lakshma

It seems the US government is unwilling to prosecute those at the CEO level in their banking and financial system.

http://money.cnn.com/2009/10/08/news/economy/bear_stearns_cioffi/?postversion=2009100805

The EU governments have also been unwilling to prosecute.

For a group of priveledged individuals to be permitted to destroy progress (I read in an article that all gains in poverty reduction since the mid 1990's risk being wiped out by the financial crisis) on the Millenium Development Goals without consequences is becoming another crime in itself. One economist predicts the damage will be even far greater.

http://www.nuwireinvestor.com/blogs/investorcentric/2009/10/one-economists-argument-for-coming.html

Global civil society can no longer trust the financial systems, stock markets, the initiatives of global institutions and the persuits of their governments. In short, whatever an individual did for himself or herself based on the rules set by those in legal authority was taken away by an immoral and unethical group of individuals who manipulate the rules to their sole benefit. And now it is apparent this can all be done without consequence or, in other words, based on the absence of prosecutions, this immoral and unethical manipulation of the financial system is in fact 100% legal.

Has global civil society been exposed to such a level of lawlessness in the past 100 years? How should global civil society react given it has been placed in a situation of being helpless to do anything?

Syd Martin

lakshma

We therefore live in a world void of hope. Civil society now knows that its hard work can and will be erased by a system which rewards only those who are immoral (i.e. bankers and financiers) and with the full backing/support of legislators.

A sad reality of the world is that business now controls governance and social policy.

Syd Martin

Some of the free trade agreements do benefit the US and other trade arrangements do not. Unfortunately, the trade imbalance between the US and China often allows a "broad brushed" negative remark against free trade agreements that the US has signed. The previous US administration supported the trade imbalance with China and this was/is a major contributor to the jobs lost in the US and the financial crisis as well.  So it is the US's trade under the WTO rules which does not work well for US citizens. I have no clear read if your current administration will correct this or not. This will depend if it works in the broader interests of its citizens.

In short, it is your government that has decided to increase unemployment in the US and not the doings of another country or countries.

If it is any consolation, we have the same problem in Canada. 

To summarize, the unemployed need to get their government to work for them and not against them. This is advice that can apply to citizens in numerous countries.

This article may be of interest to you.

http://www.finfacts.ie/irishfinancenews/article_1018262.shtml

Syd Martin

There are 6 simple things which can be done that would help the US economy and its citizens.

1 - Work with other countries to establish global standards for the financial/banking sector in order to reduce the risk of another financial crisis. At a bare minimum, set domestic standards to protect US citizens.

2 - Prosecute CEO's of firms whose actions contributed to the financial crisis. This would go a long way to restoring confidence in global financial system and perhaps would restore faith internally in that US citizens will know the rule of law will be upheld.

3 - Abandon the idea of implementing the "cap and trade" tax program which is simply a scheme to reward/enrich those mentioned in 2 above. Look towards a simple VAT type carbon tax mechanism which compels global energy efficiency and reduces pollution. Also, countries' allowable emissions should be based on land area in order to know when the tax rate needs adjusting and to identify countries polluting over their allowable limits.

4 - Agressively persue countries which manipulate currency to gain a trade advantage.

5 - Agressively persue countries which subsidize their businesses to gain a trade advantage.

6 - Phase out US subsidies with a priority on eliminating those which undermine the development of poorer nations.

The timing to take the moral high ground  couldn't be better. Other countries should consider 1 through 6 as well.

Syd Martin

The illness connected to excessive executive pay and bonuses is connected to the deep rooted inconsistency that is developing between the private ownership of capital and control of public properties within the capitalism.

"No body to be a judge in his own case" is the fundamental principle in public life to control the private behavior. that principle is being violated in economic life of nations and global economic life.correction through law as a reform in this direction will substantially cure the defect and till then, it will resurrect in different forms not prohibited by law.

so far as free trade is concerned, your apprehension that it is working unfair to US is ill founded.Imagine that protectionism is the rule of the world, The riches of US will evaporate, as the main strength of US lies in trade and exchange with world and in its technical and institutional superiority over the other world.

My statement on executive pay and bonuses holds valid. what i was broadly talking about the reforms in capitalist practices through law in this globalization era is being spoken by Mr Carney whan he says this:

"The financial system," he said, "must transition itself from its self-appointed role as the apex of economic activity to once again be the servant of the real economy."

This transition from self appointed master to servant of the real economy needs global energy and regulation.It means a leap forward from decaying capitalism to rejuvenate with new life and energy.

economic and political divisions are the reality of today globalization.It is bound to be so. so also disputes among the countries as most of the economic development with limited resources operate in a zero sum game.only thing is that free trade would have brought this principle to the mutual advantage. but in absence of working of such principle, all is not well. there will be some thief and some losers. There are no global rules of fair game or rule of law and disputes are bound to crop and are bound to be resolved either through peacefully or other means.

china -America disputes over trade and currency valuation are a part of the game. not to be worried much unless it starts escalating to other countries.

lakshma

I thought the writer's comments on the loss of trust in banks in the US could easily be expanded to globalization under the WTO rules:

http://www.latimes.com/business/la-fi-lazarus15-2009nov15,0,147308,full.column

The WTO rules based system has failed civil society repeatedly and has caused a thoroughly justified backlash towards globalization. Globalization is being blamed for civil society's problems and they're blame is correct.

It makes me wonder how many more failures global civil society must endure under the WTO rules before someone wakes up and realizes that drastic changes to the rules are needed to end the destruction. Continued resistence to regulate globalization so sustainable development is the genuine goal will be the death knell for globalization.

http://www.globalresearch.ca/index.php?context=va&aid=16096

Syd Martin