BIODIVERSITY CONSERVATION INITIATIVES

BIODIVERSITY CONSERVATION INITIATIVES

Erle Frayne D. Argonza

11 developing countries, including emerging markets, have just taken off with their respective programs as impetus for biodiversity conservation.

It has been a daunting task, since the advent of modernity, to return to biodiversity in farming practices. Modern food production celebrated the specialized land-use and high-yield mono-crop varieties at the expense of natural soil fertility offered by biodiversity.

A return to time-honored traditional practices in farming and eco-management is today’s sine qua non to effective environmental balancing acts. Incidentally, there are models around the world to emulate concerning biodiversity in food production.

Below is a report on the joint initiative of Japan and the UNDP concerning biodiversity conservation.

[Philippines, 10 July 2011]

http://www.beta.undp.org/undp/en/home/presscenter/pressreleases/2011/06/27/japan-undp-team-up-for-local-biodiversity-conservation.html

Japan, UNDP team up for local biodiversity conservation

27 June 2011

Communities in 11 countries in Asia, Africa, Latin America, the Caribbean and Eastern Europe are to receive small grants to put into practice biodiversity-friendly natural resource management and farming systems.

Rural communities in Brazil, Cambodia, Ethiopia, Ghana, Grenada, Fiji, India, Malawi, Nepal, Slovakia and Turkey will recapture and apply time-honoured agro-ecological practices, learn new techniques and exchange knowledge on traditional farming systems and the conservation of biodiversity and natural resources.

The Satoyama Initiative, adopted at the 10th Conference of the Parties to the Convention on Biological Diversity (CBD), is named after the traditional landscape resulting from application of a suite of traditional, sustainable resource management practices perfected over centuries by communities in Japan. This mosaic of mixed forests, rice paddies, upland rice fields, grasslands, streams and ponds is called “satoyama”. The variety of habitats ensures higher numbers of species, and the farming systems themselves conserve crop diversity, water and soil fertility, while stabilizing income and food security.

Today, the Government of Japan and UNDP launched the partnership agreement to promote the Satoyama vision and practices in selected countries.

“Working in 176 countries and territories, we learned that local communities have developed often unique ways of farming and use of resources that provide food and livelihood without damaging the environment,” said Helen Clark, UNDP Administrator.

“We’re grateful to the Government of Japan for their continued support to the interlinked challenges of poverty, biodiversity, and climate change at the time of their own recovery from the devastating tsunami.”

This five-year partnership programme for Satoyama Initiative provides US$2 million through the Convention’s Japan Biodiversity Fund to support communities during the first year to implement best practices and share knowledge.

“Japan recognizes the significance of local knowledge for resource management and farming in the international effort to ensure environmental sustainability. This collaboration is the flagship programme of the International Partnership for the Satoyama Initiative,” said Ryu Matsumoto, Minister of Environment of Japan.

Small grants for community-based projects will be disbursed through the Global Environment Facility Small Grants Programme and other UNDP-supported small grants schemes.

The CBD Secretariat will work with UNDP to analyze the impacts of Satoyama activities and use this knowledge to feed the current international policy debate with respect to the Biodiversity Convention. UNDP, with the United Nations University, will use the lessons from this programme to replicate and upscale successful experiences to other communities around the world.

Prior to collaborating on the Satoyama Initiative, Japan and UNDP have partnered on a number of initiatives, for example, the Africa Adaptation Programme, which supports 20 African countries to adapt to climate change and embark on low-emission, climate-resilient development paths.

UNDP will continue to advocate the use of sustainability strategies in the fight against biodiversity loss, climate change and poverty at next year’s major international conferences, including Rio+20, to be held in Brazil in June and Biodiversity COP11 in India.

Contact Information

Stanislav Saling
stanislav.saling@undp.org
+1 212 9065296

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CHINA BULLIES NEIGHBORS OVER DISPUTED TERRITORY

CHINA BULLIES NEIGHBORS OVER DISPUTED TERRITORY

Erle Frayne D. Argonza

Good afternoon to fellow global citizens!

East Asia has been hit with the fever of the ‘China syndrome’ symptomatic of a giant that is just awakening. Vietnam, Philippines, Taiwan, Japan were the specific neighbors that complained about Chinese forces’ incursion into their claimed island territories.

China’s bullying of its neighbors is symptomatic indeed of a growing malaise in the awakening giant. Too far yet is that stage when China will become a wealthy over-developed economy, yet its state players have begun to flex muscles that are arrogant displays of colossal military might.

With a population of 1.5 Billion and a navy that is now on transition to a ‘blue water navy’ (capable of maneuvering in oceans past its water territories), the flexing of military muscles over disputed islands proves to be bothersome behavior for its neighbors. Southeast Asians built their mutual trust and esteem through cooperation and consensus for many decades, so that Chinese intrusive behavior just resonate with that built-in synergy among them.

So arrogant were the Chinese state players, particularly the chiefs of defense and diplomacy, that they lectured their neighbors with pontifications about territorial integrity and diplomacy, with the presumption of course that their neighbors were barbarians who lacked the savvy for understanding questions of ethical and political propriety.

For some time now, this analyst openly expressed his stand for a stronger ASEAN, precisely because a unified region comprising of small states can stand up to big neighbors such as India and China in case that the latter will bully their way to success. ASEAN was in ancient times the averred and esteemed Majapahit Empire, and it is time to reconstruct that ‘empire of the Sun’ that was the world’s wealthiest during its peak.

Within the frame of ASEAN military arrangement, an ASEAN-wide military which will have a command structure of its own distinct from the national armed forces of constituent nations, will prove to be very instrumental in securing the region against economic & military giants of the planet.

Meantime, the Asian countries bullied by China should become more assertive of their rights to their clamed territories by maximizing on the use of diplomacy and institutional channels such as the United Nations and attached agencies. Regional issues such as the present territorial disputes involving China should be converted to global issues so that the entire humanity will be involved in judging errant nations and making them tow the line of international law.

[Philippines, 13 June 2011]

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CHRYSANTHEMUM: JAPAN’S HUMAN FACE POST-CATASTROPHE

Erle Frayne D. Argonza

Good evening from the suburbs west of Manila!

Japan has begun to go back to normal life weeks after the catastrophe of quake-tsunami-nuke crash triad slammed Honshu and broke the hearts of Amaterasu’s scions. Amid the colossal maelstrom and seemingly ceaseless damages wrought, we observed the calm and sobriety displayed by the Japanese, a behavior that was exemplary to say the least.

We outsider-sympathizers were indubitably impressed, more so as nary a rampant looting was exhibited at all as the catastrophe was building up and damages kept on accumulating. Let me say this myself: kudos to you Japanese people for your calm and indomitable courage amidst deep troubles!

Let me call the aspect of Japanese behavior exhibited amid maelstroms as the ‘chrysanthemum complex’. By ‘complex’ we refer to the sociological term for an agglomeration of traits that would constitute a coherent behavior pattern. ‘Chrysanthemum’ is an excellent signifier for that exemplary side of the Japanese culture template that was responsible for the calm, absence of massive looting, cooperation, synergy.

The question is: do Japanese exhibit such behavior at all times, across diverse historic epochs? Or, is it a behavioral complex that had evolved across time, reinforced by a post-war pacifism that sedated the future generations to never again engage in demonic holocausts that the Emperor’s militaristic followers unleashed on Asians and Pacific islanders?

A follow up question is: can the ‘chrysanthemum complex’ be exhibited if the catastrophic events would happen on a relentless, sustained basis for a certain period of time? This question arises, as the latest catastrophe was only a short-term one, though there are still aftershocks past the Reichter 6 magnitude till these days.

Let me sum up the guide question as follows: is the ‘chrysanthemum complex’ a conjunctural manifestation (valid only during a very short-term crisis) or a historical complex (sustainable even under extreme collective duress or force majeure)? Conjunctural stresses on the ‘synchronicity’ principle behind the phenomenon, while historical stresses the ‘causality’ principle across a time continuum.

