Issue 45 Vol II, August 15, 2007

T H I S  O U R  C A N A D A

First Nations People Feel Betrayed

IT has taken two decades to draft a U.N. Declaration on the Rights of Indigenous Peoples. Canada is among the countries that have actively opposing the declaration. The declaration was to be finalised on Nov. 28, 2006 at the U.N. General Assembly but it was pushed to the "diplomatic ditch" by Canada, the United States and Australia. Other countries that refused to endorse the declaration included New Zealand, Colombia, Russia, Suriname, Guyana and a few African nations led by Namibia.

A recent National Aboriginal Day of Action in June highlighted Canada's First Nations frustrations with the federal government and their policymaking on reconciliation. Grand Chief Ed John from the First Nations Summit also said, "Today is a very sad day for the United Nations and a very serious setback for the integrity of the newly formed Human Rights Council, who urged the General Assembly to formally adopt this momentous document. It may be  that the United Nations never formally adopts the Declaration. This is a remarkable and bizarre development."

Those unwilling to sign on to the declaration have expressed strong reservations about parts of the text calling for recognition of the indigenous peoples' right to self-determination and control over their natural resources.

Chief Stewart Phillip, Grand Chief of the Union of British Columbia Indian Chiefs, fells, "Canada's position is terribly unfortunate. They have not supported this over the last 20-year period and it doesn't bode well for the genuine hope for reconciliation with aboriginal peoples."

"The [Stephen] Harper government has eroded the relationship between First Nations and the federal government. This government is opposed to doing anything associated with collective rights and has favoured individual rights. There has been no consultation with Canada's aboriginal community," he said. How sad indeed.

The Declaration on the Rights of Indigenous Peoples was to set guidelines for how the U.N. Declaration on Human Rights would apply specifically to indigenous communities within an international context.

In November 2006, the Indigenous Peoples' Caucus released a statement that read, "It is clear that these actions are a politicisation of human rights that show complete disregard for the ongoing human rights abuses suffered by Indigenous Peoples. This betrayal and injustice severely impacts 370 million Indigenous Peoples in all regions of the world, who are among the most marginalised and vulnerable..."

The Assembly of First Nations estimates that  there is a backlog of 800-1,000 unresolved claims within Canada's own federal specific claims process. These surely involve Canada's treaty obligations.  The total value of these unresolved claims ranges from 2.6 billion dollars to 6 billion dollars and it takes an average of 13 years to settle one claim under the current system.

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Glory of India Award for Dr Swaraj Singh

Doctor, writer and social activists Dr Swaraj Singh was recently honoured for his contribution in increasing understanding among people. While accepting one such honour in London, he spoke about international relations. He writes about this: “I was just in England to receive the Glory of India Award from the India International Friendship Society, who organized an Indo-British friendship banquet in the Crowne Plaza Hotel in central London on July 21, 2007. On East-West relations before an audience that included members of British Parliament. I said that the main problem between the relations in the last two centuries has been inequality. This has led to western arrogance and the eastern feeling of inferiority. These two problems have fed each other and made the situation worse.

“After the Industrial revolution, the West made tremendous progress in manufacturing and there has been an abundance of material goods. The material progress has not been matched by any spiritual growth or overall human development. The East always had an edge in these fields. The Indian subcontinent has been the main seat of eastern spirituality. From the Rig Veda, the first book ever written, to Siri Guru Granth Sahib, the peak of eastern spirituality, there has been 4,000 years of continuous evolution of spirituality and thought. Sikhism represents the zenith of eastern spirituality.

“The 21st century is going to be Asia’s Century. The manufacturing base has mostly shifted to Asia, particularly to China. China is going to emerge as the largest economy and India will become the second largest economy. The western-dominated unipolar world is going to be replaced by a multipolar world. The old relationship between the East and West cannot continue. It has to change to a relationship based upon equality.

“We need a balance between the material and spiritual aspects of life. The East and West can learn from each other. There should be no hesitation in learning from each other. Let good ideas come from anywhere. The East can learn from the scientific and technological advancements made by the West. It can also learn from the management skills. However, when it comes to spirituality and overall human development, the West should try to learn these from the East. The world can be a better place for everyone if we follow these principles.

“In spite of the tremendous material progress and the resulting super abundance of material goods and comforts, they have not made people more secure. Actually, the reverse has happened; people have become more fearful, anxious, and insecure. This has resulted in a tremendous increase in the incidence of depression. Millions of prescriptions for antidepressants were written last year in America, the leading western country.

“The Sikh religion is chronologically the last major religion of the world. This is the only major religion that came into existence after the industrial revolution in Europe and the capitalist mode of production had already come into existence. Fear, anxiety, and insecurity are the major problems facing mankind in the modern age. Siri Guru Granth Sahib, the holy book of the Sikhs, has addressed these problems more than any other religious book. The message of Siri Guru Granth Sahib is universal and is for the whole mankind.”

Meanwhile, in Vancouver, the Punjabi Sath (Literary Society) honored the Khalsa School Surrey for its contribution in the field of education and promoting healthy cultural values in the Punjabi community. The ceremony was held in the Gurudwara Sahib attached to the school. Dr. Raghbir Sngh Bains, a prominent scholar, pleaded against drugs and addictions.

