From 10,000 Feet

Humanity is caught between corporations and ineffective and corrupt government. Some corporations act more like the Mafia than companies. They will use any tactic including bribery, extortion, murder, overt lies, deception to achieve their greed driven objective. Governments and political leaders have been intimidated, threatened and bribed, to give these marauding pirates what they want. Corporations even have their own government which protects their interests above the government of the people. The International Monetary Fund, the World Bank, the World Trade Organization all force government of the people to comply to their demands or pay the consequences. The sad and ironic part in all this is that these corporations have funded their toxic and diabolic work with our money. Money we have earned has been invested in companies through the stock market and used to destroy our freedom, our health and the planet.

Here are a few things that should be done to make change in our country and the world

1. Corporate Crime and Corruption
- we need new laws to make directors and officers of companies criminally responsible for their actions
- we need enforcement agencies specifically for corporations
- we need to educate people in all positions of responsibility about the harm, consequences, and options they have if confronted with bribery, or intimidation.
- we need to increase the penalties for these type of crimes to reflect the damage done to the country and the people.
- we all need to understand that taking a bribe, or giving benefit for benefit is treason because it destroys the country.

2. Political, Bureaucratic, Judicial Accountability
The peace and prosperity we enjoy is directly connected to the ethical behavior of these institutions.
- we need new laws to make politicians, bureaucrats, and judges criminally responsible for their actions
- we need structural revisions to make these agencies easier to monitor and more accountable for their actions
- we need enforcement agencies (police agency) specifically to investigate claims of misuse of power in government
- we need to educate people in all positions of responsibility about the harm, consequences, and options they have if confronted with bribery, or intimidation.
- we need to increase the penalties for these type of crimes to reflect the damage done to the country and the people.
- we all need to understand that taking a bribe, or giving benefit for benefit is treason because it destroys the country.

3. We need to develop a strategy to regain political autonomy. That means restructuring debt, and choosing to mitigate the negative impact of trade agreements in particular NAFTA and the policies of WTO.

4. We need new laws that repeal the interpretation of law by a few judges to allow the patenting of life forms.

5. Corporations must be responsible for their actions in particular genetic pollution and contamination. They are liable and accountable and must compensate those who they cause harm to, rather than the other way around. This is a distortion of justice.

6. Genetically modified foods and other additives must be tested before and proven beyond doubt that they are safe before being introduced into the food system. The protocol of scientific procedure for approval can not be superseded by the political or bureaucratic branch of government. All manufactured products which enter food, air and water directly or indirectly which can not demonstrate via independent study that they are safe must be assessed. If and when they are approved, they must be labeled giving each person the right of choice when using the product.

7. We must protect the production of food in this country as a national security measure. Subsidized products from other countries must not be allowed to destroy the domestic food production industry. Government incentives to grow food locally and personally must be introduced to remove our dependence on the multi-national corporations control of food production

8. The policy of “intensification” which makes it near impossible for a family to own agricultural land and grow their own food only supports the agenda of multi-national corporations and their objective to control all food production. This policy must be changed to provide access to agriculture land to anyone.