This is my own note for our fellow global citizens: let us not be over-conclusive about the ‘chrysanthemum complex’. Let us go on and express platitudes to the highest heavens, thanking the Japanese profusely for the exemplary behavior exhibited amid the catastrophe. But we can and should never be totally inferential to the point that we would regard the short-term behavior complex as a permanent one.

There is another facet to Japanese cultural complex, and I will treat this in another digest article. Meantime, like the rest of the global citizens, let me bask in the regenerative energies radiated to the planet by the ‘chrysanthemum complex’.

[Philippines, 02 April 2011]

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9/11 PLUS JAPAN QUAKE DATES EQUALS 12-21-2012

Erle Frayne D. Argonza

Good day from this enthused social analyst and self-development guru!

Just about a week ago, my wiz-kid nephew Dean Patick Delago, an accounting student who’s among the topguns of his batch, alerted me to the dates of 9/11 (9-11-2001) and the Japan quake cum tsunami (3-10-2011), with the intriguing conclusion that when added yields the following sum:

9/11 Crash-Bombing of WT Ctr: 9-11-2001
+
Japan Quake cum Tsunami: 3-10-2011
TOTAL: 12-21-2012

That’s the Mayan Calendar date for the end of the present cycle of history! What an intriguing, provocative finding, a conclusion that surely jibes with my own thesis that both events were pre-meditated attacks by rouge forces connected with the global elites.

For those unfamiliar with the ruling class, the elites go by the names of Military-Industrial Complex, New World Order or NWO, and Committee of 300 or C300. The elites’ calumny and abominable plans of sustained anarchy through wars and destructive engagements was exposed by John Coleman, former British MI6 spy, in his book Conspirators’ Hierarchy: Committee of 300. Former US president Eisenhower and sociologist C. Wright Mills did their exposes of the Military-Industrial Complex decades earlier.

To go back to my earlier writings: First, the New York twin-tower attack was hatched by rouge forces within the USA, who sowed terror by using Manchurian Candidates or MCs (chipped human semi-robots). Second, the Japan quake cum tsunami was hatched by global elites on the Western hemisphere, and used a US navy unit to strike Honshu with the Tesla Earthquake Machine or TEM (a similar US navy unit was utilized for the secretive Philadelphia Project).

The total 12-21-2012 reveals that both events—9/11 and Japan Quake—were (a) well planned by echelon rouge forces as (b) most impact-full major events in coherence with (c) a very long-term plan to sow global terror and psychic state of surrender through destructive means such as terror attacks and WMD or weapons of mass destruction. That means the global elites are sending a message to the world population that they are calling the shots in the planet, that peace will be had should people recognize their organized New World Order and its rules, that they are in control.

Among interesting finds are: (a) the WTC terror attack represents the Western hemisphere, while the Honshu attack (near Tokyo) represents the Eastern hemisphere; (b) New York is in the Atlantic Ocean side, while Honshu/Sendai is situated on the Pacific Ocean side; and, (c) both USA and Japan are like twin pillars of the global economy.

That means that when the twin towers in NY were attacked, we should have anticipated that another pillar of the global economy will be attacked. China was struck with Tesla a few years back, Indonesia was also struck hard (300,000 deaths due to the tsunami), and New Zealand was very recently attacked. But no, such countries weren’t symbolized by the 2nd tower in NY, as it was reserved for Japan.

The lingering question I ask is whether the Japan quake-tsunami attack was carried out by an existing unit in the US Navy, by tapping through the HAARP project based in Alaska, or by a US Navy unit in the mid-40s yet that had to travel through hyperspace to reach 2011 and strike genocidal hit on Honshu with the Tesla WMD before retreating back to the 1940s (time travel in other words). For if the 2nd thesis holds, than the planning for both events involved a far greater sophistication and complexity that boggle the mind.

What the events do show is that there may no longer be major events of a terribly psyche-shattering traumatizing nature outside of both events. That is, events carried out whose shock effects are of a traumatizing level to peoples of the world and not just to the Americans or Japanese.

To reecho, the use of Tesla attacks did terrible damages in China, Indonesia, and New Zealand. But of all events, it was the plane crash bombing attack on New York and the Tesla WMD strike on Honshu what were intended to be of the greatest symbolic significance.

There will be similar attacks again by the same rouge forces, which leaves us in suspense about what the next attack could be. So let’s await the next one, which could be just around the corner.

[Philippines, 28 March 2011]

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JAPAN GOLD RICH, POST-CATASTROPHE RECOVERY QUICK

Erle Frayne D. Argonza

Good afternoon from the Philippine highlands!

Japan did suffer miserably from the catastrophe of a double-whammy temblor cum tsunami that walloped it recently. Deaths are now in the thousands, damage to property at past $183 Billion or 3.6% of its $5 Trillion GDP, citizens’ morale is badly eroded (more so that nuke fallout is imminent, aftershocks that followed), and the graphic images of the tragically affected areas are surreal scary.

Naturally, people will opine that Japan’s economy will be recessionary this very year of 2011. Many overseas workers are now leaving Japan, and most likely won’t return there, adding salt to the wounds the Japanese economy had sustained. It’s a doomsday scenario that both layman and experts do picture right now. Little do people see the positive things that can happen a year after the catastrophe.

It seems that among topgun experts, only the former economic secretary, Cielito Habito (who is now professor at the Ateneo University), sees the positive side to the catastrophe. He forecasts an infrastructure boom that will follow from the negative event, citing what happened to Japan after the powerful 1995 quake that flattened Kobe. Accordingly, Japan’s GDP rose by 3% after the Kobe quake, a good performance in a decade of near zero percent growth.

I do agree with Prof. Ciel Habito about the boom post-catastrophe scenario. True, there will be recession this year 2011, as it will take some time before the geological situation there will stabilize. And it will take some more months to craft a recovery program not just for the northeast Japan but for the entire nation. But next year will be a boom year, when the recovery program will already be in full effect.

What many people are least knowledgeable about is the fact that Japan is awash with gold. Even without external help, Japan will be able to quickly recover from the damaging impact of the catastrophe. But acts of goodwill, such as external aid offered, should never be underestimated or ignored, and most likely the Japanese will accept the boons coming from its friends and allies which will run by the billons of dollars.

The famed gold treasures of Japan were acquired by the Imperial government during World War II yet. Recall that Japanese forces scoured Asia for the treasures during the hot days of that war. The Imperial forces than hauled the huge cargoes of gold to its home base, the total volume of which could easily run by the millions of tons of gold bullions.

Due to incessant bombing operations by the Allied forces during the war, part of the gold was forced to be secreted inside underground bunkers in the Philippines. The Philippine gold cache was salivated upon by the West’s oligarchs, and they did what they can to unearth some of them. Dictator Marcos proved smarter than the others, even as he unearthed part of the gold and deposited them in the islands and overseas (via chain of foundations that were later dismantled, thus leaving no traces of the treasures).

Just the same, couples of million tons of the gold were able to reach Japan. That colossal hoard was partly responsible for the quick recovery of Japan after World War II. Your guess is as good as mine that part of the same hoard will be used for the quick recovery of Japan after the Reichter 9 temblor and tsunami.

So good are the Japanese engineers at tunneling and bunker construction, technologies that they perfected during the war yet. Their prowess dwarfs those of Hitler’s experts, and that prowess was used to build underground bunkers in Japan to secure the gold hoard. Between the islands of Honshu and Shikoku are tunnels that run through both land formations, deep down underground, safe from the prying eyes of would-be international looters such as cabal of financiers led by the Houses of Rothschild and Windsor.

