+
Introduction
Harper failing on all fronts.
Capital Requirements
In relation to new oil pipelines, or the oil industry generally, a top executive said we have to allow foreign investment (i.e. China) because in Canada we don't have the capital available.
This statement is complete and utter nonsense.
Our trade deficit in manufactured goods with all foreign countries is $80 billion per year. Our trade deficit with China, included in above figure, is $35 billion per year.
This is real money, real wealth, pouring out of our country.
We are giving China all the money it needs to buy up Canada, to take control. I saw a news item stating that China investment in Canada was $14 billion last year. This little news item is absolutely terrifying. China will own us soon. Probably already owns us.
If we did not pour out billions to pay foreign countries to do our manufacturing for us, we would have plenty of our own capital. We could tell foreign countries we are not for sale. You can buy oil from us. You can buy coal from us. But you can't buy oil fields, oil companies, or coal mines.
Eliminate the Hemorrhage
Here is an easy way to eliminate a wasteful foreign expenditure of $80 billion per year. Tell each country we "trade" with that we will allow imports of manufactured goods from that country only to the extent that that country buys manufactured goods from us. Simple, clean. We still demonstrate that we believe in free trade, but it is balanced, fair, free trade. It is not exploitation in the guise of trade.
If we did more manufacturing here at home, we would not be sending so much money out to foreign countries, and then foreign countries would not be able to come right back with the money we just gave them and buy up our coal mines, oil fields, corporations.
Soon we will be the 35th province of China. Or maybe with Harper's EU trade deal we will also be a new colonial province of Europe.
If we did more manufacturing here at home, we could provide jobs to our people. There would be a reduction in cost of UI and welfare. There would be more tax revenue for Harper to waste. But maybe if he did not waste it all the budget deficit could be eliminated.
Why can no one in government see the sense of doing more manufacturing here at home, rather than sending billions out of foreign countries to do our manufacturing for us?
Dictatorship
A prime minister of Canada who has a majority government is the absolute dictator of Canada. Jean Chretien was the dictator of Canada for many years. However mostly he did nothing with his power, so Canada was able to survive.
Now we have Harper as majority PM of Canada and it is much worse for two reasons:
+ Harper is following an insane ideology. According to Macleans's magazine. Harper became furious about the Trudeau National Energy Policy and resolved to punish eastern Canada for this policy. To this end he entered politics and gained the power to exact revenge. In comparison, Chretien had no ideology. Maybe he stole some money and gave it to his friends. These actions in hindsight look warm and cuddly compared to Harper.
+ The Liberals and NDP have no leaders. So Harper is even more free, in comparison with previous majority prime ministers, to be the absolute dictator of Canada.
In the recent Federal election, some Conservatives were elected to Parliament for the first time, i.e., completely new to politics and completely new to Parliament. It is amazing how fast these people became parrots of Harper's most ill-advised policies.
Canada a World Policeman?
Over the last 10,000 years, there has been one common thread. The king, potentate, monarch, kaiser, tsar, queen, caesar, prime minister, pharaoh, president, emperor, has been largely uninterested in improving things within his or her own country. Foreign affairs and especially foreign wars have always been more exciting.
This phenomenon has been the curse of mankind and womankind for 10,000 years as it is the cause of 99% of the wars.
In light of these facts, maybe I shouldn't be shocked or surprised by a news story I heard today. I have not verified this story in any way. The story is that Canada is working with Germany to begin creation of a set of forward bases so Canada can intercede in hot spots more quickly. This idea is also related to developing a method of dealing with Afghanistan. (I though we were winding down with Afghanistan.)
First of all, here we have another way to waste billions of dollars. I thought our budget is very tight. We have to cut cut cut. Now we are told we have billions available for foreign adventures.
Has Harper consulted Parliament on the advisability of this scheme? No, of course not! He is the absolute dictator and despot of Canada. Does Harper want to get into "hot spots" more quickly to reduce even further the possibility of any Parliamentary input into decisions?
-
Monday, February 20, 2012
Saturday, January 28, 2012
Senior Threat
+
Note added February 8, 2012, to enlarge on a point made toward end of this post.
Let's say hypothetically that country XYZ buys $35 billion worth of manufactured goods from Canada in 2011. We then say to country XYZ that in 2012 we will allow free entry of your manufactured goods up to a value of $35 billion. Beyond that level, no imports allowed.
Result: Canada demonstrates belief in free trade up to the point of equal amounts of manufactured goods in each direction. But nothing beyond that! No more trade deficits. No more devastating hemorrhage of a net $80 billion per year, pouring out of our country, amounting to over $2300 for every man, woman, and child in Canada.
This is what we have to do to get employment going again. This is the only way to get employment going. Cut imports and increase domestic manufacturing. This is Canada's most critical need and there is virtually no discussion of the issue in government or in the media.
Seniors Scare Harper!
Prime Minister Harper says seniors threaten social programs. He is concerned that senior numbers will increase to the point that by 2030 there will be only two working-age people for every retired person (as opposed to the current four people).
But like most politicians, Harper is thinking about one issue at a time. Why don't politicians think in terms of interrelated issues?
Obviously the real issue here is that working-age people in 2030 need to actually have employment and therefore income, so they will be paying taxes, to help support retired people, among the many things governments do with our money.
