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Modern Magazine

Occident al Revendic ating Justice
DigitallySigned ByCentral OfficesOfficial 1451Brookedale AVESuiteA201 CornwallOntario Canada

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ModernMagazine

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P a g e |5 Index Table Of Contents

1. Index 2. Introduction 3. Revisions 4. Preamble 5. Modern Magazine July 30, 1999 The Euro Hammer 6. Modern Magazine July 30, 1999 The Need For A New Regulatory Board 7. Modern Magazine July 15, 1998 Economic Controlling Interests 8. Modern Magazine January 23 2000 Financiers Finance Ministers In Regulatory Board---Bribe denied 9. Modern Magazine February 7, 2000 Irrational Exuberance---Only In Certain Cases 10. Modern Magazine May 8, 2000 Poverty Rules 11. Reference

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Introduction

Modern Magazine is a source of information and elucidation for interested members of the society. It has striven to fulfill this need and continues to endeavour to be a clear unabridged accounting of relevant issues of Modern times. Itiswiththisinmindandinkeepingwithwidelydispersedfactorsofworldaffairs, thatsynthesiswithoutdenigrationofimportantissuesanditems/sectors/relevant segments,whichwestrivetocommunicatetootherswhomaybeabletofurther evolveourplaceinrelationtoourstrength. Thegoalisstilltheinterestoftheindividual,andthedutyofthewholeapparatus ofmoderntimesisstilltocreateaclimateofprosperityandempowerment.Let usnotforgetthatallgreatpoliticosocioandphilologicalconspiratorshavegiven risetoorhavebeengivenrisebyirrelevancyoflargeportionsofthestrataoflife thatculminatedintorelevantissuesbywhichthoseverypeoplewerethusplaced beneath and subservient to remedies in contradiction to their very fibre and essence.

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P a g e |9 Revisions

TheseRevisionsshouldactasameansofviewingissuesastheyarewithatingeof theobfuscationtheywereallowedtocarrytheirvaliditywith.Itshouldbewhere meritedbeajudgmentofthewriter,andinturnajudgmentontheprotagonists, andinturnajudgmentoftheactorsoftodaywhichwerenotonthescenethen. InthearticledatedJuly30,1999,TheEuroHammerthereisthisparagraph:

It would certainly not be the goal as they and everyone say, to let it become anterior to the value of the Dollar; superior neither for superiority promulgates tradeprotectionistmeasures,andmefeance.Theywouldlikeittobeataneven parorslightlybetterthantheAmericanDollar.Anditwouldmakeperfectsense.

This has for all intents and purposes occurred with one differentializing item of interest.Whiletheyarethesamemarketpressuresastheyhavenotexperienced aregionalmeltdowninthetechsector.

The Reckoning Of The 1970s

(Diane Lindstrom)
A reckoning came for U.S. businesses in the 1970s. Other nations closed the technological gap. They built new, more modern and efficient factories and staffed them with workers earning low wages, especially in comparison with U.S. workers. American manufacturers began to face withering competition from foreign producers who not only could make goods cheaper, but also could often make them better. And these foreign companies were eager to penetrate the

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worlds largest market, the United States. Not only did they peddle their wares in the United States, increasingly they assembled them there as well.
American business responded in a number of ways. Some sought subsidy and tariff protection from the U.S. government. Others became more efficient and dediversifiedthat is, they sold off many of their subsidiaries in unrelated industries. They also reduced their labor forces in the United States and abroad, shedding layers of management and laying off thousands of production workers. Rather than produce the entire product within the firm, more and more work was outsourcedthat is, purchased from other businesses in the United States or abroad.

Foreign competition was not the only challenge business faced. Beginning in the 1960s and continuing in the 1970s, Americans demanded still more government regulation of business. Reformers secured more than 100 laws to protect the environment, ensure on-the-job safety, and guarantee employment opportunity to women and minorities. New agencies were created such as the Environmental Protection Agency (EPA), the Occupational Safety and Health Administration (OSHA), and the Equal Employment Opportunity Commission (EEOC) to enforce the new more stringent laws.

The Reagan Era

The 1980s, however, saw a reaction to increased governmental regulation. President Ronald Reagan capitalized on the widely shared belief that government had become too intrusive. Deregulation, begun in the airlines and public utilities, spread to other industries, notably banking and energy. Antimonopoly cases in the courts all but disappeared. Government seemed to become more lenient with the realization that American firms now had to compete with large and successful foreign businesses. Federal, state, and local governments enacted tax cuts on both businesses and wealthy individuals to encourage investment in American business.

Theyhavenotbeenimperilledbyacrisisinthefinancialsectorandtheirareaof
i

tradehegemonyisexpanding,notcontracting. (Read)

P a g e |11 At the same time, the U.S. has seen their completion drive the IMF into South America with a vengeance, while the devaluation of the S.A.s currency has createdseveralgiganticcrises.

The logistical impoverishment of collectivism, through denigrating cerebralequity

It is uncertain whether these are sound postures in an international market economy, as it is ubiquitous and uncertain. Foreign interests will compete with these, and with a high degree of probability simply rebuke them out of hand. Theirprinciplecausesincastingthemoutoftheirrealmofinfluencewilleitherbe fear,orminimalizedimpressionastotheirultimateobjective:prosperity.Itwould be far better had they engaged in an outward aggressionhostile or otherwise, withthisobjectiveofprofferingideaandcause,ratherthansimplysellinggreed. Nowitistoolateascanbeevincedbythesevacuousvulgarities.

(Kojima,2005)

As stated by National InstituteForResearch Advancement(NIRA)

Akira Kojima said that the 1997 financial crisis robbed Asia of the self-confidence that the region had started to enjoy as a result of rapid economic growth and development. The way that the IMF had responded to the crisis invited strong criticism and prompted calls for a review of the entire Bretton Woods machinery. At the centre of the accusation was the view that the IMF had made a diagnosis based on the "60 years old" economic model and issued an outdated prescription in disregard of the structural and qualitative changes that had taken place in the global economy. Critics noted that

P a g e |12 this prescription in fact aggravated the Asian crisis, throwing Indonesia's politics and economy into a critical condition. Malaysia rejected the IMF's prescription and tightened its control over capital transactions. The IMF traditionally encourages capital liberalisation and financial deregulation as a basic policy. The IMF and the U.S. government, its de facto administrator, rebuked Malaysia strongly for its counterliberalisation measures. However, they began to adjust their positions as the problems with a "cyber" market of global capital entered the discussion and as Malaysia relaxed its restrictive measures after the critical stage had passed. The IMF is thus gradually revising its prescriptions, which are becoming more in agreement with current economic realities. However, the IMF also has argued that the institution's policy has remained consistent and that it was the economic conditions that had changed. The bitterest critic of the IMF was Joseph E. Stiglitz, then Senior Vice President and Chief Economist of the World Bank, who said that in the Asian crisis, the IMF had become part of the problem, not part of the solution. The lesson was that the IMF became incapable of responding to the advancement of monetary and capital markets that no one had anticipated when the institution was established: the birth of a global economy backed by capital and financial liberalisation, the cyber transactions of money and capital through the Internet accelerated by revolutionary advancement of Information Technology, and the separation of the real economy from the virtual "money economy" in response to these two fundamental changes. At the time of the Asian crisis, Japan advanced a plan to establish the Asian Monetary Fund (AMF), an Asian version of the IMF. However, strong opposition from the IMF and the U.S. government effectively blocked this plan. Turning to the WTO, Kojima said that China's entrance into the WTO in 2001 was symbolic and historic in two ways: (1) it transformed the WTO into a genuinely global organization, and (2) China had now become part of the global economy.

P a g e |13 There are presently 148 WTO members and this unwieldy number has rendered it difficult for the WTO to agree on any given issue. Coordinating member interests in the course of new rounds of multilateral trade talks has become increasingly complex. Given these circumstances, the number of separate free trade agreements (FTAs) is increasing at an explosive pace. According to the WTO, there were a total of 114 FTAs in force worldwide with approximately 30 additional FTAs pending as of November 2004. Many FTAs were said to supplement the WTO. However, an imbalance is clear when new WTO rounds of discussions yield no progress, while FTAs continue to multiply. Professor Bhagwati of Columbia University, a strong free trade advocate and multilateralist, fears that the network of FTAs may turn into what he refers to as a "chaotic spaghetti bowl." Whether this will take place remains to be seen. We know that there is wide variation among FTAs. We also know that these agreements tend to discriminate against non-signatories. There is no guarantee that more FTAs will strengthen the WTO regime. There is also a real possibility that FTAs will apply the brakes to narrow-minded nationalism, which is arguably more dangerous than regionalism. However, international trade based on FTAs will become a destabilizing factor in the global economy if it forces countries to swim with this tide into poverty. The U.S. is currently the largest IMF investor and this position gives it the same de facto veto power as at the UN. This system has become remote from global economic reality, just as the UNSC is in dire need of reform. The IMF is unable to increase its capital or to ask China to supply funds in proportion to the latter's capacity to do so, due to a system that pegs member influence to proportionate stake. In spite of a shortage of funds that prevents it from playing its assigned role, the IMF cannot take either step, because both would require members to readjust their stakes and thus dilute their relative influence.

P a g e |14 The deficient perspicacity lends itself to the following counterpart of woeful projections as relevant before as is now.
(Mitchell, 1994) Instead, many entrants are existing firms that already operate businesses in other product markets (Dunne, Roberts, and Samuelson, 1988) and are diversifying by entering a new market, while many firms end their participation in a product market by selling their businesses to other firms (Aldrich and Auster, 1986).

Theproblemisthatthisisdoublejeopardy,astheUnitedStatesofAmericahas previously dediversified, and abandoned the Asian emerging markets when the corruptaccountingpracticesmelteddowntheAsianfinancialmarketsduringthe Asian flu of 1997. This coincided with an interesting blip in monetary value and High Technology production. But first let us examine what effect diversification hasuponemergingtechnologies,anddiversifiedcompanies.
(Mitchell, 1994)Dissolution is likely to destroy some of the new capabilities that a business introduced to the product market. Although other companies might have learned from the entrants' experience, any organization-specific elements of the businesses' routines are lost. By contrast, when a business is sold, capabilities are transferred to a new owner and continue to be part of commercial practice (Nelson and Winter, 1982; Freeman, Carroll, and Hannan, 1983; Wernerfelt, 1984). Business entry by start-up firms and diversifying entrants and business exit by dissolution and divestiture thus play important roles in the introduction and retention of capabilities within a product market.

