Vol. 4 No. 2
Asian nations must address imbalances
Looking back to your childhood, it didn't seem to matter whether it
was a game of touch football, a baseball game or matching sports
trading cards. There was always one kid who didn't want to play by the
Bank of Canada Governor David Dodge has noticed that certain Asian
nations such as China aren't playing by the rules either and it could
become a major problem for the rest of the kids on the playing field
that is the global economy.
That was Dodge's message in a recent speech to the Barbados International Business Association in Bridgetown, Barbados.
Specifically, Dodge was referring to global financial and economic
imbalances that, unless addressed, could stall global economic growth.
"When I say global imbalances, I am referring to the large and
persistent current account deficit in the United States that is
mirrored by large current account surpluses elsewhere, especially in
Asia and in many oil-exporting countries.
"At the Bank of Canada, we see (these imbalances) as reflecting the
financial flows associated with mismatches in savings and investment
within major regions of the global economy," Dodge explains.
According to Dodge, since the latter half of the 1990s, many
economies outside of the United States have increased their national
At the same time, the United States has reduced its level of savings
and instead has become increasingly reliant on foreign borrowing.
While Dodge said that this isn't currently a problem, "The sheer
size of these financial flows into the United States is not sustainable
In particular, Dodge singled out countries such as China who keep
their currencies at artificially low levels for not playing by "the
rules of the game."
"What do I mean by "the rules of the game"? For countries with a
fixed exchange rate, this means that authorities need to run
appropriate policies in order for the fixed exchange rate to be
"In particular, countries with a fixed exchange rate and a current
account surplus should not sterilize the foreign exchange interventions
required to fix the value of their currency. By sterilize, I mean
offsetting the effect of interventions on the domestic money supply,"
You don't have to read too far between the lines to realize that
Dodge is referring to China and its habit of stifling the inflationary
effects of its interventions into its foreign currency exchange.
"When countries offset the effects of intervention, they delay
domestic economic adjustment. They also delay global adjustment.
"Just as worrying is the fact that such intervention is provoking
threats of protectionist measures in certain political quarters. Such
wrong-headed measures could choke off the growth of international trade
that has led to rising incomes worldwide," Dodge warns.
According to Dodge, such a scenario left unaddressed could lead to a
period of very slow growth and trigger periods of recession.
"Essentially, the global economy needs a commitment by all countries
to a renewed international monetary order, and a willingness to play by
accepted rules within this order," Dodge says.
Conestoga College students win welding awards
students in the Manufacturing Engineering Technology-Welding and
Robotics program at Conestoga College, Kitchener, ON have received
awards for outstanding program-related achievements.
The awards were sponsored by a number of leading welding industry firms and a major Canadian welding association.
Manufacturing Engineering Technology-Robotics and Automation is a
three-year diploma program located at Conestoga's campus in Guelph, ON.
It is a highly specialized and advanced welding technology program
with emphasis on robotic programming, industrial automation systems,
production planning and quality assurance.
The winners of the Lincoln Electric Award were Darby Burse and Tavis MacDonald.
The $500 award sponsored by the Lincoln Electric Company of Canada
Ltd., Toronto, ON goes to a third-year student in the program in
recognition of technical project excellence.
Project-based work that applies theory to industrial situations is
central to Manufacturing Engineering Technology-Welding and Robotics
Praxair Canada Inc., Mississauga, ON sponsors the Praxair Academic
Awards-two $500 awards presented to the first-year and second-year
students who achieve the highest academic average.
The winner of the first-year award was Colin Spencely while the second-year award winner was Adam MacDonald.
The Canadian Welding Association (CWA) Golden Triangle Award is sponsored by the Golden Triangle Chapter of the CWA.
The $250 Canadian Welding Association Golden Triangle Award
recognizes the Congestoga College student who wins the contest to
represent Congestoga at the annual Ontario Technological Skills
The award was presented to Ben VanDorp, who won a provincial gold medal at the 2005 OTSC.
VanDorp subsequently went on to capture a national gold medal at the 2005 Canadian Skills Competition.
Five students of Conestoga College's Manufacturing
Engineering Technology-Welding and Robotics program were recently
recognized by the welding industry with several awards. (Left to
right): Ben VanDorp, Adam MacDonald, Colin Spencely, Tavis MacDonald,
Bill Gates with Praxair, Joe Barnes with Lincoln Electric, and Darby
February 23-26, 2006- BI-MU MEDITERRANEA (Machine Tools, Robots, Automation Show), Fiera del Levante, Bari, Italy. For further information contact BI-MU MEDITERRANEA at telephone +39 0226 255 229/861 or visit www.bimu-mediterranea.it
March 21-23, 2006- METALFORM'06, Nashville Convention Center,
Nashville, TN. For information contact the Precision Metalforming
Association at (216) 901-8800 or visit www.metalforming.com
March 27-30, 2006- WESTEC 2006 Exposition and Conference, Los
Angeles Convention Center, Los Angeles, CA. For further information
contact the Society of Manufacturing Engineers at (313) 271-1500 or
April 11, 2006- Canadian Welding Association's Student/Career Night, Royal Woodbine Golf Club, Toronto, ON. For further information contact Victor Andrisani with the Canadian Welding Bureau at (905) 826-7133, Ext. 322.
May 10-11, 2006- 2006 Automotive Parts Manufacturers' Association Annual Conference and Exhibition, Hamilton Convention Centre, Hamilton, ON. For further information contact the APMA at (416) 620-4220 or visit www.apma.ca
May 15-17, 2006- Montreal Manufacturing Technology Show,
Place Bonaventure, Montreal, QC. For further information contact Denise
Hayward, show manager with Reed Expo at (416) 848-1683 or visit www.reedexpo.ca
May 23-25, 2006- EASTEC Exposition and Conference, Eastern States Exposition, W. Springfield, MA. For further information contact the Society of Manufacturing Engineers at (313) 271-1500 or visit www.sme.org
September 6-13, 2006- IMTS-International Manufacturing Technology Show,
McCormick Place, Chicago, IL. For information contact AMT-The
Association for Manufacturing Technology at (703) 893-2900 or visit www.IMTSNET.org
September 12-14, 2006- SPE Automotive Composites Conference & Exposition,
MSU Management Education Center, Troy, MI. For further information
contact the Society of Plastics Engineers International at (203)
September 26-28, 2006- Canadian Manufacturing Week
(featuring six events including Weld Expo Canada and Finishing Expo
Canada), International Centre, Toronto, ON. For further information
contact Bob Mathieu, group show manager with Reed Expo at (416)
848-1689, Ext. 229 or visit
Coming in the March issue of MP&P
- Cutting tools/Workholding
- Vertical machining centers
Automotive Parts Manufacturers Association of Canada - This
site is an information resource for Canadian OEM producers of parts,
equipment, tools, supplies and services to the automotive industry. www.apma.ca
Canadian Machine Tool Distributors Association - A resource for Canadian machine tool distributors. www.cmtda.org
Canadian Welding Association - Information resource for the Canadian welding industry. www.cwa-acs.org
Miller Electric Manufacturing Company - The new web site offers information and resources on welding for end users and business owners. www.MillerWelds.com/Results
Wilson Tool International - New e-Business Center offers
online tool orders, quotes, invoices, special tool drawings, and
shipment tracking for fabricators. www.wilsontool.com
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