Chris,
At the risk of being burnt at the next bon fire as a heretic I think it is apposite to point out that true free trade is as mythical as true capitalism.

Practically speakingt free trade actually mean is the right (multi nationals and rich countries)to (manipulate/corrupt) markets to one's advantage when and where every. There is no such a thing as a level playing field and never will. Give me one country that really practices either.

Once limited liability entities were created the die (someone sold the other) was cast and the rest was inevitable. Particularly that ‘theoretical money’ would be the ultimate commodity. Nobody actually created anything tangible just the notion to make profit.

Imagine if we could listen with the same esteem to ecologists, ethicists, climatologists as we do economists we’d be far better off. Economics if it isn’t the new alchemy it is certainly one of the softest sciences.
What amazes me, is that it’s generally the right that are the greatest proponents of this “ether philosophy” trade away our sovereignty for a hand full of sterile magic beans. A philosophy that hates controls and internationalism end yet.

Who is it that is or soon will be controlling the west’s destiny? Communist China. Which government stands up to the mighty corporations and dictates terms not the USA …CC.

China is rapidly becoming self reliant in all aspects they’re buying controlling interests other countries’ resources. But at home international businesses need a local partner. Do we do that? Do we worry about self sufficiency? Let’s worship at the alter of free trade instead is making us vulnerable to other countries.
Let’s be clear here I’m not trying to push the genii back into the lamp just be realistic starting with rephrasing the Question to a more meaningful ”How much control of our future do we really want?”
Whew! it's a fire ban day.

Examinator,

your right, there has never been true free trade, and there should not be.

but we do need a pragmatic policy approach that takes care of both national and international aspirations. Hence, freer trade (with important checks) has been a reasonable option, although corporations or china should not be allowed to rise and rise without important checks and balances.

I am struggling for the answers, and it may well be that protectionism again rises as Western states will be reluctant to allow their way of life to be obliterated.

Doesn't much matter what anyone thinks for Hugo Rudd and Kevin Chevaz are in total agreement.

'... Chavez, he gleefully declared in his speech Friday that capitalism in America has failed.'

http://www.foxnews.com/politics/first100days/2009/03/07/chavez-urges-obama-adopt-socialism/

He also urged Obama to adopt socialism ... just as Hugo Rudd has switched from Economic Conservative to Socialist. Kevin Chevaz would be cheering for him.

I know, I know fox news is biased but you haven't seen this in the unbiased Aussie media have you? And Chevez did say it.

Chis wrote
First, unless Western nations (including Australia) are prepared to
accept budget deficits for some time yet, as growth is unlikely to
increase substantially in the near future, then severe cuts to
government spending will be needed.
unquote
As it now seems assured that peak oil occurred in 2005 I don't believe
we will ever see growth again.
If there is any growth in the richer countries it will be at the
expense of poorer countries as the world average must equal zero.

Globalisation will wither away as our economies adjust to a new paradigm.
Localisation will be the name of the game after the politicians wake
up to what has happened under their feet without them even realising it.
It realy is a new environment in which all areas of business,
politics and government will have to learn the new rules.
AS depletion starts to bight the rules will become tighter and tighter.

Both Federal and State Governments (except Queensland) are blithely
proceeding as though nothing fundamental has happened.
The NSW Government has rejected a bill to study the effects of peak oil
and the Federal Governments Green paper on the aviation industry
still believes in a 4% growth for airlines into the distant future.

Very sad.