- Stop The Boat, Let Harper Off

Posted: 6/10/2010 12:01:53 PM The Globe and Mail
Harper's bank-tax victory has left some scars, Campbell Clark, Globe and Mail Update, Jun. 09, 2010
http://www.theglobeandmail.com/news/world/harpers-bank-tax-victory-has-left-some-scars/article1598602/

"But they have been the most resistant to Canada’s proposal for common interim deficit targets, according to officials from several G20 countries. In meetings of G20 sherpas, they say they’ll deal with deficit targets inside Europe. Other participants say it’s a response to Canada’s bank-tax opposition. “The Europeans quite easily say, ‘Just like you said on the [bank tax] issue, you can do that if you want, but we don’t need to,’ ” one official from a G20 country said.

. . .

G20 countries are going their separate ways."


So:

The result of all of Stephen Harper's efforts regarding the Bank Tax, including Canada spending billions on the summits, is to fuel discord amongst the G20 countries, to give each an excuse to 'go their own way',go back to unilateralism, isolationism, protectionism, to undo years of work getting economically based countries together to co-operate.

This, of course, is the first steps to individual protectionism, which everyone says is the worst thing that could happen to the world economies. That's nice. Thanks Steve.

"The U.S. and European bank-tax backers had hoped to bypass the Toronto summit, and the host’s opposition, and push it at the November summit in Seoul. Then Canada’s campaign won support, and the bank tax was shelved at last weekend’s meeting of finance ministers in South Korea. But the G20 didn’t adopt it or kill it – they agreed to go their separate ways – Europe can do it within Europe, if it chooses."

First, the bank Tax has not been shelved as you, yourself, indicate in the next sentence.

Second, as it turns out, China, Japan and Brazil, the second and third biggest economies and another very big economy are against it. I don't recall Harper or his Ministers lobbying these countries and the countries he and his Ministers did lobby (France, England, US, Germany) are still in favour of it. So, how can you say that Canada campaign won support or somehow it is a victory for Harper. It, in reality, had nothing to do with Canada and it is only 'Con Messaging' that suggest Harper, Flarherty and the Con's had anything to do with it.

Also, is it any real co-incidence that right after the meeting of the Finance Ministers in South Korea on the weekend the Bank of Montreal on 8 June sent out an advisory to certain clients:
"Go to Cash – In Plain English

Summary
We advocate switching out of equity positions and going to cash. The European sovereign debt crisis appears to be nowhere near over. The global credit environment is worsening. Cost of capital is going up and availability is going down. There are large gaps between where the credit market prices risk and where the equity market is priced. Equity is lagging the deterioration in credit conditions. Moves in currency, equity and commodity markets are mirroring the moves in the credit market. Global growth, in a credit-constrained environment, will slow. Profits will be squeezed by the higher cost of capital. "
(see: http://www.scribd.com/doc/32708043/Go-To-Cash

In a time when all economy based countries ought to be co-operating and working together to an even greater degree, Harper, Flarherty and the Con's are sowing the seeds of discontent, and bragging about it. I guess we have indeed become a player on the International scene, but the game we are playing is not right (morally) and indeed could lead to our disaster. But, then, one of basic strategies of the International Con Movement is to capitalize on disaster.

Lloyd MacILquham cicblog.com/comments.html