I have been following the genetically modified crop debate since the early days of the controversy. I have talked to advocates on both sides of the issue and personally interviewed Arpad Pusztai, a world renowned expert on lectins and researcher from the Rowett Institute. His findings and personal comments on the BBC caused doubt about the harmlessness of GM foods. But this debate has a new life with the recent release of information by the BBC that genetically modified pigs are being developed here in Ontario.
As I read the article, I felt that the journalist had fully bought into “this is progress….and you can’t stop progress” point-of-view of many scientists. The premise behind that idea is that, “if it can be done, it should be done”.
Thirty years ago, coal-fired generating plants were lauded by scientists as the “cheap” solution to our energy needs. A whole host of perspectives were ignored in that debate. Warnings were dismissed and today we realize that just because it can be done, doesn’t mean it should be done. Apparently, it isn’t very difficult to get an “expert” to support just about any point-of-view if the right people want to promote it.
The BBC article makes two “value statements” for the “enviropig”, as they call it. The first is that these pigs don’t excrete phosphorous and are more environmentally friendly because they don’t cause overgrowth in our waterways. Phosphorous is a fertilizer. Nothing was said about where the phospherous goes and how it may affect the others systems in the pig – I am sure they don’t know. Even more interestingly, the writer did not mention the company who is responsible for this “amazing” pig (sic). Monsanto has built its “name” on such products as PCBs, Agent Orange (a cancer causing defoliant used by the US in the Viet Nam war), Aspartame (through Searle) and genetically modified corn, cotton, and other crops. No one company has more environmental failures than Monsanto.
The second value statement is that this enviropig “may” be helpful in feeding the increasing world population. Of course, that is based on people eating pork, which among the poor of this world, is not possible. In addition, growing crops to feed animals for meat is highly inefficient. Growing “people” food directly is a far more efficient and realistic way to feed the world. Furthermore, in 2nd and 1st world countries, increased cancer rates and heart disease are thought to be in part attributed to the high meat content in our diet. So the “we can save the world by feeding more people with GM pigs” wouldn’t go very far in an intelligent argument.
The even bigger question, also not mentioned in the BBC article, was: who owns this pig? Will Monsanto eventually own all pigs? If you look at Monsanto vs Schmeiser, Monsanto prosecuted the Schmeiser family for having GM Canola on their property without a license. Schmieser asserted he did not plant the crop but that his crop was contaminated by a neighbour’s GM Canola. The case went all the way to the Supreme Court who supported Monsanto’s claim to ownership of the modified “life form” no matter where it is found or how it got there. Hence, the settlement with the Schmiesers for damages in 2004. However, the question remains: if Monsanto owns the pig that they only modified and did not create, will they act responsibly and provide it to the starving masses at a price they can afford – I rather doubt it!! Corporations are inhuman. They try to make as much money as possible, any way they can. In most cases, their morality is greed and because of that they are in direct conflict with the goals of governments and the rest of humanity.
Some would argue that what Monsanto is doing is not new. That every hybrid plant is genetically modified. However, there is a world of difference between the natural process of plants and animals evolving and scientists firing gene guns at the plant’s DNA and forcing unnatural change that would not happen any other way. If these plants weren’t significantly different, then on what do they base their patent and right to ownership?
These are only a few of the very serious implications attached to genetically modified life forms for which there has been only superficial public debate in Canada and the US. The implications of GM foods are huge on many “fronts”, not to mention the more complicated question: are they truly safe to eat? Since there are experts on both sides of that argument, it comes down to: which expert are you going to believe? The question then becomes: should people have the right to know they are eating GM food? Monsanto and Health Canada say, “NO”. In spite of the overwhelming polls in favour of right-of-choice, Health Canada has done nothing. Can we trust government agencies and scientists (experts) to make the decisions for us? History has proven otherwise. Each of us must be informed and act accordingly and have the freedom to choose. There is an election coming soon – maybe someone will listen to the voice of the people.

BBC article: http://www.bbc.co.uk/news/world-us-canada-12113859
National Film Board of Canada – The World According To Monsanto

