Canada: Economic Statecraft Starts Here

Posted by David Jacobson
November 2, 2011
2011 U.S.-Canada Innovation Conference

I'm with Deputy Secretary of State Tom Nides here in Ottawa, where we are talking to entrepreneurs, university professors and government officials at a conference our embassy sponsored along with Canada2020 about enhancing the U.S.-Canada innovation climate to spur economic recovery and create jobs in the United States and Canada.

Canada is our largest economic partner -- one with whom we share a $1.1 trillion annual trade and investment relationship. Canada is also the best case for the U.S. to highlight the success of what Secretary of State Hillary Clinton calls "economic statecraft."

Secretary Clinton laid out her vision of "economic statecraft" last month in a speech at the New York Economic Club, where she underscored the need to elevate the role of economics and business in everything we do. In a message sent to all American diplomats, Secretary Clinton highlighted the importance of pursuing a North American competitiveness agenda. Secretary Clinton understands how business and diplomacy go hand-in-hand. She asked us to use diplomacy to strengthen our economy at home and to use economic tools to strengthen our diplomacy abroad.

We know that cross-border trade translates into economic growth and jobs. U.S.-Canada bilateral trade flows totaled $526 billion in 2010 -- up 21 percent from 2009. In order to continue to build on that success, the United States and Canada have committed to pursue an efficient and secure border infrastructure to facilitate the secure movement of people and goods. We also have pledged to break down regulatory barriers and foster alignment of future regulations without undermining the health or safety of our citizens.

Foreign investment is vital to U.S. and Canadian economic growth. Canada is one of the top investors in the United States with the stock of its foreign direct investment standing at $306 billion in 2010. Foreign direct investment in Canada has increased by 72 percent in the last decade. U.S. firms are responsible for half of that stock. The stock of U.S. foreign direct investment in Canada stood at $250 billion in 2010.

Cross-border investments have built the bedrock of our strong trade relationship. We want to create an open environment for investment, because when companies invest abroad, they export and import goods to their subsidiaries and create jobs in both countries. So we are doing everything we can to make it easier for businesses to invest in America. And we know Canada is also considering how to encourage greater flows of foreign investment.

We talked in Ottawa about the importance of fostering innovation across the border. I learned about C100 -- a group of Silicon Valley-based Canadians technology executives. They are experienced startup entrepreneurs and venture capital investors who use their experience, expertise and relationships to help mentor the next generation of innovative Canadian companies. We encourage this because some of these innovative Canadian companies will lead to growth and job creation in the United States. Efforts in one country lead to growth in the other.

North America is a place where economic statecraft has played out to the benefit of all parties. The last generation of statesmen had the vision to negotiate the North American Free Trade Agreement which eliminated most tariff barriers, fostered more efficient supply chains and supported unprecedented economic growth. NAFTA created the world's largest free trade area, which now links 450 million people producing $17 trillion worth of goods and services. Today's statesmen and visionaries need to be as bold and creative as the authors of NAFTA in their practice of economic statecraft. We need to think of ourselves as continental partners working together for shared success in a global marketplace.

Comments

Comments

John 1.
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Canada
November 4, 2011

John in Canada writes:

Economic state craft?

First you need the economics to craft. Today we don’t have that. Around the world we use a system that people do not understand. It is manmade, extremely predictable once you understand it. Yet most walk around as if the economics are some sort of magic, something beyond understanding - NOT SO.

Success today is built on debt, debt creates poverty, poverty destroys success - What can you craft with this except further misery, loss and failure? Forget about functioning governments, civil society, innovation, life or justice while we all ride this miserable beast. If there ever was a great whore of Babylon this is it and it lives beyond all political, philosophical or religious thinking. It has no borders and takes a hell of a lot more than it will ever give. It is not even alive.

If you don’t stand up and stare it in the face, call it out for what it is - How do you suppose to fix it or change it? Whatever you craft will become less and less.

The monetary system in the Americas was not our creation. We have accepted it and by accepting it; it has become our problem. It is not capitalist or communist or anything but a force of its own that infects everything.

Understand the mechanism behind the monetary system and you will understand fully why Wall Street, business, law, governments and most people operate the way they do and why we are getting screwed; even the so called wealthy.
Change the mechanism and…

I guarantee you Wall Street, corporations, governments, education, health care, law, entire nations will change overnight. No violence needed only a revolution of mind; we can even keep the money without the poison associated with it.

