Russia trumps US in cozying upto India.

This will be a short one.

President Obama recently hosted Manmohan Singh, PM of India to a gala dinner with much fanfare (and some uninvited guests as well), but there was no meat on the burger.

No agreements were signed and the much-touted nuclear deal has not progressed either.

Contrast this to the recent visit of Manmohan Singh to Russia.

A very low-key affair with much meat delivered.

Several agreements signed, the most important being the agreement by which Russia will support India in its nuclear developments, no questions asked.

And there was the deal to continue arms supply with fighter jets, etc on the table.

Russia has once again proved that it is a better, long-term friend of India.

Obama and his team are paying lip-service to friendship with India, but their hearts and purse are with Pakistan.

Russia did not say that China has a role in resolving the Kashmir dispute, unlike the US.

Seems like US has a long way to go to believe in India or taking some real action to improve the relationship.

While Obama delivered a dinner, it was Russia which added spice to the meal.

I am sure the Indians lapped it up.

Obama to Afghanistan- We have no money to save you.

Just now listened to Obama's speech outlining the strategy for the war in Afghanistan.

Obama has told Afghanistan in no uncertain terms that the US is not capable of funding a long struggle there to restore stability in that country.

Obama has outlined his most important goal to be to get out of Afghanistan within the next 18/24 months and the surge he is authorising by sending additional troops is with the sole aim of getting the Afghans to take over the war soon, so the US troops can get out. Winning the war in Afghanistan is not a primary goal anymore.

There was no mention of eradicating Al Qaeda or capturing Osama bin Laden or putting an end to the insurgency. At the end of 18/24 months it is very much possible that the Al Qaeda and the insurgency may still be troubling the Government/people of Afghanistan, but then it is their own problem. America would be out by then.

It is implied that the surge in troops is to get the conditions ready for retreat.

The goal therefore is not defeat of the enemy but a honourable retreat of American forces.

And to effect that successfully, America will be involved in micro-managing Afghanistan for the next few months, by supervising the Afghan Government.

And the main reason for this is that the US has no money or resources to prolong the efforts to eradicate Al Qaeda/insurgency.

America has been affected greatly by the Global Financial Crisis brought on by the Wall Street Wizards and it has to focus on rebuilding its own economy.

Sorry, they have no money to spend on Afghanistan. They have lost all their money in playing the market.

May be Pakistan, which will still be receiving some of America's aid money, will come to the aid of Afghanistan by closing its border/safe haven for the insurgents/Al Qaeda. But that prospect is up in the air, given the past misuse of American funds by the Pakistan Government and Army.

So watch out Afghanistan. The insurgents have to hang on for just another 2 years at the most.

You will be soon on your own with your own corrupt government and inefficient forces to take on the insurgents.

Best of Luck.

Too Big to Break

After nominating (though not publicly) several Banks and institutions as ‘Too Big to Fail’, America is now caught up in a dilemma of how to manage/regulate these behemoths. The Federal Government is not disclosing which Banks/Institutions have been deemed as such, because that would give a signal to the Public that these institutions are basically unsafe and are being propped up with the Treasury money only. Though any one who is a regular reader of financial press can easily guess as to the identities of these institutions. But how long can they be treated as TBTF ? There are already rumblings of discontent and even a Boycott movement against these TBTF Banks.

Now the US Congress/Senate is attempting to redraw the rules and is working on a law which will give the authorities the power to break up these behemoths, so in future they will be less of a risk and can be allowed to die if they get into tricky situations without pulling down the whole nation. The first step would be to re-introduce some law akin to the Glass-Steagall Act which during the Depression split the Banks’ business into regular banking and investment banking and prevented any cross over.

As many know some of the provisions of the original Glass-Steagal Act were diluted in 1999 by the Gramm-Leach, Biley Act allowed Banks to do investment banking too and which has over the last few years enabled regular banking groups to take on other paper-based business and run up huge risk, which resulted in the Financial Crisis of 2008. Firms like Goldman Sachs and Morgan Stanley cleverly changed themselves into Banks during the height of the Crisis to qualify for the TBTF label and now they are flourishing not because of their Banking business but because of their trading actitivities.

It is a good move by the legislators to break up the TBTF institutions and combined with a re-introduction of the repealed provisions of Glass-Steagall Act, they would make sure that Banks confine themselves to the business of taking deposits and lending for productive and non-speculative real estate business and thus bring a semblance of normalcy to the Banking world. The Investment Banks should be left to live or die on their own efficiencies and merits and people who invest in them or avail of their services would be taking their own risks. Not like the average depositor or borrower who will deal with Banks.

But the Financial Services Lobby is a very powerful group in the US and it has opposed these moves. With key players of the Obama Administration sympathetic to the Big Institutions it appears the Lobby may win and may thwart all attempts to have meaningful regulations in place. The Federal Reserve is also not exhibiting any support for these changes.

May be America is still thinking that it is better to not regulate too much. But as Government is now a substantial owner in many of these TBTF institutions, it has a responsibility more towards the citizens than the Bankers. And long term health of the Nation will be better maintained if some hard decisions are taken now so the Crisis is not built up again. This may be the best chance to re-introduce meaningful and effective regulation and this may be more important than other initiatives of the Government.

Let not these Too Big to Fail institutions continue life as Too Big to Break too.

It will be interesting to see how this thing plays out.

An Update (21 Nov 09):

A bubble is a bubble is a bubble, whatever the cause. And it will burst.

US is exporting its trouble around the world. Money traders and speculators are making hay while the dollar dulls. This may push back many countries to adopt more controls and undermine Capitalism some more. It is now every nation for itself to protect itself. China is way deep into the US economy and can’t decouple easily without damage to itself.

Fundamentals have not changed much in any country (excepting may be Australia) to warrant irrational exhuberance again in the stock markets.

In the US they are re-thinking the ‘checks and balances’ between the Congress and the Administration, but as long as Lobbying is on, no benefit will come to the citizens.

Interesting times indeed.

Nobel not Noble anymore

Difficult to understand how Obama got the Nobel Peace Prize, unless they want to influence him to withdraw from Afghanistan, but that is grasping at straws.

Too much accolade for one man who has not yet proved himself in anything, except that he has continued many of George Bush's policies/practices, including the support to the fat cat money bags like Goldman Sucks, etc. US is still not out-of-the woods in the unemployment and long-term growth aspects of economic recovery.

In Afghanistan, the US is supporting a corrupt Government which had hijacked the election and committed fraud on the citizens. Obama may very well increase troop levels leading to more deaths in the months to come. He is also supporting Pakistan with money which is being siphoned off by the Armed forces and the citizens of Pakistan are still paying the price of the US connection.

He has not solved the Palestine problem, on the contrary Israel is playing hardball and not stopping settlement. Where is peace in the Middle East ?

