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Panic'd market pissing in political sandbox, so now what?

Thursday, March 20, 2008


Colour me red, but I decided to abstain from blogging before, during, and after the by-election. The MSM stuttered their speculative stake-raising nonsense and bloggers echoed the dysfunction in tune with their respective party lines.

As fun as it was, we may be facing economic problems so serious that we'll be forced to discuss real ideas for a change -- and wouldn't that be charming?

The National's lead story today featured one investor who said "we're looking at a financial crisis equal to that of the 1930s. We should all be very concerned about what that means."

But he wasn't the only one using alarmist rhetoric.

Another said "there is a possibility we could have a depression. We could be looking at 1929. I'm not forecasting that and I don't want to be represented as such, but the dangers are real and apparent."

The TSX plunged 400 points; the loonie saw its biggest single drop in 40 years, and the price of oil -- often called a market 'fundamental' by those with hats over their eyes -- keeps fluctuating so much that any minute we're all going to keel over with acute nausea.

It's just one day's movement, but the ride's not over.

Lyle Gramley, Former Governor of the US fed and 50-some-odd year economic veteran, said, "we need to begin to start thinking outside the box because what we're experiencing now in financial markets is unlike anything I have seen in more than 50 years in looking at the economy."

But just when we think the market's pissing in our sandbox, we hear such soothing words as "the fundamentals of our economy are still strong," usually alluding to the demand for oil. In fact, it's something our own delusional PM said a few months back, and something a good many people were saying at the beginning of the credit crisis, which I dare point out, keeps worsening.

***

In the midst of all the anxiety, I'd like to take up Gramley's offer and suggest an idea from outside the box:

We have a global market that is ruled by an unthinking, greedy, and growing global mob. At the centre of the mob, we have a huge hulk of a monster -- the US -- deep in debt from a nasty addiction to oil and oil wars, and using dirty money to finance it all. The dirty money comes from bad loans and other grimy, unseemly "quick cash" schemes.

Suddenly, Murphy and his law caught the US with its pants down, and now we have an economic problem that some are comparing to the 1930s.

But have you heard anyone talk about how broken our global financial institutions are? Are we thinking about changing how we finance credit and debt? Are we talking about just how bad an investment expensive oil is in this warming world (for that matter, do we realize how little oil actually contributes to the Canadian economy as a percentage of GDP)?

No, not at all. In fact, we more often than not hear people jabber on about how oil investments will somehow save us from diving off the edge of an economic cliff; that, like I said, it somehow constitutes a market "fundamental."

The problem with this logic is that oil means nothing if its prices is so high that it grinds down -- rather than greases -- the global economy. And if you look at the problem without your economic-fundamentalist blinders on, you notice that dirty, expensive oil is the dumbest investment we could possibly make in the economy, nevermind the planet, especially at this stage in history.

This is a twofold emergency made worse by our short-term thinking. Though whether we ever treat it as an emergency in Canada is debatable. Our present government doesn't believe in intervention, and I wonder sometimes if they even understand global warming.

Most of all, though this may at first seem from out of left-field, we need to reform our global financial practices. Currency-trading and debt-based economics have not served us well. The practice of using the US dollar as a reserve currency needs to end, and we need a globally-neutral currency or resource to replace it.

Not gold.

We don't have the luxury today of thinking that gold is the world's most precious resource. The most precious resource today the proportion of non-carbon elements in our atmosphere.

What am I talking about? We are facing not one, but two global emergencies: One being the credit crunch, the other, as I alluded to, being global warming. With a currency adjustment, we can quickly harness the power of the free market to save our future.

There is no reason why we can't translate the chemistry of our atmosphere into a global, ecologically-backed currency unit that prevents us from further overstepping our ecological limit and launches us toward a sure-footed economic future built on clean energy.

Sounds funny, you think, making cash out of thin air? Well just what the heck do you think we're doing right now?

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posted by James
Thursday, March 20, 2008

2 comments

Wednesday, February 20, 2008


The Conservatives swept to power in 2006 as self-righteous agents of "accountability." But since November 2007, the government has been filibustering motions - including their own - in order to hide their election financing practices.

