Monday, July 18, 2011

Trilateral Treason?

ROSS GARNAUT….DAMNING QUESTIONS-FROM GLYN BAKER

Trilateral Treason?
According to the Australian Constitution, the federal government is required to act in Australia’s national interest, and is sworn to uphold our constitution.
However did the Rudd/Gillard Government act in the national interest, when it hired economics Professor Ross Garnaut, as our chief advisor on climate change?
Professor Garnaut, is currently a member of the Trilateral Commission, which is an international special interest group, that aims to:
“foster closer cooperation among the core industrialized areas of the world with shared leadership responsibilities in the wider international system”.
However members of the Trilateral Commission, are not permitted to hold public office, because of potential conflicting interests. As far as our national interest, it’s unconstitutional for the Gillard government to seek chief advice, from an ongoing member of an international special interest group (such as the Trilateral Commission).
How can Garnaut be expected to serve, both the national interests of the Australian government? And the international interests of the Trilateral Commission?
Aren’t they Mutually exclusive?
If this Carbon Tax is introduced, then the cost of living will go up, increasing inflation, and the value of commodities (such as gold). Professor Garnaut was the Chairman of mining company Lihir Gold for 15 years, until August 2010, when it merged with Newcrest Mining, creating the worlds fifth-largest gold producer. He is also a current director of “OK Tedi Mining Limited”. Could Garnaut’s climate change advice, and it’s affect on inflation and commodity prices, be a potential conflict of interest with his corporate mining interests?
According to Garnaut’s profile description as a Director of “OK Tedi Mining Limited”, it reads:
“was a key Finance Ministry advisor to the PNG Government in the 1970s, and has had a long association with Papua New Guinea. He is the chairman of OTML’s 52 per cent shareholder, the PNG Sustainable Development Program Limited, which was founded in 2002.”
Could Garnaut’s continued involvement in a PNG mining company, and his influence on a Carbon Tax, with it’s affect on inflation and our dollar’s exchange rate with PNG’s currency, a possible conflict of interest?
Between 1983 to 1985, Garnaut was the former chief economic advisor to the Labor Hawke Government, during one of the worst periods for the Australian economy. He advised during a time, when the currency was floated. But how could the Carbon Tax, affect our currency?
Well, if inflation goes up (due to the Carbon Tax), then the Reserve Bank of Australia will likely increase interest rates, slowing our economy, which reduces GDP, reducing government tax revenue, so the government borrows money to make up for the budget shortfall. It does this, by having the Treasury department, borrow currency (dollars) from the RBA, and then the Treasury department issues Bonds (which are IOU’s) onto the Bond market, to pay for the RBA’s currency. When the Treasury issues more Bonds like this, the government’s total deficit increases. With more debt, and a greater supply of Bonds on the market, the market may fear, that our government will not be able to meet it’s financial obligations, and pay the back the Bonds later.  This reduces market demand for the Bonds, potentially causing a Bond market to collapse, leading to a currency crisis for the Australian dollar, with hyper-inflation, rapidly devaluing our currency.
Australian citizens may then be influenced, to ditch the devalued Australian dollar, and adopt a regional currency (such an Asian equivalent of the Euro), causing Australia to lose it’s currency sovereignty. Does the Trilateral Commission (of which Garnaut is a member) have any intentions to promote the introduction of a regional currency in the future? If so, then is Garnaut’s influential advice on the Carbon Tax, and it’s possible devaluing of our currency, a potential conflict of interest?
Did you know that Garnaut was the Australian Ambassador to China in 1985?
But before taking on that role, while serving as the chief economic advisor to the Hawke Government, he advised during a time when trade barriers were removed, and Australia embarked on the Cairns Group of trade negotiations, that later became the Uruguay Round of the WTO.
Prior to that in 1972, Garnaut completed his PhD at ANU, on liberalising Australian trade with South East Asia. He was made a Professor at ANU in 1989, and penned the influential paper, “Australia and the Northeast Asian Ascendancy”, for Gareth Evans and Hawke in 1989, which predicted the Chinese boom (although not the Japanese bust).
So my question to the Rudd/Gillard Government is, did the government consider Garnaut’s historical and ongoing foreign interests, prior to his appointment to serve in our national interests?
And was Garnaut forthcoming, in divulging his international interests to the Rudd/Gillard Government, prior to taking on his present role, as their chief advisor on climate change?
So many questions
I’d like some answers!!!
Glyn Baker

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