At the rate we have lost jobs in 2011, can anyone say with any certainty that we will have enough employed people in 2030 to provide tax revenue for any purpose?
The Harper record
Prime Minister Harper has been in office for almost six years. This amount of time provides a fully adequate basis for evaluating his performance. The fact is that Harper has compiled a record of complete mismanagement of the economy and especially jobs.
If we continue our present policies, long before 2030 there will be an economic crisis and an unemployment crisis beyond anything we can imagine now.
Harper and his ministers go around bragging about the wonderful state Canada is in. Actually, Canada is in bad shape as indicated by a real unemployment rate of probably 20%.
The Canadian economy looks good superficially because we have raw materials and resources that we are selling to an enemy country, China, and to other countries, at giveaway prices. Harper cannot take credit for the raw materials and resources. He didn't put them there. It is happenstance that the resources are there, making Harper look good.
It is only through manufacturing that we get mass employment and the ripple effect creating employment openings in many other fields.
Disastrous trade deficit
Our trade deficit in manufactured goods with all foreign countries was $81 billion in 2010. (The figure for 2011 will be available in due course.)
The trade deficit has nearly tripled since Harper took the helm. This comparison alone demonstrates Harper's complete mismanagement and complete lack of understanding of what is going on.
The trade deficit is determined by the equation
trade def = exports of manufactured goods minus imports of manufactured goods
There are different ways exports and imports could move, and still give the same figure for trade deficit. During Harper's reign, exports remained essentially level. They certainly did not go up. The great increase in trade deficit is due to a great increase in imports.
The increase in imports means that many hundreds of thousands of Canadians are no longer working. The goods these Canadians could be making have been replaced by imported goods.
So if Harper is really concerned about the effect of increasing numbers of seniors, he should be concerned about all the working-age people who are losing their jobs due to his misguided policies.
A theory gone wrong
The word "free" attached to any other word makes that word sound better. Free trade, free love, free enterprise, free will, free markets.
Unrestricted free trade and a continuing increase in the number of international trade deals is a theory that sounds good on paper. But in practice this theory leads to an insane result:
+ Steadily increasing outpouring of wealth, a net $81 billion in 2010, to pay foreign countries to do our manufacturing for us, while steadily increasing numbers of our own workers stand in line at unemployment and welfare offices.
In the 1960s, the Canadian government cooperated with business "leaders" to obtain justification from think tanks to the effect that we no longer need to worry about "smokestack" manufacturing. Manufacturing can be done anywhere. Canada will move ahead with "knowledge-based" industries.
We have had 50 years of propaganda based on this theory. Ninety-nine percent of our authority figures, in government and in business, and many ordinary Canadians, believe in this theory.
However the unfortunate fact is that this theory is completely wrong! It is leading Canada, and all other western countries, USA, UK, Australia, EU, to destruction. The only way to properly support our seniors in 2030, and generally to have a viable economy, is to change course completely.
We have to limit imports of manufactured goods to the amounts foreign countries buy from us, on a country by country basis. No more trade deficits in manufactured goods.
We have to get the phrase "compete with China" out of our minds completely. The allegedly lower prices of foreign goods are fantasy. If the true hidden costs are taken into account, it becomes clear that it is much cheaper to manufacture here at home!
Note added February 8, 2012, to enlarge on a point made toward end of this post.
Let's say hypothetically that country XYZ buys $35 billion worth of manufactured goods from Canada in 2011. We then say to country XYZ that in 2012 we will allow free entry of your manufactured goods up to a value of $35 billion. Beyond that level, no imports allowed.
Result: Canada demonstrates belief in free trade up to the point of equal amounts of manufactured goods in each direction. But nothing beyond that! No more trade deficits. No more devastating hemorrhage of a net $80 billion per year, pouring out of our country, amounting to over $2300 for every man, woman, and child in Canada.
This is what we have to do to get employment going again. This is the only way to get employment going. Cut imports and increase domestic manufacturing. This is Canada's most critical need and there is virtually no discussion of the issue in government or in the media.
Seniors Scare Harper!
Prime Minister Harper says seniors threaten social programs. He is concerned that senior numbers will increase to the point that by 2030 there will be only two working-age people for every retired person (as opposed to the current four people).
But like most politicians, Harper is thinking about one issue at a time. Why don't politicians think in terms of interrelated issues?
Obviously the real issue here is that working-age people in 2030 need to actually have employment and therefore income, so they will be paying taxes, to help support retired people, among the many things governments do with our money.
At the rate we have lost jobs in 2011, can anyone say with any certainty that we will have enough employed people in 2030 to provide tax revenue for any purpose?
The Harper record
Prime Minister Harper has been in office for almost six years. This amount of time provides a fully adequate basis for evaluating his performance. The fact is that Harper has compiled a record of complete mismanagement of the economy and especially jobs.
If we continue our present policies, long before 2030 there will be an economic crisis and an unemployment crisis beyond anything we can imagine now.
Harper and his ministers go around bragging about the wonderful state Canada is in. Actually, Canada is in bad shape as indicated by a real unemployment rate of probably 20%.
The Canadian economy looks good superficially because we have raw materials and resources that we are selling to an enemy country, China, and to other countries, at giveaway prices. Harper cannot take credit for the raw materials and resources. He didn't put them there. It is happenstance that the resources are there, making Harper look good.