He has not come to any terms with Iran yet.

And he has not yet got even talks going on Climate.

He has even postponed meeting Dalai Lama under pressure from the Chinese.

Except that he won the election as President without unleashing a backlash from the Whites in US, there is no achievement yet.

Nobel Committee has degraded the value of this Peace Prize.

They should have put a condition that the Prize would be withdrawn if there is no peace in the Middle East and Afghanistan within a year. That would be a precedent.

Nobel is not noble any more.

Update (11/12/09):

Obama in his speech accepting the Prize at Oslo has told the Nobel Committee that they erred in giving the award to a "Head of State' especially of USA, because he is bound to wage wars.

Talkfest at New York/Pittsburgh

The annual talkfest at United Nations this year brought a new Star, Barack Obama. The world leaders lined up to shake his hands and get their photos with Barack and Michelle and it was all a big Picnic and Vacation for the leaders.

But some good seems to be coming out of these talks now that US under Obama has recognised the importance of consensus-building again and drop its unilateralism which was the policy mantra under George Bush.

It was nice to hear Obama speak about the necessity of all nations pulling together to get out of the climate and economic mess. I specially liked his exhortation that countries which castigated US earlier for acting alone cannot now ask US to act alone to pull the world out of these messes. Good point. Obama seems to be getting the right vibes and responses and let us see what he can make out of this new honeymoon with the world.

The counter points to Obama were the speeches by Gaddaffi and Ahmedinijad. Gaddaffi in his rambling speech however highlighted the hypocrisy of United Nations being controlled by the Security Council which is a small club not really representing the world as it is today. His point about shifting UN itself to a more accessible place on the Globe needs some consideration. May be US would also be happy to be rid of UN at New York. I am sure the residents of New York would support such a move for UN, because then they would have less traffic/security hassles and could have the city streets for themselves.

Ahmedinijad's tirade against Israel could be dismissed but not his defence of Iran's right to develop nuclear technology. The US and a few Western countries should not have the monopoloy on nuclear technology and if any other country like Brazil or Iran wishes to develop nuclear technology then they should be allowed to do so. It is double-standard for US, Russia and China (even India and Israel) which have nuclear weapons (some developed overtly and some covertly as in the case of Isreal) to speak against other countries wishing to develop that technology for peaceful uses. Unless one approaches this with a degree of trust no agreement is possible. Isolation of any country will not work.

The other super meeting of the G20 at Pittsburg has decided that G20 would be the forum responsible for managing the world economy instead of the G8 (comprising of mostly West). Smart move, when the losses are now being socialised, to expand the responsibility for recovery and throw a smoke-screen over the culpability of the West for the economic mess they have brought to the world in the recent past. Hope it works fast.

Still the Bankers are a different, uncontrollable Beasts altogether and with so many ex-bankers in position of responsibility at Governmental level (especially in the US) the outcome is not very certain.

Why not integrate the G20 countries into an expanded UN Security Council which could be renamed Supreme Council with no veto rights for any one country, but 75% majority ruling required to pass all resolutions/actions ?

A lighter side-show to these meetings was the New Zealand Prime Minister John Key's appearance on the David Letterman Show where key plugged New Zealand unashamedly. Good on you mate.

Watch this at

http://www.youtube.com/watch?v=6b3VzcK2xqM&feature=player_embedded#t=265

September-The Crisis Anniversary Month- 9/11 and 9/15 - Osama and Lehman

September is the Crisis Anniversary month for the world. Two events that shook the world this decade happened in September, both in New York. Both changed the world in political and economic terms and both had created more uncertainties and destabilised the world.

The 9/11 World Trade Center attacks by Al Qaeda instigated a massive retaliation by US in Iraq and Afganisthan, the effects of which are being felt even today and will continue in future. The US has spent trillions to avenge the 9/11 attack and has sacrificed many of its citizens in both wars. Iraq has been scarred forever and the US has put countless Iraqi citizens out of their homes and even out of their lives.

These wars have generated their own scandals, Abu Graib, Gitmo, torture, water-boarding (such an innocuous word sounding like a sport akin to snow-boarding), rendition (sounds biblical but very dangerous in practice) and similar exotic practices/phrases. The US is trying to slowly wind down from Iraq, but at the same time increasing the involvment in Afganisthan, much against the wishes of its own citizens. There seems to be no exit strategy from war abroad.

Similar is the story with the other Anniversary, 9/15, the day the financial chiefs let Lehman Brothers collapse, bringing on a Tsunami in the money world, which swept aside and destroyed the wealth of countless individuals and organisations.

It has been proved by the latest revealings in many financial magazines that the top-players in USA at that time did everything with a selfish interest to save their own firms and even some of them were brow-beaten into the scheme, with the Bush Administration having no clue as to what was happening or was going to happen.

It was Paulson all the way designing and implementing the recovery at a very rapid pace to save Goldman and his cronies. The world will continue to pay the price for this for many more years.

'Too Big to Fail' and 'Too Smart to be thrown out' have entered the Capitalistic vocabulary and are once again the underpinnings of the recovery/rebuilding.

And the ultimate 'Too big to fail' is the US itself and the whole world is sustaining what is unsustainable for long. So watch out for a similar scenario happening sometime in next few years. The Bankers are consolidating with the help of public money ready to unleash the next catastrophe on the world. It could come in the form of commerical property collapse, more securitisation may be of carbon/emissions trading, insurance scams (what with Obama feeding the insurance companies with his own Grand Plan), dollar crisis, inflation, and many such unforeseen events. The cost of picking up the pieces then will be more severe.

The exit strategy from this so-called stimulus is still not being thought of.

Two events from which the US and the World are trying to exit without much more damage, but the prognosis is not very good at the moment.

I am not being excessively gloomy, in the face of the nascent recovery and the 'green shoots' that is out there. I am just looking at the countless individuals/instititutions that lost wealth in the collapse as against the very few, bankers and stock holders, who are now benefitting from the small recovery that is happening now. The collapse was broadbased but the present recovey is too narrow to help those who lost everything in the collapse.

Need for rethinking Afghan Strategy

The association with US and the assistance they are getting from US in comabting terrorism seem to be the kiss of death for Pakistan and Afghanistan and it is proving to be a slow death.

In the meantime, US and allies will get more and more mired in the Afghan imbroglio and will turn that into another Vietnam, with force escalations, despotic government installed by US and the same old stuff.
It was expected that President Obama would change George Bush's policy but he is repeating Bush's mistakes in Iraq with troop surge, etc.
The British public have already seen the folly of such moves and are pressuring their government to stop sinking deeper in Afganistan.
But in US they are pre-occupied with economic and healthcare crises and have no time to see how the Afgan and Pakistan policies are hurting the US politically and militarily.

