Donate Bitcoin

Donate Paypal


PeakOil is You

PeakOil is You

Peak & its Global Sibling

Discussions about the economic and financial ramifications of PEAK OIL

Peak & its Global Sibling

Unread postby spudbuddy » Mon 20 Nov 2006, 12:41:58

I was going to post this in the economics forum, but as sometimes happens, that particular forum seems to disappear from the forums list, from time to time.
A small transgression, I hope!

From the reading I've done in the past 18 months, a pattern has begun to take shape, and I wanted to comment on this.

It is true enough, at least here in North America, that there is a huge vested interest in keeping up fond hopes of continuing fossil fuels maintaining levels suitable to support the favored lifestyles - those including the brandishing of McMansions, sprawl, long commutes in guzzling SUV's, etc.

I was reading the other day about how car parts now often come from a multitude of international manufacturing sites, and eventually are assembled somewhere here in North America.
That same day I overheard a radio report that described how 70% of the food that is consumed in my region (one possessing a lot of good farmland) is imported. Along with the exotic (pineapples, Kiwis, bananas) are the lowly common carrots, turnips, and various other garden vegetables. Like their Third World brethren, local farmers hardly bother trying to grow anymore, what feeds my city. They can't compete with Agribusiness price tags. So instead they turn their farmland over to "cash crops." Stuff we don't need in the least.

While cruising through various reports, debates, and overviews on Globalization, it suddenly occurs to me:

Of course. It is in the best interest of the transnationals to set things up this way. It puts a lot of wealth into their pockets. It doesn't put much of anything into yours and mine.

What amazes me - is the political power that they are able to purchase (with their economic financial power, of course.)
Consider:
Manufactured products that travel the globe, staying briefly in perhaps half a dozen different nations before their assembly is finally completed and they wind up the local

showroom.
The profit margin connected to the 2500-mile carrot, as opposed to the 25-mile carrot. Someone somewhere needs us to consume the long distance one - because THAT is the one whose price tag provides their capital gain.

Pondering this (and its millions of versions in today's "free" markets) it occurs to me -
In the face of hydrocarbon depletion (and all its consequences) the activity of global long-distance trade is ramping up.
It is doing this because that is where the profits are the greatest.
This is happening because the owners of these profits are so damned powerful, that their energy consumption over-rides political restraint, regulation, restriction - against any concerns regarding the sustainability of their commerce. (which of course, plays right into the business mantra: grab those profits quick, while you still can.)

I am no fan of Globalization, just as I have no love for the business model that regards labor costs as a lab techinician would regard an evil and deadly virus.
Any healthy economy requires a populace that can afford to consume products, for the well-being and comfort of their own particular lifestyle, and to spread the wealth around through a shared public realm.
I do believe that the more the amount of generally shared wealth disappears out of the pockets of ordinary workers, on all levels - the more debt is created. (for example - refinanced mortgages, credit and consumer debt.)
Big boxed cheap trinkets aside, we benefit not at all from off-shored and outsourced labor. But transnations benefit greatly.

I have long pondered the fundamental disdain and contempt existing in the business mind which results in a transnational (who maintains a strong North American identity) eliminating the North American worker from the picture. I have come to the conclusion that this is indeed, an immoral construct.

However, as it now occurs to me that this is all happening while fossil fuel reserves peak (and the consequences of this are knowingly understood) that the 12,000 mile running shoe is in fact, an evil thing.
Apart from that, it is downright stupid.
My gut reaction is to attack that stupidity, because I don't have a whole lot of faith in the act of moral or ethical appeal.

What a sad world - that the only thing perhaps that will ultimately take these vermin down...our "pest control" so to speak - will probably be the advent of the $200 barrel of crude.

While simmering this on the back burner, I recall every time I have ever heard the claim the BIG BUSINESS'S unrestricted mercantile activity is the responsible, citizen-friendly, astute and adept gathering of productive best efforts that indeed, make the world go round. In their minds, government is the ponderous spoilsport that impedes their (and our) progress....
We wait for the trickle-down....and wait....while we begin to notice the explosion of billionaires spreading across the firmament like shooting stars, along with their 50-million dollar "summer cottages" and the cat begins to get out of the bag a bit, I think.

