The
Wisdom of Crowds?: Chart shows value of US Dollar versus a basket of
other currencies. With unrepayable government, corporate and personal
debt levels, high vulnerability to interest rates, dependence on
China's ever-fragile and reckless economy, and dependence on cheap oil,
the market is beginning to realize that the US dollar is essentially
worthless. Only psychology and fear are keeping it from crashing, and
plunging the world into an horrific recession. What is bizarre is that
(like in 1929?) the stock market is at record highs.
Two Signs That We're Heading For a Wall:
- Staking Claims for Future Resource Wars:
The invasion of the Middle East over oil is just the most obvious sign
that countries are starting to realize that huge scarcities of
resources are looming, and hence starting to stake claims for what
little is left. Both the US and Russia
have put Canada on notice that they do not recognize Canadian
sovereignty over Canada's oil- and water-rich Arctic. And now, the UK has announced it it claiming vast areas around its distant islands as well.
- Anti-Immigrant Movements Going Mainstream: Even US Democrats (and right-wing French government officials) are realizing it is politically wise to tap fierce anti-immigrant sentiment in their countries. When resources (land, minerals, oil, forests, jobs) get scarce, the last ones into the country become convenient scapegoats for the fear of not having enough.
Other News of the Week:
- Investment and Environmental Groups Petition SEC for Global Warming Disclosures:
It is becoming clearer that denial of global warming will no longer
pass muster even in corporate boardrooms. Investors fear that
irresponsible corporations will ultimately suffer economic consequences
for their environmental negligence and shrugging off assessing the
risks that global warming poses to profitability. So these investors want those corporations to own up now, so that they can determine whether they are good investments.
- Hydro-Quebec Facing More Criticism Over Devastating Dam Plans: The government-owned corporation, which has already destroyed much of the Northern half of the province to generate cheap electricity for export to the US, now plans yet another mega-project.
- Democratic Party Embarrasses Itself By Voting Against Free Speech: Half of the Democratic Party's senators voted with the Republicans to censure MoveOn for a very restrained ad
criticizing dishonest Bush lackey General Petraeus. The party has lost
all credibility, and it's increasingly clear that the US's two-party
hegemony is completely alienated from the people. Another black day for
democracy there.
- Blackwater Private Militias 'Banned' From Iraq: Oh, never mind, it seems that the 'democratically elected' government of Iraq has no authority to sanction the occupying nation's private militias when they kill civilians who get in their way.
- Irresponsible US Lending Crisis Poised to Worsen: As long as the US remains with no usury or predatory lending laws (another consequence of 'deregulation'), the temptation that led to the crisis
will just be endlessly repeated. With its bailout of the criminal
lenders and the irresponsible lowering of interest rates for corporate
borrowers, the Fed is actually encouraging this. Now that borrowers are
squeezed on mortgage borrowing (as house prices continue to fall),
credit card borrowings, at interest rates as high as 32%,
have skyrocketed, which will lead to a new surge of consumer
bankruptcies and yet another round of collapses of irresponsible
lenders, this time credit card issuers and their gullible financial
backers.
Thought for the Week:
Celebrating Small Defeats: While
the news above (and most of the news) should be enough to convince you
that we aren't going to save the world through reforms to the existing
political, economic and other systems, some of us need to continue to
valiantly fight the losing battle, to buy us more time to create new
models to replace the old dysfunctional systems. I've written before
about NRDC and the Suzuki Foundation, among others, that do this important work. This week I met some of the brave people at Friends of the Earth, who have sued the Canadian government for flagrantly breaking the law by not living up to its Kyoto commitments. I also heard from Oceana,
an organization that is waging a similar fight for protection of the
sea, including international waters that no government takes
responsibility for. What extraordinary courage it must take to take the
fight to governments who believe themselves above their own laws! I
salute these remarkable organizations and the vital work they are
doing. Please support them any way you can. |
4:31:45 PM 
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MADE IN CANADA
trust your
instincts 
