Canada’s Dilemma : Join the BRICS or Die with Wall Street?

By Avneet Thapar and Matthew Ehret-Kump

With the stunning success of Syriza Party’s rise to power after the recent Greek elections, leading a mandate to wipe out the majority of artificial debts holding their nation hostage to a banker’s dictatorship, an opportunity at orderly re-organization of un-payable debts driving the bubble economy towards collapse has arrived in full force. This process of collapse is not only resulting in the potential flushing of the bankrupt euro into oblivion but is driving the British Empire towards a more desperate attempt at releasing thermonuclear war between NATO and Russia in order to preserve its hold on global power while erasing its un-payable debts under the fog of war.

The devastating effects of this process as they are being expressed in Canada’s petroleum-exporting province of Alberta with the collapse of oil prices cannot be understood without taking into account those basics facts of world geopolitics.

The World Situation and Canada

The dramatic collapse of oil prices by 50% over the recent two months has created a storm that has gripped the Canadian financial system, as energy giants like Royal Dutch Shell, Suncor Energy (Canada’s biggest), Schlumberger and other energy companies have announced that they are cutting thousands of jobs in the petroleum producing province of Alberta due to the slashing their 2015 budget plans.

While only weeks ago the Alberta Government had promised a $1.5 billion surplus in 2015, these new conditions have resulted in a  $500 million deficit at hand, which has led to Canadian Finance Minister Joe Oliver telling an emergency meeting of the Calgary Chamber of Commerce that the federal budget will be delayed until April. While these announcements come unexpected to most, it shouldn’t really surprise anyone who has been following what American Statesman and Forecaster Lyndon LaRouche has been saying for years: The entire Western Financial System died in 2007 and will never come back again.

The Myth of Alberta’s “Booming Economy”

Two myths holding back a proper solution to the “Alberta” crisis are: 1) the emerging ‘recession’ in Canada’s province of Alberta is an unfortunate and unpredictable case of market dis-equilibrium and 2) Alberta is otherwise the most prosperous province in Canada because of its raw materials wealth.

The first myth can only be addressed by looking at the world top down: The collapse of the price of oil is anything but a case of market dis-equilibrium, but rather the effects of an intentional top down decision imposed by London upon its Saudi Arabian puppet state to over-produce crude artificially as part of a major assault on Russia[1]. Since December 2014 this attack has had an explosive impact not only upon the price of oil, rendering shale gas development and other oil ventures economically unviable, but has also threatened to wipe out those hyper-inflationary derivatives contracts attached to these oil/commodities contracts which amount upwards of $20 trillion and rest as an integral link in the chain holding up the world’s teetering banking system. While this figure itself is greater than the Canadian and American GDPs combined, it is still but a miniscule part of the gargantuan global $2 Quadrillion derivatives bubble now sustained by un-payable debts and hyperinflationary bailouts [see figure 1]. It is this bubble that Wall Street and the City of London understand will soon crash and are thus driving desperately towards military confrontation with BOTH Russia and China before the inevitable hyperinflationary blowout strikes.

Figure 1: Global derivatives growth has only increased since the bailout system began in 2007-08, with such toxic gambling debts now topping $2 Quadrillion!

Figure 1: Global derivatives growth has only increased since the bailout system began in 2007-08, with such toxic gambling debts now topping $2 Quadrillion!

Now let us address the second myth: The ugly truth being overlooked by most “experts” is that Alberta was never made more prosperous due to its oil revenues, but has actually remained more fragile and socially regressive because of it! Here are some startling facts that demonstrate the case:

  • Alberta has the highest household debt in the country (around $50,000 more than the National Average)
  • Wealth disparity in Alberta is the worst in Canada. This was revealed after Alberta College of Social Workers did a report with the University of Alberta Parkland Institute in November, 2012[2].
  • Albertans work longer hours, with less time off and fewer holidays than anyone else in the developed world.
  • Wealth disparity in Alberta is more severe than in the USA.
  • Some of the worst crime rates in Canada are centered in oil “boom towns” such as Fort McMurray due to the disproportionately large mostly high-paid male populations which is a haven for drugs, prostitution and other vice.
  • Child poverty rates in Alberta have remained unchanged over the past 25 years (16.2%)

This is a thumbnail sketch of not only Alberta but of Canada as a whole and it exposes the fraud of using money to measure economic value. While it may appear to the short sighted free-marketer that a strictly “service-based/raw material exporting society” makes more monetary profit than a manufacturing-productive society, the opposite is the case when one recognizes that money is not equivalent to “wealth” in the true sense of the term. The belief in money as a measure of value has hidden the true physical-cultural impoverishment of Canada and the world more generally[3] [see figure 2]. It also reveals how vulnerable nations devoid of a full spectrum economy have become beholden to market fluctuations which can raise the image of prosperity one day and take it all away the next.

Figure 2: The real crisis hitting the west has little to do with the market driven triggers now sending shockwaves through the world, but rather the longer shift towards a post-industrial society which began decades ago.

Figure 2: The real crisis hitting the west has little to do with the market driven triggers now sending shock waves through the world, but rather the longer shift towards a post-industrial society which began decades ago.

Under competent physical economic-cultural standards, Alberta can be likened to the case of a chronic patient in the hospital who is suddenly declared sick yet who never saw true health in the first place. True economic progress is only measured by an increase in the productive powers of labour which requires constant discoveries of principle in the greatest number of the citizens of a society as possible. Such applied discoveries of principles have the effect of increasing the Energy Flux Density of the society as a whole without ever being governed by absolute limits or imagined “carrying capacities”[4] [see figure 3].

