Issue 68 Vol III, July 31, 2008

T H I S  O U R  N OR T H  A M E R I C A

Bottomless, U.S. housing market
Khushwant Toor writes from Toronto

Foreclosure boards are cropping in large parts of the U.S. housing neighborhoods, as do the election campaign boards. At the moment, a bottom for the housing market slump is not visible, the International Monetary Fund (IMF) said in its Global Financial Stability Report, released last weak in Washington.

The month of May recorded a hefty fall in values of the houses equal to a 15.8 percent compared to the month a year ago in 20 major cities of the U.S. Parts of California, Florida, Nevada and Ohio have been particularly badly hit by the lengthy US housing slump, especially neighborhoods targeted for new construction projects. One in every 43 Nevada households received a foreclosure filing during the second quarter of this year. Inventories of unsold homes remain high and builders are forced to offer handsome discounts to the potential purchasers.

Total number of households facing the foreclosure process more than doubled in the second quarter of this year compared to a year ago. Across U.S., 739,714 homes received at least one foreclosure-related notice during the quarter, or one in every 171 homes. U.S. Cities in California and Florida accounted for 16 of the worst 20 metro foreclosure rates. Stockton, Calif., had the worst rate, with one in every 25 homes in the town receiving a foreclosure filing. That's nearly seven times the national average.

The IMF, estimated in April that losses in U.S. assets from the fallout of the sub prime mortgage crisis could reach $1 trillion. IMF added, it had no reason to adjust that figure. Worldwide, asset write-downs and losses have totaled $469 billion over the past year.

The IMF warned that the weakness of the financial system would be increased by the failure of Fannie Mae and Freddie Mac, the two largest sources of U.S. mortgage financing. The shares of both companies are down more than 80 percent in the past year. The U.S. Congress has passed legislation to aid Fannie Mae and Freddie Mac, its most sweeping effort to halt the biggest housing slump since the original U.S. Depression. President George W. Bush may sign the bill into law this week.

In the same report The IMF said inflation in developing and emerging countries would average 9.1 percent in 2008, up from a forecast of 7.4 percent in April. Their prediction for inflation in advanced economies for this year was raised to 3.4 percent, from a forecast of 2.6 percent in April.

Apart form the grave impact, the U.S. housing market is leaving on its every kind of domestic company, not to mention the struggling U.S. automakers, the Japanese auto giants like Toyota, Honda and Nissan have also started to feel the impact of the slow housing market in the U.S. Last week Toyota, fell 2.7 percent to 4,750 yen. Honda, Japan's second-largest, fell 2.2 percent to 3,570 yen and Nissan motor company fell 3.2 percent to 813 yen. Toyota and Honda get at least 50 percent of their annual operating profits from the U.S.

A J.D. Power & Associates report on July 23 said sales of new vehicles in the U.S. will fall to 14.2 million this year, the lowest since 1993. The deteriorating U.S. economy, soaring fuel prices and the ongoing credit crisis mean the industry won't reach the 14.95 million mark projected four months ago.

Low housing sales, declining home values, tighter lending standards and a sluggish U.S. economy have left homeowners with few options to avoid foreclosure. Many can't find buyers and can't refinance into an affordable loan. Economists estimate 2.5 million homes Americawide will enter the foreclosure process this year, up from about 1.5 million in 2007.

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Canada slow to defend its Guantanamo's "Child Soldier"

HE remains the youngest prisoner still languishing in the U.S.-run detention centre at Guantanamo Bay, Cuba. While Australia and Britain have fought to have al Qaeda-linked detainees who were respective citizens of their countries returned home to face domestic legal processes, the Canadian government has not done the same for its own citizen, Omar Khadr. Am Johal of the IPS reports from Vancouver that Prime Minister Stephen Harper is steadfast in his support of the U.S. military justice process.

But the court-ordered release of a 2003 interrogation conducted by the Canadian Security Intelligence Service (CSIS) is now reigniting the debate in Canada about its responsibilities to this young man amidst accusations of racism and double standards. The interrogation video is accessible from news websites and has made international headlines.

It is once again leading to increased criticism of the Canadian government for its role in aiding and abetting violations of the laws of war. The U.S. prosecutors have countered with an obscure legal position of arguing that Khadr was an illegal combatant.

Khadr was only 15 at the time of his capture and is the only Western-based detainee remaining in Guantanamo Bay under U.S. military confinement. The Canadian government has not asked for repatriation despite pleas from human rights organisations and Opposition parties in Parliament.

Dr. Michael Byers, Canada Research Chair in Global Politics and International Law at the University of British Columbia, told IPS, "The release of these interrogation tapes confirms that the authorities are talking to someone who was a child who was subject to sleep deprivation and other tactics by the U.S. military. I sincerely hope that the tapes will resonate with the Canadian public in a way that will push the government to change their approach to this issue."

Byers added that the Canadian government's refusal to intervene follows with Prime Minister Stephen Harper's willingness to prioritise a relationship with U.S. President George W. Bush over fundamental human rights and Canada's historic role in championing the rights of its own citizens in jurisdictional matters.

"The Harper government has shown a consistent pattern of placing its faith in the Bush administration over human rights issues such as this one and others including the refusal to push for clemency of Canadians on death row. Canada also extradited Robin Long, a U.S. war resister, who did not want to take part in possible war crimes. This is a very different role than Canada played during Vietnam," said Byers.

In comparison to British and Australian detainees who have either been repatriated or given special consideration, Canada has done very little, according to critics like Byers and organisations such as Human Rights Watch and Amnesty International.