In Pakistan and Afghanistan they rightfully hate the US for the carnage it has brought to them.

The US went into the region to avenge the 9/11 and the perpetrators needed to be punished.

But in Afghanistan, after engaging the enemy for so many years, they are nowhere near a solution.

The initial objective of capturing Osama has now become so many things that the US is continuously risking the lives of everyone involved, most of all the innocent civilians.

Just imagine if every county that was the victim of a terror attack started a war against the country that housed the perps. For example, is India allowed to start a war (like the US against Afganistan) against Pakistan to avenge the Bombay massacres ?

The US wrongly invaded Iraq after 9/11 and spent all its energies, money and many soldiers and civilians died in the process.

Now the same thing is happening in Afganistan.

My concern is US on the one hand has lost the wealth of the world by its financial shenanigans and now they are destroying the human wealth in other countries on an imaginary threat which is not going to go away by such wars.

Why not the US step back from Afghanistan, withdraw the forces and work out a more effective way to capture Osama, instead of just throwing men and arms against everyone in Afghanistan and Pakistan ? They are not succeeding with the military option they have embraced.

May be the US should give an ultimatum and task Pakistan to capture Osama and his top deputies within 6 months are so, failing which they would lose all the aid/funds they are getting from US now. This would give Pakistan a deadline and an incentive to work harder to fight terrorism.

A respite in the war may win more friends for US than what is happening now.

If you have $5000 would you invest in shares of Google or Microsoft ?

I just read about the deal between Microsoft and Yahoo agreeing to combine their search engines as competition to Google. Started wondering what would be the long term outlook for both Microsoft and Google.

Microsoft is really getting soft with not many useful innovations or upgrades coming out. Their presence on the internet market is practically zero. Now their Operating System Windows is also under threat of rival Google which is going to introduce Chrome OS soon. Google has already introduced Chrome browser which has received critical acclaim by techies. Chrome does not crash as often as Windows and successive upgrades in Windows have not stabilized it and have in fact confused users.

Microsoft wanted to get in the Search Engine market dominated by Google (I understand Google has more than 80% market internationally and more than 65% in US) and its child Bing is too young to pose a threat to Google. So the move to acquire some bling by getting Yahoo engine so Bing can be marketed as a robust version. May work , but will take time.

Google has become a generic product and it will be difficult to wean away customers from that.

To add to its luster, Google is going after Apple’s share in the smart phone market with its Magic handset, which I understand integrates well several applications.

It is not a stretch to think that Google’s next project (or may be it already has a secret one under development) is in the music scene to compete with I Pod.

So Google seems to be looking to several innovations/applications whereas Microsoft is kind of floundering in the wild and does not know what to do with Windows and where to go next.

And remember Bill Gates has effectively moved away from Microsoft, pursuing his philanthropy. He is out to make a gentler image for himself in the world. So it seems the hunger to do business may be dimming at Microsoft.

Google on the other hand is readying its weapons on several fronts and it seems that it could expand its presence in several fields. The old adage that nothing succeeds like success may work for Google as it succeeds in new products/services.

Granted Google has an image problem, being the giant it is, just like Walmart, I would guess.

Still it is working smartly and it looks like the choice for investment would be Google.

Am I right ? Can Microsoft be dismissed too quickly and easily ?

Mighty interesting to watch.

PS: I just stumbled upon a website which allows one to simultaneously use Bing and Google SEs

http://www.bing-vs-google.com

Clever but at this rate we may have to increase the monitor size to accommodate everything. May be we can buy a 50'' LCD TV, put it up on the living room and play 'Search Game' for parties.

Time to make India a Permanent Member of UN Security Council

The UN Security Council has only 5 permanent members since inception.

Which is not really reflective of present day geo-political situation of the World. The world has moved on from the war years. Economic expansion and population increase in other countires dictates that the present 5 permanent members, viz, US, UK, France, Russia and China do not adequately reflect or represent the World in UN. This can no more be the very exclusive club it has been so far.

Economically UK, France and even US have had major crises/collapses in the recent past and their currencies do not command the value they have done in the past. Russia is a broken state after the disintegration of USSR and the Russian economy is not robust or healthy. Only China has improved its economic and political clout in the last several decades.

There are other countries which have now come to the fore-front in world affairs. India being the principal of these newly emerged countries. With the large population, stable democracy, improved economic situation and the expected role India is likely to play in world affairs in the next few years, it is the right time to expand the permanent membership to include India. India and China have to be co-opted into the Global Environmental Scene and what better way than to give India the importance it deserves in the world affairs.

Granted in the past India has not taken any sides and has gone the non-aligned way, but things are changing. India and Us are co-operating in the energy (nuclear) field and US is considering India as very important for security and anti-terrorism matters. Indian economy has grown to commanding heights and the market in India cannot be ignored either. In fact they say India is a better bet than China in the economic field. And technolgy absorption and development is increasing in India. The Silicon Valley is said to be powered by ICs (Indians and Chinese).

While that is being considered and done there are a few other countries which qualify as well, notably Brazil, Saudi Arabia, Australia and even South Africa and Nigeria.

It would be a better world and a better UN if proper and just representation is given to all geographical areas and more members are included from a resurgent Asia and Africa.

It might be even a good idea to merge the permanent and elected members into one single group with say 12 important members from all continents.

My choice for such a revampled uber-council would be US, UK, Germany, France, Russia, Turkey, Saudi Arabia, India, China, Nigeria, South Africa and Australia.

Update on 27/9/09

Or as an alternative how about the following

The G20 countries have agreed at Pittsburgh that this forum (with following members) would become the main economic forum to manage the world economy.

The G20 countries are Argentina, Australia, Brazil, Canada, China, France, Germany, India, Indonesia, Italy, Japan, South Korea, Mexico, Russia, Saudi Arabia, South Africa, Turkey, U.S., U.K.

Why not integrate these countries into an expanded UN Security Council which could be renamed UN Supreme Council with no veto rights but 75% majority requiring to pass resolutions.

Iran better watch out for an attack.

The drum rolls are beating strong.

Joe Biden has stated that Isreal is best capable of deciding its threat and taking action.

Though Obama has played the Good guy to Biden's Bad guy, he is under pressure to get results from Iran for his soft approach.

And Israel has to do something to get back the US support.

So what better way than to do the hard job for US and take out Iran's nuclear facilities and get US in its debt for the next few decades.

Obama is painting himself into a corner, the latest being the September deadline for Iran to dial back on its nuclear development.

Clinton has sent the message that time is running out for Iran and military options are not ruled out.

And the US is drumming up support from Europe and Russia for some sort of action.

Sanctions have not worked in the past and will not be effective again.

All this with no clear sign that Iran is pursuing nuclear weaponry.