http://topdocumentaryfilms.com/the-world-according-to-monsanto/

In a few days we will be starting a new year and with it a time of reflection and hope for better health, better relationships, better finances, and more happiness. It is typical to want more of the things we believe will make us happy. The question is: “how do I get there?”
For the past several years, I have been becoming more and more aware of the importance of sleep. I have been discovering that sleep has many benefits I was unaware of. On a recent working holiday in Central America, I found within a few days of arrival that my day-cycle had changed significantly. I chose not to spend time watching TV and surfing the Internet in favour of going to sleep only hours after sundown (5:30 pm) and getting up at sunrise (6 am). As I got into this new rhythm, I became more aware of when I was feeling creative and productive and when I was not functioning at my best. Since I was attempting to produce some of my best work which required a great deal of creativity, I became more conscious of my mental state in order to optimize my performance.
Some of the Things I have Discovered About Sleep
The Ticos (natives of Costa Rica) have an interesting expression to describe their view of the importance of sleep in problem solving and decision making. When confronted with an important decision, they often say (translated from Spanish) “I will talk to my pillow about it”. In North America we say, “I will sleep on it”. In most cultures, there is an awareness of how sleep organizes our thoughts and brings clarity to a situation or problem. Those first few moments of consciousness between sleep and awareness are moments of creativity and clarity. I often “see” my day and what I should do or how I should solve a problem! I hate having to wake up and start moving immediately because it steals the richest and most precious few moments of my day.
More importantly to my quality of life is the impact sleep has had on my optimism, capability, and mood. When I sleep well, I feel well, and I am able to overcome the challenges of the day without them overcoming me. The quality of my sleep and the food I eat are the two most important factors in how I feel and what I accomplish in a day and at what level.
The hardest part of this journey of self-discovery has been overcoming the feelings that sleep is my enemy. Sleep  is not the “annoying break” between the things I love to do, or have to do. That has been a “biggy” for me that I am still working on.
I also have had to learn to power-down a few hours before I go to bed with activities that prepare me for quality sleep. I avoid the stimulation of TV and the Internet and choose to get “outside my day” with activities I enjoy like walking, listening to or playing music, or just relaxing with a hot drink and spending time with Margaret. I need to slow things down in order to sleep easily and well. I have also learned the importance of the “power nap”. Twenty minutes in the middle of the day refreshes and improves my productivity and mood.
This has been a multi-year journey of self-realization about sleep which has produced a happier, fuller life for me. I am, however, slightly embarrassed it has taken me this long to figure out something that seems so simple and obvious. However, the more I work on doing sleep well, the better I get at it, and the more positive are my results. Finding my natural rhythm and letting my body lead in the “dance of life” has helped me be happier, and do more and better work. Though it may sound trite, my plan for “more” in 2011 is to sleep better and more often.

There has been a lot of talk about growth in Wilmot Township recently with many references to the province’s  “Places to Grow” policy. The foundational principles of the document are to restrict growth in agricultural areas and to intensify growth in urban areas. There is abundant evidence that this policy is highly flawed and is neither sustainable nor will accommodate long term growth.
The National Film Board of Canada has been charged with telling “The Canadian Story” and they do a very good job of it. One of their most powerful documentary films is “Waterlife” (2009). It is the story of the Great Lakes. The film documents the flow of water from its head-water to the mouth of the St. Lawrence. It also exposes how this most important source of fresh water is being polluted to new levels by cities like Chicago, Detroit, and of course, Toronto.
Some cities do relatively little to treat their sewage and others do more, but all are far from leaving the water chemical free. Treatment plants were never designed to remove industrial chemicals and the huge amounts of therapeutic treatments which people are taking for medical reasons. For example, more and more fish are being found to be a-sexual (neither male nor female). Scientists speculate that estrogen in the urine of women taking birth control pills goes untreated into the lakes and is the cause of the problem. Heart and other medications pass through the body and end up in our water supply. There is no treatment process for medications and there are literally thousands of drugs and industrial chemicals being dumped in high concentration into our lakes.
When I drive though rural south western Ontario, most of what I see growing in the fields is corn. Very little of our land is being used for the production of vegetables. Most of the crops we grow are used for feed to produce meat. These crops are grown with chemical fertilizers and herbicides. The producers of these chemicals claim that they are far more efficient than organic farming and they are not a problem for our water supply; however, this is clearly untrue on several fronts. Organic farmers now claim that their yields are comparable and the costs for equivalent production are far less without the use of chemicals.
Are there answers to these difficult problems or are we doomed to self-destruction? For centuries people lived on a small patch of land, grew their own food, and ran their own sewage treatment plants (septic systems) and the water remained pure. Then we all moved to the city and became dependent on others to do for us what we had always done for ourselves and that is when the problems got out of control. Moving more people into less space only intensifies the problem. The “Places to Grow” policy grows cities which are unsustainable and prevents people from moving back to the land. We need un-intensive living and intensive farming (Google it) which are both sustainable. That takes vision and courageous leadership. It isn’t easy making monumental changes but we have no choice – we are racing down a dead end street. “Places to Grow” is a policy which has no future. It prevents people from taking control of their lives, providing for themselves, and building their future on the wisdom of the past.