It is only through manufacturing that we get mass employment and the ripple effect creating employment openings in many other fields.
Disastrous trade deficit
Our trade deficit in manufactured goods with all foreign countries was $81 billion in 2010. (The figure for 2011 will be available in due course.)
The trade deficit has nearly tripled since Harper took the helm. This comparison alone demonstrates Harper's complete mismanagement and complete lack of understanding of what is going on.
The trade deficit is determined by the equation
trade def = exports of manufactured goods minus imports of manufactured goods
There are different ways exports and imports could move, and still give the same figure for trade deficit. During Harper's reign, exports remained essentially level. They certainly did not go up. The great increase in trade deficit is due to a great increase in imports.
The increase in imports means that many hundreds of thousands of Canadians are no longer working. The goods these Canadians could be making have been replaced by imported goods.
So if Harper is really concerned about the effect of increasing numbers of seniors, he should be concerned about all the working-age people who are losing their jobs due to his misguided policies.
A theory gone wrong
The word "free" attached to any other word makes that word sound better. Free trade, free love, free enterprise, free will, free markets.
Unrestricted free trade and a continuing increase in the number of international trade deals is a theory that sounds good on paper. But in practice this theory leads to an insane result:
+ Steadily increasing outpouring of wealth, a net $81 billion in 2010, to pay foreign countries to do our manufacturing for us, while steadily increasing numbers of our own workers stand in line at unemployment and welfare offices.
In the 1960s, the Canadian government cooperated with business "leaders" to obtain justification from think tanks to the effect that we no longer need to worry about "smokestack" manufacturing. Manufacturing can be done anywhere. Canada will move ahead with "knowledge-based" industries.
We have had 50 years of propaganda based on this theory. Ninety-nine percent of our authority figures, in government and in business, and many ordinary Canadians, believe in this theory.
However the unfortunate fact is that this theory is completely wrong! It is leading Canada, and all other western countries, USA, UK, Australia, EU, to destruction. The only way to properly support our seniors in 2030, and generally to have a viable economy, is to change course completely.
We have to limit imports of manufactured goods to the amounts foreign countries buy from us, on a country by country basis. No more trade deficits in manufactured goods.
We have to get the phrase "compete with China" out of our minds completely. The allegedly lower prices of foreign goods are fantasy. If the true hidden costs are taken into account, it becomes clear that it is much cheaper to manufacture here at home!
Wednesday, November 30, 2011
EU trade deal
Every time I read something about the proposed international trade deal between Canada and EU, I become more frightened.
What is the object of this deal? Destruction of Canada? Is this what Prime Minister Harper is all about? Has he been put in place to destroy Canada?
I don't know how anyone could even THINK of getting into this deal.
Below is information provided by Ms Elizabeth May, MP.
"We are strongly opposed to (the proposed CETA (EU) trade deal) or any trade deal with Europe that would weaken our health care system or any other aspect of Canadian sovereignty. The CETA agreement aims to eliminate the abilty of local and provincial governments to award contracts to Canadian companies - a preferential practice that creates domestic jobs and encourages local economic growth. Allowing European companies to bid on government contracts will negatively impact Canadian communities and employment. Additionally, the agreement contains an investor state dispute mechanism, which would provide foreign corporations with new legal avenues to challenge, in particular, environmental regulations, and claim monetary damages from the Government of Canada. Municipalities or provinces wishing to institute environmental regulations on industries, such as the tar sands, could be challenged by this mechanism."
Ed Farkas comment
Please note: I am not affiliated with any political party. I will publish information from any party, if that information is helpful to the interests of ordinary Canadians.
"Ordinary Canadians" make up about 98.5% of the population of Canada. The other 1.5% of the population makes all the decisions, such as getting into insane trade deals which work against the interests of all Canadians.
I say "all Canadians" above for the following reason. Consider wealthy people with substantial indpendent income from investments and inheritances, living in beautiful residential areas. How does it help these people if the economy is driven down and down, and more and more industries and jobs are destroyed? So even wealthy people should be against these insane trade deals that Prime Minister Harper constantly pursues.
What is the object of this deal? Destruction of Canada? Is this what Prime Minister Harper is all about? Has he been put in place to destroy Canada?
I don't know how anyone could even THINK of getting into this deal.
Below is information provided by Ms Elizabeth May, MP.
"We are strongly opposed to (the proposed CETA (EU) trade deal) or any trade deal with Europe that would weaken our health care system or any other aspect of Canadian sovereignty. The CETA agreement aims to eliminate the abilty of local and provincial governments to award contracts to Canadian companies - a preferential practice that creates domestic jobs and encourages local economic growth. Allowing European companies to bid on government contracts will negatively impact Canadian communities and employment. Additionally, the agreement contains an investor state dispute mechanism, which would provide foreign corporations with new legal avenues to challenge, in particular, environmental regulations, and claim monetary damages from the Government of Canada. Municipalities or provinces wishing to institute environmental regulations on industries, such as the tar sands, could be challenged by this mechanism."
Ed Farkas comment
Please note: I am not affiliated with any political party. I will publish information from any party, if that information is helpful to the interests of ordinary Canadians.
"Ordinary Canadians" make up about 98.5% of the population of Canada. The other 1.5% of the population makes all the decisions, such as getting into insane trade deals which work against the interests of all Canadians.