With Afganistan turning into another Iraq (what with troop surge, getting UK deeper in, increasing casualties), the US may soon need some victory on another front.

The recent elections in Iran did not go the way the West expected and now they are stuck with the hardliners Ahmedinijad and the Ayotollahs for some more years.

Could be that Israel is being encouraged to up the ante slowly for a final assault.

Will this strategy of intimidation fly ?

Not sure. US and Israel may have to deliver on their threats soon.

Where is the UN ? Sleepy and silent as always.

And the Arabs ? They don't really have a clue and are not able to exert any influence, notwithstanding the Oil they own.

Public right to comment on a Murder trial

There is a case going on in New Zealand about a murder of an University student by her Tutor, who stabbed her several times to death, then mutilated her body. His main defence is that she provoked him with her tirade and angry words and he is claiming 'manslaughter' instead of 'murder'.

There is a Facebook group against him, where comments are being posted which is disturbing the judiciary here.

The link is

http://www.nzherald.co.nz/technology/news/article.cfm?c_id=5&objectid=10583896

It is rather interesting to see the postings on the Facebook which question the defence for taking any available means under the law to get the sentence they want and at the same time to see the judiciary trying to suppress free speech.

I think both sides are entitled to their actions. It is foolish and impractical to expect the public to keep quite when a trial is going on and the proceedings are detailed in the media daily. People will have their reactions and in Facebook they have found an immediate way to describe their reactions. If the judiciary is alarmed about the effect of reading this may have on the jurors and their final decision, then the only way that can be avoided in this technological age is the sequester any jury (at least in capital crime trials) without any access to media reporting or the net. If the authorities move to shut down such discussions either directly or indirectly, then what is the difference between New Zealand and Iran or China which regularly try to control the contents on the net. The Public voice should not be suppressed. That is what Democracy is all about.

As for the defence, they should have the freedom to wriggle out using whatever legal means are possible, because that is what a 'Defence' is all about. Otherwise the Defence Attorney is not doing his job. That is also why cross-examinations and defence presentations are allowed in a trial. Even with an overwhelming evidence and sometimes even with an admission of guilt, the defence is allowed to proceed, so they can atleast argue for a lenient sentence. If in any case the Defence gets away with something which is not acceptable to the Public, then the only course is to close the loophole in future by legislative action. This defence has also called for such action in New Zealand, that is to remove the defence of provocation. But how that will pan out is another story. For the latest on that, follow the link below :

http://www.nzherald.co.nz/crime/news/article.cfm?c_id=30&objectid=10583823

Democracy and Fair Judiciary have to work for everyone, even the accused.

In the meantime it is interesting reading for people like me.

Update on 22/7/09

The jury has returned a verdict of Guilty. The provocation and temporary insanity pleas did not succeed. Jury proved they are wise. Otherwise it would have established a precedent that if you kill with one stab or bullet it is murder, but if you kill with multiple stabs or bullets then it is temporary insanity. Murderers would have taken to more stabbings or more bullets. Sanity prevails with the jury verdict.

Some random thoughts

Obama and the Muslims.

I think President Obama has to first develop a consensus among Americans as to what should be the approach to the Muslims of the World. He cannot claim to speak for a majority of Americans or even a majority of his own Democratic party on this important issue. Whatever he says if it is not backed by his country-men and women would be just rhetoric and will risk the failure due to lack of action afterwards. President Obama seems to be on a mission to collect brownie points from various corners of the world, but his support among Americans is becoming shaky, because of his economic policies and flip-flops on a few issues like releasing the photos of Army abuse of prisoners. He is trying to do too many things and is losing focus and support. So he has to be careful about what he promises by way of actions on behalf of all Americans.

More so when Benjamin Netanyahu is not playing along with the American demands to give more concessions and stop/dismantle the settlements. Netanyahu is not even ready to look at the two-state solution to the Israeli-Palestinian issue. This has made Obama’s task of wooing the Arabs more difficult. They will be looking up to him to solve the Palestinian issue or at the least to come out with a workable policy which he will have to sell to Israel.

Without building a consensus in USA, President Obama will only issue more sound-bites which may come back to bite him later.

Sri Lanka – What now ?

The tragedy in Sri Lanka is not over yet and will not be over for a few more years. The Government has won the war, but not the minds of the Tamils. They have for now gathered the Tamils in refugee camps with no stated plans for their return and rehabilitation. The world had let the Government prosecute the war with no rules or mercy. There had been no great condemnation of the Army’s policy of not allowing any journalists or outsiders to report on the progress of the war and its effect on the innocents. Even now they are not sure as to how many Tamils died during the end period of the war. The US and other Western countries were pre-occupied with their economic troubles and India had its attention on Pakistan and election. It is a surprise that the Sri Lanakan Tamil issue did not play out in the recent election campaign in India , especially Tamilnadu. That must make the Tamils in Sri Lanka more despondent about their future.

Now that the war is over, there is an urgent need for an International initiative may be lead by India to make Sri Lanka accountable for the future of the Tamils there. The government must be made to come out with a timeline for resettling the refugees and return of their land and properties and help them in rehabilitation. Aid to Sri Lanka for this must be channeled by an International Group overseen by efficient administrators. Otherwise the refugee problem will fester and the Tamils may become the next Palestinians. It is not clear whether the seriousness of this has been realized by the world leaders and the UN yet.

General Motors – Who cares ?

I read recently that the folks of Detroit are angry that Americans elsewhere did not really care as to what happened to General Motors. An Icon of American industrial supremacy has fallen and is being dragged through unseemly forums to survive in a truncated form. I really do not understand the Bankruptcy move. Why did not the Federal Government simply take over the company and get concessions from the creditors, union and others to sell off assets ? The Bankruptcy and rebirth as a majority Government-owned new entity seems to be waste of resources and precious judicial time. May be Obama and his team had no idea as to how to effectively nationalize and run a troubled company. They should have taken lessons from India, which successfully averted a crisis in Satyam by immediately taking over the management and getting a new team in place which quickly found a willing buyer for the Company. The Indian stock market has absorbed this shock well and is coming back well.

May be the Detroit folks are right. No one cares about General Motors.

Free online news- How long will it last ?

We are seeing the death of newspapers and magazines which put all their wares for free on the net, banking only on the advertisement revenue. They thought they had a good business model going there. But the Economic Crisis has put paid to their future plans of delivering news and making money from the net. Now they have started talking about charging readers on online news like Itunes or some such thing. Will the net surfers bite ? I don’t think this is the right time for asking readers to pay for service which they have taken for granted. The economic crisis is putting many out of jobs and spending on inessentials is down. Is news very essential to the common man or woman ? I think we will see more of these bankruptcies and in the future Television news channels becoming more popular once again. CNN and Fox news and even Al Jazeera may cash in where NY Times and Washington Post lose readers and revenue.

