Oh Canada! Imposing Austerity on the World’s Most Resource-rich Country

Ellen Brown


Mining equipment sits unused in front of the Syncrude
oil sands extraction facility near Fort McMurray, Alta.
The oil sands are seen as a major driver to Canada's
economy despite claims extraction poisons the rivers
and air in northern Canada.
(Mark Ralston/AFP/Getty)

Even the world’s most resource-rich country has now been caught in the debt trap. Its once-proud government programs are being subjected to radical budget cuts—cuts that could have been avoided if the government had not quit borrowing from its own central bank in the 1970s.

Last week in Ottawa, the Canadian House of Commons passed the federal government’s latest round of budget cuts and austerity measures. Highlights included chopping 19,200 public sector jobs, cutting federal programs by $5.2 billion per year, and raising the retirement age for millions of Canadians from 65 to 67. The justification for the cuts was a massive federal debt that is now over C$ 581 billion, or 84% of GDP.

An online budget game furnished by the local newspaper the Globe and Mail gave readers a chance to try to balance the budget themselves. Possibilities included slashing transfer payments for elderly benefits, retirement programs, health benefits, and education; cutting funding for transportation, national defense, economic development and foreign aid; and raising taxes. An article on the same page said, “The government, in reality, doesn’t have that many tools at its disposal to close a large budgetary deficit. It can either raise taxes or cut departmental program spending.”

It seems that no gamer, lawmaker or otherwise, was offered the opportunity to toy with the number one line item in the budget: interest to creditors. A chart on the website of the Department of Finance Canada titled “Where Your Tax Dollar Goes” showed interest payments to be 15% of the budget—more than health care, social security, and other transfer payments combined. The page was dated 2006 and was last updated in 2008, but the percentages are presumably little different today.


US-led conference backs Syrian puppet group, threatens war

Niall Green

Meeting Sunday in the Turkish city of Istanbul, the so-called “Friends of Syria” conference stepped up the US-led campaign to destabilize and oust the government of Syria through a combination of diplomatic maneuvers and direct military interference.

Washington leads the group of 74 countries, with the aid of the European powers and the pro-US dictatorships of the Middle East. The conference took place as former United Nations Secretary General Kofi Annan heads a UN monitoring mission in Syria, with the stated goals of bringing about a ceasefire and opening dialogue between the government and the opposition. The Syrian regime has signed on to Annan’s peace talks, though the main US-backed opposition groups have refused to do so.

Opening proceedings Sunday, Turkish Prime Minister Recep Tayyip Erdogan made clear that the Annan mission is to be used by the “Friends of Syria” as a means to ratchet up tensions with the Assad regime and lay the groundwork for foreign military intervention.

“I need to state that if the Syrian regime does not cooperate [with Annan’s mission], it will be an inevitable requirement for the UN Security Council to fulfill its responsibility and put an end to the massacre in Syria,” Erdogan said. “If the UN Security Council avoids this historic responsibility once again, the international community will be left with no choice but to support the Syrian people’s right to self-defense.”

US Secretary of State Hillary Clinton struck a similar note in her address to the conference, telling delegates that the Syrian government of President Bashar al-Assad would not observe the conditions of Kofi Annan’s peace talks. “Nearly a week has gone by, and we have to conclude that the regime is adding to its long list of broken promises,” said Clinton. “The world must judge Assad by what he does, not what he says. And we cannot sit back and wait any longer.”

The US-led “Friends of Syria” coalition was established earlier this year in order to circumvent the United Nations Security Council, which had been unable to pass resolutions against the Assad government due to the vetoes cast by Russia and China, whose governments refused to sign off on Washington’s campaign for regime-change in Syria.


Bahrain: A Case Study in Despotism

Stephen Lendman

The contrast between Bahrain and Syria is stark. Assad's blamed for confronting months of Western-generated violence. He's obligated to restore security and calm. Most Syrians support him. They deplore raging killer gang terror. Nonetheless, Obama and other administration officials demand he step down. Under international law, including the UN Charter, no nation may interfere in the internal affairs of others. Washington does it as policy.

In summer 2010, sporadic protests began. By mid-February last year, major ones erupted. From then to now, they challenged repressive rule nonviolently. They continue daily. At issue is King Sheikh Hamad bin Isa Al-Khalifa's regime.

Bahrainis want democratic change, sectarian Shia discrimination ended, equitable distribution of state wealth, political prisoners released, and terrorizing stopped. They also want popularly elected leaders replacing Al-Khalifa rule. It's despotic, ruthless and intolerable.

For months, many thousands braved security force attacks with tear gas, beatings, rubber bullets, live fire, arrests, torture, and disappearances.

Last March, Saudi troops entered Bahrain guns blazing. They remain, terrorizing Bahraini men, women, children, doctors, journalists, human rights activists, and foreign observers. So do state police.

No matter. King Hamad's a close US ally. Bahrain's the home of America's Fifth Fleet. Generous aid's provided. So are weapons, including armored vehicles, bunker buster missiles, wire-guided ones, others to attack protesters, and more.


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