Showing posts with label neoliberalsim. Show all posts
Showing posts with label neoliberalsim. Show all posts

Wednesday, June 27, 2018

Neoliberal Friends With Benefits



Kinder Morgan couldn't have a better friend than Justin Trudeau:
Texas-based Kinder Morgan made a seven-fold return on the sale of its Trans Mountain pipeline system to Canada's federal government, according to a new report that also warns the federal budget deficit could jump by 36 per cent because of the purchase.

The project has an estimated $7.4 billion price tag, of which Kinder Morgan says it has already spent about $1 billion. But the IEEFA report estimates that the company has only put about $600 million into the project so far. It estimates the company will make a 637-per-cent gain on the $4.5-billion sale.

The federal government is on the hook for about $11.5 billion in costs, including both the purchase and the remaining cost of construction, the report estimates.

"This transaction and the cost of further planning and construction could add a $6.5 billion unplanned expenditure to Canada's budget during (fiscal year) 2019," the report stated. "This would increase Canada's projected deficit of $18.1 billion by 36 per cent. to $24.6 billion."
The magnitude of Liberal ineptitude is stunning:
"There is every indication that the Canadian government has bought the pipeline at a high price and is likely to resell it for far less than it will pay to build it," Tom Sanzillo, the institute's [Institute for Energy Economics and Financial Analysis] director of finance, said in a statement.

"Canada is weakening its finances by taking on unlimited costs to buy an unneeded pipeline with an uncertain future and giving an unusual profit to a U.S. company," he added.
But hey. That's what happens when you elect a neoliberal government. But Justin still has nice hair.

Tuesday, September 12, 2017

This Is Peerless!

The neoliberal agenda is in for a real takedown by Owen Jones here:

Tuesday, December 27, 2016

A Special Understanding



Under successive neoliberal administrations in both Canada and the U.S., it has long been demonstrated that those occupying the upper echelons of our fractured societies are granted a myriad of benefits, not the least of which seems to be a virtual moratorium on prosecutions when wrongdoing is uncovered and proven. The fact that no one went to jail over the 2008 financial meltdown is but the most egregious example. Indeed, such is their power and arrogance that corporate executives were given bonuses from the very bail-out money that taxpayers funded for those institutions and enterprises deemed "too big to fail." When there is punishment of any kind for malfeasance, it is usually just fines which the errant entity can then use as tax write-offs.

Although the strongest examples of special treatment can be found stateside, Canada has its own way of dealing with financial malfeasance that should anger all of us, reflective as it is of the neoliberalism that pervades our land.

Thanks to a joint investigation by The Toronto Star and The National Obsserver {a fine online newspaper that offers subscriptions and solicits donations to support its journalism), we have yet another example in the deeply offensive special treatment by Fintrac, Canada’s money laundering and terrorist financing enforcement agency, of a major Canadian bank.
Canada’s money-laundering agency is refusing to name the bank hit with an unprecedented penalty for failing to report a suspicious transaction and committing hundreds of other violations in its dealings with a controversial client. Details of the failures — including one the agency described as “very serious”...

For nearly two years, the bank failed to report a series of unusual transactions in its client’s account, despite news reports at the time revealing he was under criminal investigation in the U.S. The transactions included dozens of large cash deposits and hundreds of international transfers worth more than $12 million, reveal the newly-released documents.
Despite the fact that the law requires reporting of transaction amounting to 10,000 or more, from
early 2012 to the end of 2013, the unnamed bank processed 1,179 international electronic transfers of $10,000 or more from the mystery client, who used a “potential shell company” and operated out of an unnamed country associated with money laundering. It also accepted 45 cash deposits of $10,000 or more, all without ever reporting the transactions to Fintrac, Canada’s money laundering and terrorist financing enforcement agency, as required by law.
With some deductive sleuthing, the newspapers were able to determine that the individual involved in these transactions was
Manitoba online pharmacy entrepreneur Andrew Strempler, 42, who pleaded guilty to mail fraud charges in the U.S. after his shipments were found to contain counterfeit medication.
While Strembler served his time and was released in October of 2015, Fintrac has treated the bank, which, under existing law, it could name, to anonymity after levying a $1.15 million fine, certainly a modest penalty given what the law allows:
Anyone who knowingly fails to report a suspicious transaction to FINTRAC can face a $2 million fine and up to five years in prison, under Canadian legislation on money laundering and terrorism financing. The maximum administrative monetary penalty for the bank's hundreds of violations would have been $1.8 million, the documents said.
The original penalty was $1.5 million, but Fintrac reduced it after 'negotiating' with the bank, which argued that the harm done was minimal.