Furthermore alarm bells should sound a clarion call within this respectful paradigm:

(Mitchell, 1994)Although other companies might have learned from the entrants' experience, any organization-specific elements of the businesses' routines are lost.

P a g e |15 Their(theU.S.)monetarypolicytrulyisanteriortothevalueofthedollar,forit issuperiorneitherforsuperiority.They(TheEU)canalsoaffordtoproselytize and invest in their own respective sphere of influence. Namely eastern Europe andthefarEastwithoutfearthatitpromulgatestradeprotectionistmeasures Oppositetotheseconcerns,theAmericanfinancialshaveprecipitatedanspinoff ofaggressivemonetarypolicy,andreinventedaAdamSmitheconomicmodelof protectionismagainstAmerica,insteadtheyhavesupplantedBritishshopkeepers for American shop keepers, and as well supplanted Asian shops for American shops,doingthemselvesagreatdisfavorindeed.Ascanbeseeninthehistorical reviewoftheLaunchoftheEuro,preEuromonetarypolicyinEurope,theAsian flu,andtheinformationtechnologyorhightechsector. This information as seen in the document provided in PDF form entitles NSF TrendsInHighTechnologyIndustriesrevealedinaubiquitousfashiondatatothis effect. In chapter or bookmark HighTechnology Industries the numbers were extrapolated.Whatinformationsrevealareatimeperiodtantamounttoablipas delineated.Thisblipshowstheimpactstratagemandconfirmativeprevalenceof U.S.involvement.

NSF Trends In High Technology Economie

(AsiasRising,2007)Growthwaslargestin1996to2000 with$2600478Asiahadagrowthinthatperiodof $247165(2000)$338797(1996)foratotal withinthatperiodof$585962million(1997) Dollars.EU15hadagrowthinthatperiodof

P a g e |16 $169558(2000) $216794(1996)foratotalwithinthatperiodof $386352million(1997)Dollars.

Growthfromanyothertimeperiodwasbyandlargestatic Butfrom2000to2003 Asiahadagrowthinthatperiodof $378080(2000) $338797(1996)foratotalwithinthatperiodof $716877million(1997)Dollars.

EU15hadagrowthinthatperiodof $222000(2000) $216024(1996)foratotalwithinthatperiodof $438024million(1997)Dollars As is observable the accelerated growth of new technology and lax monetary policy in Asia (The cause of the Asian flu) created the greatest growth. It is thereforenocoincidencetheworldshareatthisexacttimewasthesoleinstance Both Asia and EU15 grew. This is further enforced by the general growth which continues at a steady rate minus the continual acceleration of growth in the UnitedStatesandwithoutmaintenanceoftheshareofworldvalueadded.Itwas here where monetary policy was more stable, static, and countervailed by investmentinnewtechnologyandcombinedwithcompetitiveretentionofnew technology.

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Forconfirmationofthisseetable17highlightedbyMM.Itwouldbeamistaketo assumethisisduetotheEU15retainingtheirtechnologicalresourcebecauseit was wise of them. It is more likely they have failed to take advantage of the previous highlighted graph, due to the monetary policy effective upon market shareandaffectedbycompetitionwiththeAmericandollar.Thistrendwillreach atippingpoint,ifitdoesntceaseinotheraspectsaltogetheroftheeconomy. Ifthiswasfalse,theEUwouldnotbetheonlyregionleftoutofthecold. Thisisareapportioningofthefluxofeithergrowthordiminution.Byobserving the growth period at issue of the parameters of this economy observations conclusions grant ascendency of a European model, or an American model of economy.AsobservedinthepercentileshareofworldtotaltheU.S.hashadafter an initial growth of rapid accession to the forefront of initial innovation, a transitorytoastaticgrowth.Yetthetotaloutputhascontinuedtogrowby511 316in2003from426802in2000foratotalaccruedascendencyof938118.Far morethantheEU.Yettheindicatorofgrowthorshrinkageisareapportioningof percentilewhichisadiminutionoftheEuropeanModel. ChinahasalsoseenacomparablegrowthtothatoftheU.S.model.Thisaffects the stability and viability of a market to handle new technology and to expand companiesholdings,andprofitaswellasalloperableintegerswithinitseconomic strategy. This triangulation of political, economic, and technological has spurred one of the three far in advance than the others. However only in this reapportioning,Chinahasgrownatotalof7.9percentinitsshare(ofworldtotal). Why? TheyearsofgrowthfortheEUhasbeensolelyexclusivetotheyearssurrounding theAsianFlueof1996to2000.TheonlyexceptionsareSingaporeandMalaysia. However the total growth has not diminished. The direct correlation is unavoidable:investmentslowdownsinAsiandemocracieshavebeencutoffdue tothemarketabusesinAsiandemocracies,oremergingdemocracies. ThisremovesmultinationalfirmsbasedoutofeithertheU.S.fromthepicture,as wellasthosebasedintheEUcommunity. Withoutinvestmentorimplication,theabandonmenthasleftbothmodelsin abandonedflux,withnoprospectofenteringintothegreatestemergingmarket

P a g e |18 ofall.ItisforthisreasonalonewehavewitnessadrainoftheWesterntech sector,sincetheirsoleproduceisinnovationandnewtechnologies.These howeverarenotbaseduponcreativeproductionofnewfoundedbusinessbut rathersimplybecauseofproductivityasinproductivityindurablegoods manufacturingapartfromcomputers,andinthemanufacturingofnondurable goods,actuallygrewmoreslowlyinthemostrecentperiodthanduringthe "slowdown"yearsof197295asrelatedintheModernMagazineissueofJuly 30,1999TheNeedForANewRegulatoryBoard. This has also been reflected in the stability of these economic models, for productivity is linked to production and incorporation of production. The disastrousscenariowhichourleadershavenothadtheforesighttoavoidisthe loss of Jobs due to our isolation and usages of our own advancements and the breaking of business routines due to our own cannibalization, and the advancementsoftheDictatorialsystemofChina. Thisstormwillhavetobeweatheredbythemostcontiguousandbestpositioned economicmodel,whichcanweatherandincreasewhenothersfail. AsithappenedduringtheAsianFlu,theEuropeanUnionwilladvancewhenthe U.S. can no longer sustain competitive levels of production and all nations are producingatgreatvolume.Thesearetechnological.Theyareasissaid,muchless ofmoreofaeconomicthanatechnologicalparadigm. OrifonewishestoengageinthearcaneorreverseIntegration;eitherdifference necessitatesreintegratingbusinessmodelswithinsoundeconomicpolicy.Yetthis ishardtoseehowthiscanoccurbeyondatippingpoint. Wewillknowthistippingpointwillhaveprecipitatedallengagementsoncethere isahugespikeinunemploymentwithinterestratesalreadyatunsustainablylow levels.Monetarypolicycannotatthis pointreequilibrializetradeimbalancesor investituralexuberancewithoutrepatriativeprogressintheserespectivesectors.

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Andwhilecountriesvieforcompetitiverateswiththemightydollar,theEurocan act from a high ground both of inner stability, stability of their side of the globalization triangle and lower prices of their competitors, before and after being ravaged by Dollar competitiveness. And it would make perfect sense..withorwithoutAfrica. Althoughsomecomponentswouldappearatfacevaluenottobeofimmediate issue, one would be able to compare the changes in the American interest rate policy, the burgeoning trade deficits, and the lack of Asian rebound as a happy coincidenceOrmaybeanunhappyone? In the issue of Modern Magazine July 30, 1999 The need For A New Regulatory Board,thefollowing Intheeditionoftheeconomistitwasremarkedrecentlythattheimprovementin moored productivity since the mid 1990s is surprisingly, extraordinarily, concentrated in one small sector of the hightech economy: computer manufacturing. Robert A. Gordon, a Professor of Economics at Northwestern UniversityandoneofAmericasleadingauthoritiesonproductivity,hascarefully broken down the aggregate numbers. He finds that, as prices collapsed, productivitygrowthincomputermanufacturingimprovedatastaggering42%a year between the fourth quarter of 1995 and the first quarter of 1999. Even though computer manufacturing is just 1.2% of Americas output, that improvement was big enough to cover the figures for the whole of the private nonfarm economy. Indeed allowing for other factors as well, productivity in durablegoods manufacturing apart from computers and in the manufacturing nondurable foods, actually grew more slowly in the most recent period than duringtheslowdownyearsof197295

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P a g e |21 PREAMBLE

In reality is that the usage of financing for American companies have begun to break, and will continue to be undermined. These take the form of many functions, such as the primary devaluation, reacquisitions, inventiveness, and creative fudging around with sound orthodox business practices by financial institutions. These cause inherent weakness in the market, and the economic modelitselfistoblame. Americacannotexistinafinancialdeficitorvacuumallofitsownmaking,andcall itreality,whilstignoringitsdeficits,unlessthesenewmarketpracticesarebuilt aboutthefoundationofwealth.Nocountrycanenactfinancialinstitutionswhich effectuate this, then, centering upon these institutions borrowing to sustain companiesthatdonotreallycompete,butratherexistoutofprinciple. This is not money; this is hubris, to think America alone can counter its own economicmodel.Theycamouflageandhideit. Therehasbeenanincrediblefixationwiththisleadingeconomicindicator.Indeed it borders on mania. It was in fact warned by the federal Bank chairmen Alan Greenspanthatmaniaorirrationalexuberancewouldburstabubble,yetthereis onecaveatwhichmustbementioned.Thiscaveatseemstobeasmalldetailyetit plays a giant role if one considers the implications to integrity. Is it really irrational,orisitjustinvestituralexuberance.Clearly,therewasandthereisasis attestedbyaction,theneedforanewregulatorybeard. Inthefollowingpassage Differenttimeslendittodifferentstrategies,andmodeschange.Asgood exampleastohowthiscanoccuristheveryofglobaleconomyitself,withevery nationfeelingthebruntofeveryothernationsprosperityandwoes.Afurther examininguponbasictradeprinciplewilllendasolutiontomanyproblems,but diversificationthroughdivestitureandappropriationswillcreateasituation whereallschemaoffutureactionisseenunderamicroscopeoffurthermarket

