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The Citizen, 1993-09-15, Page 5International Scene THE CITIZEN, WEDNESDAY, SEPTEMBER 15, 1993. PAGE 5. A fella can learn a lot by just watching To quote the eminently quotable Yogi Berra ... a fella can learn a lot by just watching. I was doing some watching up in Muskoka recently. Ontario cottage country, that is — all wooded hills and jewel-like lakes and chuckling rivers ... Actually I wasn't watching, I was doing a speech at one of the swanky new hotel complexes that opened up there not long ago. Last Saturday morning I had a few hours to myself, so I wandered around, checking out the place. That's when I saw the sign. "COMING SOON" it read, "A BRAND NEW INDOOR RUNNING TRACK!" Indoor running track? Here I was in some of the most beautiful country that Canada has to offer, several hundred thousand acres of unfenced, unpolluted real estate with clean air, panoramic vistas and uncrowded roads where a galoot could jog himself to death if he cared to ... And they were advertising an indoor running track? Why? Setting the record straight I recently got into a bit of an argument through the "Letters to the Editor" page of the North Huron Citizen with Paul Klopp who represents the Huron riding in the NDP government at Queen's Park. While I admire the zeal with which Mr. Klopp goes about explaining the government's point of view to his constituents, I took exception to some remarks he made recently as to the role of international bankers in financial matters of the Ontario government. I thought he was rather confused about the whole thing, and I still do, but I am wondering if what he is saying is being put out by the current government as a way of absolving themselves of some of the blame for the current fiscal problems which they are having. Whatever the reason, I think the record has to be set straight. Mr. Klopp started out by saying "when the government's costs outstrip its income, then the costs of borrowing go up and in some serious cases international bankers make the decisions for you. When this happens these decisions benefit them, not the people. The first thing that the international bankers hit is health care, then education and any service which helps people. When I challenged this statement he replied he "thought" this had happened in New Zealand and in countries in Africa and South America. He went on to state that "the International Monetary Fund and the World Bank establish conditions which the government must meet and the country must follow the demands or not receive loans." He concluded by saying that "when both governments and the private sector increase their demands for money the cost of I brooded about it over a beer with a pal of mine in the pub later that night. "It's not too complicated, ya dummy" she said. "An indoor running track is whatcha use on those days when its too rainy or too cold or too snowy to run outside." I don't buy it. Rain and snow and cold are just nature's way of telling you to pull the covers over year head and forget about exercise until the weather clears — if not longer. Besides, the Indoor Running Track makes a perverse kind of sense if you view it in the context of other bizarre exercise options of late. How about treadmills? You know — where you put on your shorts and your nine-way self-inflating running shoes and a head band ... and then you step on to a rubber roller and pass a sweaty half-hour pretending that you're actually loping through the countryside? Or what about exercise bikes? Is it not somewhat insane that fitness fanatics use these gizmos to cycle like dervishes in basements and rec rooms and exercise clubs — when they could just as easily jump on a real two-wheeler and cycle around the block? What is it about ersatz exercise anyway? Eaton's and Simpson's and the Bay advertise rowing machines — diabolical contraptions consisting of pulleys and clamps and levers that you can strap yourself into and pretend you're rowing a boat. borrowing goes up. In the 1970s we saw that this led to high interest rates which resulted in higher costs to governments." Since Mr. Klopp represents the Ontario government, I presume he is speaking on behalf of this government. In case any readers are confused by all these statements, let's get the facts straight. Since the Ontario government cannot print money, when it runs a deficit it has to go on the money market to sell its bonds to finance this debt. Given the size of government borrowing in Canada, some of this debt must be financed by selling our bonds in other countries' financial markets. For the record the Ontario government has had to rely heavily on this external means of financing. As long as the province has a good track record, it will get a high rating but, if it gets in over its head in borrowing, the rating is downgraded and a slightly higher rate of interest is charged. Frankly I was puzzled at the beginning as to where these foreign bankers came from but, according to Mr. Klopp, they belong to the International Monetary Fund and the World Bank. I can, therefore, give him a little peace of mind by assuring him that the IMF gets into the picture only when the federal government of a country starts running into balance of payment difficulties. They have nothing at all to do with regional governments (i.e. Ontario). As for the World Bank, I am still puzzled how that got into the discussion. Their main job is to provide low cost loans to Third World nations of which Canada most assuredly is not one. For this reason discussing the deficit financing of a province does not involve the IMF nor the World Bank. Mr. Klopp cannot, therefore, expect to see one of their "international bankers" camped on his doorstep. If our Ontario treasurer goes off to borrow Why not just go down to the boathouse, lay down your five buck deposit and take out a for-real dory? It'll be a lot more fun than trying to row across your living room floor. Or how about the ultimate in whacky workouts — The Stairmaster? For several hundred dollars you can risk a