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

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

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

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

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.

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

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.

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.

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

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.

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.

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.

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!