P a g e |22 expansionarypossibility.Itisaquagmirethatingoodtimesarebornecorrupt practicessalutedbytherich,yetcondemnedbythepoor,inalltimes.Itisclear, thatasidefromproductivitylevelsrising,andpeopleblamingjoblossesonrobots andcomputers,theGlobalEconomymustberunbysobermen.Andintelligent men,andmenwithintegrity.Thequestionsis,howdopoorpeopleinbadtimes, haveavoice,whenthevacuumtheyinhabitisfilledwithproductivityminded CEOswithonlytheirportfoliostojudgethemTHISISWHYWENEEDANEW REGULATORYBOARD,(RIMERIME)ReverseMinorRepressionOfIntegration Microeconomicsasmallcompanybeingnewlyplacedundertheumbrellaofa largercompany,wouldbeabletoseeifitwillencounterdifficulties.Thisisthe singlemostimperilingiteminourcountrytoday.Wemustrealizethateconomies functionapartfromtheprosperityofafew,andthetranquilityofthemany.We mustrealizeasisdelineatedperfectlyinthefollowingpassage,that Morethanconsiderationspurelyofshareholders,thisalsoencompassescompany profits through expansions in cross industries as per conglomerates are resourcefullycapableof. Wehaveseenthisputbeforeusincrystalclearmannerduringthepastyear.We arestillimperiled,andthedangerliesnotonlyinafew,butthemany,whoinvest in these companies, without regard, to how they received their capital, both outwardlyandinwardly,bothinthefirstparty,andthesecondinstance. In the article dated Modern Magazine July 15, 1998 Economic Controlling Interests.Ireferredtotheneedforanewdefinitionofprotectionism.TheBush administrationseeminglydoesntquiteseethingsfromthesamepointofviewas they have become overtly aggressionist rather than protectionist. In fact, they havenotonlychangedthemannerinwhichtheyprotectthemselvesinaGlobal Economy,buttheyhavereinventedthetermimperialistaswell,andinventedthe termproterroristeconomy.Aproterroristeconomyisthekindwhereallcitizens are aware of the terrorist threat while protecting their interest rates from the government,enjoininaworldwar,withonlyAmericafightingit,andwatchingit onTVwhileCokeflashescommercialsastheofficialsponsor.(Thisdoesnotbode wellsincethelastofficialmascotofCokewasthePolarbears,andweknowwhat fateawaitsthem.)

P a g e |23 Seriously however, and I wish I could be, but lets revert to a previous time momentarily. InaGlobalEconomyhowever,protectionismhasbeenseenasoutdated.Perhaps itis,butatleast,ifsomethingdoesgowrong,itwillarguablybeashield.Orisit thatitistobechangedasastrategy,likeeverythingelsemustadoptnewstyles andapproaches.Perhapsthisisthekeytopropermonetarypolicy.Perhapslarge sweepingstrategiesneverreallyreachtheirfullrelevantpractice. Perhaps conflicts and hurdles are overcome with a little protectionism, a little proactivity,alittlefreetraderegulation.Somethinglikethecarrotbeforethestick orthecarrotafterthestick.Buttheseareconspiracytheories.Actually,wehave practices hostile acts of overbearing financial gamesmanship with serious objectives, and found the future waiting for us to respond with qualitative investing. It was never built into the equation how three separate economies, closelylinkedtogethercouldbesplitapartbythreegeographicalheterogeneous zonesoftrade,andthreeseparatemonetaryUnits.ThesearetheYen,theEuro, andtheAmericanDollar.Unfortunatelyweneversawthefutureoftheimpactt oftheYuan,andhowitwouldforcetheJapanesetopurchaseEuros,inorderto defenditselffromacompetingmarketforgood,thefailureoftheAmericansto purchase more expensive Japanese goods, and how these would devaluate the dollar,whilstkeepingtheparitywithitenduresifonlytemporaneously,withthe American Dollar, and all competitions which it suffers in this troika struggle of currencies. Clearly,thoseweredifferenttimes,buttheideaofanewformofprotectionism makesmoresensethanever.Itiswhyasclearlydemonstratedbytheeventsof September 11 2001, that the best sense is within your own hemisphere. The carrot can only be the lead of the donkey if the elephant likes carrots too, and withsuchvacillationsinpoliticaldrama(asexpressedintheconclusion)itishard toseehowtheU.S.caneverleadusintoprosperity,ifwedonotallowourown hemispheretolikeus. Fast track was once the answer, now a new style of protectionism is the only answer, protect the American political house, but having a consensus, and be prosperingwithinourownhemisphere. ThenextarticleofJanuary232000,FinanciersFinanceMinistersinRegulatory BoardBribeDenied,ModernMagazineshowsclearly,how

P a g e |24 detachedthevariouspoliticians,andRegulatoryBoardswere,forindeed,How laissezfairemustonebebeforeonebecomesaderelict. It is quite unconscionable. It reminds me of the movie Once upon a Time I The WestwhenTucowistryingtogetthenameonthegraveandhesays,exceptwe couldsayitnowhisway,itsoverforyounowohcruelfatejustwhenwefinally havethebigfishestheWorldTradeCentrewasblownup. The following developments with WorldCom etc., and the loss of most of the value of AOL Time Warner, have gotten quite frivolous. There have been few examplesineconomictimeswhereunchartedwatersprovedtrulyuncharted. We desperately need to find a man who can lead us, and verysoberly, intothe nextGlobal upswing,sincethereality ofcollegesanduniversitiesseems to only grantcapitalizationthroughreamsofcreditandfinancing. AnarticleonMSNBCsummarizedthisperfectly,whenitelucidatedthebenefitsof productivity.Inthisarticle,theydescribedhowAmericawasgoingtogetoutof thisrecessionbecausetheingenuityofsmallcompaniesallowedthemtoexport, moregoods,andreducecoststheyfailedtomentiontheadverseeffectssuchas trade deficits, incompatible exchange rates, artificial interest rates, out of their orderfinancing,andstagnatedwages. Many years ago, back in the 1950s, people were proud to work in order to accomplishagoalthathadneverbeenachievedbefore.Thisgoalwastoownland or a home, and be self reliant, even affluent. This was in the backdrop of two
th

worldwars,andinthe19 century.Nowwehaveaccomplishedthis,yetnoone seems to notice the reliance on financing, and the stagnation of the job market forthestudentswhohaveamuchgreateropportunity.Accomplishingthisseems toberedundant,butitisanattitudethatisfarworse,itisbeingrelinquishedto th thepast,andsubservienttoafuturewhichisthepastnotmuchunlikethe19 century, when people suffered for freedoms to change, to be as equal as the upper classes. What aspirations art her today. Who are our leaders, what standards are there, where is the excellence. The economy without leaders will languishinmediocrityandstatusquo.

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Modern Magazine Articles

Integral

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ModernMagazineJuly30,1999 TheEuroHammer

ThedaywhichtheEuropeancountriesdecidedtogettogether,and makeaunionoutoftheirgreatnationshasbeenquitethechange.For everandforeverisalongtime,theyhavebeenateachothersthroats asvyingcompetitorsforregionalandpanEuropeansuperiorityand hegemony.Nowsincethemodernage,itasbeenpossible,andafter twoworldwarsasaresultoftheirdignity,perhapslessonshavebeen learned.TheEuropancommunity. IllusionsneednotbemadeconcerningtheEuro.Amonetaryunityis onlyasgoodasthepolicybehindit.ButIhavenodoubtthe Europeanscanfindthepeoplewhoareabletosteeritintheright directions.Woulditnotbeaninterestingobservationtomake however,thatsinceitsinception,theyhaveindeedseeminglymissed astep,bylettingitdropfrombeyondthescopetheywantedits rangeinrespecttoitsvaluevisavistheAmericanDollar.Somuchso thatTheJapanesehavehadtointervenebybuyingintoitandselloff Americanvaluestopropitup. TheEurohashowever,onlybeeninexistenceforashorttime. Afewmonthsoflifeisnotimeatalltoseewhatcanbea expectedfromanewprogeny.Itwouldnotbeanystretchof conclusiontothinktheyarewatchingtoseewhatother nationspolicieswillbe,andalso,whatactionswouldbetaken ifitweretofluctuateinvariousrespects. Itwouldcertainlynotbethegoalastheyandeveryonesay,tolet itbecomeanteriortothevalueoftheDollar;superiorneitherfor superioritypromulgatestradeprotectionistmeasures,and mefeance.Theywouldlikeittobeatanevenparorslightly

P a g e |28 betterthantheAmericandollar.Anditwouldmakeperfectsense. Havingthisaccomplished,theywillbeabletoutilizeitsstability renderingeffectforpracticesoftradeastheEuropeansarealwaysa greathub,betweentheWestandtheEast.Itwillinessencehelpto shapethechangingofEuropeantradingpractices,andapproaches. Profilingfromthis,greatstridescouldbemadetoexpand relationshipswithEasterndevelopingnationsincludingperhaps Africa.ThiswouldbenefittheregionsconcernedalongwithEurope itself. Nowhowever,weenteranewstage.Agoodindicationofthe practicetheywillemploytorectifytheEurospositionisthepresent daysituationintheEuropeancommunity.Althoughwhathappenson thetheinternationalsceneissecondary,itwillalwaysbeaninterest toEurope'sproudnations.Perhapstheywillindeed,finallybecome lessreliantontheUnitedStatesOfAmerica.ButofPrimaryissueis thecauseoftradesanddomesticeconomies.Indeed,theywillnotbe abletofollowthroughwiththevisionofabetterstrongerEurope whenboththeEuropeanunionwhosereliantgreatlyonitsprincipal projecttheEurofailtoberealized.Itwillthusbeanecessitytobuild theEurototheplacewhereitwasfirstenvisionedatitsinception.