On the eve of a potential Federal election, you would think the very important question of Conservative fundraising legality could be addressed for once and all, if not within the stalled Procedure and House Affairs Committee, then at least on some airwave or page of our bootless and self-opportunistic media.

Have the Canadian people become such push-overs as to allow the corruption not only of our electoral system, but also the parliamentary process that is supposed to keep it in check?

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posted by James
Wednesday, February 20, 2008

0 comments

Conservatives look desperate painting Dion as spending lunatic

Monday, February 18, 2008


Liberal MP John McCallum said it best: ''It's a $62-billion Conservative lie. I used to be chief economist for the Royal Bank, and I've never seen such a shoddy, inaccurate, let alone dishonest, document."

The Tories have reduced the treasury to bollocks after only 18 months in power. It was under Flaherty's watch that the ON government was saddled with a hidden $6 billion deficit.

This message is so painfully exaggerated and hypocritical that the Conservatives are actually starting to look desperate. Oh well - election or not, it's never to early for that.

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posted by James
Monday, February 18, 2008

2 comments

I want my way, and I want it now

Friday, February 08, 2008


One could be forgiven for assuming that Conservative MPs were all raised as only-children. How else do you explain the ramming of two confidence motions down the throats of Canadians in as many days?

I want my way, and I want it now.

Contrary to the spirit of the Manley report it claims to embrace, the government wants to force an extension of the Afghan mission before having actually secured additional troops. Contrary to the constitution, the government wants to tell the Senate what to do. Contrary to the principles of sanity, we have editorialists and pundits rewarding this infantile behaviour, lauding Harper as a manly "master of strategy."

Do we have confidence in Stephen Harper? Sure. Why wouldn't we have confidence in a government which uses principles of threat and violence to manipulate us?

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posted by James
Friday, February 08, 2008

5 comments

the ecological economics of election timing

Monday, January 21, 2008


The politics of being green briefly rippled across Canada's sea of news again today, a sea filled mostly with loud forecasts of economic doom.

And while there is still some Canadian reluctance to wed economics and the environment, today's announcement by the government of Israel to install an electric car network throughout their country in less than four years underscores the urgency with which we in Canada must dump our paleolithic economic paradigms, and Stephen Harper along with them.

Compare Israel's bold move with Harpers non-interventionist consumer tax cuts, which do little more than boost China's manufacturing sector. Hardly a sound decision in a time when Canadian manufacturers are in financial pain. If you disagree, I dare you to check the manufacturing labels of your latest purchases.

Better yet, compare Harper's laissez-faire mentality with Stephane Dion's proposal to invest $1 billion in green manufacturing and R&D, and his promise to "balance the carbon budget." The idea is simple - give a shot in the arm to green manufacturers rather than let them die along with other industries and position Canada for a softer economic landing.

This isn't a fairy-tale. With the kind of noises being made about Vancouver's hydrogen-powered Angstrom Power Inc., Canada is so well-positioned to be the leader of this energy revolution that it almost hurts to see us be so immobile on the subject. (Maybe we can pull ahead of Israel and install a hydrogen-network or develop a hydrogen-powered vehicle. With a visionary at the helm, the possiblities are endless.)

Smelling an election, Elizabeth May has also has come out swinging by calling Stephen Harper a "climate change denier," embracing the NTREE carbon tax proposal, and calling for "a moratorium on new projects in the tar sands and a total phase-out of nuclear power and uranium mining." They would even "amend the Charter of Rights and Freedoms to enshrine Canadians' rights to healthy air and water." All worthy ideas.

But for all the Green's fantastic rhetoric on their will to create local "green economies," they are still short of the kind of specific initiatives that would get us there, which isn't much better than the useless posturing coming from the NDP.

With the economy switching gears, we need a leader who knows "where the puck is going to be," to quote a great Canadian visionary. The timing of this election highlights how Harper's ideological opposition to the new economics of progress makes him and his party all but irrelevant.

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posted by James
Monday, January 21, 2008

0 comments