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Posts Tagged ‘Spain’

Occupy Wall Street! Another spontaneous protest?

October 17, 2011 5 comments

From New York to New Delhi, the rage is being ‘used’ in a new form. Organizers are ‘behaving’ differently.

New Delhi or New York, the rage is bigger than the idea. (Cartoon by Nate Beeler |  On 7-10-2011  |  In The Washington Examiner, Washington, D.C.  |  Source and Courtesy - cagle.com. Click for larger source image.

New Delhi or New York, the rage is bigger than the idea. | Cartoon by Nate Beeler | On 7-10-2011 | In The Washington Examiner, Washington, D.C. | Source and Courtesy - cagle.com. Click for larger source image.

Activists scuffled with police in London and decried the wealthy in Hong Kong on Saturday as an unprecedented outcry against corporate greed and government cutbacks spread worldwide.

Inspired by America’s “Occupy Wall Street” and Spain’s “Indignants”, people took to the streets in a rolling action targeting 951 cities in 82 countries from Asia to Europe, Africa and the Americas.

It was the biggest show of power yet by a movement born on May 15 when a rally in Madrid’s central Puerta del Sol square sparked a protest that spread internationally.

Anger over unemployment and opposition to the financial elite hung over the protests, which coincided with a Paris meeting of G20 financial powers pre-occupied by the eurozone debt crisis. (via Occupy Wall St protests find echo around the world – Hindustan Times).

Creating dependence by employment, pushing consumerism by brands the Desert Bloc system of governance has reduced human free will. (Cartoon by Michael Ramirez, California  in Investors Business Daily; dated 10-10-2011; source and courtesy - cagle.com). Click for larger source image.

Creating dependence by employment, pushing consumerism by brands the Desert Bloc system of governance has reduced human free will. | Cartoon by Michael Ramirez, California in Investors Business Daily; dated 10-10-2011; source and courtesy - cagle.com | Click for larger source image.

Cairo, New Delhi, New York …

A few days ago, we had revelations that Anna’s ‘spontaneous’ movement had elements of choreography by Rashtriya Swayamsevak Sangh (RSS).

Why would people in Hong Kong be bothered by an American Protest? Were London protests really spontaneous?

Spreading doubts

Till it was limited to Wall Street, one was willing to believe that this was a protest movement.

When it ‘spread’ across the US, doubts also spread.

Now that it has spread across the world, there is no doubt in my mind. This is choreographed.

Soon, we will see, the Anna movement without RSS?

What then, Anna?

The authorities in New York and New Delhi dont know how to deal with these 'protests'. (Cartoon by Disha Virk; of Sep 2011; source and courtesy - indianfusion.aglasem.com). Click for larger image.

Authorities in New York and New Delhi don't know how to deal with these 'protests'. (Cartoon by Disha Virk; of Sep 2011; source and courtesy - indianfusion.aglasem.com). Click for larger image.

Europe’s Probable Fall

November 22, 2010 27 comments

 

Europe's Titanic ego problem - May 10, 2010, at 06.27 PM (Cartoonist-Cam Cardow, copyright 2010 Cagle Cartoons; courtesy - theweek.com.). Click for larger image.

Europe's Titanic ego problem - May 10, 2010, at 06.27 PM (Cartoonist-Cam Cardow, copyright 2010 Cagle Cartoons; courtesy - caglecartoons.com.). Click for larger image.

The success of Europe is considerable, but must not be exaggerated. There are still problems, including poverty to cite only one example, several million children in the UK suffer from malnutrition. While Europe has succeeded in attracting new members, it has not been successful in integrating its new immigrant populations. The European project is being tested by the lack of success of the Lisbon treaty.

The problem, however, is that while the peace will probably last another major European war is a very unlikely scenario the prosperity may not.

The choice is basically as follows. By accepting reform and the need for some sacrifices, the European fall will occur, but it will be reasonably gentle and gradual. By refusing to reform and rejecting sacrifice, Europe’s fall will be precipitate. At the moment, unfortunately, the more likely scenario is the second one. (read more via Europe’s Probable Fall – The Times of India).