Wehavetorememberthatitwasnotaprognosesofthevalueit wouldhold;itwasinfactamarktosetfromwhichitwouldbeof valuetotheworldmarkets,andthenthemarketsthemselves.This isnowapriority.Wecanexpectthatintheweekortwoahead, therewillbeatighteningupontradingapproaches,whichwill sendasignaltotherestoftheworldthattheEuroisasound investment.Thisinturnwillsaythesameofthecountrieswho espousetheeuroastheircurrency.Ontopofbeinganecessityfor itssuccess,italsohastobeasourceofdesirefortheUnited Kingdom,whichasyethastoadoptitastheircurrency. Needlesstosay,theAmericandollarwillbecaughtina

P a g e |29 bind,whichwillforcethefederalbankintheUnitedStatesof America,toincreaseinterestrates,tooffsetthedemandplaced upontheyentobuyAmericandollarstokeeptheEurofrom assailingitonbothsides. Forthepresent,themanagingoftheEuroisnottoomuchfar sweepingchange,butlaterwewillstarttoseetheeffectsof greaterinfluence.Duetoitsstabilizingeffect.TheEuropeanswill beabletoventureintoareasoffinanceandinvestment,which theywerenotabletoasindividualunits.Thiswillopendoors unheretoforeopenedintheAsianmarkets.If,thiswereto coincidewiththereboundingeconomiesinAsia,thenitcould spellgreatcompetitionforAmericaninterestsintheregion. Thecompetitioncouldbecomefierce,andfurious,andfastpaced.If, ontheotherhanditdoesnotcoincidewithareboundofAsian economiesitwillnecessitatethemodificationsanddifferent remedies.Onesuchremedycouldbestagesofassistanceandpolicies offavorfordevelopingcountries.TheEuropeanswouldseethateven ifAmericansfinditdifficulttofreelyinvestasbeforeinAsia(dueto thelackofregulation)itwouldbegoodforthemtocreateliquidityfor investmenttobepossible.Underpropermanagementand adjustment,itcouldinturnevensendtheEuroconsiderablystronger inrelationtotheAmericandollar.ThentheAmericanswouldhaveto buckledownwhichmeanslowerinterestratestominimizetrade lossesandincreaseinvestmentathome.Thiscouldhastenany protectionistviewswhichareboundtocomeasitdidinthebooming 80s.ThatwaswhentheU.S.sawgreattradedeficitswithJapan. Comparedtothen,theU.S.willhavetodealwithaslewofotherAsian countriesnotjustone.Isolationisminthatcasewouldindeedand practice,bewise.

P a g e |30 ModernMagazineJuly30,1999 TheNeedForANewRegulatoryBoard

Manyyearshavepassedsincethemarketeconomiesoftheworldsaw aunifiedsystemwhichbroughtallvariouspartsintohomogenized control.Havetheyreturnednow.Whatdifferencesmaybepresentto makeuswonderatwhetherornotitactuallyisaglobaleconomy.The mainideawhichspringstomindis,thepresenceofeconomicsystems worldwide,notonlyinEuropewithahubinAmerica,notonlyinAsia withahubinJapanetcetera.Whatisthisglobalsystem.

Oneperfectexampleofthisisthesellingoffofgold.Another exampleisthesellingoffofoil,whichsincethenhasbeenrectified somewhatforthemostpart.Thesewereunthinkable20yearsago. Allthisfurthermore,hasbeendonewithinthemidstofuncertainly andabrewingturmoil,withhalftheworldbelievingtheworstis over,andtheotherhalf,notyetover.Idon'thavetosaythatfor thosewhobelievetheworstisnotover,theoncebettertimesare gettingworstevenstill.Thosewhoinvestarealwayspositive.But whysellGoldreserves,andoversupplythemarketwithyour practicallyuniqueformofprincipalrevenue.. Plainly,thisisunsettling.Itdoesn'ttaketheheadoftheAmerican CentralBanktomaketheeconomiesoftheworldhotactiontepidto seeit.Butwhatisitthatisbrewing.Isitreallyirrational,orisitjust investituralexuberance.Itwouldbesillytosayitisboth.Investorswill alwaysinvest,andthecautiouswillalwayssidewiththeleadersof variousintuitionswhentheywarnthemofimpendingdoom.Recently

"OtherOPECcountriesaresaidtobenervousaboutoilprices rising

P a g e |31 above$21abarrel.WhywouldOPECcountriesworryaboutoil pricesgettingtoohigh?Somefearthathigherpriceswillmakeoil reserveselsewheremoreprofitabletoproducecreatingmore competitionfromnonOPECproducers. 'Thethinkingisthatthereissomepricepointthatwillkeepnew productionfromcomingostreum,'saidBillO'Grady,andoilindustry analystsatA.G.Edwards.'TheguessOPECismakingisthatbelow $20abarrel,newproductionisnotgoingtocomeostreumquickly.'

Infact,theindustryisinthemidstofconsolidationthatisexpectedto maketheremainingmajoroilcompaniesmoreefficientandmake largeoilreservesprofitableatlevelsfarbelow$20abarrel.

'Theyarebeginningtoseethemselvesascompetitorswiththelarge OPECgovernmentcontrolledoilcompanies,'saidO'Grady.'Sopart ofthismergermaniaisanattempttogetbigenoughwherethey candrivetheirmarginalproductioncosttolevelsnowseenby Saudi'sARAMCOandothergovernmentcontrolledoilcompanies.' OilpriceshavealsofallenasthethreatofanoildumpingactionbyU.S. governmenthaseased.Acoalitionofindependentproducerscalling itselfSaveDomesticOilfiledapetitionwiththeCommerceDepartment twoweeksagoclaimingthatIraq,Mexico,SaudiArabiaandVenezuela areillegallysellingcrudeoilatunusuallylowpricesonU.S.markets.

Butbigoilcompaniesopposedtheaction,andadministration officialshaveofferedonlylukewarmsupport.Ifpursued,those claimscouldhaveaddedseveraldollarsintariffstooilprices intheU.S.,helpingtosupporthigherpricesworldwide." IntheeditionofTheEconomistitwasremarkedrecently

P a g e |32 that"Theimprovementinmeasuredproductivitysincethemid1990s issurprisingly,extraordinarily,concentratedinonesmallsectorofthe hightecheconomy:computermanufacturingRobertGordon,a professorofeconomicsatNorthwesternUniversityandoneof America'sleadingauthoritiesonproductivity,hascarefullybroken downtheaggregatenumbers.Hefindsthat,aspricescollapsed, productivitygrowthincomputermanufacturingimprovedata staggering42%ayearbetweenthefourthquarterof1995andthe firstquarterof1999.Eventhoughcomputermanufacturingisjust 1.2%ofAmerica'soutput,thatimprovementwasbigenoughtomove thefiguresforthewholeoftheprivatenonfarmeconomy.Indeed, allowingforotherfactorsaswell,productivityindurablegoods manufacturingapartfromcomputers,andinthemanufacturingof nondurablegoods,actuallygrewmoreslowlyinthemostrecent periodthanduringthe"slowdown"yearsof197295.

andsaysRobertGorden"theproductivityperformanceofthe manufacturingsectoroftheUnitedStateseconomysince1995has beenabysmalratherthanadmirable.Notonlyhasproductivity growthinnondurablemanufacturingdeceleratedin199599 comparedto197295,butproductivitygrowthindurable manufacturingstrippedofcomputershasdeceleratedevenmore." IthasbeenremarkedseveraltimesbyAlanGreenspan"innovations ininformationtechnology...havebeguntoalterthemannerinwhich wedobusinessandcreatevalue,ofteninwaysthatwerenotreadily foreseeableevenfiveyearsago."Thisshowsthatthereisa prevalentmoodwhichgoesroundabouttowardstheexpansionof theboomintheUnitedStatesOfAmerica.Buteventheysaythat thisistemporary.Theimportantthingtonotewouldbewhat resolutiondotheyhaveinmind.Itwouldseemthattheybelieveit willbeasisreflectedinthefollowingstatementspoken

P a g e |33 bySecretaryofCommerceWilliamM. Daley NationalTradeEducationTour June7,1999 Louisville,Kentucky(Aspreparedfordelivery)

"Tobehonest,toomanypeoplearewaryabouttrade.Infact, recentpollssay60percentofAmericansdonotbelieveitisgood forjobs.Theyseeourtradedeficitsoaringbecauseofa slowdowninworldgrowthandtheyareafraid.Theyseepeople losingjobs,sometimesbecauseoftradeandsometimesnot. But,whoareyougoingtoblameifyouloseyourjob?Youare notgoingtoblamearobotortechnology.Youblametrade. Weneedtoshiftgears.Weneedanewpublicapproachtotrade andtobuildaprotrademajorityinthiscountry.Ifwedon't,I worrythetradedeficitwillspawnprotectionistpressuresthat willpreventusfromopeningnewmarkets,whetherinChina, LatinAmericaorEurope. So,wearegoingaroundthenationtotalkuptradewithnormal peoplepeopleoutsideofWashington.Ourmessageissimple: "TradeGlobally,ProsperLocally."Wewanteveryman,womanand childinAmerica,ineverycommunitytounderstandwhatthismeans".

Yetisthereapossibilitythattheworld'seconomieswilldiversify furtherintomoreelaborateorlessobviousareasoftheir economicinterests,andtakeanapproachunheretoforetaken.

P a g e |34

Differenttimeslenditselftodifferentstrategies,andmodeschange.Agood exampleastohowthiscanoccuristheverynatureofaglobaleconomyitself; witheverynationfeelingthebruntofeveryothernationsprosperityorwoes.A furtherexpandinguponbasictradeprincipalwilllendasolutiontomay problems,butdiversificationthroughdivestitatureandappropriationswill createasituationwhereallschemaoffutureactionisseenunderamicroscope offurthermarketexpansionarypossibility:InanarticlebyWalterRussellMead "InvestorswhoboughtCocaColalastJuly,whensharesweretradingatapeak of55timesearnings,thoughttheywerebettingonCocaCola'sformidable marketingandmanagementskillandtheprospectsofbigsalesgainsinAsia andelsewhere.Theywere,inpartbuttosucceed,CocaColamusthavethe freedomtoconvertitsearningsinyuan,rupiah,andwonintodollarsat marketexchangeratesandthenrepatriatethosedollars.Thismakesan investmentinCocaColamoreofabetamuchriskieroneonthehealthof theworldorderthanonthecompanyalone."