It may be some fun - to watch this snakeoil salesman run out of town on a rail.




You're just as robbed with a fountain pen
as with a gun, son.
User avatar
spudbuddy
Peat
Peat
 
Posts: 150
Joined: Thu 28 Jul 2005, 03:00:00

Re: Peak & its Global Sibling

Unread postby auscanman » Mon 20 Nov 2006, 22:47:18

I disagree with your claim that multinationals view governments as an impediment to their goals. Quite the contrary, most governments are now willing allies in pursuit of the objectives of multinationals. No western nation is anywhere close to being a free-market. The entire regime (laws and policies) in place in North America has been manipulated to suit the ends of these multinationals and other large corps. Take zoning as an example, where municipalities effectively predetermine the types of building they will allow in their municipality, and in turn the types of retail businesses that will open there. Providing far more zoned land for parking and large box buildings will naturally result in more large corporations setting up there, creating a more favorable environment for the likes of Wal-Mart as compared to smaller retail stores. The differential provision of subsidies and taxes further skews matters in favour of MNCs. I'm certain that if a truly level playing field was provided a lot of MNCs, particularly in retail would have trouble competing with smaller more specialized stores.

Western governments are now more concerned with the social engineering of their population than they are with creating the framework for a level playing field that would maximize the population's well-being.
User avatar
auscanman
Lignite
Lignite
 
Posts: 317
Joined: Wed 28 Dec 2005, 04:00:00
Location: Yellowknife, Northwest Territories, Canada

Re: Peak & its Global Sibling

Unread postby spudbuddy » Tue 21 Nov 2006, 12:50:15

$this->bbcode_second_pass_quote('auscanman', '
')
Western governments are now more concerned with the social engineering of their population than they are with creating the framework for a level playing field that would maximize the population's well-being.



Good point.
You know, I never studied economics in school. History was my thing.
Do you ever find yourself pondering this "domino" effect of foreign debt? (The Mexican bailout, the Asian Tiger fiasco)
One of my favorite quotes: (can't remember the particular author)
"Wealth is not created, it is intercepted".....
This was regarding the fact that about 90% of all daily trading activity has nothing to do with commodities or production of anything useful - but instead, currency values.
I don't pretend to fully understand how this works, but it seems that much of the actual wealth in the top 20% of the world's population (including income, property, stocks, bonds, etc) has nothing to do with actually producing a damned thing - either goods or services.
Do you know much about the Tobin tax? - an idea that was floated about in an attempt to bring trading activity under control, and to create a specific fund that could address the worst forms of global poverty.
It appears to be as elusive and slippery as universal American health care.

I still think that the combination of western de-industrialization, and the advent of global producers being allowed to seek out the cheapest production costs, wherever they may be - are the big issues.
Add to this the fact that a transnational exists in today's world owning no particular national allegiance (offshore tax havens) it all adds up to this:
That the creation of wealth simply does not create jobs.
It is almost as if, the richer a certain segment of society gets, the more jobs they eliminate.

The oodles of poverty pay jobs in Mexico, Honduras, Malaysia, China notwithstanding - decent employment in western economies keeps sliding down the ladder.
We can certainly conclude that the power shift between big government and big business has brought this about.

Of course - cutting directly to the chase, one must decide for themselves - is Globalization good for the world, or bad? This is the big international debate, I suppose.

I happen to believe it's bad ... bloody awful, in fact.
However, in all the reading I've done about it - no author (with the exception of James Howard Kunstler) has directly addressed the energy issue connected to globalized activity.

It makes no sense to me, that the planet is governed, either directly or by proxy, by a mindset that assumes a maximised profit is the ultimate goal. We now possess endless evidence that this mindset has no social conscience.
When this mindset has purchased its own political power (which is how it votes...really) then the needs of the majority citizenry go begging.

Of course - it has been stated ad nauseum that here in the west, as long as we can maintain our "easy motoring autopia" and all its attendent upgraded lifestyle treats, we won't care too much about what big business is up to.
User avatar
spudbuddy
Peat
Peat
 
Posts: 150
Joined: Thu 28 Jul 2005, 03:00:00


Return to Economics & Finance

Who is online

Users browsing this forum: No registered users and 1 guest

cron