Chances are that ready-made contingency bunkers are available to transfer the remaining hoard after the quake struck Honshu and moved it 2.5 meters away from its former location. More so that Japan’s secret service had unwind of the Tesla Earthquake Machine type of WMD (used by the rouge Aum cult to flatten Kobe), thus leading to the hatching of contingency plans in the event that hostile forces will pound Honshu or Shikoku with the same machine that could be tantamount to treasures lost forever.

Global observers should better get ready then for the sudden surge of Japan next year, or maybe as early as the latter part of this year. Part of the gold will be released surreptitiously to securitize big projects. For as long as the same hoard will remain in huge amounts, hostile forces should cease from plotting economically damaging catastrophes on the Japanese nation, as the treasures will be available to make its people rise like the phoenix.

[Philippines, 16 March 2011]

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JAPAN QUAKED ANEW BY TESLA WMD!

Erle Frayne D. Argonza


Good evening from the suburban highlands west of Manila!

The world community absorbed another wallop of shocker recently with the double whammy of quake cum tsunami that struck northeast Japan. So severe was the impact of the Reichter 9 quake and the tsunami that left thousands dead and thousands missing, while a nuke plant is being threatened by a meltdown. The usual naturalistic causal explanation was given out which is recycled hubris, given the existence of a quake-generating WMD today: the Tesla Earthquake Machine or TEM.

Japan’s double-whammy-complicated-by-threatening-nuke-fallout experience is no longer calamity in the typical description of the destruction. It was a CATASTROPHE, and let’s all brace for the impact of the next ones to come as there will be more coming. The Reichter 9 intensity quake was just too much to reckon with, and it came barely 16 years after another powerful quake flattened Kobe and led to thousands of dead too.

In an article I wrote much earlier, I already discussed the matter of the Tesla Earthquake Machine or TEM. This Weapon of Mass Destruction or WMD is far more powerful than nuke bombs that are mere boys’ scout toys compared to the former. It is compact and light, can be loaded on a large suitcase, and can be secreted through airports without being detected as WMD—because the broad public is simply ignorant about it.

Before Tesla’s death, he developed yet many a technological myriad based on experiments, couples of which were too advanced for his own time. Being so advanced, Tesla decided to keep the knowledge about them highly secret too, save for a few trusted persons and institutions (inclusive of the United States Defense community). One of such technologies was the quake-generating WMD, so threateningly powerful that it could have raised all of Tesla’s hairs during the dry run phase.

Incidentally, the principles behind those inventions were kept inside the Library of Congress. From there, it could have been inquired on by intelligence assets paid by the Soviet Union that surreptitiously developed the WMD prototype. With the demise of the USSR, many of its choice military technologies landed in the hands of the Russian mafia, the TEM being one of them.

Around the early 90s, certain rouge elements within Japan were able to acquire the TEM via Yakuza networks that got the prototype from Russian rouge elements & mafia. The same prototype was then secreted inside Australia and tested there, which explains quakes in places that didn’t traditionally experience the calamity…Then, in 1995, the Japanese rouge group Aum cult decidedly applied the tested technology on Kobe, hence flattening the city so severely.

Alarmed by the technology, the USA had to rapidly develop its equivalent of the WMD. This was conceived through a gargantuan project, the HAARP, which masquerades as a beneficial project for Americans. Housed in Alaska, the HAARP can generate powerful temblors, super-storms (Katrina was one of them), and thought-control commands on large populations (America’s urban habitués).

Remember that it was a secret unit of the US Navy that was used to hatch and hide the Philadelphia Project in the 1940s yet. A similar unit there is behind submarine hits to induce quakes using the nuke option first, and then finally the TEM-transducers of the HAARP. I have no doubt that the diabolical group behind this unit did the quaking of China, Indonesia (with tsunami effects), and New Zealand.

Such a diabolical group is the same cabal that is behind the neo-conservatives in the USA who envisioned a world in flames via the war plan they hatched and executed (Gulf War, Afghanistan War, Iraq War). The neo-cons were simply doing their tasks as dictated upon by the elite cabal, whose scary ‘pre-emptive strike’ doctrine could only but speak of the evil madness lurking in the shadows.

The hard question that is tough to crack is: why Japan? Wasn’t Kobe enough to fan hysteria on the islander populace? With Japan’s economy flat from ‘94 through 2004, and almost flat recently, it is all too certain that another recession will flatten Japan in the aftermath of the quaking madness. Isn’t the flattening a clear indication of the colossal level of hatred such a group has on the Japanese people?

I leave the questions to the readers for reflection and discussion. Let me now close this note, with the hope that global citizens’ empathy and prayers will work to hasten the healing for the victims of the catastrophe.

[Philippines, 15 March 2011]

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NEW ZEALAND QUAKE & TESLA EARTHQUAKE MACHINE

Erle Frayne D. Argonza


A quake of intensity Reichter 6+ struck New Zealand just recently. Scores of people were instantly killed by the catastrophe, with some couples of Filipino expatriate workers there missing or presumed dead. The quake was the 2nd in a row to strike the city of Christchurch, and that to me bodes ill of the times.

There seems to be a hyper-attenuation of tectonic attacks across the globe over the last two decades or so. If one were to graph them on a sheet of paper, you’d notice a pattern of geometric rise in the frequency and intensity of the quakes.

What makes the Zealand quake earth-shaking as a new fact is that it struck the same city for a 2nd time in a short time span. Thus, there’s no telling that a strong quake may strike the same city or region for a 3rd time, 4th time, and so on till infinity within short time spans till the region submerges beneath the waters.

Some opinion writers and analysts may conclude in rather haphazard fashion that the quake may have been a natural event all along. Haphazard indeed, as little do folks and experts know that a very deadly weapon of mass destruction—the Tesla Earthquake Machine or TEM—has been in operational use for two (2) decades now.

Just a few years back, a powerful quake hit China, resulting to massive deaths by the thousands. Towns vanished overnight, buried as they were by billions of tons of earth loosened by the quake. Chinese officials never spoke about the cause openly, but never take the Chinese experts as ignorant as rats, for they knew what struck China then.

It was the TEM that hit China, which was unleashed by a special military force from a Northern power. Remember that just days before the quake happened, the US Pentagon released information that China supposedly has been building submarine bases below the seas, which is a mere cover up for the real thing: US naval assets were testing submarine facilities on China.

Much earlier than the China quake, there was the Japan quake in the 90s. That big one flattened a major city there, and it was a classic TEM operation executed by Yakuza operators on the payroll of the Aum cult. The TEM could have been purchased from the Russian mafia via the global inter-syndicate crime networks. Needless to say, rouge elements in Japan possess the technology, passed on to them by rouge elements in Russia.

Alarmed about such a development, the Anglo-American oligarchy quickly directed its own defense establishments to accelerate the catching up process. The technology was to come under the disguise of a beneficial HAARP project that is based in Alaska. The frequencies from the HAARP can be used to control people’s minds, create super-storms (like Philippine’s typhoon Ondoy), induce super-quakes (Tesla effect like they did on China and Indonesia), and more.

Not only was China a favored guinea pig for the deadly weapon. Indonesia was already struck at least a couple of times using the same mad equipment, with 300,000 dead across couples of countries due to a tsunami coming as aftershock effect of a powerful quake on an island there.

Knowing such patterns of deadly attacks in the past can somehow provide as a tool to understand what happened to New Zealand. Australia’s quaking events in the near future, if ever, will suspiciously follow the same pattern as Indonesia’s and New Zealand’s, and better prepare yourselves for that eventuality.

The global elites—exemplified by Prince Charles—regard humans as viruses and/or ‘useless eaters’. Reducing the viruses via mad Malthusian means—from nuclear thermidore to TEM—is in the drawing board of the depopulation strategy of the evil elites, with end goal of taking down the present 7-billion population to a manageable two (2) billions by the year 2050.

[Philippines, 08 March 2011]

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WESTERN ECONOMIC SHRINKAGE A REALITY AS ASIA RISES

Erle Frayne D. Argonza


Magandang araw sa kapamilyang global! Good day to fellow global citizens!