It was difficult choosing a topic for this month’s column because there has been so much going on in the news that I wanted to bring to your attention. But with the US dollar “dropping off the table”, I decided to do my year-end projections for 2011 a month earlier.

Since June, the US dollar has lost more than 9% which is good news if you are buying US cash to take a trip or make a purchase. But the reality is that what is happening to our currency and the economy is going to require us to change the way we think and do business with the Americans.

Much of the move in the US dollar has happened in the last month in response to an announced second round of stimulus, sometimes called QEII (Quantitative Easing 2). The first round didn’t work and the second round is unlikely to work either – so you might ask, “what are they doing?”

Bill Gross, President of PIMCO (World’s Largest Mutual Fund), gave us some insight into what is really happening when he commented recently on America’s economic woes.

“It is a globalized economy of our own doing for the past 20-30 years. We encouraged all of this, but it is coming back to haunt us. To the extent that Chinese labor, Vietnamese labor, Brazilian labor, Mexican labor, wherever it is coming from that labor is outcompeting us and holding down our economy. ……Other countries and citizens are willing to work for less and willing to work harder—and we forgot the magic formula somewhere along the way,” he said.

He went on to say, “One of the ways to get even, so to speak, or to get the balance, is to debase (devalue) your currency faster than anybody else can. It’s a shock because the dollar is the reserve currency. But to the extent that that is a necessary condition for rebalancing the global economy over time, then that is where we are headed.”

He also said later in this interview that he thought the US dollar could be devalued by as much as 20%.

Globalism is Dead
I have been speaking out against globalism for 30 years because it has killed our manufacturing (particularly in Ontario), and made a lot of multi-national corporations and their upper management unbelievably wealthy at the cost of millions of well paying jobs in Canada. In the US, it has wiped out the middle class almost completely. However, Mr. Gross, though accurate about globalism, demonstrated a total disregard for the value of our labour when he said, “we (America’s labour force) have forgotten the “magic formula”. He compares us with workers who are forced to work (through circumstances) for pennies an hour, 12 hours a day, 6 days a week. He has forgotten that we HAD built up enough wealth in the west so that we didn’t have to work day and night for a subsistence income before globalism. Now that wealth is in the hands of a few corporations. Instead of raising up those other countries to a more humane labour standard, they have devalued our labour to the lowest level possible and oppressed even the poorest of poor in order to make even greater, and greater profits. These are the people who are running the financial world who we so foolishly “invest our money with”. 95% of the world’s wealth is held by 5% of the people. There can be no recovery without the redistribution of wealth – it’s impossible. I wonder what he thinks his labour is worth???
Now that I have that out on the table, Gross did say a few other things that really matter to you and me. By devaluing the Greenback through the increase of the money supply (printing it), you do two things. You devalue the current debt of the US. (They have the equivalent debt of a person making $50k per year and owing $5M.); and more importantly, imports (from Canada) becoming more and more expensive in the US.The Canada/US exchange rate has gone from -20% to +2. Obama has assured the G20 that he would not start a currency war, but he really doesn’t have any other options. This effectively makes NAFTA pretty much worthless.

You and Me and 2011
That being said, what does that mean for you and me in 2011? The coming year will be an opportunity for Canadians to break free from US “dependency”. The US will begin to make more of their needs at home as it becomes more expensive to import products. Canada should look for ways to increase the labour component in our raw materials and there will be opportunities to develop and provide services to Canadians from the US as the value of their dollar decreases and ours increases.
The Waterloo Region will continue to invest heavily in technology as our major export. We are among the best managed and economically sound areas in Canada. We are well positioned to do better than most of the country because of our progressive, forward-thinking and creative people who will rise to the challenges of change. Innovation and creativity, on which this region was built, can turn the coming challenges into wealth building opportunities. 2011 will have its “bumps in the road” but in a world of change, I have great confidence in our creativity and innovative ability to lead and prosper.