hernia levering a machine into your home that recreates the act of ... climbing stairs. Do you have any idea how easy it is to climb stairs ... for free? Hotels have staircases. So do malls and condos and office buildings and hospitals. Hell, most houses have stairs — who needs to buy a stair-climbing machine? Actually, folks may already be figuring this out. There's a brand-new exercise mecca down in Los Angeles. It's called the Fourth Street Steps. It's a 189-step staircase that leads from the beach to the rim of the Santa Monica canyon and it's where all the hippest of the hip LA fitness buffs line up to strut their stuff. One trip up and down the stairs is equal to running up and down the stairwell of a 10-storey building. Nowadays, the Fourth Street Steps are awash with spandex- clad, Evian water-bearing fitness freaks lumbering up and down and down and up the stairs smiling conspiratorially at one another. Exercise. I stole my personal philosophy from a chap by the name of Chauncey Depew. Old Chauncey said "I get my exercise acting as a pallbearer to my friends who exercise." A money in Europe or the United States, he will pay the prevailing rate there, a rate that has nothing to do with the supply and demand of money in Canada. Rates are about four per cent higher in Germany than in Canada; in the U.S. they are slightly lower. In Switzerland they are about half way between the German and the Canadian rates while in Great Britain they are slightly higher than here. Sometimes the rate of interest is based on what is called LIBOR or London Inter-Bank Borrowing Rate. In arguing about the cost of borrowing in the 1980s, Mr. Klopp has totally overlooked the fact that the rates are heavily influenced by the Bank of Canada's bank rate. Mr. Crow, the Bank's governor, has been busy using this rate either to fight inflation or to defend the exchange rate of the Canadian dollar. Older readers can recall the high interest rates of the early 1980s. This was the result of the Bank's determination to fight inflation and not simply the result of increased demand for money. If this were the case, the current demand for money by the provinces, especially Ontario, added to the federal requirements would have driven the interest rates almost out of sight. Instead they are now extremely low compared to any time during the 1980s. Thank the Bank of Canada for that! All this talk about the influence of international bankers on such things as health care, education and the like is to my mind spurious. The day-to-day business of running a government's finances in any field is left up to the cabinet. It is to the government's credit, of which Mr. Klopp is a member, that it has realized the danger of running up such a large debt in order to stimulate the economy and is prepared to do something about it. I am supportive of such efforts, but let's leave the international bankers out of it. The short of it By Bonnie Gropp Such success should make a parent proud There was no doubt he's a captivating fellow. When he was in the centre of the room all eyes were on him. He didn't do anything in particular, but a wave of a hand, a smile, elicited the most profound expressions of wonder. "What is urns doing? Hazu got a big smile?" Like any baby, my two-month-old great nephew Spencer is the star attraction when his parents bring him into a gathering. Last week was my first opportunity to have a peek at this newest member to the family and of course within seconds of gazing at his baby blues, I was transformed to a blithering idiot, making inane chatter for which I was rewarded by a little verbal return and a sweet chuckle from the object of my attention. Typically, when I hold a little infant in my arms, I am reminded of how short a time ago it seems that I was holding my firstborn. Now in his third year of university and his younger sister beginning her first semester in college, I am dazzled by the knowledge of how swiftly the years have gone. Looking back is bittersweet — while I may often wish for those all-too-fleeting moments of my children's infancy, I also take pride in what they have grown to become. While I may be a little threatened by their independent successes, achieved more frequently as time goes on with less guidance (or interference) from me, it is with wonder that I watch the progress. For the originators of the Huron Pioneer Thresher and Hobby Association which just completed its 32nd annual reunion this past weekend in Blyth the feeling must be much the same. The Reunion's humble birth happened in the early 60s when a group of area men decided to get together to remember the days of the threshing gangs, who used to travel the countryside to do the threshing in the farmers' fields. As with any newborn, it began small, with five steam engines on display and that lively homegrown music of the times providing the special memories and entertaining the people who started gathering to enjoy what was taking place. As a five-year-old, the Reunion was already showing signs of the type of event it would grow to become as its increasing popularity turned it into a community event. Committees were established and from that day the Reunion has continued to thrive to the mammoth proportions it is now. As one first time visitor said to me when we walked through the gates, "This is huge!" No kidding. Walking around the grounds it's a renewed amazement seeing the masses of swarming people; most of whom return annually. The hours of work that the volunteers put in to pull it all together is staggering. During my visit this year, I happened to see one of the founding members sitting amidst the product that 32 years ago was spawned by the nostalgia of him and his peers. I couldn't help wondering what he saw, now. Though I'm sure he remembers the days of birth and infancy fondly, and perhaps a little longingly, he must be pleased to see how the child has grown. Despite its size it has managed to maintain much of the spirit of the times and the community. Such success can't help but make a parent proud. Arthur Black