Every single dollar produced is debt - If I gave you 1 dollar and charged you interest on that dollar - you have to pay back that dollar and interest - if I am the only place to get that money - you become eternally indebt to me - this is the central bank or Federal Reserve's basic operation.

The national banks now take that debt money and every single debt dollar they take from the central bank or fed they turn into at least 19 more (much of it with no cash to represent it, just a printout on a piece of paper saying you have it.) If you could convert 5 dollars into 100 would you ever go broke? - Somehow the banks managed this incredible achievement - but somehow the low paid worker is supposed to pay off their debts? If the banks with such a sweet deal can go broke do you think nations, people, business large and small stand any chance? NO. No just court should hear any debt related matters.

On each of that 19 additional debt dollars produced (95 % of which has no physical representation) by the national banks; a huge amount of compound interest is applied - every corporation, investor, business, individual that borrows money is now indebted but the actual cash to pay that level of debt does not exist- societies have been convinced that debt is bad- every indebted party now acts in any way they can to stay out of or ahead of debt by hook, crook, scheme or scam. THIS IS THE LEADING CAUSE OF CORRUPTION in our lives. No amount of tax or laws will end this corruption until the source of the corruption is neutralized - things can and will only get worse. Think Enron was the only bad corp. - think again - we could not prosecute the levels of corruption out there right now. There is no will to even deal with it for the sake of the economy. If a pandemic struck - money would take precedence.

It's much like giving 20 starving people 1 piece of bread to live but demand that each pay a loaf back. This simple system is what fuels all of the wrong behavior from the smallest individual, governments, to the largest corporations and even the banks - this is why they lie about earnings, break laws, screw the environment, rob, cheat, steal and rip off (nickel and dime) employees and customers alike and on and on.

How can you ever get out of debt when the very system is designed to create debt? And everyone is brainwashed that debt is bad- what do you think a society that is underpinned with this sort of debauchery looks like? Look around -Think it's a just, fair, friendly or peaceful place? NO way - think maybe this system is the source of much of the nasty crap in our lives around the world.

This system is the greatest threat to Freedom, Health, business, innovation, education, national security, the sovereignty of nations and to global peace; our very existence is threatened. Right now if we had to construct something to save us as a species from total destruction but to construct it cost more than the money we have - we would allow ourselves to die - even the neanderthal had more sense and where are they?

John 2.
|
Canada
November 4, 2011

John in Canada writes:

(Part 2)

Start thinking and asking the right questions. How can anyone pay debt if the cash to pay that debt does not exist? Or only 5 cents exists for every 1 dollar of debt? You would have to take 5 cents from twenty people (more when you add the compound interest) to pay that 1 dollar in debt but what happens to the twenty people - they are broke and their debt bankrupts them and anything they own is forfeited. Not a lot of healthy customers to drive innovation with this model. Eventually this model feeds on itself and will leave nothing. It has done it many times before.

If everything is valued in money but that money does not exist; how much is everything really worth? Put it this way if everything that is valued in money is worth say 100 dollars but we have only 5 dollars available; how can it be valued more than the available object of valuation; in this example 5 dollars? It can't.

Something is only worth what someone will pay or can. If we have only 5 dollars in cash total in the world, then everything we value in money can there for only be worth 5 dollars not a hundred. Most of the money people think they have - they don’t and that’s why with economic crashes - even the wealthy can lose it all. The largest business can fall, any government can fall.

You can quickly understand why companies, governments and people do so much wrong for money - but it's not really the money that’s the problem; its debt. But the mechanisms of the money system we use tie the two together in a way again few understand. You can teach any monkey to pull a lever and make a machine work - but that monkey won't have a clue about how the machine functions. We have far too many monkeys pulling levers and few that understand the mechanism of the machine.

Understand that at the moment to be a success requires destroying a lot of people even nations. Our system is not designed for us to be all successful financially or it would die - it is however designed to make everyone indebted but then demands the debts be paid while denying most people success at the same time. Never mind the fact that the debts must be paid with something that is not there.

Given how national banks create and lend money - they are also the ones that are the gate keeper to cash- coincidentally the cash we need to pay the debts they make. The national banks are also creating far more debt than there is cash to pay that debt. What happens when they crimp the flow of cash? The debts cannot be paid - think that’s just - just a scam maybe.