I say "all Canadians" above for the following reason. Consider wealthy people with substantial indpendent income from investments and inheritances, living in beautiful residential areas. How does it help these people if the economy is driven down and down, and more and more industries and jobs are destroyed? So even wealthy people should be against these insane trade deals that Prime Minister Harper constantly pursues.
Saturday, November 19, 2011
A fair proposal
We are in a free-fall situation in terms of employment and the economy.
According to recent news reports, Heroux Devtek is completing a Mexican manufacturing facility. And, Bombardier has announced a new $200 million manufacturing facility in Morocco.
Bombardier Aerospace Pres. Guy Hachey used doublespeak when he said "our North American workforce has nothing to fear from the latest move".
A financial analyst was a bit more forthright when he said "(Bombardier) are not going to move aircraft assembly to Morocco. That's not happening anytime soon, and it's not happening in Mexico anytime soon".
"Anytime soon" is supposed to be encouraging to Canadian workers?
Heroux Devtek is setting up in Queretaro, Mexico, to manufacture aerostructures and landing gear systems. Queretaro has developed "an aerospace cluster of more than 50 companies, including Bombardier and General Electric". In Queretaro also the government has created "National Aerospace University, the first Mexican R & D centre in the aerospace sector".
What is the Canadian government doing about the kinds of things that are happening as described above?
Nothing!
Prime Minister Harper is more concerned with destroying the long gun registsry, with the same viciousness applied by his Conservative predecessor Diefenbaker to the Avro Arrow aerospace program. Harper also loves to strut on the world stage. He is working on trade deals with EU and China to bring even more devastation to the Canadian jobs picture.
We need wartime-type emergency measures to begin to save the Canadian economy and Canadian jobs.
Here is a fair proposal:
All stores, such as Wal-Mart, Home Depot, wholesale plumbing stores, etc., to be REQUIRED to carry and display Canadian-made goods alongside China goods.
Once this measure is put in place, with a timeline of one year, Canadian manufacturers will come forward with proposals for hundreds and later thousands of consumer, commercial, and industrial items.
Start with low-tech consumer items and as capabilities increase go on to more complex items.
If we need to abrogate and defy World Trade Organization rules and procedures, so be it. World trade and globalization are destroying Canada. Our manufactured goods trade deficit in 2010 was $80 billion, nearly triple the value in 2006 when Harper became Prime Minister.
How bad do things have to get before all Canadians are in the streets, not only the Occupy people?
According to recent news reports, Heroux Devtek is completing a Mexican manufacturing facility. And, Bombardier has announced a new $200 million manufacturing facility in Morocco.
Bombardier Aerospace Pres. Guy Hachey used doublespeak when he said "our North American workforce has nothing to fear from the latest move".
A financial analyst was a bit more forthright when he said "(Bombardier) are not going to move aircraft assembly to Morocco. That's not happening anytime soon, and it's not happening in Mexico anytime soon".
"Anytime soon" is supposed to be encouraging to Canadian workers?
Heroux Devtek is setting up in Queretaro, Mexico, to manufacture aerostructures and landing gear systems. Queretaro has developed "an aerospace cluster of more than 50 companies, including Bombardier and General Electric". In Queretaro also the government has created "National Aerospace University, the first Mexican R & D centre in the aerospace sector".
What is the Canadian government doing about the kinds of things that are happening as described above?
Nothing!
Prime Minister Harper is more concerned with destroying the long gun registsry, with the same viciousness applied by his Conservative predecessor Diefenbaker to the Avro Arrow aerospace program. Harper also loves to strut on the world stage. He is working on trade deals with EU and China to bring even more devastation to the Canadian jobs picture.
We need wartime-type emergency measures to begin to save the Canadian economy and Canadian jobs.
Here is a fair proposal:
All stores, such as Wal-Mart, Home Depot, wholesale plumbing stores, etc., to be REQUIRED to carry and display Canadian-made goods alongside China goods.
Once this measure is put in place, with a timeline of one year, Canadian manufacturers will come forward with proposals for hundreds and later thousands of consumer, commercial, and industrial items.
Start with low-tech consumer items and as capabilities increase go on to more complex items.
If we need to abrogate and defy World Trade Organization rules and procedures, so be it. World trade and globalization are destroying Canada. Our manufactured goods trade deficit in 2010 was $80 billion, nearly triple the value in 2006 when Harper became Prime Minister.
How bad do things have to get before all Canadians are in the streets, not only the Occupy people?
Tuesday, November 8, 2011
Message to Parliament
A one-page letter was put into the mail in Toronto on November 8, 2011, for each Member of Parliament (House of Commons). That is a total of 307 letters.
Here is the text of the letter:
Here is the text of the letter:
November 7, 2011
(space for name of M.P.)
I recently found something very disturbing on the Industry Canada website. During the time that Mr. Harper has been Prime Minister, 2006 to the present, our trade deficit in manufactured goods with all foreign countries has nearly tripled.
According to Industry Canada, our trade deficit was $80 billion in 2010. This amount represents over $2300 for each Canadian man, woman, and child; real wealth going out of our pockets and out of our country, never to be seen again. The result is impoverishment of our country.
It defies logic to pay a net $80 billion to foreign countries to do our manufacturing for us, while our own Canadian workers stand in line at unemployment and welfare offices.