For three decades already, I have been echoing a prognostication that was already current stock within sociology, about the ‘decline of the west’. Let me return to the same theme, as the rapid decline of the West and the fast rise of Asia is now a reality of the current historical juncture.

Just a couple of days ago, the Philippine Daily Inquirer’s or PDI’s opinion pages published an article by the past recent premier of the UK, Gordon Brown (PDI, 7 January 2011). Titled “Reviving the West,” it was a rather straightforward admission of the techno-economic decline that the West had undergone and the rapid ascent of Asia as the global economy’s growth driver.

As Brown succinctly stressed, “Time is running out of the West, because both Europe and the United States have yet to digest the fact that all the individual crises of the last few years—from the sub-prime crisis and the collapse of the Lehman Brothers to Greek austerity and Ireland’s near-bankruptcy—are symptoms of a bigger problem: a world undergoing a far-reaching, irreversible and, indeed, unprecedented restructuring of economic power.”

That was the former premier speaking, a technocrat and economic manager prior to his premier stint, so it does carry weight as much as those of the globe-trotting former US president Bill Clinton. Gordon went on to demonstrate his deep knowledge of the rising middle class consumers of Asia who altogether will make the greatest consumers the world over in the foreseeable future.

Said Gordon:

Of course, we all know of Asia’s rise, and that China exports more than America and soon will manufacture and invest more as well. But we have not fully come to terms with the sweep of history. Western economic dominance—10 percent of the world’s population producing a majority of the world’s exports and investment—is finished, never to return. After two centuries in which Europe and America monopolized global economic activity, the West is now being out-produced, out-manufactured, out-traded, and out-invested by the rest of the world.

That indubitably is an empirical substantiation of the thesis long held by Western social forecasters about the ‘decline of the West’. Oswald Spengler, Arnold Toynbee, Daniel Bell, Alvin Toffler, and John Naisbitt have churned out voluminous prognosis and forewarnings about the same thesis within a century’s span…and that thesis is now a reality.

In the middle and last portions of Brown’s article, he admonished Americans in particular to re-invent the ‘American dream’. The way to the revival of the West, with the USA showcasing the compass, is to re-structure the economy altogether. Accordingly, the nascence of over a billion middle class Asian consumers is a huge opportunity for America to re-invent itself and revive a strong economy.

Brown also forewarned America’s politicians, notably the Right, about criminalizing external forces, such as China’s currency, as culprits behind the decline of the US economy. Intervention measures such as currency wars are flawed, precisely because they fail to address the internal factors that are truly the causes of the economic decline.

To a great extent, I do agree with the evaluations and interventions of Brown. Fact is, I have already begun to echo the theme that America and Europe ought to reverse the policies of liberalization, privatization, and deregulation that led to de-industrialization, agricultural decay, infrastructure decay, and the rise of a ‘virtual economy’ based on predatory finance (vulture funds, derivatives or hedge funds). As I had been saying all along, the West should go back to the principles of the ‘real economy’ where wealth is produced from agriculture, manufacturing, infrastructures, transportation & communications, and science & technology.

As a matter of fact, I have been among Asian analysts and development practitioners who have urged the Americans to go back to the economics of New Deal propounded by the late Franklin Delano Roosevelt. Likewise should the tried & tested policies upheld by Alexander Hamilton, Abraham Lincoln, Frederick von List, and John F. Kennedy, policies that impelled the rise of the physical economy and brought bountiful prosperity to Americans (read: created a predominant middle class), be put to the fore in rebuilding America.

Gordon resonates somehow with the ‘physical economy’ framework, even as he heralded the need for a new Marshall Plan for the world. Accordingly, the Plan could help to recast the banking system that was dirtied by its engagements in speculative financing and contributed to creating financial bubbles. The Western peoples should better listen to him, more so the youth who will be tomorrow’s Western leaders.

Let me re-echo the same message I have been saying all along: that prosperity should be a win/win phenomenon. No one here in Asia would ever want the USA and Europe to go back to the era of ‘cave man’ economy of hunting & gathering. I’d be happier many more times if the West should re-invent itself, cease from playing the destructive game of win/lose logic in order to prosper, and move back to reconstruct its physical economy altogether.

Asian spiritual masters, who incidentally also discoursed on economic doctrines (i.e. Baha’ullah, Gandhi, Vivekananda, Sarkar, Sri Aurubindo), left us all the legacy of building prosperity through the way of peace, cooperation, and mutual-help. It’s time for the Western peoples to retool themselves, by throwing away the binary and destructive thought system they inherited from their forebears, and by learning from Asia’s spiritual and intellectual giants.

[Philippines, 09 January 2011]

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EUROPE & AMERICA ON DOWNWARD SLIDE TO 3RD WORLD ECONOMIES

Erle Frayne D. Argonza


Magandang gabi! Good evening!

It’s dusk time as I write, and this dusk at a time of intensifying monsoon rains seems to bode images of a grim future for the West at large. The European Union or EU members and the USA, the gigantic pillars of the global economy, are particularly in dire straits as they have entered the zone of flat growth and perpetual recession.

As already tackled by me in diverse articles, the East is surging forward bringing life to the global economy as a whole. In contrast, the West is spiraling downwards, and the strategies their stakeholders are putting into place to arrest the downslide are at best palliative. As the East continues to surge upward, the West continues to stagnate and decay.

After World War II, both Europe and America embarked on massive infrastructures and heated industrialization that saw both economies dominating the global economy’s wealth production. The result of that was an OECD producing 60% of Gross World Product or GWP for some decades (today that’s down to 40% of GWP and will still go down).

That was the situation back then. By the 1990s, the situation had been badly reversed as a result of liberal economic policies instituted in the previous decade (80s). The rise of a ‘virtual economy’ dominated by predatory finance was instrumental in the West’s massive de-industrialization, decay of relatively unattended infrastructures, decline in science & technology research, and neglect of the transport sector (only Japan & Germany were actively pursuing maglev railways).

By the early 1990s yet, certain experts among economists and sociologists in America began echoing alarming notes about the possible downslide of the USA into a 3rd world country should the economic decay, such as that of relatively unattended infrastructures, be allowed to continue till past 2010s.

In the late 1990s, my own circle of political economists in Manila (Sunday Kapihan/Independent Review) saw such a possibility ourselves as we consolidated the data made available to us thanks to the internet. By 1998 all fellows of our circle were convinced of the catastrophic direction that the USA and Europe were plunging themselves into, which could begin with a depression past 2005 and a thirdworldization by 2010s (both have been hit by recession this decade as a matter of fact).

When Katrina struck the USA and when those floods struck Europe just a few years back, and the same free market policies stubbornly remained in place, I knew the downslide would turn out to be irreversible. The fate of New Orleans, with its residents lining up for food akin to a depressed city, revealed an appallingly decayed 3rd world city inside the USA which, to my mind, is but a fractional tip of a gigantic iceberg that are America’s decaying cities on the way to 3rd world infamy.

If, for instance, just about 55% of the top 700 cities of the USA will be so badly decayed by 2015 and be declared as 3rd world or ‘developing cities’, then we know more or less that America had catastrophically seen its worst state. With 97% of U.S. population living in cities (urban), likewise will the whole of the USA be declared as a ‘developing economy’ as early as 2015.

That is, again, if the destructive ‘virtual economy’ policies will not be taken down and reversed sweepingly. As I’ve declared in previous articles before (when Obama was still campaigning for the presidency), America must quickly return to a New Deal-type policy regime: interventionist, with great stress on revivifying infrastructures, revitalizing transport R&D (railways, shipping, etc), upscaling science & technology investments (including rockets), returning heavy industries (revive steel and many dead manufactures), and ensuring agricultural productivity.

