The rise of Capitalism in the West during the last few decades had the elements of unbridled borrowing, lending and buying to stimulate economic growth. Which worked when many countries were rebuilding after several wars and end of colonolialism.
But the real underpinning of Capitalism should have been creating wealth by production, savings and meaningful investment in things that benefit the humankind.
The avarice that was practiced to an excess in the last few years when financial assets assumed more significance than real assets has brought Capitalism to its knees.
Regulation or lack of it was one of the contributing factors, the main factor being the unseemly pursuit of personal wealth by greedy and fraudulent means, led by the financiers of USA and UK and aided by the Governments either directly or silently. Manufacturing and infrastructure development was pushed aside. Now the World is paying the price and will pay it for a few more years.
Governments now should focus their energies on helping citizens to work, produce and save for a decent living. A moral sea change is required.
Will America under Obama lead the way or will it need a new leader with a new Phlosophy, may be from the East?
Sunday, December 28, 2008
Thursday, December 18, 2008
USA-the Bailout Nation
After the Banks it is now the turn of the Car companies to seek the bailout funds being handed out in USA. But before handing out any money to the Car companies the US government should force the 3 automakers to merge into one single company, give them funds to continue in business, but dismiss the entire top management and give out a management contract to Toyota or some such innovative foreign auto company with the mandate to revamp the production line to start making sensible, fuel-efficient cars which the customers can buy at affordable prices and run with less damage to their purse and environment.
GM, Ford and Chrysler should go out as brand names because those brands are dead. The government should get majority stake for the investment and the auto-workers should get shares as part of the compensation for their promise to work for less wages in future. They will then have a stake in the success of the venture.
This type of nationalisation may be better than throwing good moeny at bad manufacturing and management practices and losing, just to keep jobs going. That will only postpone the inevitable.
GM, Ford and Chrysler should go out as brand names because those brands are dead. The government should get majority stake for the investment and the auto-workers should get shares as part of the compensation for their promise to work for less wages in future. They will then have a stake in the success of the venture.
This type of nationalisation may be better than throwing good moeny at bad manufacturing and management practices and losing, just to keep jobs going. That will only postpone the inevitable.
Sunday, December 07, 2008
Random thoughts-Bush, Obama, Clinton and Mumbai
George Bush has recently said that he was unprepared for War. In fact he was unprepared for anything, most of all 'being President of USA'. He came in to the Presidency by fraud, courtesy of Supreme Court which awarded the Presidency to him. His invasion of Iraq resulted in the death of more American citizens in the War on Terror than was killed on 9/11. His obsession with Iraq and his alliance with Dick Cheney and Big Business (which are the only winners of the Iaq war) diverted his attention from the domestic scene in USA. He took his eyes off the economic ball, which has resulted in another catastrophe in the financial markets, the financial costs of which will be no less than the Iraq war and will play out for more years to come. He screwed up the USA , Iraq and the World.The only positive to his long bad reign is that he made Americans cry out for change in record numbers and so desperate that they were even ready to elect an African-American as President, which might not have happened otherwise.
However Obama's selections for his Team, especially Hillary Clinton as Secretary of State is not the 'Change' the Americans voted for. The same old, same old.... Watch the Money Bags of Democrat Party make hay while the sun shines under the Obama administration. The campaign contributors to the party have to be paid back in the course of time and it will start happening soon after January the 20th.
It seems like everyone is expecting Obama to save America and Hillary Clinton to save the World. Remember both are equally inexperienced in their areas and both are going to be more reactive than pro-active, in view of the domestic economic/financial crisis in the USA and the multiple flash points in the world. USA's reputation as a Leader in the Financial and Political arenas has diminished considerably in the last few years. Obama is not proving to be the 'take-charge' President everyone expects him to be. His selections for his Economic and Foreign Policy Teams in the last few weeks have shown that he would be more of a 'give-charge to others' President. He and his Team may be relying on more of the same old with the Democratic public-spending slant. The outside events will shape their actions rather than the other way around. Don't waste your breath expecting any miracle.