$80 billion represents nearly one million Canadians who could be working in manufacturing but are not. Imagine the beneficial effects of nearly an additional million Canadians working, rather than being unemployed.
I believe one reason for the great increase in our trade deficit is that trade deals signed in the past five years have not led to the anticipated increases in exports. But regardless of the cause(s), the near tripling of our trade deficit shows that Mr. Harper has taken Canada in exactly the wrong direction.
Now Mr. Harper is seeking new trade arrangements with EU and China. Whenever a country with relatively small population, Canada, enters into a trade arrangement with a large entity, EU or China, the country with smaller population suffers further job loss and further economic devastation.
EU has a population of nearly 500 million, 14 times the Canadian population. The EU economy is large and varied. EU is not going to buy manufactured goods from us. Instead, we will be Europe’s new colonial empire, to be exploited at will for EU’s own profit and benefit.
China has announced a multi-decade program of becoming completely self-sufficient in all manufactured goods up to and including airliners and railroad systems. They will be buying less from Canada and other western countries, not more.
It is absolutely vital that Mr. Harper stops searching for new trade deals, and especially that he cancels work on the EU deal and further China deals. Instead, we should be working to increase domestic manufacturing, and reduce imports.
Sincerely,
(space for signature)
According to Industry Canada, our trade deficit was $80 billion in 2010. This amount represents over $2300 for each Canadian man, woman, and child; real wealth going out of our pockets and out of our country, never to be seen again. The result is impoverishment of our country.
It defies logic to pay a net $80 billion to foreign countries to do our manufacturing for us, while our own Canadian workers stand in line at unemployment and welfare offices.
$80 billion represents nearly one million Canadians who could be working in manufacturing but are not. Imagine the beneficial effects of nearly an additional million Canadians working, rather than being unemployed.
I believe one reason for the great increase in our trade deficit is that trade deals signed in the past five years have not led to the anticipated increases in exports. But regardless of the cause(s), the near tripling of our trade deficit shows that Mr. Harper has taken Canada in exactly the wrong direction.
Now Mr. Harper is seeking new trade arrangements with EU and China. Whenever a country with relatively small population, Canada, enters into a trade arrangement with a large entity, EU or China, the country with smaller population suffers further job loss and further economic devastation.
EU has a population of nearly 500 million, 14 times the Canadian population. The EU economy is large and varied. EU is not going to buy manufactured goods from us. Instead, we will be Europe’s new colonial empire, to be exploited at will for EU’s own profit and benefit.
China has announced a multi-decade program of becoming completely self-sufficient in all manufactured goods up to and including airliners and railroad systems. They will be buying less from Canada and other western countries, not more.
It is absolutely vital that Mr. Harper stops searching for new trade deals, and especially that he cancels work on the EU deal and further China deals. Instead, we should be working to increase domestic manufacturing, and reduce imports.
Sincerely,
Saturday, September 24, 2011
Promise to fall no further behind?
Let's return to the quote presented in my previous post.
Macleans's Magazine, August 8, 2011, page 13, Columnist Paul Wells:
"When (China's) President Hu Jintao was in Ottawa last June, he announced Canada and China had set a goal of doubling bilateral trade volume to $60 billion in five years, by 2015. But here's the thing. China's trade with the rest of the world more than doubles every five years. Its trade with the U.S. has more than doubled in recent five-year periods....Harper's (prediction) amounts to a promise to fall no further behind."
United States Canada
Canada China
United States China
We are going in absolutely the wrong direction. It is wrong to say "this is the way of the world today and we have to accept it". We can't accept a growing hemorrhage of real wealth out of our country. We can't accept a hemorrhage of jobs, with the result that our people of all ages can't find employment.
Fortunately our negative balance of trade in manufactured goods with China only increased by 27% over the last five years. Maybe this is what Columnist Wells and Prime Minister Harper refer to as "falling behind". I refer to it as the first bit of good news I've heard today!
Macleans's Magazine, August 8, 2011, page 13, Columnist Paul Wells:
"When (China's) President Hu Jintao was in Ottawa last June, he announced Canada and China had set a goal of doubling bilateral trade volume to $60 billion in five years, by 2015. But here's the thing. China's trade with the rest of the world more than doubles every five years. Its trade with the U.S. has more than doubled in recent five-year periods....Harper's (prediction) amounts to a promise to fall no further behind."
I really cannot find words to describe the sheer nonsense and ignorance of this passage written by Columnist Wells.
Did Wells write this passage himself or was he given the wording by the Prime Minister's office? Or was he given the wording or general direction by the owners of Maclean's Magazine?
"China's trade with the rest of the world more than doubles every five years". Is this supposed to be a good thing?
When China's trade doubles, there is more destruction of the manufacturing sector of every western country including Canada. More jobs destroyed. More simplification of the economies of the western countries, making it impossible for young adults to find employment. Making it impossible for young adults to look forward to a normal life of employment, earning money, saving, marriage, family, buying a house or apartment. Making it impossible for people of all ages to find employment and have a life of dignity and usefulness in society.
