A statement of principle

Ellen Gould points out the Cons' track record in office of pushing for financial deregulation in Canada and around the world. And what's perhaps most striking is the gap between the Cons' newly-made claim to have recognized the risks of unfettered trade in derivatives as early as last year, and their participation in efforts to promote those same derivatives and other financial services globally:

While successive Canadian governments have been strong advocates of financial liberalization, the unfolding financial crisis might have suggested now is the time to show a little caution and back off these WTO negotiating demands. Yet a WTO submission from Canada dated Dec. 5, 2007, berates other WTO members for their lack of "ambition" in the financial services negotiations. On behalf of the co-sponsors of the submission, Canada claimed: "further liberalization of financial services will help promote economic growth and improved standards of living for all WTO Members…"

It makes one wonder. Just how bad would things have to get before the Harper government realizes further liberalizing the world's financial markets is not such a great idea?

Keep in mind that by the time the WTO position was issued, not only was the U.S.' housing bubble readily apparent, but Canada itself had already experienced a well-publicized breakdown based on asset-backed commercial paper. Yet that didn't stop the Harper Cons from demanding that the WTO open the door to far more risk associated with financial derivatives, in a move which would seem to have had the potential to prevent Canada from acting to ensure exactly the financial stability which the Cons now take credit for.

Fortunately, the Cons' international push doesn't seem to have gotten anywhere. But it surely serves as an indication that the Cons' long-term intentions are far out of line with what's best for Canadians whose savings are already suffering from a misplaced belief in unfettered financial markets.