Europe is not far behind such near-catastrophic downslide of the USA, just to remind our friends in Europe and the globe. Decisively institute interventionist policies in the continent, regulate the financial-banking sectors (criminalize predatory finance), and revivify social policy that were hallmarks of a once strong and mighty European economy.

And there’s no better time to act then now. Failure to act soon, by stubbornly instituting the palliatives (e.g. bailing out failing big banks, semi-regulating stock exchange), will be the best sure-fire formula to see a rapid thirdworldization of the West.

Before long, some messianic mad leaders in both continents would be drum-beating their being “stubbed behind the back” and generate new Hitlers and Bonapartes in their backyards. Act now, Western peoples, to avoid this eventuality from ever taking place at all.

[Philippines, 21 July 2010]


[See: IKONOKLAST: http://erleargonza.blogspot.com,
UNLADTAU: http://unladtau.wordpress.com,
COSMICBUHAY: http://cosmicbuhay.blogspot.com,
BRIGHTWORLD: http://erlefraynebrightworld.wordpress.com, ARTBLOG: http://erleargonza.wordpress.com,
ARGONZAPOEM: http://argonzapoem.blogspot.com]

2009 ECONOMIC FORECASTS: DEPRESSION, INTERVENTIONISM, REVERSAL

Erle Frayne Argonza

Magandang hapon! Good afternoon!

2009 will be another bleak year economically, more so for the North (USA, EU, Japan are topmost). The recession that began with the subprime mortgage bubble burst in America in 07, will ensue with even mightier turbulence, as there are no coherent policy solutions of a strategic nature that can salve the economic ailment on a global scale.

As already articulated by this economist/analyst in various articles, the policy environment must be changed and regulatory mechanisms strengthened to immediately gain business confidence and reverse the tide of catastrophe. On the domestic front, the solution begins by following a New Deal type of policy set, which will bring back the fervor of production-driven growth and full employment. On the international/global front, a new financial architecture must be agreed upon via a global summit called for the purpose, akin to a New Bretton Woods.

The only intervention mechanisms we observe today are bailouts of failing financial and business institutions, which are toxically immoral as those criminal oligarchs are even rewarded for their sordid looting and corrupt practices. Only Russia and China have openly resorted to a New Deal type solution, in consonance with the practices of the late regime of Franklin Delano Roosevelt of the USA. As far as the international-global front is concerned, the concurrence of a new treaty that will resonate a new financial architecture is nowhere in sight.

In the absence of genuine solutions that can stabilize ailing economies on both the domestic and international fronts, the downward spirals will continue, until the economies of the North will hit rock bottom depression that will be worse than the one that crashed the USA, UK and Germany almost a century ago (USA, UK, Germany were then the world’s top industrial & military powers). In the absence of capital control policies up North, capital flight will ensue at dizzying speed, draining their respective countries of trillions of dollars and/or euros at levels far higher than the 2008 drain. The smart money that will sneak out will find better shelters in the South (emerging markets notably East Asia + India).

The possibility of North-based companies transferring their headquarters to the South is not entirely ruled out. The other option is for the corporate owners to transfer domicile from the North to the South, leaving their ailing mother companies in the hands of trusted stewards. The era of distance remote control-type management by corporate owners could very well begin this year, which will modify corporate governance by no small means.

The positive light for the global economy is that finally the corporate and state leaders will see light at the end of the tunnel and call for a global conference to carve out a new financial architecture. Laissez faire, a cadaver doctrine before the 2nd world war that was revived by the monetarists and greedy financiers, will finally lay to rest as it gives way to dirigist or interventionist economics. Stronger regulatory mechanisms may be charted this year too, at least on paper.

New Deal, Keynesian, and welfare state doctrines will be blended together to produce an eclectic admixture. Since New Deal has an international facet into it thus rendering it more comprehensive, as the late FDR cogitated the need for international cooperation and development for all countries to end all wars and foment lasting peace, this doctrine will more or less be followed. We will not be surprised if, after the Davos conference, the shape of the future will already be definitively of the New Deal type.

Conclusively, even if the Northern economies will flatten down to zero and/or negative growths, the downward spiral may stop by the last quarter of the year. The full effects of the intervention solutions won’t be felt this year though, as it will take some more years to get them to galvanize. So let us brace for more turbulent winds, while hoping that the storm would finally stop so we can enjoy a delightful holiday season comes December.

[26 January 2009, Quezon City, MetroManila]

WILL ZAIBATSU OFFENSIVE BE ACCOMPANIED BY NEW JAPANESE MILITARISM?

Bro. Erle Frayne Argonza

In a previous article, this writer articulated the success of the Japanese Zaibatsu offensive. As one ought to realize, the success of the Zaibatsu offensive came at the expense of other markets, notably the North’s. Intellectually bankrupt as they are, the policy makers and technocrats of the North never foresaw the catastrophic consequences of predatory policies more so those concerning finance that came from their Japanese partners.

Today, Zaibatsus are well prepositioned across the globe, and it doesn’t matter anymore whether their headquarters will still be based in Japan. They have already fanned out beyond their boundaries, thanks to gullible states and market players in host countries that aren’t equipped to read the psyche of their Japanese partners. Japanese market presenters carry the mien of humble partners who bow in deep respect before you during business meetings, so who could ever suspect the rather cold-blooded nature of such gestures.

What the world must observe with greater focus these days, when global fascism is rising, is the resurgence of Japanese militarism. It may come in the form of ultra-nationalism, or ultra-conservatism, and may have nothing of the ‘Hail Emperor’ mantra of the previous Empire. But seeing the rise of predatory Zaibatsus, focused observers can never miss out on the possibility that the economic offensive may be accompanied, at some juncture of global economic crisis, by a very resurgent militarism.

Japan was very badly isolated during and after the 2nd World War, and till the early 1970s its moves at extending cooperation came with enormous suspicion, more so from the Asians whose countries were “burned down to the ground” by invading Japanese military forces. There surely was a colossal repackaging of Japan’s image, from wartime arrogance to new era peace-loving and humble advocate. To prove their sincerity, they even crafted their new constitution such that offensive forces were banned and only defensive military forces allowed.

No one ever heard of Japan getting involved in the arms race for many decades, and till these days the mindsets of somnambulistic folks tend to regard the Japan of the present as the peacenik country of post-war yesteryears. Even my old folks, who suffered miserably from the cruelties of Japanese forces during the war, have come to forgive Japan, though they still harbor the pains during moments of reminiscing.

The peacenik image is a product of its own context, this one must be reminded about. Japan was in high growth for many decades, than it matured onwards till it reached consumer society proportions around the 1980s. Then came the ‘globalization’ voodoo economics, and the rest was history.

That was then. The situation now is different. The global economy is crashing down, the plunge still hasn’t ceased, and the EU-USA experts just couldn’t learn from Japan’s ‘bailout’ mistakes. As the economy falters, anxieties arise within a country, and tensions across borders will increase. Superstition and groupthought (fascism) are rising, and before long we will see the fireworks of another world war ensued in the hottest spots of the globe.

EU-USA (West) and Japan (East), which comprise the pillars of the global economy, are now on the decline. If we study the behavior of their peoples well, whenever they experience severe crises, they undertake wars as strategy to release or canalize collective anxieties. They identify a Bogey Man (e.g. Nazi’s identified the Jews, North Americans identified the Southern slave owners during the US civil war,…), and then transfer their internal anxieties and defects on the Bogey Man, and war ensues.

Such economic pillars just seem unable to manage their decline without taking down others. This is classic binary mindset, destructive and demonic. Such mindset is responsible for using nuclear arms, regarding the casualties on their perceived enemies thereafter as mere statistics. And East Asia better prepare for the eventuality that this mindset will become dominant again in Japan in the short run.