In the famous book "Festival at Farbridge" by J. B. Priestley, it is England 30 years after the end of World War I. A man who was in the worst of the fighting in World War I, but somehow survived, is sent to visit a certain house and knocks on the door. The door opens and the man asks to see the master of the house. He is ushered in and is amazed and stupefied to see who it is. He has stumbled upon the now-retired general who commanded his division in the War. The man remembers the general's statement when he was first put in charge of the division and made his first inspection. The general said "This division can't be very effective. It hasn't taken enough casualties."
Is this what Wells means when he refers to a "Promise to fall no further behind."?
Does he mean that we have not yet had enough destruction of our manufacturing sector?
Does Wells think that "trade" with China is some great thing and countries should rush onto the bandwagon to get some of the benefits for themselves?
I think the basic problem is that columnists and politicians do not understand negative numbers.
Everyone is familiar with a temperature of - 5 degrees Centigrade. A cold winter day, but not necessarily a disaster as long as there is no wind. If later in the day, or overnight, the temperature is - 10 degrees Centigrade, is this better? Is it more comfortable? Obviously not.
Every country that is in a "trade" relationship with China is in negative territory. Example: Country X's balance of trade in manufactured goods with China is a NEGATIVE number, say - $30 billion dollars per year. Note the minus sign. It is highly significant. Five years later, Country X's balance of trade in manufactured goods with China is - $60 billion dollars per year. Is this better?
Same answer as for the outdoor weather example! A resounding NO!
A negative balance of trade of $60 billion per year is much WORSE than a negative balance of $30 billion per year.
It means double the hemorrhage of Country X's real physical money out of the country, never to be seen again. It means double the loss of manufacturing employment at home in Country X. It means double the unemployment insurance benefits, double the welfare payments, double the social costs, double the despair of the people of Country X.
It is obvious that Columnist Wells, and quite possibly Prime Minister Harper and his officials, understand nothing of this.
Chinese officials must be laughing their heads off at how easily Canadian officials are fooled and blinded concerning the reality of “trade” with China, and the real intentions of China.
Did Wells write this passage himself or was he given the wording by the Prime Minister's office? Or was he given the wording or general direction by the owners of Maclean's Magazine?
"China's trade with the rest of the world more than doubles every five years". Is this supposed to be a good thing?
When China's trade doubles, there is more destruction of the manufacturing sector of every western country including Canada. More jobs destroyed. More simplification of the economies of the western countries, making it impossible for young adults to find employment. Making it impossible for young adults to look forward to a normal life of employment, earning money, saving, marriage, family, buying a house or apartment. Making it impossible for people of all ages to find employment and have a life of dignity and usefulness in society.
In the famous book "Festival at Farbridge" by J. B. Priestley, it is England 30 years after the end of World War I. A man who was in the worst of the fighting in World War I, but somehow survived, is sent to visit a certain house and knocks on the door. The door opens and the man asks to see the master of the house. He is ushered in and is amazed and stupefied to see who it is. He has stumbled upon the now-retired general who commanded his division in the War. The man remembers the general's statement when he was first put in charge of the division and made his first inspection. The general said "This division can't be very effective. It hasn't taken enough casualties."
Is this what Wells means when he refers to a "Promise to fall no further behind."?
Does he mean that we have not yet had enough destruction of our manufacturing sector?
Does Wells think that "trade" with China is some great thing and countries should rush onto the bandwagon to get some of the benefits for themselves?
I think the basic problem is that columnists and politicians do not understand negative numbers.
Everyone is familiar with a temperature of - 5 degrees Centigrade. A cold winter day, but not necessarily a disaster as long as there is no wind. If later in the day, or overnight, the temperature is - 10 degrees Centigrade, is this better? Is it more comfortable? Obviously not.
Every country that is in a "trade" relationship with China is in negative territory. Example: Country X's balance of trade in manufactured goods with China is a NEGATIVE number, say - $30 billion dollars per year. Note the minus sign. It is highly significant. Five years later, Country X's balance of trade in manufactured goods with China is - $60 billion dollars per year. Is this better?
Same answer as for the outdoor weather example! A resounding NO!
A negative balance of trade of $60 billion per year is much WORSE than a negative balance of $30 billion per year.
It means double the hemorrhage of Country X's real physical money out of the country, never to be seen again. It means double the loss of manufacturing employment at home in Country X. It means double the unemployment insurance benefits, double the welfare payments, double the social costs, double the despair of the people of Country X.
It is obvious that Columnist Wells, and quite possibly Prime Minister Harper and his officials, understand nothing of this.
Chinese officials must be laughing their heads off at how easily Canadian officials are fooled and blinded concerning the reality of “trade” with China, and the real intentions of China.
To see whether we have already taken enough casualties, or to see if we are "falling behind" in taking casualties, let’s look at some Canadian data and compare with data from our good near neighbour, the USA! (Data are from official sources and are for 2010.)
Canada. Negative balance of trade in manufactured goods with all foreign countries includingUnited States
Canada. Negative balance of trade in manufactured goods with all foreign countries including
$80.79 billion. Population of Canada
Negative balance of trade per person $2352
$634.6 billion. Population of United States
Negative balance of trade per person $2032
We can see that Canada is importing manufactured goods at a proportionally higher rate than the United States
The situation is even worse than appears from these numbers, because theU.S. U.S.
The situation is even worse than appears from these numbers, because the
Now let’s look at trade with China
$36.13 billion.
Negative balance of trade per person $1052
$273.1 billion.
