Darron CharlesworthThe free trade folly
November 13th 2010 21:56
Category: No Category
As my followers my have noticed I have been trying really hard lately not to get stuck in to the current Government or the Opposition, even though both have been begging to be exposed for the charlatans that they are. The lack of any credible leadership and the farce which now professes authentic Australian Governance is pushing the limits of endurance too far.
I knew this would happen. The surprise was how this happened. It was in fact the G20 and PM Gillard’s defence and promotion of Free Trade which finally broke my silence. How incredibly stupid this woman is. Although it is not just our PM. The fallacy of free trade runs rampant through both sides of politics and is almost immune to criticism no matter how credible.
After watching the US collapse into self inflicted annihilation – the GFC – one would think that an objective outsider may have taken note of the root causes that the infallible Americans have yet to discover. While the common mistake is to blame the banking system, and they did play a significant role in creating the GFC, it is error to consider that they are to blame.
Don’t get me wrong here. The banks were criminal in their behaviour. Despicable in their actions. Contemptible in their short-sightedness. But they were not at fault. Policy was to blame coerced by greed and facilitated by political leaders. The reduction and removal of trade barriers and tariffs gutted the US in unspeakable ways. Predicted by savvy economists the GFC was inevitable. Yet, as foreseeable as this predicament was, the powers at be, lubricated by corporate greed ignored the obvious to satisfy greedy few.
The role of the banks was limited to generating loans for people who obviously could not make the repayments. Not just one or two mind you, oh no, but hundreds of thousands so that players on the markets could appear as though they were improving their market position. Instead all they were doing was setting the institutions up for failure.
The real culprits are the corporations. Their removal of localised production in favour of cheaper places of production completely undermined the entire social structure of the US. So many jobs were lost or relocated to cheaper labour centres that the working class crumbled. There are just not enough jobs to go around once the primary source of employment – manufacturing – was effectively eliminated.
America suffered a horrendous collapse of employment. The factories that used to employ millions of Americans closed. The owners of industry choosing profit before people in a total betrayal of those who funded their astronomical rise to riches. Without any source of stable income hundreds of thousands were left without work, income and the ability to service loans which should never have been granted.
Yet, even with glaring evidence Australia’s PM grants continues to promote free markets and their shining light to security and profitability. How amazingly blind this PM is to what has happened in the US and looks certain to happen in Australia sooner or later.
Luckily for the PM Australia has some unique opportunities and goods which currently allow employment to continue at relatively high levels; but this will not last. The decimation of Australian manufacturing brought about by reductions and removal of tariffs will catch up sooner or later. Just as it did in the US. When it does the impact on everyday Australian’s will by horrendous.
At the moment the US is a useful case study for Australia if it looks at the big picture and relates the situation there to what could develop here. President and politicians alike are oblivious to the root cause of America’s internal collapse. They are struggling to understand why the economy is still languid. With no strong employment sector available there is no chance of rapid recovery.
For the US the only way out is to move back to restricted trade, tariff barriers, and strong support to rebuild their manufacturing sector. This will create employment and strengthen the financial viability of the nation.
Australia needs to take careful note and heed the warnings. At present the country is running down the same track that is crippling the US. Now is the time to protect Australian manufacturing and industry and protect what is left of the Australian way of life.
I knew this would happen. The surprise was how this happened. It was in fact the G20 and PM Gillard’s defence and promotion of Free Trade which finally broke my silence. How incredibly stupid this woman is. Although it is not just our PM. The fallacy of free trade runs rampant through both sides of politics and is almost immune to criticism no matter how credible.
After watching the US collapse into self inflicted annihilation – the GFC – one would think that an objective outsider may have taken note of the root causes that the infallible Americans have yet to discover. While the common mistake is to blame the banking system, and they did play a significant role in creating the GFC, it is error to consider that they are to blame.
Don’t get me wrong here. The banks were criminal in their behaviour. Despicable in their actions. Contemptible in their short-sightedness. But they were not at fault. Policy was to blame coerced by greed and facilitated by political leaders. The reduction and removal of trade barriers and tariffs gutted the US in unspeakable ways. Predicted by savvy economists the GFC was inevitable. Yet, as foreseeable as this predicament was, the powers at be, lubricated by corporate greed ignored the obvious to satisfy greedy few.
The role of the banks was limited to generating loans for people who obviously could not make the repayments. Not just one or two mind you, oh no, but hundreds of thousands so that players on the markets could appear as though they were improving their market position. Instead all they were doing was setting the institutions up for failure.
The real culprits are the corporations. Their removal of localised production in favour of cheaper places of production completely undermined the entire social structure of the US. So many jobs were lost or relocated to cheaper labour centres that the working class crumbled. There are just not enough jobs to go around once the primary source of employment – manufacturing – was effectively eliminated.
America suffered a horrendous collapse of employment. The factories that used to employ millions of Americans closed. The owners of industry choosing profit before people in a total betrayal of those who funded their astronomical rise to riches. Without any source of stable income hundreds of thousands were left without work, income and the ability to service loans which should never have been granted.
Yet, even with glaring evidence Australia’s PM grants continues to promote free markets and their shining light to security and profitability. How amazingly blind this PM is to what has happened in the US and looks certain to happen in Australia sooner or later.
Luckily for the PM Australia has some unique opportunities and goods which currently allow employment to continue at relatively high levels; but this will not last. The decimation of Australian manufacturing brought about by reductions and removal of tariffs will catch up sooner or later. Just as it did in the US. When it does the impact on everyday Australian’s will by horrendous.
At the moment the US is a useful case study for Australia if it looks at the big picture and relates the situation there to what could develop here. President and politicians alike are oblivious to the root cause of America’s internal collapse. They are struggling to understand why the economy is still languid. With no strong employment sector available there is no chance of rapid recovery.
For the US the only way out is to move back to restricted trade, tariff barriers, and strong support to rebuild their manufacturing sector. This will create employment and strengthen the financial viability of the nation.
Australia needs to take careful note and heed the warnings. At present the country is running down the same track that is crippling the US. Now is the time to protect Australian manufacturing and industry and protect what is left of the Australian way of life.
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