A culture of entitlement has robbed European society of its vitality. The writer feels that Europe can choose how it will decline. Gradually and gently. Otherwise, precipitate – sudden, visible, maybe violent. I am being gentle by call it decline. Lehman says it is fall. No less.

Cartoon from timeesofindia.com). Publication date - 16th November 2010.

Cartoon from timeesofindia.com). Publication date - 16th November 2010.

Probably, many in India and the Indians abroad, the RNIs and the NRIs, brought up on the milk of Western superiority will mourn the passing away of their ‘dream’. I am sure they will quickly find some other ‘superior’ culture for loyalties.

The dream is dead. Long live the dream.

New fools for old wine in old bottles

August 31, 2010 2 comments

Using GDP numbers you can prove a lot of things. Using history, you can disprove the same economics. Duh!

PT Barnum’s maxim

There is a sucker born ever minute – (more on PT Barnum and on this quote.)

A significant number of Indians are fooled by the ‘achievement’ the West – especially those who are ‘educated’ in English. A few days ago, Mint, a business newspaper carried a post by Manas Chakravarty, who was using an old report by Angus Maddison to support absurd conclusions.

Transatlantic Slave Trade (Table Courtesy - http://www.nps.gov/ethnography/aah/aaheritage/histContextsD.htm)

Transatlantic Slave Trade (Table Courtesy - http://www.nps.gov/ethnography/aah/aaheritage/histContextsD.htm)

Writes Manas Chakravarty,

By 1600, the centre of Europe had shifted northwards and the golden age of Holland had begun. Dutch per capita income was $1,381 in 1600, while Britain in Shakespeare’s time had a per capita income of $974.Recall that 1600 was the year the East India Company was founded. In contrast, India’s per capita income continued to be $550, while China’s was $600. Note that even Ireland, one of the poorest of Western Europe’s countries, had a per capita income of $615, higher than India’s and China’s. In short, the per capita GDP numbers mirror the changes in power, prosperity and cultural and scientific achievement.It wasn’t till 1981 that India had a per capita income of $977, beating that of Britain in 1600. And it wasn’t until 1993 that India’s per capita income of $1,399 surpassed what the Dutch had achieved in 1600. Maddison’s calculations show that in 2008, India’s per capita GDP in 1990 dollars, PPP terms was $2,975, slightly more than one-third of the world average of $7,614. We have a long way to go. (via World history by per capita GDP – Columns – livemint.com).

Basically, Indians are such rotters! That is what Shri Manasbhai Chakravarty is saying, in simple English.

I know a little English, Shri Manasji!

In the light of day

Any reading of history will show how hollow and risible Manasbhai‘s conclusions are.

One problem with economics is the complete lack of ethics. Economists (like Manasji Chakravarty) cannot be bothered with ‘facts’. For them numbers must do the talking and walking. Some ‘good’ economists like Angus Maddisson can even put up a good strip-tease show with numbers. Admirers can view these ‘assets’ admiringly.

Like Manasji Chakravarty seems to be enjoying Angus Maddison’s strip-tease show.

Poster annoucing sale of slaves in the USA.

Poster annoucing sale of slaves in the USA.

General Julius and the Gauls

Take Italian GDP, of which Bhai Manas has a high opinion.

Sum and substance of the Italian Job? Julius Caesar, (he would be an Italian now), loots the Gauls.

What happens?

Economics (and Shri Manasji Chakravarty) will tell us that Italian GDP goes up. What great history and important economic conclusions can we draw from this loot?

Nothing, except that Romans were good at looting others. Let us forget, for now, that after Roman loot, French GDP goes down.

Cynical economists like Angus Maddisson  could point out that Julius Caesar also massacred hundreds of thousands of Gauls. Loss of lives and wealth will have no effect on GDP as both cancel each other out. Since fewer Gauls now have lesser wealth, per-capita GDP will remain static.

Right, Manasji?

The other thing that the Italians (called Romans then) did well, was kill slaves.

After using them.