Success however is not the problem. Wealth is not the problem, business, the poor - not the problem… - the problem is with the mechanics of the monetary system that drives wealth and success and coincidentally poverty and corruption. Debt is used like the whips from the slavers of old. The mechanism of the money system is no different than a slave system. Frankly I think the needs, wants and dreams of people are enough to drive innovation and growth - we don’t need whips of servitude, debt and corruption.

If the Americas want to do anything and survive, then changing this ungodly abomination is where it must begin. Change it in the right way and no one needs to lose anything. Change it in the right way and you will see the most thunderous change ever in human history not just in the Americas but everywhere. It is possible but it won't happen if the politicians, business and people won't face the truth.

Before economic state craft can have chance - we must first create the economics to craft. I'm not sure to many folks can craft such art at the moment- to many people have been told what to believe and what they believe is false.

Failure to deal with this will lead to a considerable amount of avoidable carnage in all our lives.

Even if we don’t change and refuse to see what needs changing this system will break in two. It cannot be avoided. Natural aspects of life will see to it. How much natural disaster, disease, social unrest do you think it will take to bankrupt this system and every nation with it? Talk about castles built on pillars of salt.

The Americas are uniquely placed in many ways to make this change happen. Publicly with what our governments are talking about; I'm not very hopeful. It's not easy to admit that you got it wrong but until we do - what we all need, will never come and what you don’t want will be shoveled in your face faster than you can deal with it.

There can be no solution to this until we face the problem - I'm not sure too many are willing to face this because change makes some feel they are going to lose something but when that something does not even exist what are you losing? The right change could only secure what you think you have but don’t.

Lets make the economics to craft first.

systems13
November 4, 2011

W.W. writes:

Economics Finance Bilderbergs :

Who keeps their sovereign from the lapse of error, in which, by ignorance and not by intent they might have fallen, what thank they deserve, we know, though you may guess. And as nothing is more dear to us than the loving conservation of our subjects' hearts, what an undeserved doubt might we have incurred if the abusers of our liberality, the thrallers of our people, the wringers of the poor, had not been told us

michael c.
|
Canada
December 4, 2011

Michael C. in Canada writes:

Canada: Economic Statecraft Starts Here...hummm,just reviewing this article about the Canadian-us trade and investments. Well i,m curious as to why this page dont mention that the trade between Canada and u.s. has weakened due to Canadian Govnerments menallity to shift it,s national concerns to the "New" economic power....China. Sad to say,but our economic strenght in comparison to the u.s. is because of Canadas "Stiff" banking regulations has not allowed are economy to stay in relative...stronger.

In general...both mentioned countries are really saying to both counties things they want us to believe.

Zharkov
|
United States
December 5, 2011

Zharkov in the U.S.A. writes:

It's not that they are ignorant, John, although not all of them know the game plan, it's more a case that they have an agenda and our prosperity isn't supposed to be on that list.

You preach to the choir. If they wanted prosperity and innovation, they would stop taxing prosperity and innovation.

They would restore the Glass-Steagall Act; and our currency would be backed by something more tangible than "faith and credit"; and they would ignore UN Agenda 21 because that Agenda is not in the national interest.

I think most of the world's problems have been caused by the Rockefeller Foundation and their more or less secret Council on Foreign Relations. They decided long ago to raise third world living standards by shipping factories to them and turning North America into low wage service economy. So we are all flipping hamburgers for each other in a zero-sum game of their choosing.

The CFR is a pyramid power structure and members at the bottom think they know the game but are as deceived as the public on that point. Those who have read all of their white papers, speeches, books, and articles, can put the puzzle together much better than even some of their members.

If you look deeply enough at the money issue you have mentioned, you will find a Rockefeller or their agent at the bottom of the barrel of bankers who turned our currency into unrepayable debt. The "Federal Reserve Note" is merely an IOU and the numbers on it mean nothing to them. That merchants still accept "dollars" for goods is a matter of mental inertia.

The cure is to get rid of CFR and Rockefeller influence in government by purging their agents and fan club members, and finding some Americans and Canadians who are loyal to our countries instead of the imaginary globalist utopia they call by various names, "New World Order", "Civil Society", "Global Community" or other CFR buzz words.

And as usual, the best replies I try to post will seldom go beyond this blog's censor, so if you read this, it will be a mild surprise to me.

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