Demented minds in Japan have two (2) bogey men today: (a) North Koreans and (b) Chinese. As this is happening, events have already shown the preparedness of Japan to mobilize its troops for missions outside the borders (e.g. Iraq war). Japan also possesses the technical capabilities to produce weapons of mass destruction such as nukes and probably the Tesla Earthquake Machine or TEM.

Intelligence reports have it that Japan is capable of constructing WMDs and manufacturing new series military vehicles (e.g. aircraft carriers) in just less than a year upon call to action. We wouldn’t be surprised if we receive further intelligence information that such WMDs and vehicles are in fact already in place, needing supplementation in quantities and troop mobilizations.

It need not be overstressed that Zaibatsus are awash with money to fund militaristic or Banzai offensives for sustained periods. They already demonstrated this, during the Gulf War and Iraq War, when their coffers coughed up large sums by the tens of billions of dollars to pay the bills for the offensives while the USA provided the main attack hardware and human ‘warm bodies’ (like they were the Hessian Troops of the global
oligarchs).

If ever that the USA-EU would fall into a state of totalitarian governance (police state, fascism), and Japan would follow along that direction, then chances are high that the North Atlantic Alliance (USA-EU) and Japan would form a new Axis Powers alliance. The North Atlantic powers would constitute the Western flank, while Japan would comprise the Eastern flank of the alliance.

It will be déjà vu for sure. If indeed such is the direction. Peace advocates still have time to scuttle new treaties up north that could redound to concentrating enormous powers in central governments that are undisguised fascist police states. There is still time, but time is now short.

Before long, Japanese slogans of Banzai! will be heard again across the Pacific. Just by hearing it, or reading it on the papers and TV, many middle class Asians will die of heart attacks. Let us just hope that it will only be a slogan of marginalized mad people in Japan and nothing more.

[Writ 15 November 2008, Quezon City, MetroManila.]

ZAIBATSU GLOBALIZATION ‘VOODOO ECONOMICS’ BOWING OUT

Bro. Erle Frayne Argonza

Magandang hapon! Good afternoon!

Let me share to you at this moment some notes regarding the ‘globalization’ experiment and the flawed policies that sustained it. There has been much ballyhoo about the global economy’s integration, over the last three (3) decades, as having been carved out supposedly by the Anglo-Saxon policy architects, using Thatcher & Reagan as the face for the ‘neo-liberal’ policy regime they installed.

Little do peoples across the globe, including experts who are so mired in their own parochial perspectives, know that the liberalization of country economies has a great deal to do with the Zaibatsu offensive. The West should better accept the facts: that their technocrats and policy shapers have run out of fresh ideas since the 1970s onwards (i.e. mentally bankrupt), a gap that they filled up by looking up to Japan and the NICs (newly industrializing countries) for copycat purposes.

Reaganomics, as neo-liberal policies of ‘privatization’ was dubbed (Thatcher of the UK preceded Reagan by a year), is as voodoo as one can get, seductive as any enchanting mantra-resonating principle can be, and was indeed potent in erasing the vestiges of the Regulated Economics doctrines that preceded the era. In the emerging markets, they were dubbed as ‘structural adjustment policies’ or SAPs, were imposed by the IMF-World Bank Group on debtor nations, and can be summed up as follows:

· Core principles: Privatization, Liberalization, Deregulation
· Subsidiary Principles: Tax reforms, trade liberalization, free floating exchange rates, diminished state subsidies for welfare, increased utility prices (revenue generation)
· Governance Principle: Decentralization (local government autonomy)

Such policy reform measures, as far as developing countries or DCs were concerned, came in as very harsh, cruel ‘austerity measures’ imposed by the IMF. We citizens from the ‘margins’ can never forget these measures, the pauperization that they effected, the dislocation of marginal producers, the decline of health services and rise of morbidity rates, and so on. In the Philippines, our very own capital goods industries were either delayed or un-implementable (such as integrated steel), as the money allocated for their purposes simply dried as dictated by the World Bank.

But there’s another set of policy architecture that wasn’t Anglo-Saxon, and didn’t receive their inspiration from the classicists (Smith, Ricardo) and the monetarists (Friedman, Hayek). This set of liberalization policies came from Zaibatsu country, and were crafted by Japanese technocrats. Not only policies, but also institutions were addressed by them, giving rise to the globalized economy that we have today.

Chief among those technocrats was Kenichi Ohmae, who in the 1980s was a think-tank executive. Further down the line were many other technocrats, who were organically linked to the Zaibatsus (landlord-industrialist-financier oligarchs), taking up cudgels for Ohmae.

Globalization, as one better realize, was never meant as any ‘win/win’ formula for nation-states in the arena of international trade as the liberal thinkers came to defend it later. It was outright a strategy to pre-position Zaibatsu corporate interests outside of Japan, notably the U.S. and European markets.

At that time of conceptualization, Zaibatsus have already efficaciously penetrated the Asian markets, and had leveraged their investments’ entry via aid and technical knowledge diffusion (including sponsoring Developing Country scholars in Japanese universities & special institutes). The old doctrine of ‘Asia Co-prosperity sphere’ was finally won, without firing a shot this time (unlike Imperial Japan era expansionism).

In the 1980s, the clamor for mooring investments and trade in the Western markets became ever stronger. The offensive tactic adapted was rather two-pronged, which made the new voodoo mantra even more potent:

· On the micro-level, permeate other markets with new concepts such as ‘Theory Z’ (decentralized authority, see W. Ouichi), total quality management or TQM, new tools for strategic planning, mergers and de-mergers. Till these days, the tools are considered sacrosanct in all sectors of society, including the Catholic Church that now uses ‘bottom-up’ planning added to strategic planning (my observations done in 2001-02 in a California diocese).

· On the macro-level, blend the Reagan-Thatcher ‘structural adjustments’ with the ‘globalization’ doctrine. The Zaibatsu technocrats fanned out across the globe, some of whom were positioned inside international bodies, and sweetened liberalization via a supposedly ‘win/win’ growth strategy for participating countries. This brilliant blending, which Western thinkers didn’t perceive at all as any subtle tactic by a predatory class (Zaibatsu), soon caught up fire and became buzz word for nigh three decades.

Before long, the Japan Inc. was being bandied across the globe as worth any country’s emulation. Southeast Asia and Korea went for it. Even the former presidents of the USA admired the Japanese Inc. doctrine of renewed private initiatives and shift from macro- to micro-economics as stabilization and growth measure. Bill Clinton of the USA spoke so fondly of ‘globalization’ like some captive fan of an economic icon, and moved to negotiate the NAFTA.

Little do unsuspecting, gullible peoples across the planet, more so the policy experts of the West, realize that the Japanese voodoo economics was largely intended to permit Zaibatsu investments to breed and morph inside their economies. Using merger and buy-in tactics, the Zaibatsu agents made it appear that their sponsors came in for benign purposes or so. If there is any group in the world today that is enjoying its last laugh, it is the Japanese militarists of the past, who finally saw the success of their nation’s offensives and the decline of the West via ‘organized chaos’.

Around 1994, the magic of the Japan Inc. began to cramble. Recession came, and before long many banks and investment houses were catching fire. That was the origin of the bankrupt and immoral Bush-Paulson ‘bailout’, which began with the ‘crisis management’ tactic in Japan to save ailing banks and financial institutions. Eventually, Zaibatsu technocrats were forced to revive the Western tool of ‘interest rates’ intervention, to the extent of bringing down interest rates to zero percent and sustaining it there for many years.

There also came that moment, in the late 1990s through 2006, when Zaibatsu financiers suddenly were so awash with funds (liquidities), at a time when Western economies reached low growths. The ‘yen initiative’ package was therefore conceptualized as another last-ditch voodoo tactic, which was implemented by loaning out large funds at zero or low interest, which Western financiers than re-loaned at profitable interest rates. Many such funds reached the USA& EU realty subprime mortgage markets, to recall. Again, note the seemingly benign nature of the financial gesture.