Read the whole story here

http://www.cnbc.com/id/39957072

Get an education here….
See “Inside Job” the film

http://www.insidejob.com/

Waterloo Region has a whole new team of enthusiastic politicians eager to make their mark on the political fabric of our communities. I have high expectations for the good that can come from even one persistent, skilled, visionary leader. I think of Ira Needles and Jerry Hagey, co-founders of the University of Waterloo, whose positive impact on our Region has been exponential. Both of these men were servants of the common good in a measure not often found today.

In contrast, in 2001 Gordon Campbell vowed he would not sell BC Rail and won a landslide victory only to break his promise to the people. Recently, two of his cabinet ministers’ aides were convicted of selling information and it is yet to be known why BC Rail paid the head of Campbell’s election campaign in 2001, a $300,000 “consulting fee” around the time of the sale.

Former Prime Minister Brian Mulroney escaped jail because he broke no law but clearly broke the trust and expectations of the Canadian people as their Prime Minister. Before he left his post, he tried to sell Pearson Airport to a private firm,
with questionable value for Canadians.

Henry Paulson, the US Secretary of the Treasury and former CEO of Goldman Sachs, testified to the Senate Finance Committee that he did not know where the $850 Billion bailout funds went even though it was his charge to distribute the money. Not much later, Time Magazine named him as runner-up for “Man of The Year”.

Argentina used to be the richest country in South America. In the 60′s, they had a space program and international car manufacturing but they were brought to abject poverty by political corruption. The wealth of the nation was plundered by multi-national corporations and leaders who served themselves rather than their people.

Closer to home, Ted Rogers bought the $800 Million dollar Skydome (a good portion of which was public money) for a mere $25M without open bidding, due process, or any outrage from the media or the public. For me, it will always be the Skydome!!

Some pundits insist that corruption in government is inevitable, but I emphatically disagree. If you had an employee that took $5 from the till every day, would you dismiss it as “inevitable”. Would you expect to get a “pass” on driving through a red light even if you didn’t hit anyone – No. Should a shoplifter be told by a judge that “since this is a small crime, and we only deal with serious crime, we are going to ignore this whole thing.”  All of these approaches are ridiculous and are actually very destructive to society. Crime is inevitable but always unacceptable. The law applies equally to everyone – politicians, bureaucrats, multi-national corporation CEOs, and to you and me.

Things have changed in Canada since the days of Needles and Hagey. Corruption is being fueled by our media that mocks integrity, scoffs at honesty, and makes money and power something to be obtained at all cost. We are being assaulted from within. Corruption is a very real threat to everything we know as Canadian. That threat must be met with leadership and determination, and possibly some hardships in order to overcome the challenges of corruption and turn us from the course we are on.

Corruption is lawlessness, and law is the foundation of freedom and society. Corruption is not a harmless or acceptable crime – society, you and I, and our children are the victims. It cannot be tolerated without consequence. If you care about our community and our country, corruption should be your call to action.

I challenge men and women of integrity serving locally, provincially and nationally to work to protect Canadians and Canada from unscrupulous leaders. We need new laws that protect the trust we have given our leaders. In every election the issue of corruption should be part of the discussion. When we are lied to in an election campaign, there must be remedies to protect the will of the people – or we can’t call this democracy. We need courageous, truly diversely-owned media which operates freely. We need more funding for white collar crime investigation, and we need to applaud and honour those who stand up against corruption and who fight for truth and justice.

Corruption in Canada has reached a tipping point. We ignore it to our own demise. It does matter who we elect. We need courageous leaders with aggressive strategies to protect and rebuild the public trust and to restore greatness and prosperity to Canada.

On the morning of September the 11th 2001, 3 men entered an express elevator in the World Trade Tower. Two of them were wearing Armani suits, the other jeans and a T shirt. One person was carrying a mop, the other two, custom handmade brief cases. When the lights went out and the elevator filled with smoke, the janitor began to figure out how they could escape their prison. He used the mop handle to pry open the elevator doors. From his knowledge of the building, he determined that the wall that they faced was actually the back of a washroom which was being renovated. He used the mop to beat a hole in the bare drywall on both sides of the studded wall large enough for the three of them to crawl through. In the dark and smoke-filled restroom, the janitor led his “colleagues” on their hands and knees (feeling their way) out of the washroom, down the hall to the emergency stairwell and out of the building to safety.