Sec 1 Thiswouldneedlesstosay,beasituationwhichwouldfeedupon itselffortheshortterm,andalmostinessencebeatoolwhichcould beemployedtosecureprofitsbeforemattersgetworst.Needlessto saythiswouldbeintheformofacorrectionwhichalthoughfar shortofacrashmakespeoplewhoareunwarypoor.Well,toobad forthemIsuppose,farbeitfrommetosaywhocanandcannot makemoney.Italsowouldbringaboutaformofgloryseeking, wherecertainpartiesthoughnotcolludingwitheachotherwouldall tomuchknowwhathisneighborisupto.NowIdonotmeanthisto beinterpretedasneighborasinforeignneighbor,Iamtalkingabout CorporationsandConglomerates,whocaninthisdayandagedue toliquidityandmultidisciplinaryinvestmentsportfolios,haveaday todayeffectonmarkets,andstockexchangesinspecific.

P a g e |35

Furtherdwellinguponthemechanismofthesedynamicswouldbe unnecessaryandsimplistic.Itwouldappeartobesufficienttomake thispointwithacaveatbeingthosewhoshapethepresentday economythroughinfluencingaspectsofthemarketputthemselves intoapositionofdangerandpossibledetriment.However,aglobal adjustmentrestsupontheknownfact,thatmarketswilltakesome timetoreact,inahomogenate,andbythenfurthermodificationscan bemadetoshelterthecompanywhichbeganthemovement.Idonot havetonamenames,theyknowwhotheyare. Ergonomicallyfarbeitfrombacksupport,thecurvefitiing apparatustoperformanceandstability,lendsahelpinghandto qualifiedsectors,whichthemprofitgreatlyfromchangingmodesof operation,tomakeupforwhateverperceptibleproblemsarise. Theonlyquestionwhichthenneedbeaskedis,howprofitableis ittomakesomeaspectsofthemarketsstronger,andothers weaker.Now,thefirstbornofaglobalmarketentitysymbiosisis putintotheworld.Iwouldnotbesurprisedifwedonotseeone ofthesemadeintoexistencewithinthenextsixtotwelve months. Youmayaskyourself:HowdoIrecognizeoneofthese,what appearancemighttheyhave,whoaretheyakinto.Veryinteresting questions.Allonecandoislookforthesignstoberevealed.Thisis nottheendoftheworldbyincrements,noranewerworldorderin advanceofthepresentonewhichhasnotyetreareditsabominable imperialisthead,ratherisatooltobeutilizedbythehungryCEO whowishedtoleavehisplaceintheworldforbetterdaystocome. Asaresultofthenatureofpeople.;motivationofgreed vindictivenessselfishness,andresentfulnessnottomention opportunism,corporationswhoarenotrelatedfromother corporationhalfwayaroundtheworld,willwanttotakeheedof fluctuationsoccurringonadaytodaybasis.

P a g e |36

Othersdonotwishfortheirownreasonstoparticipateinthese affairs,andasaresultanewformofmonitoringpowerwillhaveto beimplemented.Thisshouldoperatesomewhatlikethatwhich governsthestockexchangesoftheworld,ensuringtradingpractice andtheircounterpart.Willremainforthetimehonestandclean. Thismeansthatsomeonealongthewaywillbreaktherules. Morethanconsiderationspurelyofshareholders,thisalso encompassescompanyprofitsthroughexpansionsincross industriesasperconglomeratesareresourcefullycapableof.Also, thereisthecontinualconcernofliquiditywhichalsowouldbe assistedbytheformer.Didyoubuysharesinthatcompany?be forewarnedthey'reouttheresomewheretheyalwaysare.
Wheneveracomplicatedsystemofprecautionarymeasuresandloss modificationsareputinplace,onecanonlywonderiflifewilleverbe thesameagain.CEO'swillbegettingupbeforedawnandquestioning theirperformancenotintheboardroombutontheportfolio managementoftheirrespectivecompaniesinvestment.Ascanbeseen in Sec 2 Thishasneverbeforebeenseen.Willthetrickledownness whichwilllenditselftosuchasystembegoodforus,willit actuallytrickledown.Howmuchso

Whenwecallinsomestockpurchaseswewillasktheadvisorifhe knowsanything.Butwearenotallinvolvedinasolitaryinvestment modewerarelyare.Thecountry'sthemselvesaregoingtohaveto navigatethroughthismeshmashworldandseetheirwaythroughit. IdonothavetoharpupontheoverusedphraseofGoepoliticks,and IwillneverusethewordRealPolitickagainforitdoesnotbecome usever.Practicalthoughwearewearegoingtohavetonavigate throughasituationnotunlikethatattheonsetofthegreat

P a g e |37 depressionthistimewithouthedepressionreverseminor repressionofintegrationmicroeconomics.Analyzethephraseand you'vegottheanswer.Inshort:reversetheeffectswhichthe economicinvestitaturesofcompaniesbeprofitableforthemin relationtothepeoplewhoaretryingtomakeit.Asaresultofthelack ofgreatchangewhichaccompaniesanyboomandbustwhichusedto occurinthecyclesofexpansions,booms,anddepressions,andbusts withtheiraccompanyingrepositioningofpracticesandgoal alignmentswithshiftingreality;theinternationalbiodiversityof investmentopportunitiesrenderthecompanieswhodrivethose economiesbehaviorareinthemselvespartofthelackofgrowthfor people.(Reverseminorrepressionofinternationalmicroeconomics). ThatbeingnebulouslysaidIwilladdtothegreatlyverbiagedconcept thatitwillmeanasaresultthatcountrieswillbelessindependentin choosingtheirwaybecausetheywillnolongerbeabletorelyas muchontheirintermediarycompaniesandcorporations.

Somecanaffordtoignorethesethreats.TheUnitedStatesOf Americadoesn'tneedtoworrytoomuch,aboutbeingshutoutof impendingtradepractice,theyhavegoodpeopleworkingtokeepit thatway.Othersalsohavegoodpeople.Andtheywillkeeptheir interestingoodworkingorder.Itisnotamatterofcatastropheto saybeware. Alsowhenlifebecomesmoredifficultthetoughgetgoing,but wherecantheygo.Aleopardcannotchangeitsspots,andan antelopecanjumphigh,butcan'tloseitshorns.ThisisnotZoology 101butitissurvivalofthefittestasneverheretoforeseen.Dowe haveconfidenceinourcountriesmanagementskills.Canweafford togoonwithoutmakingspecificpreparations.surelynot.Evenas wespeakpreparationsarebeingmade. WehaveallseenthechangestakeplaceinEurope,leadingtheway foraNorthAmericanEuropean,AsianTrianglewhichwillbe

P a g e |38 inescapable.ThiswasdonewhentheEuropeanunionadoptedtheEuro commoncurrency.Othercountriesaretalkingaboutcommon currenciesalsosuchastheoneintheU.S.ArethereanyplansinAsia. HongKonghasbeenassimilatedwithChina,Chinadidn'tfeedthegoose thatlaysthegoldeneggtoitsregionallyaspirantdedicatedclass. Clearlyworkisbeingdonemoreandmoretoworkmoreandmore together.Howfarwilltheygetbeforeitactuallybecomesapartand parcelofeverydaybusiness.Itisforthatreasonthatwemustallbe preparedtodealwithitwiththebestequipmentwecanhave.

ModernMagazineJuly15,1998 EconomicControllingInterests

Itseemsthatwhenevereconomicchangestakeplace,someonehasto paytheconsequencessomewhereelse.Whatexactlythefactorsare thatmakethisarealistichappenstance,recurringthroughtimeandall marketfluctuations,arerevealedposthasteratherthanpreventively. Ithasbeenseenthatthisismuchmoregravewhenitoccurs,ata timeofthepeoplethemselves.TheAsiaflue,nowmostlikely

P a g e |39

alloutdepression,hasbecome,somethingfromwhichwewill payresourcestimeandeffort,withpersonalincomesdonated andlostalongtheway.Aretherenotmenwhoareableto foreseethis,andprepareusbetter,forit.Yes,andsomehave, andsomehavenot.

P a g e |40

Wheneverwereachasituationofcrises;thatisthetimeweput intoplaceplansthatwillmoreaorlessalleviatetheproblem, butsometimes,theplansaretoolate,andthewakeupcall, althoughithasbeencommanded,wasnotheard. Thehandlingofmonetarypolicyisunderestimatedin importance.Thenationswhichhavegoodeconomies,finditplays secondfiddletoothermarketpolicies,whileitisthereverse,for countrieswhoseeconomiesaren'tdoingwell. Thisisduetotheresourceswhichtherespectiveeconomiesexpunge, andfurthermore,theybecomeeitherstagnantinthecaseof strugglingeconomies,unabletoreadjustquickly,andcomplacentin thecaseofwellprofitingnations,whodonotactinawayconducive toothercountriestradingopportunities.Inaway,inasimplified sense,thiscouldbeblamedupon,capitalismandsaythatcentral government,systemswouldrenderthisformofcompetitioninactive asofitselfnotbeingcompetitiveminded;butrealpolitickspeaking, andrealisticallyspeaking,itisindividualinterest,andgreed;not economicsystems:whenallissaidanddone,weareresponsiblefor thechickenscominghometoroost.Otherquestions:howmuch foresightisnecessary,towhatextentmustothernationsinvolved taketheblame,wheredoesallthisbringustoinordertosetthings backontrack.

P a g e |41

Whydon'tthegoalsincludehelpingaregionofthecountry that'sinrecession? Oftenenough,somestateorregionisgoingthrougharecessionof itsownwhilethenationaleconomyishummingalong.ButtheFed can'tconcentrateitseffortstoexpandtheweakregionfortwo reasons.First,monetarypolicyworksthroughcreditmarkets,and sincecreditmarketsarelinkednationally,theFedsimplyhasnoway todirectstimulustoanyparticularpartofthecountrythatneeds help.Second,iftheFedstimulatedwheneveranystatehad economichardtimes,itwouldbestimulatingmuchofthetime,and thiswouldmeanhigherinflation

Asseeninthedocumentabove,writtenby RonaldLabontePhDCommunitasConsultingAdjunctProfessor, CentralQueenslandUniversity Thereisanaivecommodityineconomictheoryandapplication, today,oneachhand;nottheonesadoptingtheirviews,butthe oneslisteningtothem,andnottheonesimplementingthembutthe onesfordevelopingthemwithasenseofdetachedignoranceofreal application.Inessence,realpolitiksisn'ttheculprit,itispolitical reality.