Negative balance of trade per person $875
This comparison shows even more strongly that Canada has not fallen behind in taking casualties. We are worse off than the United States , in this case specifically with respect to China China
Now consider Canadian trade in manufactured goods with the United States United States
I hope no one in Ottawa or at Maclean’s Magazine thinks that we should go into more “trade” with China because our trade with the United States
Only people who don't understand negative numbers look for more "trade" with China.
I use quotation marks because trade is not the correct word. Any relationship between Country X and China means devastation and destruction for Country X. The relationship is pathological, exploitive. The innocent word "trade" does not include these phenomena.
If we can’t keep up our positive balance of trade in manufactured goods with the United States, because our dollar is high or for any other reason, we should at least work very hard to ensure that our negative balance of trade in manufactured goods with all foreign countries does not become larger, i.e., does not become a larger negative number.
Only people who don't understand negative numbers look for more "trade" with China.
I use quotation marks because trade is not the correct word. Any relationship between Country X and China means devastation and destruction for Country X. The relationship is pathological, exploitive. The innocent word "trade" does not include these phenomena.
If we can’t keep up our positive balance of trade in manufactured goods with the United States, because our dollar is high or for any other reason, we should at least work very hard to ensure that our negative balance of trade in manufactured goods with all foreign countries does not become larger, i.e., does not become a larger negative number.
We must reduce imports and increase domestic manufacturing. Our negative balance of trade in manufactured goods with all foreign countries ALMOST TRIPLED in the last five years:
Year 2006 $27.89 billion
Year 2006 $27.89 billion
Year 2007 $32.59 billion
Year 2008 $58.99 billion
Year 2009 $75.54 billion
Year 2010 $80.79 billion
We are going in absolutely the wrong direction. It is wrong to say "this is the way of the world today and we have to accept it". We can't accept a growing hemorrhage of real wealth out of our country. We can't accept a hemorrhage of jobs, with the result that our people of all ages can't find employment.
Fortunately our negative balance of trade in manufactured goods with China only increased by 27% over the last five years. Maybe this is what Columnist Wells and Prime Minister Harper refer to as "falling behind". I refer to it as the first bit of good news I've heard today!
Saturday, September 10, 2011
Ignorant of the simplest facts!
In Macleans's Magazine, August 8, 2011, page 13, Columnist Paul Wells states:
"When (China's) President Hu Jintao was in Ottawa last June, he announced Canada and China had set a goal of doubling bilateral trade volume to $60 billion in five years, by 2015. But here's the thing. China's trade with the rest of the world more than doubles every five years. Its trade with the U.S. has more than doubled in recent five-year periods....Harper's (prediction) amounts to a promise to fall no further behind."
These statements are absolutely unbelievable. Does Paul Wells not understand how pernicious and damaging these statements are? How they put an upbeat face on a disastrous situation?. Does he not understand the disservice he is doing to the Canadian people?
Let's get some background.
Balance of Trade in manufactured goods between Country X and all other countries in the world is expressed by professionals in the following way:
Balance of Trade = Exports minus Imports
If Country X exports $100 billion worth of manufactured goods per year, and imports $50 billion worth of manufactured goods, then the Balance of Trade in Manufactured Goods of Country X is a POSITIVE $50 billion per year.
This situation is good for Country X. The people of Country X have manufacturing employment, and the country benefits from the value-added effect of manufacturing.
But suppose the situation reverses itself due to unwise policies followed by the Country X government, and the situation becomes:
Exports $50 billion per year
Imports $100 billion per year
Balance of trade = exports minus imports = $50 billion minus $100 billion
= minus $50 billion per year
In other words, now Country X has a NEGATIVE balance of trade in manufactured goods with all foreign countries of $50 billion per year.
First of all, everyone has to understand that the $50 billion amount is real physical wealth leaving Country X every year. In time the impoverishing effect of this hemorrhage of wealth will become apparent.
Any intelligent person can see from the above discussion that in relation to trade in manufactured goods we have to know in which direction the goods are going.
We look at
Exports minus Imports
Call to mind your school arithmetic and even algebra if you wish. There is a great difference between a positive number and a negative number.
The little bit of arithmetic shown above tells us the NET result of our export/import activity.
If the NET result is POSITIVE, then Country X is in good shape.
If the NET result is NEGATIVE, then Country X is in bad shape, with real wealth hemorrhaging out of the country to pay other countries to do manufacturing for Country X. At the same time, there are many unemployed workers in Country X who could be doing that manufacturing, rather than standing in line at unemployment offices and requiring unemployment insurance and welfare payments from the government.
Simply mentioning a "trade volume" is absolutely meaningless. We have to know the NET result of "Exports minus Imports" to know if we are heading in the right direction.
I suspect that "bilateral trade volume" is calculated in a way that breaks every rule of logic, arithmetic and algebra.
There is some export of manufactured goods from Canada to China. The value of the goods is a positive number from the standpoint of the ordinary working men and women of Canada.
There is a huge import of goods from China to Canada. Our stores are filled 90% with goods made in China. Again from the standpoint of ordinary Canadians, the value of the goods is a disastrous negative number.
Prime Minister Harper is an economist and therefore should know the difference between a positive number and a negative number. Yet what he is doing is stripping the plus sign or the minus sign as the case may be from the export and import amounts. The result in arithmetic and algebra is the "magnitude" of the number. Then Harper and all the bureaucrats and columnists simply add the two magnitudes to get a very attractive number which they try to sell to the populace.