If anyone would have entered the elevator before the lights went out and were asked to pick the leader in the group, the janitor would have been the least likely candidate. However, in this crisis the janitor was optimally positioned to solve the problem. He had knowledge that the others didn’t have and he used it to problem solve. In any crisis, the person who understands the situation and who has a solution automatically becomes the leader. Effective leaders articulate and prioritize the problems within the context of all the issues and present strategies and practical road maps for arriving at the solution. They convey confidence that they can see where they are going and know how to get there. Their sincerity and passion make people trust and follow them. Leaders also see the talents and abilities in others and how best to use them to accomplish the goal. Leaders are visionaries, and visionaries are leaders.

In a few weeks, we will be electing a team of people who will serve and lead our community. We have much to be thankful for in Wilmot Township but we also have many challenges. Whom we choose for the positions of leadership will determine how the challenges we face are addressed. Key to our “success” as voters is choosing leaders who can identify the most important issues which will produce the most positive impact in our community. The leaders we select must also be able to articulate strategic plans for accomplishing their vision for the Township and have realistic plans for getting there. We so often get bogged down in other less productive dialogue when “interviewing” the candidates. Where will they take us, what they will accomplish, and how will they get us there…..these are the important questions!!

Who will be the best leaders for Wilmot? We will decide. But maybe you are not sure yet who to support. Consider attending one of the All Candidates’ meetings and ask questions about vision, direction, and strategic planning and gauge the confidence each candidate can convey in their leadership. We need visionary leaders for Wilmot Township – local government does matter to us.

Predictions for our economic future by the Bank of Canada are for a “marked slowing” of the economy in the second half of 2010 because of the Spanish government’s insolvency. One may ask the question, “why should the problems of Spain affect us here in Canada?” – what is wrong with this picture??? It would seem that having and keeping your financial house in order has been highly over-rated (sic). Or maybe it should be stated slightly differently – being interconnected to a whole group of other nations has been a huge world-wide problem which no one cared to discuss when they were “selling” the idea of globalism.

As I write this column, I feel like an intellectual geek bringing up the issue of globalization. The media and governments have always presented it as an absolute sacrament of an economically prosperous future. There never was a real debate about its merits and potential problems – it was forced upon us. Anyone who opposed it was marginalized and dismissed as a “kook”. However, in the 20/20 vision of first hand experience, NAFTA or the EU have NOT been proven to increase the prosperity of Europeans or North Americans. It has, in fact, done just the opposite. It has made some people very rich, but for the average Canadian, it has been a “cancer”. It has made us victims of market manipulation and has destroyed our manufacturing sector (real wealth) and our economic sovereignty and self-determination.

True Democracy is rooted in the belief that each of us has the inalienable right to choose for ourselves our own course. That right has been taken away from each of us by globalism. We no longer control our economic future. That is determined by people we neither elected nor who have any thought of our welfare in mind.  The centralization of power has few benefits to anyone except those who have it. They are far from the people their decisions affect.

My expectations of what they cunningly called “free trade” have been completely fulfilled – “the rich will get richer and the poor will get poorer”. The problem is we all have a short attention span and few pundits ever return to “the scene of the crime” for a second look. I suppose that is what makes some politicians say anything to “sell us”, knowing that later, when the truth becomes known, nothing is ever done about it- but that can change.

Could Wilmot Township drop out of NAFTA? Not likely; however, the concept of economic sovereignty on a local level is a dream worth “noodling”. It would be a “gutzie” move from an informed, united, and creative people that would lead change.