Green shoots and Toxic Assets

Now we have a new phrase 'green shoots' to rival 'toxic assets'. What recovery exactly are we expecting ? Is it going back to the world economy as it was pre-2007, with US consuming, China exporting and Banks and Investment Bankers and Hedge Funds making money for themselves. I don't think that kind of recovery would do any good. The American auto industry is out and the infrastructure there needs trillions to repair and restore. The next recovery should focus on manufacturing, eradicating poverty, destroying arms, stopping warfare and improving health care for everyone. It should not be based on spending on consumer goods. How about a real estate boom in the third world giving everyone there an opportunity to have a shelter of their own ? This is the kind of recovery we should be working for.

USA vist

I had a great trip to USA recently

Some of my impressions recorded on a daily basis, copied from my Facebook page, because I am lazy to re-write.
However I might add more.

Off to US tomorrow to boost US economy by spending time and money there, hope Obama gives me some of those bailout $$, even 50% would do

I am here in Washington DC, having a good time, weather co-operating well, saw the Georgetown Yuppies yesterday, they are still at their mocha, so life is good

Kumar's Lexus Hybrid is great, the navigator lady got wild when he would not take the turns she suggested, so she shut herself off, how about wives do the same

Got on the famous Washington beltway and off, how about they put a conveyor belt underneath, so cars can save on petrol, (this is called Kadi Joke in Tamil)

Update on Kumar's navigator. We are talking to the company to change her to a HE, because I thought it was sexist of the company to have the default a female

In the Big Apple now, met with Lady Liberty, Saw One Fifth Ave, wondering where the rest 4 fifth has gone, Empire State Bldg view from top was great minus Kong

Started at Ground Zero yesterday and stayed on the ground for the whole day, walking nearly 100 blocks from UN Plaza to Central Park and back to 3rd street. Tried to revive the Bull of Wall St, but it had gone to deep sleep, no luck there. Waldorf Astoria needs a coat of paint. De Beers and Van Cleef have some fantastic diamond necklaces on display. Unfortunately Liz Taylor was not with me to buy me some diamonds.

Went to Philadelphia and trod on Ground Holy there, Liberty Bell on the ground was not so awe-inspiring, but the Independence Hall and the Park Rangers' comentaries were really great.Learnt that New York was the capital for just a few days before Philly took that over for a few months before Washington DC was purpose-built as the Capital. Had my first American cup cake, but found it very treackly and sticky.

Yesterday I developed a new cocktail and am dedicating to Americans. It is called 'Peace of Mind' (can also be called Vodka and Blackberry) and goes like this. Fill a tall glass of Vodka and put the Blackberry in it and go to sleep. Guaranteed to give you good night sleep and peace of mind. Americans need it. Visited Princeton Uni yesterday, great architecture and nice grounds with squirrels and rabbits running. I am sure they get their own degrees. There are a few nice sculptures on the ground, whoever figures out what they mean will get a PhD from Mohan University. I am in Providence now, catching up with the in-laws, so it is all legal for 2 days.

Went to Boston today, visited Harvard campus, this trip is turning into a Uni trip. I am hoping something will rub off on me from those brainy youngsters floating around these great learning institutions. Harvard is all Red whereas Princeton is all greay and black ( I mean the architecture). Wish I can go to Yale too, not going to happen, May be I will go to Uni of Chicago.

What if Osama Bin Laden declares Peace on America ? I am just wondering what if Osama Bin Laden declares- My dream has come true, America is down and has come to a standstil, what I attempted to do when I sent in those planes to hit the Twin Towers, thanks to the Wall Street Wizards. I am now declaring my Mission Accomplished and am putting an end to the Jihad. All my followers, please note, the Jihad is over, go and love the Americans. Will Obama still pursue Osama ?

Yesterday was the visit to Newport where we checked out the mansions of super-rich, like the railroad baron on early 20th century, the Van Der Bilts. Great stuff, marbles, paintings, artifacts, gold and silver, etc. Came back and bought a Powerball ticket. Had to see Brown Uni at night, so could not be sure it is really Brown. The cliff walk on Newport during the typical New England mini-stormy weather was surreal.

Spent the day in the Windy City (Chicago) which also turned out to be the wet city today. Dug into a sumptuous deep stuffed pizza, the specialty of Chicago. Really unique. The shore drive on Lake Michigan was very nice. They have very impressive tall, double decker trains here, very sleep with steel cladding, etc. Heard Obama has started a car mechanical and servicing company to service all cars sold previously by GM and Ford. Hope they do something like that in NZ too. But if it means we have to go into a deep recession, then no thanks. Saw a Bank in Chicago called Fifth Third Bank. Trying to work out what it means.

I heard there was a BankOne, and then the other Banks started calling themselves Bank Half, Bank One third etc. But Bank Fifth Third still beats me. Unless it was because the Bank was started at the intersection of Fifth Ave and Third Street.

Today was Miller Time , no, make it Miller Day. Visited the Miller Brewery at Milwaukee, Wisconsin (2 hrs train ride from Chicago) and went ont he Brewery tour and sampling, all free. Can't go better than that. Weather was good, sunny and blue skies. Reminded me of Auckland in Summer. It is still snowing there in Milwaukee and they are making sculptures out of unmelted snow.

Walked the beautiful city of Chicago today, thier own Central park is called Millennium Park, Anish Kapoor cleverly has put a mirror in the Park, shaped like a doughnut and now everyone is having fun seeing the skyscrapers reflected on it. Tried to take money from ATM, Bank of America had no cash to give, Citi wanted to charge me a fee, but JP Morgan Chase gave the cash quickly with no fuss. No wonder they are no 1 here.

Came back to Washington for a gorgeous steak dinner, ate the juiciest steak at Logan's-thank you Kumar. Yesterday was smack in the middle of Cherry Blossom Festival in DC. Heaps of crowd straining the metro system whihc is not designed to that much crowd. The monuments walk and White House phot-op were fantastic. DC Rocks. Go Obama.

Took a long drive to Raleigh, NC. It became greener as we travelled south from DC, but not as green as NZ, which I would say is unique. Yesterday was at DC, taking in the Capitol and walking the Mall. They have a Chevy Chase Bank here, I am looking for the George Cloony Bank. Had a fabulous Japanese Food. So all going well and on track.

Saw a few Smithsonian museums today, need another week to see them all, but unfortunately no time for that. It was cold and windy, equalling Chicago. Windy Washington may be wants me to get out. Had a good pasta meal, freshly prepared at a quaint little place. Good value for money. I wonder why Smithsonian does not have a section for Asia in its Mammals display.

