Desperation will force exporters and importers down a slippery moral slope

John Robb has a new post discussing the kinds of power shifts we might see in nation states (including sweet innocent little Australia) when sections of the economy and their associated communities are crucially dependent on imports and/or exports (think of the dramatic fall in milk prices for farmers in South Gippsland). The huge pressures generated by these sudden changes in the economy will be another factor, along with difficulties in the continued provision of basic services due to falling tax revenues, leading to a loss of political legitimacy of national governments.

It seems likely a new protectionism will arise as nations try to shore up their core economy by beggaring their neighbors. This will provide the space for large scale organised crime to move into international trade. The Iraq oil for food scandal gives us the template for the corruption of major economic institutions in this country.