Ontario, Canada, and the world are in a season of monumental change. Those countries and people who lead and shape change are best positioned to prosper from it. The world is looking for leaders who understand the problems and who can facilitate the solutions. We here in Wilmot can lead the province and the country with creativity, vision, and courage in a number of areas. It doesn’t matter where you come from or where you are right now, it only matters where you are going. Our dreaming is not a worthless endeavor, it can shape the future. Our dreams are valuable to us and to others. Our choice to pursue our dreams will be inspiration to those who know us and an example for our children. Dreamers – dream on!!

With the G20 having just ended, Canadians are thinking about what was accomplished in the “mega-meetings” and if they will help produce economic stability for a world which is standing on the edge of a financial abyss.

Within days of the meetings, renowned economist Paul Krugman predicted a “Third Depression” (NY Times – June 27/10) which will be characterized by prolonged periods of deflation and unemployment. There had been hope that there could be solutions to the plaguing economic problems which are facing the entire world. “A Third Depression”, in Krugman’s analysis, is another “correction” which will be deeper, longer and more painful than the one in the fall of 2008 – not the news we wanted to hear after investing so heavily in the G20.

Personal Income: 1.5 Billion a Year.
A recent Time Magazine article profiled a hedge fund manager whose earnings for 2009 were 1.5 Billion dollars which averages to about 6 million dollars a day. His job: he trades commodities for a “living” – if you could call $1.5B a year a living.

The questions I am asking is how much money do you have to make for your company for them to pay you a billion and half dollars a year and where does that all that money come from?

It isn’t all that complicated. A hedge fund is the “pretty” name for a speculator. Using government approved financial instruments, the trader can multiply his purchase ability by 100 times the amount of his on-hand cash – we are talking hundreds of millions of dollars at a time. The leverage is an important aspect of the “free market” sham. With enough leverage (money) your trades can influence the market. Of course a “good trader” is betting the price will go up. When you look at it,  it’s kind of like fishing in a barrel. It’s not really much of a gamble and it sure isn’t investing.

When oil hit $140/ barrel it had nothing to do with the cost of production or supply. An oil analyst interviewed on CBC claimed that oil at $60/barrel is very, very (lift an eyebrow) profitable for oil companies. When it hit $140 a barrel, it was the work of speculators.

Unregulated speculation of commodity prices like oil, grains, and real estate have inflated prices beyond what people can afford. The first collapse only partly deflated prices because the Federal Reserve (Baranke) and the US government and the banks insisted on pumping up the balloon with a trillion dollars of printed money. When prices exceed what people can pay, consumption goes down and unemployment goes up. So to fix the problem, they have to deflate commodity prices back to where (more) people can afford them. But they didn’t do that.

Speculators were allowed to pump up commodity prices again using our bail out money creating an illusion of recovery but leaving prices inflated, consumption low, and unemployment high.  Hence, they have called this blip in the market, “The Jobless Recovery”.

Governments and regulators never made any significant correction in the system which allowed the speculators to continue to manipulate commodity prices. Furthermore, they have increased taxes to compensate for falling revenues (Ontario) which is the equivalent of inflating prices. The result – more than 20% of Americans are sacrificed on the altar of “Free Market”. Of course, there is nothing free about a market that is being manipulated and there is nothing free about a nation that is being held hostage and plundered by its enemies.

The wealth of the nations is being siphoned off by speculators who manipulate prices of commodities to extort obscene profits from everybody on earth. Governments stand by as these pirates pillage and plunder, in many cases, generations of work and savings through a sophisticated “shell game”.  They even speculate on food, raising prices which literally starve people to death and no one does anything. (See Food Riots – Mogadishu, May 5 2008). Could there be anything more repulsive than billionaires gambling on food futures at the expense of peoples’ lives?

Krugman calls the problem “policy failure” – he’s being kind. It is “human failure” which caused the problem and it is the failure to “end the party” (through regulations) that will drive us into the Long Depression. The G20/G8 meetings were about as effective as painting the Titanic – there is a hole in the boat! We are all in that boat together. Unfortunately, there is not magic “bullet” that will fix the problems. The system is fatally flawed and it is only a matter of time until we see another “correction” to inflated prices, possibly as early as this fall. Stand by……..