Just as when the realty markets were beginning to sneeze in America, the last voodoo measure was pulled out. The ‘crisis management’ was already folded up earlier, as Japan’s economic growth was propelled up anew by the Asian markets notably China’s. Just as when USA & EU needed the Zaibatsu loans very badly, and ditto for portfolio investments, they were pulled out, thus ensuring the crash of both economies.

Japananese voodoo economics is now bowing out, as the compass of policy initiatives at present is pointing to the reconstruction of macro-economic, New Deal type measures intended to attack problems both on short-term (bail out on productive sectors) and long-term basis (induce physical economy rather than predatory finance). But the withdrawal of the voodoo regime is not being done without witnessing its catastrophic results.

That’s surely tragic for the West or North. I wonder how Zaibatsus & technocrats perceive peoples outside their borders: whether they regard the latter as human beings worth co-partnering with, or as hungry lizards that must subsist on crumbs of investments & finance from Japan that have been buttressed by enormous tons of gold acquired through production and plunder of occupied lands, across the 2,000 years of Japan’s existence from kingdom to nation.

Honestly, I don’t know the answer. But if the Zaibatsus are receiving flaks from outside their borders, it wouldn’t be a surprise. There are no more borders for Zaibatsus by the way, just an entire planet with seamless web, cocooned in all corners by their corporate money.

[Writ 14 November 2008, Quezon City, MetroManila]

IMMORAL U.S. BAILOUT ECHOES JAPAN’S 1990s ‘CRISIS MANAGEMENT’ FLAWS

Bro. Erle Frayne Argonza

Magandang hapon! Good afternoon!

It’s been some couples of weeks now since the financial downspin in the USA took a further plunge as mega-banks sought help from federal government for rescue. The closure of the Lehman Brothers and the S.O.S. by other big banks that are now in the red rocked the global stock markets to a new round of instabilities and volatilities, even as the US economy is in danger of another Great Depression.

As I’ve already expressed in many articles of mine, the US financial collapse, an event that economists in many parts of the world forecast as early as the 1990s yet, is bound to happen, on account of many factors. The key factor, as this analyst and fellow ‘nationalist economists’ have been saying since 1998 yet (when I was actively involved with a group of economists in Manila called the Independent Review circle), is the widening gap between the (a) ‘virtual economy’ based on predatory finance that produces mere fictitious values and the (b) ‘real economy’ or ‘physical economy’ that produces real values.

The serial liberal economic reforms that began in 1971 yet, which saw the collapse of the gold standard and the dropping of fixed exchange rate (FER) in favor of ‘floating rate’, and onwards through the liberalization-privatization-deregulation-decentralization (structural adjustment policies or SAPs) of the 1980s, and onwards to the GATT-Uruguay Rounds that created the WTO in 1994, took its catastrophic toll on the economies of the planet, but most specially the USA’s.

The Nixon-era financial-monetary reforms and the Reaganomics (SAPs) were the policy culprits of America. They dealt the final death blows on the dirigist policies of New Deal, initiated by Franklin Roosevelt but which was inspired by dirigist policies of earlier luminaries (i.e. Alexander Hamilton, Abraham Lincoln, Friedrich von List), provided the impetus that created the strong, gigantic ‘physical economy’ of the country, and transformed it into a world power economically, politically and culturally. Without dirigist economics (interventionist) and the New Deal, Middle Class America wouldn’t have been possible. The neo-liberal reforms simply wiped out whatever was left of the New Deal by the 1980s, and with the liberalization of the financial –capital-monetary markets, the predatory financiers had their field day of looting the middle class purses under the rubric of portfolio capital and derivatives operations.

Had the US policy makers just labored a bit and assigned their staff to scour the world for some related experience of bank-financial collapse, their researchers could have easily ‘discovered’ the experiences of Japan in the 1990s. By the early 1980s, when Japan clearly demonstrated its sterling industrial and technological capabilities as the base for its wealth production, the Zaibatsus and the policy makers decided to go the liberalization way, confident as they were that the fruits of decades-old ‘physical economy’ build up can’t just be easily wiped out by predatory financier operators.

Japanese technocrats (both in Japan and overseas) also theorized that the key to producing a sound, healthy, mighty Japanese economy was in the realm of micro-economics more than public policy. Never mind if the policy environment will shift from the protectionist-dirigist policies of the post-war decades to liberal policies, provided that at the level of production and organization, capacity and internal potency can be demonstrated. The likes of William Ouichi’s ‘theory z’ comes to mind, or ideas that spawned strategies and tools dovetailing on quality control, team building, and decentralized operations. The world was so awe-inspired by the ‘Japan Incorporated’ model that was based precisely on the micro-economic route, and was extolling the Japanese corporate firm to the hilt as the new champion of the globalizing economy.

The USA that had demonstrated its strength on macro-economics—In the terrain of public policy—as the route to economic might, must have been seduced by the Japanese ideological onslaught at one point, that it so sonorously echoed the Japanese technocratic jargon of ‘globalization’. But when Japan’s financial system began to buckle down in 1994, which then impacted on the rest of the economic sectors, the US politicians and technocrats simply didn’t pay attention, fixated as they were to the seductive results of the ‘virtual economy’ (bubble operations) on the GDP of America.

To recall, Japan suffered miserably for the bailout mistake it pursued. Dabbed as ‘crisis management’, the state went on a binge of saving ailing banks and financial houses, the very same measures that the Bush-Paulson team is now embarking on. Alarmed at those events than in Japan, which led to a 10-year recession & almost zero growth, I began to raise howl about the ballooning portfolio investments in the Philippines by 94-95, and was among those experts who forewarned the state officials that Japan’s ‘crisis management’ was seriously flawed, was tantamount to giving incentives to looters instead of criminalizing, them, and should never be enforced in the Philippines or ASEAN in case that the portfolio bubble will burst in Manila and the region (the bubble burst in 1997).

To repeat: Japan suffered miserably from that fiasco. Recession howled like unstoppable forest fires for ten (10) years, and were it not for the high growth of East Asian markets, Japan couldn’t have risen back to appreciable growth by 2005. Interest rate was compelled to be brought down to zero percent, a precedent that many countries affected by financial meltdowns were aloof to emulating. Bankruptcies, corporate closures and downsizing led to dislocations and unemployment. For the first time in many decades, former decent Japanese executives and employees who lose their jobs and had their remaining mortgaged properties confiscated, were rendered homeless and starving, and forced to reside in the streets as paupers and vagabonds.

Sitting with my fellows in the Independent Review circle from 1997-onwards, we took turns in exposing the maladies of the neo-liberal reforms, spoke in diverse media (TV, radio) to forewarn the public of the imminent financial collapse in East Asia (the meltdown took place beginning in June of ’97), and by 98 were of the consensus that the USA was next in line for a meltdown of even catastrophic proportions than either Japan’s or South East Asia’s (97 meltdown). The very destructive effects of predatory finance saw the decline of industry (de-industrialization), agriculture (land use conversions, decay), infrastructures (some huge infra were even privatized), S & T (low priority in budgets & education), and transport & communications in the USA. If the neglect of the ‘physical economy’ will continue for another ten (10) years, it will be too late for salving the US economy as a whole. Any catastrophic bubble burst and financial-monetary meltdown could bring the economic house down, collapse consumption, and render the US economy much like unto a Latin American economy past 2010.

As I recall then, we experts from the Independent Review circle strongly opined that the ‘crisis management’ tactic was immoral and extremely perverted. How in the world could the state ever reward criminals at all? The bankers and financiers looted the Japanese purse by probably worth trillions of dollars, they should have been criminalized for their sordid crimes, and yet they were even rewarded! Unbelievable! This is one excellent narrative for the Ripley’s Believe It Or Not!