The carnage in Mumbai has been discovered to be the act of foreign terrorists or locals recruited by foreign terrrorist organisations, may be linked to the struggle in Kashmir. The sophisticated arms and ammunitions used, for example, machine guns, grenades etc indicate that funding and weapons have come from outside India. India has many faceless enemies and it is too big a place to defend effectively 24/7. This probably is the price many large democracies will be paying more often in the future. As it becomes increasingly difficult to attack America, the terrorists will be looking for other targets elsewhere. Constant vigilance and better policing and intelligence-sharing may be able to stop some of the attacks. The downturn in the world economy may create more frustrations and lead more prople to cross-over to the dark side. It would be nice if arms production and distribution is curtailed with more concerted effort by the major world players. Insha-Allah, the innocents will be spared that way.
As long as the Israeli-Palestine and the Kashmiri problems are not solved the flash-points in West and South Asia would be simmering, waiting for a spark to explode anytime. May be statehood for Palestine and Kashmir is the only way out. It would take guts for Israel and India to cut off and set free Palestine and Kashmir, but hanging on to them may rip out their guts slowly, who knows ?
Update on Bush(14/01/09)
I think George Bush's legacy would have been correctly highlighted if he had named the aircraft-carrier 'USS Mission Accomplished' instead of 'USS George H W Bush'. That would shine the spotlight on the lies and falsehoold that pervaded the Bush Presidency for the last 8 years, which incidentally he won in 2000 by fraud and with the support of US Supreme Court. But what is likely to happen is may be Jenna or Barbara Bush will become President one day and name another aircraft-carrier after her father George W Bush. Anything can happen in America with the Oil and Business lobbies active.
However Obama's selections for his Team, especially Hillary Clinton as Secretary of State is not the 'Change' the Americans voted for. The same old, same old.... Watch the Money Bags of Democrat Party make hay while the sun shines under the Obama administration. The campaign contributors to the party have to be paid back in the course of time and it will start happening soon after January the 20th.
It seems like everyone is expecting Obama to save America and Hillary Clinton to save the World. Remember both are equally inexperienced in their areas and both are going to be more reactive than pro-active, in view of the domestic economic/financial crisis in the USA and the multiple flash points in the world. USA's reputation as a Leader in the Financial and Political arenas has diminished considerably in the last few years. Obama is not proving to be the 'take-charge' President everyone expects him to be. His selections for his Economic and Foreign Policy Teams in the last few weeks have shown that he would be more of a 'give-charge to others' President. He and his Team may be relying on more of the same old with the Democratic public-spending slant. The outside events will shape their actions rather than the other way around. Don't waste your breath expecting any miracle.
The carnage in Mumbai has been discovered to be the act of foreign terrorists or locals recruited by foreign terrrorist organisations, may be linked to the struggle in Kashmir. The sophisticated arms and ammunitions used, for example, machine guns, grenades etc indicate that funding and weapons have come from outside India. India has many faceless enemies and it is too big a place to defend effectively 24/7. This probably is the price many large democracies will be paying more often in the future. As it becomes increasingly difficult to attack America, the terrorists will be looking for other targets elsewhere. Constant vigilance and better policing and intelligence-sharing may be able to stop some of the attacks. The downturn in the world economy may create more frustrations and lead more prople to cross-over to the dark side. It would be nice if arms production and distribution is curtailed with more concerted effort by the major world players. Insha-Allah, the innocents will be spared that way.
As long as the Israeli-Palestine and the Kashmiri problems are not solved the flash-points in West and South Asia would be simmering, waiting for a spark to explode anytime. May be statehood for Palestine and Kashmir is the only way out. It would take guts for Israel and India to cut off and set free Palestine and Kashmir, but hanging on to them may rip out their guts slowly, who knows ?
Update on Bush(14/01/09)
I think George Bush's legacy would have been correctly highlighted if he had named the aircraft-carrier 'USS Mission Accomplished' instead of 'USS George H W Bush'. That would shine the spotlight on the lies and falsehoold that pervaded the Bush Presidency for the last 8 years, which incidentally he won in 2000 by fraud and with the support of US Supreme Court. But what is likely to happen is may be Jenna or Barbara Bush will become President one day and name another aircraft-carrier after her father George W Bush. Anything can happen in America with the Oil and Business lobbies active.
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