Thereareoccasionwhenadifferentapproachisnecessary,andat timesessential.TheEuropeanCommunity(EU)hasseenthisorat least,respondedasmuchaccordingtothisprinciple.Thisisyet anothersystemwhichhasbeendevelopedtoofacilitatestability,in theirrespectivemonetarypolicy.WedonothavethatinCanada. ThestretchedoutnatureoftheCanadianeconomy,places emphasisontechnologyandcomputing.However,ifthe stretched

P a g e |42 segments,becomethreatenedallatonce,whatmonetarypolicycan giveitbackitsvigour.Countrieshavelongdependedonrocksof stabilityandcertitudetohelpitploughalong;independingonthe guarantiedgrowthofthemarketoftechnology,Canadahasmadeit impossibletofocusonanyregionorsegment,asawhole,to stabilizeit.

Sec 2

It is interesting to note, that while some countries find priority in developing trading strategies, others are much more protectionist, and geopolitical in their approach. A country may build greater and greater ties with the nations and trading regions around them, or it may close itself off to certain ones. In a global economy however, protectionism has been seen as outdated. Perhaps it is, but at least, if something does go wrong, it will arguably be a shield. Or is it that it is to be changed as a strategy, like everything else must adopt new styles and approaches. Perhaps this is the key to proper monetary policy. Perhaps large sweeping strategies never really reach their full relevant practice. Perhaps conflicts and hurdles are overcome with a little protectionism, a little pro activeness, a little free trade regulation. Something like the carrot before the stick, or the carrot after the stick.

The necessary changes brought about by NAFTA and GATT and WTO, are reflective only of the undeveloped properties of the closed markets of North America. The real productive nature of Monetary harmonization however, is what constitutes binds that tie, into a stable trading relationship, one that can weather any geopolitical storm, since the troubles that can be worked out in any case are not closed, they are already open by the very nature, of a secure, non possibility of individual lack of depresionary remedies.

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Ask them, what significance the Euro has and why, it has been developed, ask them, why the NAFTA and GATT really do not produce any links to excessive pooling of resources, why they felt it was necessary to adopt this, in lieu of developed nations, being the source of resources for less developed nations. Why Huge markets, grow with free trade with small markets, and why it is not the exact reverse and opposite, that small underdeveloped markets do not grow out of protectionist, anti resource procurement, from larger developed markets, rather less procurement, necessitating their own self reliance. In the observation of the various strategies employed throughout the world, there can however, be noticed a homogeneity. A trained individual might be able to see it, if he was not preoccupied with his own margin of profit; a person who has acquired a sense of observation with training in eclectic reasoning, would forego such theories altogether. This evolution of ideas has therein, a very dangerous ingredient mix. It would take all the resources of the world working together to avoid falling into a chain reaction, if ever it were to take pace, as it has in all closed markets: but world wide recessions could occur. Of course, here are so many resources of wisdom, that the west or developed world will always be able to produce an individual who is able to lead into the proper and right direction.

P a g e |44

Modern Magazine January 23, 2000 Financiers Finance Ministers In Regulatory BoardBribeDenied

TheFirstbornofaGlobalMarketEntitysymbiosishascometolight uponourcorporatelandscape.Nowwecanbegivenallthe benefitswhichwehadbeenpromisedforyearsintheInformation Superhighway. WhenAOLMergedwithTimeWarnertherewasaglobalmarket entitybornwhichwillbetrulyanentityonitsownterms.The vastnessofthisnewreachingentitywilltraversethelandscapeof nationslikeabrushfireonabonedry,parchedprairie,crossing overanyimpedimentsofborderswhichtheGlobalMarkethasinits way.Theendresultwillnotbenegatedbyanycompetitionwhich hasinitsinteresttodosoasitwouldshootitselfinthe80sstyle vehicleofmarketintereststhegouchieshoes. NowTimeitselfwillbecometransparent.Itwillopenitselfupto regulatoryboardsandcontrollinginterests,inordertogivea semblanceofperpetuitytoitsmarketshare.Inthelongrun,this willonlybeaformofsubsidiary,atokenrampfromwhich crippledcorporationswillgainaccesstotheMultimediaapertures ofbroadbandtechnologyservices. Therecanbenovalidargumentmadeaboutthevalueofsucha company.Informationissomethingwhichlendsitselftoallmenin allnations.Italsomustbegiventothemfreely,withoutfearof lossofstatusorbearinguponthosewhodisseminateit.Clearly theexpansionoftheInternetdoesthistoagreatdegree.Thereis nooppositiontothisandsoitwillbeapprovedofbyallregulatory interests.

P a g e |45

Thisdoesn'thowever,saythatthereisnoeffectuponthe perceptionofconcernedentitiestotheexistenceintotheworldof suchanentity.Ithasbeensaidthatoftenthefirstbornsetsthe temperofthehouseinaformoftheparentswhobroughtitinto existence.Thisthereforeshouldsayalotaboutthefinancial authoritieswhohavesignedoffonprecludingitfromanyofthe boundssetforthbyapparatusinplace.Thistomeisprecedent setting.Asaresultclarificationwillbeneededastothenotionsof interestvariousregulatoryboardsholdtoonthismatter. Theredoesnotappeartobeanyseriouscommentcomingfrom electedofficialsonthistheme.Indeed,therehadbeenimmediate voicingofthedealofmediainfringementonthefreepressthrough themechanismofAntiTrust,butnothingelse.Thistome,seemsto indicatethattheyaremissingthepointentirely,orthattheyhave suchfaithintheirinstitutionsthattheycannotevencastaside glanceattheextrapolationwhichneedbeasanaturalresultof majorevents. Iformyselfcanseenoreasonwhytheymaynotstatetheir preferenceforacertainoutcomeonewayortheothereither approvalofordisapprovalof,saidmerger.Thistomewouldnot beaconflictofgovernmentpowerswithcapitalistdemocratic freedom.Thislatterisforcertain. Theredoesnotappeartobeanyseriousapprobationofthelimitsto whichsuchconglomeratecorporateactivitiescanproclavicate.Indeed, thereisthetalkoftheprecedentsettingnatureofmegamergers throughwhichtimemaycastadissuadingeye. Itisnottimewehavetofearhowever. Therehavebeenoccasionswhencorporationshavemergedinone formoranotherinthepast.Theseformsbeitcorporate

P a g e |46 restructurings,includingmergersandacquisitions,divestitures, spinoffs,jointventures,leveragedbuyouts,bankruptcy reorganizationsandworkouts,andrecapitalizations.Theyhave beenadvantageoustosomedisadvantageoustoothers.Rarelyhave theybeenthesortofaffairwhereallthenationsoftheregionof tradeinfluenceheldtheirbreathandamelioratedtheirportfoliosto takeadvantageoforminimizeitscontagion.Nowwewaitasthe megacorporationsslipintoconglomerateswhosetimeisdedicated totheameliorationofsingleproductsbecausetheyallfallwithin thescope,ofashelteringumbrella.Iamnotreferringtoaproduct asperabrandofaproduct,butratheraproductfortheverynature ofmultinationalaffiliatedindustriesproducemultipleproducts. This,isgreatlytroublingsofar.Dothevariousministerscharge d'affaires,presidentsofgovernmentbranchesdealingwith economies,notgraspthepreponderantpurposeoffreemarkets.How laisezfairemustonebebeforeonebecomesaderelict.Indeedhow manyderelictsdoyouknowofwhodivestthemselvesfrommulti leveled,synchronalbusinessintereststoachieve enrichmentprofessionalcareerpoliticiansmaybe.Itwouldright now,appeartobeso.Mustwereallywaitandsee.Isthataprudent practiceofinvesting.

Tofurthergraspthelackadaisicalmannerinwhicheventshave transpiredrecently,oneneednotlookfurtherthantheAsian crisis.However,letusnotrevisitwhathasnotfullyexpiredeven, again,forweareinitsverymidst.Letusratherexamine,the vacuityofleadership,oftheheadsofstateforemost,and secondlytheirlieutenants,theministerspresidentsetc.,incharge ofmaintainingeconomicinterests(whatIwillcalltheministersof finance). Thepositiontakenbytheseguardiansofeconomieshavebeen silentintermsofmaintainingproperworkingorderofthemerger

P a g e |47 trade.ThiscannotbeandIcannotstressthisenoughcannotbedue tooversight.Wemustrememberministersoffinancehaveextensive staffandsupport,wheretheiractivitiesintheconductofthe governmentisawelloiledmachine:allappointmentsbooked relevantly,documentsprepared,synthesized,andindexedtime managementatitsbest.Also,theyhavebeenelectedadchosento theirpostbecauseofgreatandsometimesextensiveknowledgeand experience. Whythen,isitsodifficulttoatleaststateagovernmentalposition intermsofthemergertrade.Wecanfallbackonthepositionthat theyhavefaithintheirantecedentcontrollinginterestsand agencies,ortheydonotwishtoimposegovernmental interferenceindemocraticcapitalistfreedoms;butthatwouldin factbeasimplecountermeasureofresponsivecriticismofan electedgovernment.Itissafetosayonemusthaverecourseonly towhatindeedtheyhavecommentedupon. TheonlyreferenceIcouldfindaboutthisissuewasfromtheBank forInternationalSettlementinBasle,IMFandWMFjointventure. International Finance and Commodities Institute Theslowmoving processisveryalarminginthatitshowsitissimplyreactionary.A responsewasinthecontextoftheOnexCorporationsattemptto takeoverthestrugglingCanadianairlines(Canada).ThestratagemI think,isquiterevealing.Itentailsthewaivingfor90daysof antitrustlegislationinordertoallowtheindustrytofindasolution. Primarily,theywerehopingtogetafriendlyincountrybusiness entity,totakethecompanyoverandsoon.However,What happenedissurprisinglyrelevanttomegamergerpractices.