Khadr's defence attorneys claim that the Canadian government acted illegally by sending its counsel and CSIS agents to Guantanamo Bay to interrogate Khadr, and then turned their findings over to the military tribunal prosecutors to help convict Khadr. The Foreign Affairs department also had advance knowledge of the interrogation and has been criticised for not doing more to repatriate Khadr and for not being more forceful in the earlier days of Khadr's detainment.

In 2007, the Federal Court of Appeal ordered the Canadian government to turn over its records related to Khadr's time in detention after Judge Richard Mosley found that it was now apparent that Canada had violated international law.

The government appealed to the Supreme Court of Canada in 2008, arguing that Khadr was just looking for information and that disclosing their records, which showed differing accounts of the Afghanistan firefight, would jeopardise national security.

On May 23, 2008, the Supreme Court of Canada ruled unanimously that the government had acted illegally by contravening Section 7 of the Charter of Rights and Freedoms, and ordered the videotapes of the interrogation released.

This weekend, former Canadian Prime Minister Paul Martin also called for Khadr to be returned to Canada.

In May 2008, Senator Romeo Dallaire, a former general who served in Rwanda with the U.N. mission, told a parliamentary subcommittee that if Canada doesn't act to protect human rights in the case of Omar Khadr, the country is no better than terrorists.

"The minute you start playing with human rights, with conventions, with civil liberties, in order to say that you're doing it to protect yourself and you are going against those rights and conventions, you are no better than the guy who doesn't believe in them at all," he said.

David Crane, a U.S. prosecutor of Sierra Leone's war crimes, also spoke out forcefully in January 2008 for Canada to intervene.

"This is the first time in history that a child has been prosecuted for war crimes," said Crane. "This is just horrific. I think it reflects badly on the way the world should go in its protection of children. We should be seeking out and trying to, as the U.N. has done in many initiatives, to stamp out child soldiers."

Crane, a professor at Syracuse University College of Law, said he believes Canada's international reputation as a protector of human rights has been diminished substantially due to its support of the U.S. prosecution of Khadr. "I'm just not sure why the Canadian government, which was tremendously important in my work in West Africa, they were incredibly supportive, is not making a bigger deal of this."

Opposition Foreign Affairs critic Bob Rae, told the Canadian Press this month, "He was brainwashed and sent in to fight NATO troops. I think we all recognise that's deeply troubling to Canadians. We have our troops there, obviously it's deeply troubling to all of us. The issue is not that. The issue is, isn't it appropriate for Canada to take responsibility for Mr. Khadr?"

Steve Staples, president of the Rideau Institute on International Affairs, an independent research, advocacy and consulting organisation, told IPS, "I think it's appalling that the government is indifferent on this issue since it has such large ramifications. Canada could learn from other countries that are allies of the U.S. and demand that Khadr be brought back to Canada. There is clearly a question of proper process and we clearly need to get to the bottom of this quickly." [Courtesy IPS]

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Help for new Canadians

FOR new Canadians to BC, moving and settling in a new country and province is not easy. While many newcomers are naturally entrepreneurial, starting a business can be still daunting. New Canadian entrepreneurs can take benefit from a new Newcomer Entrepreneur Program offered by the Canadian Youth Business Foundation (CYBF) providing ‘culturally-sensitive’ mentors in related backgrounds with in-depth knowledge about the BC marketplace. Additionally, the loan program has been modified to allow newcomers without a credit history or long standing references to apply.

Statistics Canada reports that the unemployment rate for recent immigrants is 9.7 percent, more than double the rate of Canadian-born British Columbians. British Columbia has led the country in self-employment growth over the last decade with approximately one-fifth of all entrepreneurs being under 35.

According to Jagrup Bar, Member of the Legislative Assembly of British Columbia (MLA) for the Surrey Panorama Ridge, “Having been a newcomer myself and previously serving as the Executive Director for Surrey Self Employment and Entrepreneur Development Society, I am happy to endorse this Newcomer Entrepreneur Program because a program like this is so needed in BC”

The average newcomer experience is often described as hitting a glass ceiling, where they face concrete barriers, preventing them from integrating and making inroads into the corporate world. “Newcomers are forced to rethink their strategy choosing to become entrepreneurs”, says Cathy Delaney, CYBF’s Director for BC. “They face challenges struggling to overcome language and cultural differences in running a business and also lack credit history. In response to a growing demand, CYBF created a unique entrepreneurial program that helps newcomers launch and sustain successful businesses.”

The Canadian Youth Business Foundation (CYBF), a national charity providing mentors, start-up financing and business resources, recognizes that Canada is a nation of immigrants, eager to turn dreams into reality. Their aspirations and hopes lie in their ability to bridge the ‘integration’ gap, whereby they can capitalize on their entrepreneurial goal and realize an even higher goal of offering their family a better life in Canada.

The Canadian Youth Business Foundation (CYBF) is a national charity that provides youth, age 18-34, who have a great business idea but are unable to access funds through other traditional sources, with the start-up financing, mentoring and business resources to create their own successful business. Lending based on character not collateral; CYBF’s mandate is to keep entrepreneurship alive and well to create economic prosperity in communities across Canada.

Since founded in 1996, CYBF has invested in more than 2,400 young entrepreneurs, whose businesses have generated more than $267 million in sales revenue, $63 million in tax revenue, $29 million in export revenue, and created more than 13,000 new jobs. Through CYBF’s national framework of community partners we are able to deliver our program to more than 1,300 communities across Canada. CYBF is an accredited member of Youth Business International, a global network of business start-up organizations. CYBF is headquartered in Toronto, Ontario, with offices across Canada. Information about CY! BF is available at www.cybf.ca.

[For inquiries Cathy Delaney,cdelaney@cybf.ca]

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