Now that Illinois has given two Presidents to USA, why don't they call themselves the "The Presidential State'

Last day in Washington DC. Went to Hooters for lunch, the lovely girl asked to see my ID before serving me a beer. I felt very flattered. Went to Teddy Roosevelt's memorial. It is hidden and forgotten by DC. Even FDR's memorial needs cleaning up. Why have the Roosevelts falln from grace ? The Iwo Jima memorial was great. Good bye DC.

Back home after the last leg of 2 days in Vegas, which is a magic fantasy land, glowing more after sunset. Liked the NY, NY themed hotel the best, with a roller coaster ride and duplicate Liberty statue. Vegas at dusk is at its best. Caught a show 'Crazy Girls' at Riviera. Do you know these girls have their own statues (of their backside only) at the entrance of the Hotel and punters rub their bottoms for luck before going to play in the Casino. Just like hte Bronze Bull on Wall Street in NY. But the luck is very elusive and not long-lasting as recent events have proved.

Here is the link to some of the photos of the trip. Enjoy. Thanks


http://www.facebook.com/album.php?aid=87312&id=650781016&l=3a3ffb9f97

http://www.facebook.com/album.php?aid=86253&id=650781016&l=27e18e7eb8

Some suggestions for USA

To deal with the current crisis, why not Obama try these:

1. Create a National Housing Corp to buy out the undewater homes and then rent them out to the ex-owners at some nominal rent so they would have the incentive to stay there, take care of the asset, look for a job and restart their lives. This could save lot of time and money that is going in foreclosures and similar legal actions. Also this way the bailout money could be used directly to help home owners instead of being swollowed by the Banks

2. Start a new Bank of USA, owned by the Government with initial capital of say $250 billion or so. This could give incentive for people to shift their money from the failed banks like Bank of America, Citigroup etc which can be allowed to merge with the Bank of USA. The new bank could have new management and new policy directions to help the development of the needy sectors of the economy.

3. Obama should invoke emergency powers to take tough economic and financial decisions like these. In the present climate I am sure the Congress, Senate and the Public would support him

4. At present it looks like Obama is acting for acting sake and is throwing money indiscriminately at the problem without any control about who gets it and how it would be used. The Banks are scaring him into giving them the money to compensate them for the book losses that they may incur if they recall all the bad loans. Which need not happen. The losses can be continued and only the rules for marking the assets to the market need to be changed so Banks can still have a healthy balance sheet. ( Remember at present the balance sheets are like , ' there is nothing right on the left side and on the right side nothing is left'

5. The Americans should revalue their values of Public and Private Sector roles in the Economy and also about the 'Too big to be allowed to fail' syndrome. Like the Auto industry is heading towards consolidation the Banking and Finance industry also need consolidation with dishonest, stupid and incompetent Banks and Finance firms allowed to fail or merge.

What if Osama declares Peace on America

I am just wondering what if Osama Bin Laden declares- 'My dream has come true, America is down and has come to a standstill, thanks to the Wall Street Wizards, which was what I attempted to do when I sent in those planes to hit the Twin Towers. I am now declaring my Mission Accomplished and am putting an end to the Jihad. All my followers, please note, the Jihad is over, throw away your guns and bombs, don't hate Americans instead go and love the Americans'.

Will Obama still pursue Osama if he does this ?

Taking knife to a Tagger-Is it justified ?

Recently in Auckland there was an incident of a 15 year old tagger having been killed with a knife by the home owner after a brief chase. The link is
http://www.nzherald.co.nz/nz/news/article.cfm?c_id=1&objectid=10556542

The home owner has since been convicted of manslaughter and been sentenced to 4 years prison term, which he may appeal.

This case has raised a big debate in New Zealand about the justice meted out, whether the home owner was justified in killing the boy and whether the boy deserved what he got.
The debate can be followed on this link
http://blogs.nzherald.co.nz/blog/your-views/2009/2/13/bruce-emerys-sentence-fair/?c_id=1501154&objectid=10556569

I am very disturbed about the support the home owner is getting from many in New Zealand. He is almost made out to be a hero who in defending his property from petty vandalism, is entitled to give out the capital punishment which the justice system itself has fore-sworn.

The majority opinion expressed seems to be that the kid deserved what he got. I thought death penalty had been abolished in New Zealand. But it appears to be okay when it is administered outside the courts. What next, private vigilantism?

Not an healthy situation to be in. There have also been questions about the kind of parenting the boy has received, coming from a poor family with a single mother who had gone overseas for a job. Parenting however cuts both ways. Remember the home oewner is a parent too. Should he not have been more cool-headed and avoided taking a knife with him?

It is facile to say that he decided to chase the boy, but took with him a knife to protect himself, in case he was attacked. Looks a bit deliberate to me. As deliberate as the kid when he took a spray can with him. One does not excuse the other.

The kid consciously took a spray can to damage some one’s property. The property owner consciously took a knife to damage some one’s body if not life. I wonder which was worse, inspite of who provoked whom and what provoked what. Where is the Christian spirit of showing the other cheek ? Can society be peaceful with such indiscipline and anger ?

Break down of family and society, lack of efective policing because of small number of police doing inessential stuff, police not being on the beat/street to send out a message, police not responding within reasonable time to reports of crime, lenient sentencing, availability of early parole, etc are probably some of the many causes of such incidents.

Very scary to think where we all are going.

Ring a Ring a Roses-All Fell Down

The Basle committee had mandated capital adequacy ratios for banks and many banks had their own rules for recognising impaired loans. But with the introduction of sub-prime, mid-prime, altA, interest only, negative-amortised, option ARM and other such loans the Banks and their regulators moved away from proper recognition of risk and capital backing.

This is as much a failure of Central Banks as any other. Now they are making another great mistake in thinking that tweaking interest rates will be the solution to the crisis.
The Banks are basically insolvent and have no will or resource to carry on their basic business of lending and making profits. Whatever funds are pumped into them will go in a bottomless sinking hole to compensate for the losses already on the books and losses yet to be recognised. This is the sorry state of Banks in US and UK and a few other key western countries today.

In return for the ‘Made in China’ goods exported to USA, the Americans have sent ‘Made in USA’ financial crisis and recession to the whole world. And what Osama Bin Laden failed to do, the Wall Street Wizards have done to USA, i.e bring it to a stand-still.

The crisis started with home loans and the remedy has also to start there. The home buyers who took these toxic mortgages have to be given subsidies to compensate for the loss of equity which can be applied to write down the debt. The funds pumped in should get the Government ownership of the Banks for the near future. Management of the Banks has to be changed with priority to keep to basic Banking. The relief has to be spread to the whole gamut of bank customers and home owners. Those who paid their loans properly could get some tax relief.

I am also wondering whether the world is once again following a wrong trend being set by the Americans in the economic/fiscal fields.

