What about the CBC?

My Great Grandparents ca 1875

What About the CBC?

I don’t know all the details, but I do know that the CBC is suffering a deficit as a result of a loss of advertising revenue. The main reason—I’m told—is the recession and businesses’ need to cut costs. A request for a loan from the Canadian Government was turned down because—so a government spokesperson said—the CBC would then have loan payments to make on top of normal operating expenses and would therefore be hard-pressed to remain viable.

Chrysler and GM are suffering deficits because of lost sales resulting from their inability or unwillingness to compete with car manufacturers that produce better, more efficient and greener vehicles, plus the general malaise of the market. The government stands ready to extend money to them amounting to 21 times what the CBC was asking for—each.

If the car companies have to pay back the loans in future, does it stand to reason that these loan payments on top of their general expenses may make it difficult for them to remain viable?

Or is it that our government cares about the success of private corporations and does not care about the survival of a public corporation like the CBC? This would fit Conservative Party objectives, seems to me, except that the bailout of car companies falls so far short of another objective that it’s hard to see what conservative philosophy in this country is all about anymore. I think they used to call it “free enterprise,” a politic where government frees up entrepreneurship to act as the economic engine of the country, not interfering with the right to be profitable; not subsidizing it if it begins to fail.

I appreciate the CBC. For my money, it provides the best news and documentary coverage in the country and has the capability to act is a distinct national asset in many ways. It also provides commercial-free, informative radio, and I am one of those who will not listen to a radio station that bombards me with loud commercials, phone-in rant shows and country music. I appreciate intelligent radio: As it Happens, Ideas, Tapestry, etc. for which CBC is known.

Let your MP know that you want our government to support the continuation of a strong CBC.

copyright g.epp, 2009

Welcome to the next recession

Autumn that was

Who made this mess? (copyright reserved)


By George Epp

Are you puzzled by the current economic misery gripping people-with-money these days? Are you confused by the fact that—although the economic landscape in your neck of the woods appears much as it did yesterday—all the news on the international front is insisting that we’re in for difficult times?

In the most recent issue of The Christian Century (October 21, 2008) Economics teacher at Wheaton College, James Halteman, explains what has happened nationally in the US to cause this international economic influenza. In summary, US financial institutions have been selling bond issues backed by mortgages with sub-prime interest rates, which mortgage brokers have been peddling like magic hula hoops. Inevitably, buyers of homes with far-too-generous conditions have had to walk away from their purchases, flooding the market with unsaleable homes, driving down the values of real estate, subsequently driving down the value of the bond issues, decimating the cash flow through the various lending institutions, consequently making it nearly impossible for many developers, manufacturers and exporters/importers to do business. The resultant state of panic has decimated the value of stocks and bonds, and has resulted in widespread selling-out behaviour, the curtailing of consumer confidence and the long skid down the recession slope.

Halteman’s conclusion: “Regulation of the financial markets needs to be updated—something that has been hindered by an anti-regulatory political climate.” That may be the understatement of the week.

I was told yesterday about a well-to-do Christian who is in a blue funk these days because the economic collapse has cost him massively. One presumes that his investments have tanked and the loss is on paper and might be regained if he holds on for the long term. But I have to wonder: What is an active Christian doing in the stock market anyway? The poorly-regulated way in which those institutions function these days means that they are less about acquiring an interest in the economic engines of the country in order to further common goals, and more about getting rich through non-productive, speculative behaviour. Take derivatives, for instance, buying and selling of futures, etc. This behaviour wouldn’t be so reprehensible if it weren’t for the fact that it “bets” with the common currency that you and I depend on to feed our families and further worthwhile goals, like schools, hospitals, art galleries.

I read on my currency that it is the property of the people of Canada through the Bank of Canada. How is it that we allow the misuse of our common currency by shysters who demand the right to unregulated speculation with it?

It’s time for big changes. Halteman is right. Trouble is, we’ve just re-elected a government that is congenitally gun-shy when it comes to market regulation. Let’s see what this whole mess leads to; with any luck we’ll come out smarter on the other side.