Dr. Sawraj Singh, who is in charge of the American unit of the Punjabi Sath, said that the  Sath is trying to protect Punjabi culture, heritage, and value system from the attack of globalization. He said that the present globalization lacks a global perspective and an ethical aspect, and is promoting arrogance, selfishness, and greed. It is also endangering the cultural diversity. The Punjabi Sath believes that Siri Guru Granth Sahib can impart a global perspective and an ethical aspect to the present globalization and also provide an alternate model of development for the world.

Mr. Mota Singh Sarai, who is in charge of the European unit of the Punjabi Sath, discussed the history and activities of the Punjabi Sath. Mrs. Mohanjit Kaur, a member of the Khalsa school board, received the award on behalf of the school. Mr. Jasbir Singh Bhatia, the principal of the school, thanked the Punjabi Sath for honoring the school and shared the plans and activities of the school.

[Sawraj Singh, MD F.I.C.S. is Chairman, Washington State Network for Human Rights.]

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Is the U.S. heading towards another depression?
Khushwant Toor

STOCK markets across the world have had jitters in the past couple of weeks. The free fall in the U.S. housing market is the trigger behind these shock waves. The U.S. housing market is in its worst recession since 1991, and analysts predict it's only just the beginning and as a result the US economy is in danger of a recession that will prove unusually long and severe. Its impact would be felt across the countries. India is experiencing something like that. Last week, just in one day, five major industrial houses lost nearly two billion dollars at the stocks.

The number of existing homes for sale is at its highest in relation to sales in 15 years, according to the U.S. National Association of Realtors.  House prices in the U.S. are already falling, while lending standards are tightening. This has resulted in mass foreclosures across almost all the states in the U.S.

One wonders what really happened during the housing boom. In the U.S. homeownership has increased by 5 percent during the last 5 boom years and is now at a record high of 70 percent. Historically low interest rates were the driving factors to increase homeownership percentages and to inflate the house prices. Due to low interest rates everyone seemed to be affording a house without considering what happens when the interest rates go up. Lenders wanted to move their money and made it almost impossible for a potential homebuyer to get turned down for a mortgage.

Suddenly, borrowers with questionable credit, who would have never been able to get a loan ten years ago, were getting mortgages without breaking a sweat. According to Merrill Lynch, 43 percent of the people who bought a home in 2005 (during the end of the boom) put no money down. In 2003, it was only 28 percent. In the 90s, it pretty much didn't happen.

There is no doubt that easy credit made the dream of homeownership possible. This easy credit, however, also contributed to the housing bubble and now the rising interest rates are currently contributing to recent increases in foreclosure activity. When rates go from 5% to 7%, that's a 40% increase in the amount of interest a buyer has to pay. House prices must drop proportionately to compensate. For example, if interest rates are 5%, then $1000 per month ($12,000 per year) pays for an interest-only loan of $240,000. If interest rates rise to 7%, then that same $1000 per month pays for an interest-only loan of only $171,428.

Industry sources like the Mortgage Bankers Association (MBA) suggest foreclosure activity in the past decade is running at a rate ten percent higher than at any other time over the past 50 years. The increase has been a wake-up call to the industry, and has led more than 90 lenders (with more expected to follow) to file bankruptcy. Some of the largest lenders are also tightening their lending standards and cutting back on the number of sub-prime loans offered.

Although the estimates differ in numbers a moderate estimate is that 2.2 million sub-prime loans will end in foreclosure in the coming years. The cost of these foreclosures to homeowners will be around $164 billion. States like California, Nevada, Florida, and Michigan are expected to get bit the hardest, but no state is exempt in the projections. The latest figures show that there is one foreclosure filing for every 656 households. That number is up almost 100 percent over last year.

The effect that these mass foreclosures will have on the U.S. housing market will be a negative one. The surge in foreclosures will cause home prices to drop which could even devastate entire communities. It's estimated that homes in neighborhoods with high rates of foreclosure could expect a 10% decrease in property values from these foreclosures alone. Sales volume has fallen 40% in the last year alone.

Why the problems with easy credit weren't recognized and addressed sooner? There are actually several different reasons: 1) Mortgage lenders and investors were making money, 2) Borrowers weren't complaining and 3) Rising home values masked the problem, allowing people to refinance or sell before foreclosure became an issue. At some places house prices jumped up to $5000.00 a night. House prices are still far beyond any historically known relationship to rents or salaries.

Situation in the U.S. is becoming similar to that of Japan. The housing bubble busted in Japan almost over a decade ago but hasn't stopped prices from falling for 14 years straight. Prices in Japan are now at the same level they were 23 years ago. In Japan the escalation occurred between 1986 and 1991, and showed no signs of stopping-until 1992 when home prices began to fall to pre-boom levels. The average decline in median homes prices was 40 percent between 1992 and 1997. Japans biggest cities saw declines of 65 percent, and some areas like Tokyo, were devastated by depreciation rates of 80 percent.

However, conservative analysts in the U.S. are predicting a 20% decline in median single-family house prices nationwide. Housing market in the U.S. presently is over 5 trillion dollars. 20% decline means taking away at least 1 trillion dollars from the homeowners dream equity. This may not topple the U.S. economy; however, certainly is a recipe for another great depression for the homeowners.

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