Globalization……The Need for DIY Wealth Creation …

With work forces decreasing, factories / offices / retail outlets closing, large corporations merging / being sold out to foreign ownership, or relocating off-shore, the need for an alternative World Economy model is more than self evident. This is further highlighted in current media press in the agricultural sectors of our communities.The Free Trade Agreements (World Trade Organization) are making us more dependent upon global markets, and at unpredictable cost. Whilst Global imports / exports keep manufacture prices, and wages, low, in order to maintain currency values and stability, government budgets need strategic balance. Unfortunately, this often at the expense of the respective nation’s employment figures e.g. N American Free Trade Agreement (NAFTA) opening trade between itself, Mexico and Canada has lost the USA 250,000 jobs, Mexico 2 million, and Canada 100,000 public sector jobs since 1994. Further economic cuts include education (evident with the introduction of self-funded student loans for tertiary education), health care sectors (cf. the introduction of Private Health Insurance), and the sale of state-owned enterprises (e.g. Telstra in Australia) to foreign investors. Many large businesses and corporations are being forced to merge (e.g. National Australia Bank joining Rio-Tinto becoming based in London), or even take their concerns off-shore (e.g. Australian companies CSR, Amcor, NAB and AMP reducing their Australian base and expanding offshore operations) in attempts to reduce tax, protect assets etc. These economic budgets are being prioritized over the nation’s social good.These concepts are globally enforced by the International Monetary Fund (IMF), The World Trade Organization, and the World Bank. The original role of these entities (Bretton Woods Conference 1944) was to keep financial capital within national borders (to “facilitate the expansion and balanced growth of international trade, and contribute thereby to the promotion and maintenance of high levels of employment and real income”). Their concept of fixed exchange rates encouraged World Trade, and financed the ‘emergency kitty’ for poorer economies. However, such national government control over economic policies (elected by the respective citizens of that nation), supporting those citizens’ interests, has deviated to within the confines of the IMF, WTO and World Bank.The IMF (main advocate of the Washington Consensus) bases its global economy on the efficiency of the markets, free trade of goods and services, and capital. The World Bank performs on funds borrowed from international market sectors, giving cheap loans to finance infra-structure / development projects, thereby helping countries achieve economic globalization.So, what does this all mean for countries like USA, or Australia, for example?Let’s look at Australia in closer detail. The monetary system in Australia is controlled by the Centrally Controlled Bank (a small group of individuals/families) and the Federal Reserve (a private, non-governmental group). The Government takes its finances from the IMF, which is controlled by the US Federal Reserve. Hence US economy reflects upon Australian economics (through factors such as interest rates, mortgages, credit cards etc). The interest on the government loan is generally paid for through its citizens’ taxes, an increase of which then reduces the wealth, and standard of living, of the country’s residents. Further, as with most loans, if the Government defaults on repayments, then Australia may then be forced to sell off some state assets (as with Telstra some years ago). This increase in foreign ownership, although creating employment short-term, does not increase the wealth of Australia, as these foreign owned Corporations take their profits off-shore thereby reducing their individual taxation. So, Australia then becomes a poorer nation, further spiraling into decline, and unable to support its citizens’ e.g. state pensions, the introduction of compulsory superannuation schemes, the need for private health insurance, the necessity for student loans to complete tertiary education etc. The Nation’s wealth should be determined at an individual level by its citizens. i.e. we should all be responsible for our own wealth formulation, and asset protection. Today’s IMF is worthy of reform to promote economic stability and low inflation on a more focused national basis, rather than impose workforce, education, and health-care cuts etc. Local communities should be able to develop their own investment / development plans tailored to individual local needs i.e. adopt socially responsible investing strategies.

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