Fortunately for the Philippines, there was no large-scale bailout of any bank as a result of the 1997 Asian meltdown. Those realty and construction companies affected by the crisis, affected precisely because they over-exposed themselves to ‘hot money’ foreign portfolios that simply dried up as the same portfolios were pulled during the first month of the meltdown, were immediately able to cope up by retooling and re-engineering their strategies and tools. Interest rates were lowered, excess liquidities were flashed out in well managed manner that deserve our central bank accolades from the Bank of International Settlements. In less than a year after the meltdown began, we were back to consumption patterns like there was no recession at all. We didn’t take the Japan route, luckily. By 2001 and onwards our growth patterns were back to appreciable growth, and the local bourse moved up as well.

Today, all over the ASEAN + China-India-Korea (minus Japan), the Asian meltdown seems like an ancient event down memory lane as things have been moving fast. We just can’t believe that our mighty economic partner, the USA, didn’t learn its lessons from the 2001 recession there and from the flaws of the Japanese bailout. ‘Bailing out the rich’ isn’t the issue here, but rather ‘bailing out the criminals’ which is a gross disincentive for the legitimate SMEs and other market players that didn’t receive the same favor.

If we were to seriously search for appropriate short-term tactic for salving ailing financial institutions, the answer lies in a proven approach to corporate ailments: bankruptcy reorganization. The economists Robert Reich (former US secretary of Labor) and Lyndon LaRouche (Executive Intelligence Review) have been airing this solution very strongly, and I am myself bent on accepting this micro-economic short-term solution as an exemplar for the rest of the world. I would not be surprised if the eminent economists Joseph Stiglitz and Paul Krugman would air a similar advisory, and they should better air their counsel strongly.

The entire planet today is watching the horrific bailout in the USA, almost forgetting that this copycat bailout already flattened Japan for a decade at least before. Each one of us should look at our own backyards and make sure that our respective states won’t emulate the rather devious and insane bailout of Japan Incorporated and the Bush-Paulson team.

[Writ 04 October 2008, Quezon City, MetroManila.]

ASIA & PACIFIC UPDATES

Bro. Erle Frayne Argonza

Good morning from Manila!

Let’s see what we got across Asia and the Pacific recently, concerning development engagements, relief and humanitarian activities. Below are news captions about Australia, Bangladesh, Burma, China, India, Indonesia, Mongolia, Nepal, North Korea, Japan, and Sri Lanka.

[31 July 2008, Quezon City, MetroManila]

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Asia & Pacific


Australia

A draft blueprint of Australia's emissions trading scheme will include fuel, but is unlikely to recommend what the country's key emissions cap should be. The blueprint's government-backed architect, economist Ross Garnaut, is due July 4 to release a plan for how emissions trading could operate, likely suggesting that government force companies to bid for emissions permits at auction, a perceived failing of the EU scheme. But inflating already record-high petrol prices could fuel a backlash against the government's pledge to cut emissions with a trading system by 2010. (Reuters)

Bangladesh

Obtaining food remains the biggest priority for Bangladeshi families living in areas still devastated by Cyclone Sidr last year, the United Nations World Food Program (WFP) said July 1, announcing it will continue its aid operations to the affected region. The next major harvest in the delta country is not due until November or December, and many households lack sufficient food reserves to last until then, according to a press release issued by WFP. (UN News Service)

Burma

(Myanmar)At least 7,000 cyclone survivors sheltering in three temporary camps in Laputta town, in the Irrawaddy delta, are under renewed pressure from the local authorities to return home, according to sources there. About 10,000 refugees are still living in Laputta's five refugee camps, supported by local authorities and nongovernmental organizations. The 7,000 now urged to return to their home villages have been warned that unless they leave the camps they can expect no aid next month, said one local source. (ReliefWeb)

China

The UN expects China to be at the forefront of efforts to tackle the world's biggest challenges, such as the global food crisis, climate change and the quest to slash poverty, UN Secretary-General Ban Ki-moon said July 1, calling on the Asian nation to step up its contribution in international affairs. Addressing students at the Foreign Affairs University in Beijing, at the start of the second leg of his East Asian tour, Ban said China is already playing an important role as a permanent member of the Security Council and as a growing contributor to peacekeeping and the UN budget. (UN News Service)

IndiaT

he Jammu and Kashmir state government should protect Parvez Imroz, an award-winning human rights lawyer who survived an armed attack on June 30 in Srinagar by alleged security forces members, Human Rights Watch (HRW) said July 1. The state government and Human Rights Commission should launch an immediate and thorough investigation into the attack and take criminal action against those responsible. "All members of the security forces found responsible, no matter how far up the chain of command, should be prosecuted," said Meenakshi Ganguly, senior South Asia researcher at Human Rights Watch. (HRW)

Indonesia

Indonesia's anti-terrorism police unit has found assembled bombs and detained suspects during a raid on a house in Palembang in South Sumatra province, the national police spokesman said on June 2. The detentions came as President Susilo Bambang Yudhoyono was visiting the area in the west of Indonesia on Sumatra Island. Earlier, Metro Television reported that seven suspects had been detained, but a police source involved in the raids told Reuters that more than seven were being held. (Reuters)

Mongolia

The president of Mongolia has declared a four-day state of emergency in the capital amid violent protests over claims the general election was rigged. Crowds torched the HQ of Mongolia's governing party - the former Communists - and attacked a police station. Over 60 people were hurt - around half of them police - as officers used tear gas, rubber bullets and water cannon against stone-throwing protesters. The unrest went on into the night, with reports of bank robberies and looting. Rioters set fire to the Cultural Palace, home to a theater, museum and national art gallery in the capital, Ulan Bator. (BBC)

Nepal

Nepalese police have detained more than 40 Tibetan monks and nuns near the country's border with Tibet. The group was planning to protest at China's policies in their homeland. The demonstrators were halted several kilometers from the frontier after marching through the mountains from the Nepalese capital, Kathmandu. Tibetan exiles in Nepal have protested almost daily since China suppressed violent anti-government demonstrations in Tibet that broke out in March. (BBC)

North Korea

(DPRK)A new agreement between the UN World Food Program (WFP) and the Democratic People's Republic of Korea (DPRK) paves the way for the agency to step up its food assistance to more than five million hungry people in the country. The agreement, which was signed on June 27, was hailed by WFP as a significant breakthrough in its long-standing efforts to ensure that all those in need of food aid in the DPRK are able to receive it. (UN News Service)

Japan

UN Secretary-General Ban Ki-moon met Japanese leaders in Tokyo on June 30 and praised the "immense contribution" Japan has made to the work of the United Nations. Speaking to the press after meeting Prime Minister Yasuo Fukuda, Ban said that "Japan should be proud of being ‘a peace-fostering nation' and its commitment to multilateralism," Ban added. "The Japanese people should know how much Japan's global role is appreciated in the United Nations and worldwide." (UN News Service)

North Korea

(DPRK)The UN World Food Program, which has warned of a humanitarian crisis in North Korea due to a food shortage, said on June 30 it reached a deal with Pyongyang to rapidly expand aid, and that a US ship carrying wheat had arrived. Flooding last year, higher commodity prices and political wrangling with major donor South Korea have pushed North Korea to a food shortfall similar to ones it faced about a decade ago when famine killed an estimated 1 million people. The WFP said the agreement it reached with the North will allow it to expand its operation, previously aimed at feeding 1.2 million people, to feed more than 5 million in the country of about 23 million. (Financial Times, UK)

Sri Lanka

For thousands of Sri Lankans without easy access to potable water, a low-tech filter has provided them with a convenient source of safe water, saving on fuel costs and cutting disease. The water filter was first mass-produced in Nicaragua and used in emergency relief operations. It is essentially a clay pot fortified with ground paddy husk and coated with colloidal silver that strains out virtually all harmful bacteria and parasites. The American Red Cross (ARC) began production of the clay filter in Sri Lanka in January 2007 and has distributed some 10,000 units so far. (IRIN)