Well since all writing is political in nature; here's a thought?
Why do we blame our administrations for actions that are beyond their control or the result of pure economics?
Should we follow Hyeak-Mises? Or Friedman?
The recent bailout of the American economy has had Bush lambasted by Ahmadinejad at a UN address. Yet the motives behind the $700 Billion bail out affect the foundations of the american economy. Bush's war on terrorisam is helping to bankrupt his countrymen, and for what cheap oil?
I personally believe that house prices are far too high, they have been so for a long time and I have it on good authority that I am right; people that make money with property are stating that it`s over inflated, around 20% or so, and these people are filthy rich. Housing is a highly localized market to various regions, and done on a national scale.
Realtors are trying to sell, (remember they get 2.5% of that high price from the bank) but the market is cooling off and with Ontario in a recession we`ll see it remaining flat for a while. When people purchase a home they are not using thier money but the banks. The banks than transfer that money via a morgtage to home owners, whom rent from said bank at 25 years or so at a given rate of interest that makes the bank quite a bit of money.
The problem is when the bank tries to re-sell that debt to private organizations, I could understand doing commerical asset backed paper (where the income was from commercial organizations) however the mess is a result of bad lending habbits.
As if you didn`t know already the crap in the United States is the result of a combination of bad morgtages and really bad accounting policies (mark to market anyone?).
What I find funny is that this meltdown happened in other places before; was Asia any diffrent in the late 90's? did thier money markets faulter?
And the irony of the situation is that we "The people" blame our governments for bad administration of our respective central banking systems. Yes the only thing your government can do is modify tax policy but that's it, economics is up to you and your behvior your spending patterns. So you lied about your job and bought a house and now you are defaulting on a price you can't afford because the fed screwed the intrest rate (they were asleep at the wheel) and you had a really bad mortgate at some astronomical rate? and it's Bushes Fault? Look in the right place first off and you'll note the man responsible for said mess is retired. (Allen Greenspan)
So back to my point, a recent CTV article lambastes Dalton McGuinty for losing 200,000 jobs in the auto sector in Ontario. The article mentions nothing of the Trust fund fiasco that hollowed a good 35 billion out of our economy; (they are called tax haven's for a reason people), and depreceated our assets in one foul swoop; or how I see no mention of either Bob White or Buzz Hargrove in the article regaring how they devalued GM to the point of bankruptcy over it's life by blackmailing labour rates to astronomincal prices, I`m sorry but you with your high school education do not deserve $65,000 per year to paint a car door or punch in bolts, jobs that can be done by robots. But since your father was an auto worker and you are an auto worker and Buz has banged the table howling "Contract Contract Contract"....now you have no job, how do you feel?
And that GM makes Trucks for everyone? the Auto Market is driven by sales that are financed by firms that charge intrest on loans given to people. If those people are not employed and the used car market saturates your competition and gas prices are crazy high do you really think they will buy a truck? This happened once before in the 70's but apperently no one remembers the oil crisis because the bought SUV's as soon as they could.
Labour will always move to where it is most cost effective; China and India ahve few if any envrionmental policies, they are where North America was in the 50's. Remember we used to put asbestos everywhere? Well they are putting melamine everywhere, diffrent goal's but ultimatley resulting in loss of human life. So eventually regulation rears it's ugly head; I'm remined of how the Comanding Heights series states that in low or bad times the Market get's reeled in by regulation according to the central planning model.
So again it comes to mind, the austrian school of thought is great for it's epic highs but no one like's the prospect of it's lows; then we switch to our centrally planned and over regulated model that we had before.
Yes I understand without these moves we would have serious issues, and I'm not stating that.
What I am saying is perhaps it's time for new models and plans since these ones have issues, so where to begin?
You know the liberals have a plan that has a surplus, I haven't seen anything from the conservatives in responce other than "Image buffing" and "vote buys" with promised spending, where's the writing? I want to be able to call you on your lies if I elect you to office.
And this whole "Getting tough on crime" reeks of american influence, if anyone ever knew or has known anything about crimnal defence law it's usually the case that the "Suspect" is mentally ill and has issues that would normally be covered by healthcare, so money spent on "Secureing" your land will result in a police state (department of homeland security anyone?) where as money spent on "Mental Health" and "Safe use sites" helps take the addicts and unstable and re-contribute a percentage of those a functional socioty. So what's it going to be? It's your vote and remember to use it wisely.
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