The American brains have been the principal culprits in creating the crisis in the first place by designing exotic financial products which they sold all over the world. BY following that trend the Banks and Financial Institutions have lost all their money and credibility. Now the cure being tried by the Americans, namely, lowering interest rates, pumping money, rescuing troubled lenders (who may not deserve such rescue), throwing big money at the problem etc is again being followed by most of the world.

Is this the right way forward ? This may result in more inflation, higher interest rates and more restraints on the business in the future, deepening the depression. Why not take a pause, let some Banks/institutions fail and the whole field be cleaned out. IN the meantime whatever money is available should be used to help the citizens who are affected, may be by direct assistance to reduce their loans, cash subsidies, increased unemployment benefits, etc.

May be it is the right time to call a meeting like the Bretton Woods conference. One thing that can be immediately decided at such a meeting is to stop all warfare and arms production so trillions can be saved and diverted to nation building everywhere. But we don’t have a strong leader to lead and direct anywhere in the world.

In the absence of such an initiative each affected nation may stumble from step to step and like the nursery rhyme ’round and round and all fell down’.

Hope this does not come true.

Ignore Slumdog, Ignore not Srilanka

Yesterday I saw Slumdog Millionaire and felt it to be a big ‘bakhwas’ i.e. nonsense. I am not concerned about the poverty and crime portrayed in the movie, because such things exist all over the world in different forms and styles. However the movie did not have any worthwhile acting or storyline or emotive scenes. The actor who portrayed the lead character had the most wooden face I have ever seen on the screen and his delivery of line more like mumbling. Anil Kapoor acted awfully. The main premise of the story that a successful contestant will be immediately thrown to the Police to be beaten and interrogated was so unrealistic. May be the producers wanted to take a dig at Gitmo. I think the movie is appealing to Western critics because India and particularly Mumabi is the flavour now. It would be a big tragedy and travesty if this movie gets any Oscars for any thing. I can’t picture this movie in the Oscar league with films like Gone with the Wind, Gandhi, Godfather, One flew over the cuckoo’s nest, etc.I hope people realise that this is one more botched Bollywood style movie, made by Britishers and leave it to its own fate in the box office. No need to glorify it with any award.

Sri Lanka becoming an hotspot

It is very concerning to see once again the innocents caught in the cross-fire between the government and the rebels in Sri Lanka. But it has to be admitted that by following a path of military confrontation, the Tigers invited this result eventually. The government would one day win because the rebels could not perpetuate their fund-raising and arms-buying forever, especially when the economic conditions are not good and when the world is getting tired of wars in several corners. The United Nations had effectively withdrawn from peace-making long back and with India pre-occupied with Pakistan and Kashmir, the Sri Lankan rebels did not have much hope of keeping their enclave for long. (The UN has become a Police, investigating Benazir Bhutto's assassination. May be they should also investigate the Mumbai Massacre).

The Sri Lankan government should now make a good offer of peace and protect the Tamil citizens to establish its credibility. However the way things are going on the ground, I am afraid the Sri Lankan Government would keep the Tamils in camps/enclaves for a porlonged time which would not give them any hope of participating/leading better lives in future. I fervently hope that these camps do not turn into sources of deep discontent among the Tamils and lead them to a desperate sitiuaton and start thinking of getting out of Sri Lanka. Then they would flood into India which would be their natural first port of call.

My fear is things could get out of control if the Government does not implement an immediate plan to assimilate the Tamils into the national fabric and reassure the Tamils that Sri Lanka is their country too and they have a future there. Otherwise it could easily escalate into an international incident involving India and several other countries.

May be it is time for the government to offer an amnesty programme so the remaining rebels also could embrace peace.

Can Capitalism be turned on and off like tap water ?

These are extra-ordinary times and require similar thinking and actions.

Capitalism and private enterprise have blown their chances by playing fast and loose and are on retreat all over the world.

Central Banks have to rethink their monetary intervention policies. Tweaking OCR will not work anymore because that is the rate at which Banks get their money but not the rate at which customers get it for their loans. Banks do not pass it on fully, naturally, as they are middle-men and look to their profit and bonuses (dirty word now) especially in these lean times. And also Banks hare now afraid of lending - like the proverbial cat that drank the hot milk and shied away from milk for a long time.

The way to go forward may be that Central Banks should get involved in Commercial Banking either directly or indirectly (part nationalisation perhaps) and direct lending to desired sectors of the economy at desired interest costs so the economy could be given the boost correctly.

Western Governments can play this game and use their resources to buy up some good financial assets which they can offload later for profit. Remember the bailout funds now being given to the Banks are going nowhere now and even the Americans are being stumped as to what to do. Call it 'market socialism' or whatever. One caution though, don't hire the financial wizards from the American Universities who screwed up the world economy in the first place.

Some European countries like Sweden have done it successfully in the past.

So it is time to start thinking outside the box of standard Capitalistic and Free market style at least for the next few years.

Early repayment penalty and Withholding tax on Bank interest

The fall in interest rates in many countries has not percolated to the home owners who had borrowed and fixed their loans earlier. In several countries like New Zealand, the Banks charge a penalty to unfix the loan and refinance at the current lower rates.
The Governments should come to the party with a Early repayment Subsidy for unfixing the loans fixed at higher rates.
The banks are getting tax payer money as bailout and guarantees. So why should not the taxpayer get help from the Government for lessening his financial burdens.
Remember it is the Central Banks which ratcheted up the interet rates in the last few years to cool the housing market. Now they are reducing it to boost the housing market and want citizens to increase their loan liabilities.
What is the guarantee they will not stiff the borrowers with higher rates again in the future.
Why should the banks be always winners and the citizens the losers.
The early repayment penalty is being collected by the Banks upfront which many may not afford.
Granted there are contract terms and all that, but consider that the whole mess internationally has been brought about by Banks and Finance Wizards playing fast and loose and now they have gone off with their fat bonuses.
Also look at the bigger picture. The financial wizards who were trusted with the tax payers' money in the form of deposits played fast and loose and lost all of it in many shcemes they themselves did not understand. They were greedy for their fat bonuses and speculated with someone else's money. Now Governments all over the world are coming to their rescueby pumping billions into the Banks which really do not deserve it.
How could an ordinary citizen who wanted to just buy a house understand the complexities of loan contracts and forecast the future losses. I also suspect that in most of the cases the borrowers' attention was not specifically drawn to the implications of all this when they signed the documents.
Besides the above subsidy, to help the elderly who have invested money in Bank Term Deposits who are affected by the lowering of interest rates, the Government should immediately remove the withholding tax on the Bank deposits may be with a ceiling. This would give good relief to those who depend on interest from these deposits for their livelihood. They have trusted their hard earned money with Banks which sadly in the recent past had not taken good care of it.
The Governments should direct their assistance correctly to immediately benefit the tax payers which will also boost the economy.
Otherwise people would lose faith in the Government as they have lost in the Finance guys.