I beg to differ with its decision to protect a major bank's reputation. Flagrantly violating the law 1,225 times in this case is damaging both to confidence in our banking system annd deeply demoralizing to the average person's sense of fair play. As Christine Duhaime, a lawyer who specializes in anti-moneylaundering law says,
“Joe Average who is fined for any administrative infraction is not afforded secrecy in this way and the rules should apply to all Canadians, legal and natural personals, equally, from banks to Joe Average.”
Yet Fintrac somehow seems to feel that they have really brought down the hammer in this case:
Fintrac said Tuesday’s announcement is meant to deter others from failing to report.

But the bank’s name was not added to a list of violators published on the agency’s website. The home page shows the name of many smaller companies, such as jewelry stores, independent securities dealers and real estate brokerages.
Quite unapologetic, Fintrac, according to The Observer report, feels it has done exemplary work in this case:
FINTRAC said it was trying to be discreet.

“The process has concluded and FINTRAC exercised its discretion not to name the entity so that we could send a timely message of deterrence to the 31,000 businesses that are subject to the Proceeds of Crime, Money Laundering and Terrorism Financing Act”.
I'm afraid that the only message Fintrac has managed to convey is confirmation that there is indeed one law for the 'giants' who walk among us, and quite another for the rest of us. It is far past time that this special understanding (wink, wink, nudge, nudge) between certain societal segments and the massive insult to the rest of us ended.

Thursday, December 22, 2016

Guest Post: An Incompatible Marriage



In response to my post the other day featuring some stellar letters from Star readers on inequality, regular commentator Pamela MacNeil offered an insightful analysis of the fundamental incompatibility between democracy and neoliberalism. Here is that analysis:

Governments who value Democracy, Lorne, will govern in the interests of people according to democratic principles. They will also add legally or otherwise to their country's democracy. They will do this to make their democracy stronger and more accessible to their citizens. This is what Nation Building is all about. Creating The Charter of Rights and Freedoms is a good example of strengthening democracy while further entrenching Nation Building.

The stronger the legislative roots upon which Democracy rests, the freer the country.

The more a government seeks to create policy without a democratic process, the greater the chance of that government becoming authoritarian.

Our present government and our previous governments have embraced neoliberal policy domestically and globally. "Neoliberals require a strong state that uses its power to create and enforce markets and prop them up when they fail." Their vision is a state governed by market transactions and not democratic practices. This is what Canadians are now witnessing.

Neoliberalism came later to Canada than to the U.S. and Britain because of the re-election of Pierre Trudeau in 1980. How ironic that it should be his son who is continually promoting neoliberalism and has made it the fundamental driver of his domestic and global policies.

Neoliberalism breeds inequality. Most progressives would defend democracy as a basic right. In neoliberalism "financial markets survive existenial crises only through state bailouts."

The economic inequality can best be seen in the decline of union memberships, the decline in the share of middle class income and the rise in the share of income taken by the top 10%. The goal of neoliberalism is to chip away at union power until it no longer threatens the realization of the market state.

How unequal and insignificant does your government consider you to be, when they, without public consultation, take billions of your dollars to bail out the corporate and financial elite who were the cause of one of the most major financial crisis in history?

There is nothing more important then freedom, freedom ingrained in law. Without democracy there is no freedom. Our government, which has already severed ties with Canadians, is busy trying to find ways to circumvent our constitution or dismantle our democracy in order to implement their neoliberal policies.

Neoliberalism and Democracy cannot survive together. It will be one or the other and right now neoliberalism, at least in Canada, appears to be winning.

How relevant is our democracy to Canadians? The battle ahead is a battle of ideas. Freedom and democracy or Neoliberalism and Tyranny. Will Canadians fight to take their country back or will they do nothing?

The choice is ours, and our time is running out.