulate the Canadian economy that would set aside a national recovery fund of about $280 billion Cdn. That figure is a little more than half of what the federal government will spend on U.S.-NATO wars and militarizing the Canadian economy over the next twenty years.
An opportunity has been missed. The first ministers have failed the Canadian people. Instead of putting Canadian interests first, they have allowed Harper and Flaherty to engage in what is certain to be an inter-imperialist brawl between the EU and the USA with the non-belligerent states attempting to come up with a workable plan. Depending on Harper and Flaherty to support a plan favourable to Canadian workers and farmers is wishful thinking.
All bets are off. If you are inclined to make one, bet on Harper supporting whatever U.S. cockamamie plan is floated next.
Left Turn Canada!
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