China has announced a policy of becoming self-sufficient in all common manufactured goods by 2020, and extending the policy to include airliners, communications systems, and railroad systems by 2050.
I guarantee that any increase in "bilateral trade volume" is accomplished by an INCREASE IN IMPORTS FROM CHINA, while exports to China at best remain level.
Hilary Clinton gave a speech in January 2011. She also talked glowingly about trade with China. She also totally disregarded plus and minus signs and simply added magnitudes. She doesn't seem to know or care that America's negative balance of trade in manufactured goods with all foreign countries is over $500 billion dollars per year, somewhat over half of that being due to "trade" with China.
Unfortunately, Canada's negative balance of trade in manufactured goods with all foreign countries is proportionally even worse, at $89 billion dollars per year.
Hilary Clinton is effectively a lobbyist for China and as such is in conflict of interest with her other job, Secretary of State.
Is Stephen Harper also a cheerleader for China, putting a happy face on Canada's decimated manufacturing sector and disastrous unemployment situation?
"When (China's) President Hu Jintao was in Ottawa last June, he announced Canada and China had set a goal of doubling bilateral trade volume to $60 billion in five years, by 2015. But here's the thing. China's trade with the rest of the world more than doubles every five years. Its trade with the U.S. has more than doubled in recent five-year periods....Harper's (prediction) amounts to a promise to fall no further behind."
These statements are absolutely unbelievable. Does Paul Wells not understand how pernicious and damaging these statements are? How they put an upbeat face on a disastrous situation?. Does he not understand the disservice he is doing to the Canadian people?
Let's get some background.
Balance of Trade in manufactured goods between Country X and all other countries in the world is expressed by professionals in the following way:
Balance of Trade = Exports minus Imports
If Country X exports $100 billion worth of manufactured goods per year, and imports $50 billion worth of manufactured goods, then the Balance of Trade in Manufactured Goods of Country X is a POSITIVE $50 billion per year.
This situation is good for Country X. The people of Country X have manufacturing employment, and the country benefits from the value-added effect of manufacturing.
But suppose the situation reverses itself due to unwise policies followed by the Country X government, and the situation becomes:
Exports $50 billion per year
Imports $100 billion per year
Balance of trade = exports minus imports = $50 billion minus $100 billion
= minus $50 billion per year
In other words, now Country X has a NEGATIVE balance of trade in manufactured goods with all foreign countries of $50 billion per year.
First of all, everyone has to understand that the $50 billion amount is real physical wealth leaving Country X every year. In time the impoverishing effect of this hemorrhage of wealth will become apparent.
Any intelligent person can see from the above discussion that in relation to trade in manufactured goods we have to know in which direction the goods are going.
We look at
Exports minus Imports
Call to mind your school arithmetic and even algebra if you wish. There is a great difference between a positive number and a negative number.
The little bit of arithmetic shown above tells us the NET result of our export/import activity.
If the NET result is POSITIVE, then Country X is in good shape.
If the NET result is NEGATIVE, then Country X is in bad shape, with real wealth hemorrhaging out of the country to pay other countries to do manufacturing for Country X. At the same time, there are many unemployed workers in Country X who could be doing that manufacturing, rather than standing in line at unemployment offices and requiring unemployment insurance and welfare payments from the government.
Simply mentioning a "trade volume" is absolutely meaningless. We have to know the NET result of "Exports minus Imports" to know if we are heading in the right direction.
I suspect that "bilateral trade volume" is calculated in a way that breaks every rule of logic, arithmetic and algebra.
There is some export of manufactured goods from Canada to China. The value of the goods is a positive number from the standpoint of the ordinary working men and women of Canada.
There is a huge import of goods from China to Canada. Our stores are filled 90% with goods made in China. Again from the standpoint of ordinary Canadians, the value of the goods is a disastrous negative number.
Prime Minister Harper is an economist and therefore should know the difference between a positive number and a negative number. Yet what he is doing is stripping the plus sign or the minus sign as the case may be from the export and import amounts. The result in arithmetic and algebra is the "magnitude" of the number. Then Harper and all the bureaucrats and columnists simply add the two magnitudes to get a very attractive number which they try to sell to the populace.
China has announced a policy of becoming self-sufficient in all common manufactured goods by 2020, and extending the policy to include airliners, communications systems, and railroad systems by 2050.
I guarantee that any increase in "bilateral trade volume" is accomplished by an INCREASE IN IMPORTS FROM CHINA, while exports to China at best remain level.
Hilary Clinton gave a speech in January 2011. She also talked glowingly about trade with China. She also totally disregarded plus and minus signs and simply added magnitudes. She doesn't seem to know or care that America's negative balance of trade in manufactured goods with all foreign countries is over $500 billion dollars per year, somewhat over half of that being due to "trade" with China.
Unfortunately, Canada's negative balance of trade in manufactured goods with all foreign countries is proportionally even worse, at $89 billion dollars per year.
Hilary Clinton is effectively a lobbyist for China and as such is in conflict of interest with her other job, Secretary of State.
Is Stephen Harper also a cheerleader for China, putting a happy face on Canada's decimated manufacturing sector and disastrous unemployment situation?
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