InNovembertheintentiontotakeoverthecompanywasmadeby Onexinresponsetothesuspensionoftheantitrustlaws. FollowingthatAirCanada;thecompetitorofCanadian

P a g e |48 Airlinesvoicedtheiropposition.Awrenchwasthrownintothebid whichwaswithdrawn,becauseofalinkbetweenamemberofthe CanadiangovernmentandOnexduringtheelectoralCampaign.ThenA AirCanadadecidedtheywouldmergewithitscompetitorCanadian Airlines.Ultimatelynofurthercommentwasmadebytheministersof theGovernment. AcursorylookatOnexCorporationwouldshowitisaveryactive andtransientinternationalentity,whichinfactissolistedbythe TorontoStockExchange(Conglomeration).Onexisadiversified globalcompanyoperatingonfivecontinentsinairlinecatering, foodservicedistribution,electronicsmanufacturingservicesand automotivecomponents.AndagainWeareaninternationaltrade brokeringhouse,wemainlyfindbuyersforsuppliers, manufacturers,fortransactionsof50.000andoverUS$.Wealso havetradersforanytransactionamountforyourproducts." InanotherrevealingsectiontakenfromtheCanadianBroadcasting Corporation'swebsite"Onexislistedasaconglomerateonthe TSE.It'sinvolvedinairlinecateringthroughitsownershipof Skychefs;electronicsmanufacturingthroughCelestica;and automotivepartsthroughHiddenCreekIndustries.Italsoprovides managementservicesthroughcompanieslikeClientLogic.Andit hasinterestsinotherslikeLanticSugar.""Schwartzsayshehopes hiscompanywillbroadenintheareasit'salreadyinandperhaps intotheforestproductsindustry,preferablyaCanadianone.But itsrealgoalisto'sinkitshooksintothetechnologicrocketship thatiscurrentlytakingoff,sothatOnexrideswithit.'

Onexhasalreadystarteditsmoveintodigitaltechnologywith Celestica.Butithasalsocontinuedthedirectionbystarting ClientLogic,acompanyinvolvedincustomerserviceandtech supportessentiallyhightechcallcenters.

P a g e |49 Onexisalsointerestedinthetelecomindustryandhasformeda$1 billionUStelecomfundwithpartnerTelefonicainanefforttolearn moreaboutthetelecomarea.They'reputtingup$150millionUS, whileTelefonicahasputin$250million.Toplayinthefund, investorswillneedsharesinOnex. Asforthosesomewhatflatshareprices,Schwartzbragsthatifan investorhadboughtsharesinOnexinanyofthelast10years,they'd haveoutperformedtheTSEindexandtheconglomerateindexevery year.Andifaninvestorhadboughtsharesafull10yearsago,they'd haveoutperformedtheTSEbyalmostfivetimes. Moreover,addsSchwartz,they'vebeenup50percentayearforeach ofthelastthreeyearsalone,asolidperformance."This guysreallyoutthereYeeha.Itwouldundersimilar circumstances,beadvisablethat hearingsbepublicinthecaseofmegamergersbutthatcannever happen.Anewregulatoryboardisthereforenecessary.Theonly questiontheniswhowillcallforitscreation.Canweleaveitupto theministersoffinance.Willthepresentregulatoryboardssee theirlimitations,andimprovetheirownrange.Wecanonlyremain vigilantandhopeso,becauseitisjustamatteroftimebefore precedentbecomesanacceptableifnotunsavorybendingofthe rules. Thereisanotherpossibility.Onewhichisfarmoreperilousand megalomaniacal.Thatbeingincompatibility.Onceonebeginstosee thefinancialmarkets,itiseasytoseedarkdevilshangingaroundthe backsofeverydoorinallhalls.Againposingaverydifficultsolution. Asolutionhowever,thathastobearrivedatwhetherintellectually intheinternationalavenues,orpersonally,intheindividual sovereignnations. Governmentspracticingthesamemonetarypracticesyearsin

P a g e |50 andyearoutwilleventuallybesurpassedbyevents.Forananswer tothisconundrum,wemaylooktoEurope,wheretheEUis groundbreaking. Onceaplacewherecolonialismhadbeentheravageroftimetested institutionalpracticesinapostworldwarI20thcentury;Europeis enteringthetwentyfirstinanavantgardeoflaissezfaireeconomic hegemony.Isayhegemonyonlybecauseitcandependonthe influenceoftheUnitedStatestoplayacounterbalancingrolewiththe westwithEuropebeingthemiddle.OrtoputitanotherwayEurope beingthefreemarket,theunitedstatesbeingtherightwithits wheelinganddealing,andtheeastbeingtheleftwithitsnewlyfound IMFbrokeredbureaucraticconservatism. Theapparatusforcreatingamorebalancedifstillimperfect regulatoryboard,istheRegulatoryBoard.Yes,that'swhatthey callit.Niceandsimple.ItissummarizedbestinArticle81and Article82. SEC 1 (Article81prohibitsanticompetitiveagreementswhichmayhavean appreciableeffectontradebetweenMemberStatesandwhich prevent,restrictordistortcompetitionintheCommonMarket.The Commissioncangrantindividualorgroupexemptionsfromthis prohibitionifthereareoverridingcountervailingbenefitssuchasan improvementinefficiencyorthepromotionofresearchand development.Article82prohibitstheabuseofadominantposition insofarasitmayaffecttradebetweenmemberstates.Thereisno possibilityofexemption. Under the existing rules a merger falls under the Merger Control Regulation when two tests are met: * The combined aggregate worldwide turnover of all of the undertakings exceeds ECU 5 billion.

P a g e |51 * The aggregate community wide turnover of at least two of the parties to the merger exceeds ECU 250 million, unless each of the undertakings derives more than twothirdsofitsturnoverwithinone andthesamememberstate. AsofMarch1,1998,anadditionalcategoryofmergerswillbesubject tocontrolundertheMCRandwillbenotifiedsolelytotheEuropean Commission.Fourtestsmustbemetifthesemergersaretobe assessedundertheMCR: *Thecombinedaggregateworldwideturnoverofallthe undertakingsconcernedmustexceedECU2.5billion. *Inatleastthreememberstates,thecombinedaggregateturnover ofalloftheundertakingsmustexceedECU100million. *Ineachofthesethreememberstates,atleasttwoparties musthaveindividualturnoversofECU25million. *Thecommunitywideturnoverofatleasttwoofthe undertakingsexceedsECU100million.) Thatbeingoutlinedwearriveatthecoreofthesubject.Whatwillthe firstbornofaglobalmarketentityhaveasits progeny.Wewon't havetowait20yearsforittomaturetofindout.Reverseminor repressionofintegrationmicroeconomics.Acountrywhichisill equippedtodealwiththeindustrycompetitiveapparatuswithinits veryownsphereofmarketinfluence.Itwillbeevenmorehard pressedtodealwithitintheGlobalMarketEconomy. AlthoughtheEuropeanUnionseemstobeontherighttrack,it stillmustcontendwithinfrastructurebuildingtobeabletotake advantageofsuperiorpositioning.Butonceithasdoneso,there isnothingthatcanpreventitfromutilizingalltheadvantagesof thisshelteredliquidity.Inotherterms:Oncea

P a g e |52 marketregionhasregulateditsowncorporateforces,itcandeploy theirresourcesinacoordinatedwaytoinvestinothermarket regionswithoutthefearoftheircompetitiontakingadvantageof calamityahomoeostaticeconomicimperialism. The advantagewhichtheministersoffinanceareinadequately interpretingorutilizing:formakenomistake,themechanismsare theretobeemployed.Whyaretherenopoliticalovertures towardsrealizingit. TheUSlookstowardsitselfasaGlobalPower,butitseemstobegiving andinstructivereactionaryroleinsteadofaleadingroleascanbeseen inthelateststatementsbyLawrenceSumersonFridayJanuary21"In hismeetingwithMe.Obuchi,Me.SummersurgedJapantocontinueto deregulateitseconomy,includingthetelecommunicationssector,to attractforeigninvestmentandstimulategrowth,Me.Mizoguchisaid. Later,inremarkstoreporters,Me.Summersstressedthatbringingthe Japaneseeconomybacktoitspreviouslevelsofcyclicaleconomic growthwon'tbeenoughinaworldwheretheU.S.economyhasbeen expandingataround4%forthreeconsecutiveyears. Andalso"...Hesaidthechallengebeforethegroupistofashiona blueprintthatwillprotectrecentgainsandestablisha springboardthatwillseetheeconomiesofJapanandEurope emulatetheastonishingprosperitycurrentlybeingenjoyedbythe Me.Summerssaidhewantstoensurethattheeconomicreboundsin U.S. previouslycrisishitpartsoftheworldsmoothoutcurrentaccount imbalances.Thatwouldbringdowntradesurplusesintheformer crisiseconomiestothebenefitoftheU.S.,whichistallyingrecord monthlycurrentaccountdeficits." Therearedifferencesbetweenmarketeconomies,andwar economies.Yesanationmustbeprotectionistbutnottothepoint ofbeingisolated.Ontheotherhand,thedetractorsofisolationism sayacountrymustbetheleaderinexchanginggoods

P a g e |53 andassetsinthemarketeconomy.Yes.Firstandforemostitmust betheleadersinaglobalmarketeconomytheproperway.