Figure 3: The increase of energy flux density as expressed in human economy can best be approached by the following diagram which compares in leaps in energy supplies that creative discoveries allow humanity to sustain ever more creative growth at a faster rate than the intrinsic creative growth of the biosphere and universe more generally.

Figure 3: The increase of energy flux density as expressed in human economy can best be approached by the following diagram which compares in leaps in energy supplies that creative discoveries allow humanity to sustain ever more creative growth at a faster rate than the intrinsic creative growth of the biosphere and universe more generally.

*WHAT MUST CANADA DO*

To restate the issue at hand: Canada is in the same boat as the other Trans Atlantic nations which are being smothered under a dead, rotting carcass of a financial empire centered in London and Wall Street, of which the “big 5” Canadian banks are merely extensions. In response to this reality, there are several measures which Canada must adopt in short order.

1- Join the BRICS Through the Bering Strait

The first thing Canada must do, along with our American and European allies is join the BRICS (Brazil, Russia, India, China and South Africa), whose leadership is opening the door for a new kind of development through a “win-win” cooperation among nations. In this spirit, Canada must accept China’s offer to bridge Asian and American continents by constructing the Bering Strait tunnel. This project has already begun with the New Silk Road development corridor in Eurasia, the Silk Road Fund, Asian Infrastructure Investment Bank (AIIB), New Development Bank and the newly announced $248 billion Beijing-Moscow high speed rail line through Kazakhstan. Russia and China over the past years have made it clear that they support connecting this program to North America through the Bering Strait beginning with Russia’s August 2007 offers and amplified by China’s offers in May 2014[5]. This project would not only involve the completion of the long overdue 2280 km Alaska-Canada rail line begun by BC’s great Premier W.A.C. Bennett, but would extend into Edmonton and Calgary creating millions of jobs, new industries and opening up the arctic in ways never before imagined [see figure 4].

Figure 4: The Bering Strait rail connection, New Silk Road and larger world landbridge

Figure 4: The Bering Strait rail connection, New Silk Road and larger world landbridge

2- Adopt a System of Hamiltonian Credit

What Canada and any other country must do at this point is to adopt Hamiltonian Economics as the basis for credit generation. Hamiltonian economics involves first wiping all of the fictitious, gambling debt off the record of government obligations and to then issue long term, low interest rate credit through a national bank towards key projects and policies that improve the nation’s productive powers in alliance with other nations. The first step to doing that is by reinstating ‘Glass-Steagall’ both in the USA, Europe and also Canada. Such a momentum towards Glass-Steagall banking reform and national banking does in fact exist in Canada and must now become the central demand of all municipalities, provinces, unions and citizens to free their nations from the destructive effects of 40+ years of zero growth, post-industrial economics. During these past 50 years, Canada’s increasingly speculative-debt based economy rose from $27 billion in 1974 towards an astonishing $615 billion today… with no physical progress to show for it. It is for this reason, that “growth” can no longer be permitted to be defined in merely monetary terms, but rather physical-scientific terms.

3- Go for Fusion

Thirdly, Alberta has a jewel more precious than all the oil in the world. This jewel is located in the Alberta Council of Technologies Society (ABCtech) and is an active Fusion Energy Program. Although this program is not yet at the forefront of Canadian energy policy, ABCtech under the leadership of Dr. Allan Offenburger, led an assessment team in 2014 to explore major fusion programs around the world and invited international fusion researchers to the Alberta Energy Forum in the Autumn of 2014 to present this bold potential to the political and business community.

ABCtech compiled a report last year called the Fusion Energy Assessment Report[6] which demonstrates that Alberta has established international relationships among fusion research programs around the world. Given the fact that next-generation nuclear fission, breakthroughs in Fusion and mining Helium-3 on the moon are at the center of China’s economic policy and is the basis of the now globally-established BRICS alliance, adopting such a pro-nuclear outlook for Canada’s energy policy would immediately propel Canada out of its backwardness as a raw materials exporter and into a pro-industrial dynamic centered on true national development.

The Fraud of the Trans Pacific Partnership

In opposition to the BRICS alliance, we have had Barak Obama and Stephen Harper’s TPP (Trans Pacific Partnership) which is nothing but a giant scam. Devoid of national sovereignty and any future orientation, the TPP is a giant anti-China free trade looting system of Pacific nations by private cartels and supra national banking structures. Since the historic BRICS Conference in Fortaleza, Brazil in July of 2014; almost all nations along the Pacific Ocean have stalled further talks to get sucked into Obama’s and Harper’s witches brew. Half of humanity has rejected the old ways of the Empire and is stepping into a Promethean Age of Reason and Scientific Creativity. It’s time for Canada to join.

Footnotes

[1] Economic Assault on Russia Raises Threat of World War by Rachel Douglas, Executive Intelligence Review p.9, Jan. 2, 2015  http://www.larouchepub.com/eiw/public/2015/2015_1-9/2015-01/pdf/09-14_4201.pdf

[2] A social policy framework for Alberta: Fairness and justice for all on the parklandinstitute.ca

[3] For a fuller expose on the physical economic collapse of Canada, see Towards  a Hamiltonian Bank of Canada on www.canadianpatriot.org/archives/618

[4] These types of discoveries are those allow a nation to increase its standard of living so that more and more people have access to education, arts, science and classical music; which are tools through which they can contribute something better to the future of mankind without ever being bounded by intrinsic limits to growth.

[5] Why Canada Must Accept China’s Offer to Build the Bering Strait Rail Tunnel by Matthew Ehret-Kump, Canadian Patriot #13

[6] Which can be found at www.abctech.ca/Energy-Distribution