Open letter to Obama

Bravo, President Obama

In your interview to Al-Arabiya you have said all the right things in the right tone and manner. Now you have taken the issue to the Muslim world and it is transparent that you want friendship and peace with all the peace-loving Muslims. I am sure there will be positive reactions to this. America under your leadership seems to be putting the correct step forward.
Please make sure all your administration embraces these sentiments and style and then you will win hearts and minds.
I am also impressed by Robert Gates when he talked about the limited goal of the world community in Afganisthan. The focus should be to 'get the limited job done quickly and get out'. If you also follow through on your promise to get out of Iraq within a short time-table you would show your sincerity to the world.
But remember USA also has a commitment to rebuild the countries ravaged by it. May be the present economic circumstances in USA do not permit you to start a Marshall Plan for Iraq but you have the responsibility and liability to start some rebuilding going there.
I wish you all the best.

Obama, the Economy and India

The whole World is expecting 'Jesus Obama' to do nothing less than save the world (may be from the Americans themselves). Good luck. God Bless.

As some of his priorities I think Obama has to say sorry on behalf of USA to the thousands of Iraqi innocents and the American soldiers who were killed in Iraq because of the War started by USA there on false grounds and get the hell out of Iraq immediately. Then he should focus on putting the American economy in order and abolish lobbying in USA to prevent future fiascos.

He can also allow the United Nations Security Council to expand and remove the veto system there and promote adopting majority decisions in UN.

Speaking of putting the economy in order, how about the following for the banks in USA.

Get 51% stake in all the major banks for the money invested in them
As majority owner, get the Treasury nominees on the board of the Banks and may be CEO and CFO too, so the banks can be run tight
Fix ceiling on remuneration of top executives and introduce performance ratings which will govern pay increases
Limit the activities of Banks to basic banking and make sure they do not enter into exotic financial products
Write down the loans of poor home-owners affected by the sub-prime and housing crisis to match the capital pumped into these banks. For those who paid their mortgages honestly in the last 3 years, give a cash refund of the principal paid by them (which might compensate them for the fall of house value)
Give directions to the Banks for prioritising their lending to important sectors of the economy and make sure they actually lend.
Let the Hedge funds go bankrupt and let the shareholders take the loss.

If this all sounds like Socialism or Mixed-economy then let it be. After the runaway excesses of Capitalism, it may be the bitter medicine needed. If necessary they can get expertise from India which nationalised banks a few decades back and is still having an healthy dose of public-private sector banking mix with good regulation.

In a lighter vein it seems like the Americans may also have to take a leaf from Indian Banks’ famous (infamous) ‘Loan Melas or Loan Festivals’ if the Banks there do not come forward to lend again, inspite of all the funds they got as bailout from the Government.

Obama is all set to spend more than one trillion dollars to prime the pump in America. That much money will attract all kinds of shady lobbyists. He and his team have to be very careful in how the funds are deployed. It will be a good idea to withdraw America from all the wars immediately to save money. This will save American lives and pockets. There is no threat to America from anywhere or anyone in the World. With the Department of Homeland Security running effectively they can stop all perceived terrorist attacks on American soil.

I also hope Obama does not meddle too much in the Kashmir affair and make it difficult for India and Pakistan to solve the issue. In the guise of neutralising Taleban, Obama and his team should not be drawn into the Kashmir issue and lose their goodwill with democratic India.

Finally I can’t escape the irony of George Bush and Dick Cheney wanting to get rid of Osama and instead getting Obama to head the USA. Just an alphabet change, but what a change it is for America. And it is funny that Bush and Cheney lost the war against the Muslims and paved the way for an African-American with a Muslim middle name to become the President of USA. I know I am taking a cheap shot here, but could not help myself.

How to stop the carnage in Gaza

The rich Arab countries in the Middle East are cozy with USA and are spending billions every year to buy arms and ammunition from USA, even though there is no threat of any country invading them and taking over the oilfields.
USA is the main backer for Israel which also receives arms/ammunition from USA. The Arab countries instead of spending on arms can give their funds to the Palestinians by way of grant every year to live peacefully in their cities without provoking Israel.
Granted the land is precious to both the Jews and Palestinians, but some sort of peaceful co-existence can be worked out with enough cash for the Palestinians from the Arab countries till they settle down.
It is horrible to see the Muslims being massacred by the Israelis. USA can't solve this issue because of its role as the main arms-supplier. I am sure the ordinary citizens of Palestine will be ready to lead a normal life with cash support from the Arab countries and get on with their lives.
I think USA is the main culprit in keeping the Middle east situation alive, because it gives an oppoprtunity for the arms makers to continue to sell to both sides and make money. The Arabs should realise that they are being taken for a ride.
Instead they should boycott USA and refuse to sell oil to the Americans. There is enough demand elsewhere for the Oil to be sold at $40 per barrel. The Americans should not get the Oil or the Oil money which is being invested there. That would put a stop to their supporting Israel. A public promise of continuous annual subsidy to each citizen of Palestine by the rich Arab for a promise not to back thehardliners like Hamas or Hizbullah will make the Palestinians realise that there is a better way for peaceful co-existence. What I am saying is 'remove the middle-men, both the Americans and the Hamas/Hizbullah' from the scene. This requires a bold vision and guts, which the Arabs should demonstrate they have and work now or lose another opportunity.
Remember what was said of Yassir Arafat-He never lost an opportunity to lose the opportunity to make peace.
However I have the feeling that all the negative opinions against Israel will not make any difference to the situation. Israel and USA will continue their policies of keeping the Middle east under tension, so they can pursue their practice of making war and money by sale and use of arms.
The US congress has laid down the gauntlet by passing a resolution supporting Israel and its right to self-defence. Will the Arab countries take up the gauntlet by passing similar resolutions expressing support for the Palestinians and pledging to do whatever it takes to see justice done and acting on the promise ?.
I am not sure. Till that will and determination is developed, America/Isarel Team will call the shots in the Middle East. Middle East has the resource which America needs but America is calling the shots. What a shame
United Nations in its current structure and rules with veto systmes is not going to be of any help.
The Arab countries are too much linked with the market in USA for their oil revenues and investments. The Palestinians are not going to get any justice soon.
There has to be a shock to the International Community. That can happen only if all nations who support Palestine withdraw from the UN, the Arabs boycott the USA and stop selling oil to USA and if the Arabs come together to give an ultimatum/deadline for the peace process to be completed. The Arabs should withdraw their investments from the Western World and look elsewhere for their security. America/Israel team is not invincible.
But what do the Arbs want?