ModernMagazineFebruary7,2000 IrrationalExuberanceOnlyinCertainCases TheFollowingthreeparagraphsaretakenfromaspeechbyAlan GreenspanGivenattheCommitteeTheeffectsofmergersBefore theCommitteeontheJudiciary,U.S.SenateJune16,1998 "Moregenerally,itisconcernoverthelackofthelevelingforceofcompetitionin highly concentrated markets that has fostered the fear of bigness. But, unless a relationshipbetweenbignessandmarketconcentrationcanbemorefirmlyrooted in anti competitive behavior, bigness, per se, does not appear to be an issue for nationaleconomicpolicy.Rather,itappearsthatbignessshouldbeprimarilythe concern of shareholders whose returns could be muted by large company inefficiencies,andtheircustomerswhomayfacebureaucraticinflexibility." And "Through skill, perseverance, luck, or political connections, competitors have alwayspressedformarketdominance.Itisfree,openmarketsthatacttothwart achievementofsuchdominance,andintheprocessdirectthecompetitivedrive, which seeks economic survival, towards the improvement of products, greater productivity,andtheamassinganddistributionofwealth.AdamSmith'sinvisible handdoesapparentlywork." And "Stillmoredifficultistherelevanceoftheeffectsonthirdpartiesfromtheactions oftwoindividualsactingvoluntarily,withorwithoutconspiratorialintent,intheir mutualinterestthroughexchange.Inthemostgeneralsense,allbilateral transactions,toagreaterorlesserextent,affectthemarketswithwhichthird partiesdealforgoodorill.Someactionsopennewmarketsforunrelatedthird parties.Otheractionsincreasecompetitivepressure.Indeed,thatisaninevitable

P a g e |54 consequenceofthedivisionoflaborinasociety.Butitisalmostimpossibleinthe vastmajorityofcasestojudgewithanyconfidencethatoneactcreateswealthor anotherdestroysit." Also "If competitors are excluded because of a company's excellence in addressing consumerneeds,shouldsuchactivity beconstrainedbylaw?Suchastandard,if generally applied to business initiatives, would have chilled the type of competitive aggressiveness that brings efficiencies and innovation to the marketplace. Fortunately, that principle was subsequently abandoned by the SupremeCourt.Moreimportantly,antitrustactionsofrecentyearshavesoughtto enhanceefficienciesandinnovations.Ileaveittootherstojudgetheirdegreeof success. But the regulatory climate in antitrust, indeed throughout government, has moved in a more marketoriented direction. I believe that is good for consumersandthenation." Alsoespecially: "Tobesure,marketsdonotalwaysworkfullytothestandardsofourabstract notionsofperfection,thatinturnrestonparticularnotionsofthewayhuman beingsdo,orshould,behaveinthemarketplace.Thereappearstobegeneral agreementamongeconomiststhatthetestofsuccessofeconomicactivityis whether,bydirectinganeconomy'sscarceresourcestotheirmostproductive purposes, it makes consumers as well off as is possible. Moreover, it is generally agreed that the chances of achieving these goals are greatest if pricesaredeterminedincompetitivemarketsandreflect,tothefullestextent that is feasible, the costs in real resources of producing goods and services. Whilerelativelystraightforwardtostateintheory,howsuchastandardshould beappliedinpracticeisoftensubjecttodispute."

Inobservanceofthemethodsemployedbyeconomistsin acquiringthepriorityofeconomicfactors,onecanonlybut wonder.Atothertimes,onefindsthemselvesswamped withaprevalentsensationofthembeingthemselves

P a g e |55 overwhelmed.Inattemptingtoremovethissensation,they taketheiremotionalresponsesout,andtheleaveyoucold numbersstreamingasdata.Butthereshouldbeemotionin economics. Somepeopleignoreit,bysayingresultsareallthat matter.Theysaytothemselves,andtothoseseeking clarification,thattheeconomyisdoingwell.Wehearand seethatitistrue,andwedonotaskanyfurther questions.Isay,whnot,askthequestion,istheeconomy goingwell;andbywho'sstandards. Whichslotofdatadoyoufitinto.Areyouuppermiddle lower.Doyoufunctionwithindustry,corporate, technology.Areyougoingupstaticorareyougoingdown. AndthenyoumayaskwhomlistenswhenImuse,uponthe dataIhavecomeacross.Myreplyis.Teeconomydoesn't alwaysgowell. AttheriskofseemingsimplisticIaskafurtherquestion. Whomakesdecisionsregardingourplaceinthestratum ofeconomy.Dowesimplyresideaspertheplaceof complianceweareaswecollectthedutyfromwhichour transgressionhasbeenprofitabletosomeoneelse's commerce. Surelytherewouldbeanswerstothesequestions.ButI wouldrathernotbesimplistic.Instead.Iask,wheredothe investmentprioritygoandfromwheredoesitcome.And thegreatparlayofinternationalfinancierscomesinto audiophonicresonance,acrossthelocalbarwherethey relax,tohavesomedrinks. Wheneverwethinkofeconomists,weperceivethemtobe thewearersofillfashionedoptics,andcleanwhiteshirts.In fact,theyarenotanydifferentthanweare.Comprisedof desires,lackofdiscipline,fear,foolhardiness,andover exuberance.ThislatterisatermAllanGreenspan,themost importanteconomistofthistime,guardsagainst continually.

P a g e |56 Therearehowever,interwovenwithinthefabricof economistsancommoncurrentwhichrumsthroughallof us,humanity. Sincewecannotescapeit,wemustdealwithits bestwecan. Humaneconomicscanbebestbrokendownintotwo partsoneasdisparateastheother.1.Manifestdestiny 2.Confidence.:Everymanbelievesheisinhisown sphereofexistenceinordertoaccomplishaspecificgoal uniquetohimselforhisgroupwithheorthatgroup predominatingtheavantgarde,orheaspirestobe.He thereforemusthavetheconfidencetoleavehissphereof influenceinordertoescapethebearingofthisknowledge ofhimself,andbeconfidenthemayrealizeit.But economicsdonotworkinaworldofonlyagivensetof factors. Therefore,thesphereofaneconomistwillbepropensate onlytoitsfullestextentwithinagivensetoffactors whichcanthenworkuponitselfwithoutbeingcorrupted byotherdisparatedistractions.Thisisbestdescribedas Propensateisolationism.Theonlyproblemisthatthe humansideofus,rejectsbynature,theboundariesthat theartificialworldembodiesit;andinsteadattemptsat thesametimetoadoptthenaturalspeciousnesswhich naturehasgivenit.Thisisnotbouttechnology,justthe humancondition. HenceforthwearrivetotheissueofIrrationalexuberance itself.WhatisitexactlythatthemaestrooftheAmerican machinemeans?Summarizedtobesurewithinthehuman aspect,nowwemustturntotheactualovertmeaningofthe term. A.Atfacevalue.Onewouldseetheworryoftechnology stockscreatingoverinvestmentinotherstockportfolio

P a g e |57 sectors . B.Peoplewhoknownothingofthestockmarketinvesting ingoodtimes C.profitabilityfromartificialmergerswith phantommarketinnerworkings. Shouldweworry?

ModernMagazineMay82000 PovertyRules

Thebiggestproblemwiththeeconomyofthedevelopingnationsisthe peoplewhoarestillinexcessivepoverty.Theascendanceofthese citizensistogrowfromthedaytodaymenialtasksandlowearnings, toeducation,intelligenceandexperience. Buthowcanthesenations,whoareoftencorruptdealwiththe providenceoftheirownpeople.Especiallysincetheydonotrealize thisthemselves. Greatmencancomealong.Butthesecomealongincrisis.Thereisin fact,noneedforcrisistodevelopsincethebattlesforewarnedofby theUNarealwaystakencareofbefore,and,thesegenerationsof leadersdoinfacttakeagenerationtoarise. Itwouldthenseempropertotakecloserlookatthereasonsbehindthe lackofleadership,asidefromthecriticalstatusquoofcorruption. Thesebeing,1.Ineptness,2.Greed,3.Infrastructure(thelackof),4. AndFinallyDisillusion. Itwouldinturnbeamistaketoconfinetheproblemstothenations properwhomtheseproblemsafflict.Inotherterms,inanothersense, theUNandmajorpoliticalentitiesaretheoneswhodeal

P a g e |58 withthesenations.Iwouldn'twanttobetheoneinchargeofmakinga compendiumofadvisersandinfrastructureformingapparatus personnelwhoaresentbythedevelopedworld.NoItwillbeaneven biggermistakeintheupcomingyears. Thepropensityforgreedisamajorfactorintwoofthesefactorsfor 1.Ineptnesscanonlybepervasivewhenonlycertainofthe dominantsectoralpropertiesproduce.Andgreedasaresultof disillusionspermitpotentialleadersfromdoingwhatisright. ThequestionremainswhetherornottheUnitedStateswillbethe leaderofdemocraticaspectsoffreedom,thatitwasinthe20th century.Weshouldallhopeso.TheEUasdepictedbythiswriterisn't necessarilyplayingball.Thiswasevenremarkedinoneoftheirown publicationswheretheyrefertoisolationismasathingtowhich nationsmayturninaconditionofgreateconomiccompetition. IftheUSdoesendupbeingisolationist,wewillhavetodoeverythingwe possiblycantoavoidthisbecominganationalisticpridehood..Wewillall havetoextricateourselvesfromthisisolationismeventually.However,I amnotclaimingisolationismisbadjustitsextendedform.

Inordertoavoidthisperiloustrapitisnotsufficienttocarryoninour presentmannerofinterconnectedphilosophicaleconomicdealings. Neitherisitjustifiedtotakehalfmeasuresintheformoffasttrack temporaryendeavors.Wemustbeawareofthepanaceaofmatters, issues,andtechnicalaspectswhichmakeuptheglobaleconomy.Im notbeingcriticalinanyuncertaintermsofthemenwhoareatthe helmofourtimes.NeitherGreenspannorproponentsoffasttrack arewrong.Butwhatelsearetheymotivatedbyintheseofferings. Shouldweworry.ModernMagazineIs.ThankYou.

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Read,R.EUExpansionToTheEast.ProspectsAndProblems.InH.I.M.McKinlay,EU ExpansionToTheEast.ProspectsAndProblems(p.Chapter2Page23).GlensandaHouse MontepelierParadeCheltonham,GlossGL501UAUK:EdwardElgarPublishing.

TheeastwardexpansionoftheEuropeanUnion(EU)willincludemany,ifnoteventuallyall,ofthe formerSovietBlocand/ortheirsuccessorstates.Enlargementthereforehasacriticalstrategic dimension,buttherearealsoimportanteconomicimplicationsforbothexistingEUmemberstatesand theaccedingcountries.Theseencompassprincipallytheinteractionbetweentheeffectsoftradeand economicgrowth.Latterly,however,akeythemeofEUpolicyhasbeenmacroeconomicconvergence andpolicycoordination,leadingtotheintroductionoftheEuroinJanuaryof1999andtheelimination ofnationalcurrenciesineurolandin2002

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CopyrightOccidentalRevendicatingJusticeORJ