Rome, the city alone, had a million slaves. Crassus, (full name Marcus Licinius Crassus) a Roman general, was very good at killing slaves. Crassus was himself, finally, killed at Indian borders – when he made the mistake of thinking that Indians would be easy targets for loot and enslavement.

Crassus, Julius Caesar’s patron-in-chief,  lined Rome’s highway, Via Appia with the bodies of 6,000 slaves. A lesson for revolting slaves. The French, Spanish and the Brits also learned their Roman lessons well, history tells us.

Too well, I say!

Learn your lessons

Soon, it was the turn of the French. The Spanish and the British also. To start the killing.

Increase productivity in Manasbhai’s words.

And time for Native Americans and Australian aborigines to die.

The West (the French, Spanish and the British were very good at this) ‘imported’ at least 10 million, maybe even 20 million slaves, from Africa into West-controlled territories. Economic output of the West goes up! (What else did you expect.).

The output of these slaves is included in Western GDP calculations. But slaves are excluded from census calculation! The lives of African slaves and the deaths of Native Americans are excluded from this economics. But Western GDP goes up. That is what the ‘numbers’ tell.

And good job says, Shri Manasji Chakravarty.

What can I say! Apart from pointing out that Manasji Chakravarty is wasting a lot of wood-pulp.

Most probably from modern Norway.

You can always get slaves! Why bother about people?

You can always get slaves! Why bother about people?

Optical illusion in economics

Norway! My favorite ‘case’ study in modern economics.

Modern Norway does two things very well.

One – they exploit nature very well. Dig up the earth to extract aluminum, cut down forests, and suck oil from the North Sea.

Two – all  Norwegians over-pay each other.

Over-paid taxi-drivers pay huge amounts for a haircut. Over-paid waiters fork out fancy amounts for a car-wash. And so on. Compared to, say Indians, Norwegians are paid some 10-20 times more.

A waiter in Mumbai earns between 125-200 dollars. A Norwegian waiter earns closer to US$1500-2000 per month. Both do the same job and the net economic output should not change. But it does. What Norway does is overstate Norwegian economic output – by over-paying everybody.

Democracy, you see!

This economic ‘trick’ creates a brilliant optical illusion. Of higher wages, profits, turnover, prices – and GDP. Now replace Norway, with any Western economy.

Same story and the plot does not change.

Old wine, old bottle … new fools

This great science of economics has another trick up its sleeve. Norway’s manufacturing out-put is a gargantuan, awesome, jaw-dropping 1 percent of Norway’s annual GDP.

So, Shri Manasji Chakravarty, before you massage numbers and get an ‘erection’ of fancy conclusions, like your ‘guru’ Angus Maddisson does, look behind those numbers.

Take a 2ndlook.

Reinvented narrative

After WWII (1939-1945), using favorable US-dollar  exchange rates, Europe climbed out of rubble and destruction. Recovering from 50 years of bloodshed, faced with the rise of USA and a certain liquidation of their colonial empires, Europe needed to reinvent their history.

One task for this new narrative was to explain the rise of the West. A plausible econo-metric modelling effort from the 1970’s was led by a British economist, Angus Maddison. This model explained away Europe’s economic growth to increased ‘productivity.’

Eyes closed, mouths agape

This study gained some following in India also. India, this analysis estimated, for the last 1000 years, accounted for 50% of the world economy and a world trade share of 25% for much of the 500 years during 1400-1900. The real problem with this study was the trojans that came with this model.

40 years after this report first came out, Indians still cannot use this report critically.


NGO to sue Lindsay over false claims

December 15, 2009 1 comment
Imported dysfunctional celebs? No Thanks. We have our own!

Imported dysfunctional celebs? No Thanks. We have our own! (© Copyright 2009 Taylor Jones - All Rights Reserved.)

“Over 40 children saved so far… Within one day’s work. This is what life is about… Doing this is a life worth living! Oh, and I’m talking about being in India,” the Mean Girls star (Lindsay Lohan) had said on her Twitter page.

However, Bhuvan Ribhu, national secretary of the NGO says that the actress was not even present in the country when the rescue operation took place.

“The rescue operation took place on 8 December when she had not even arrived in India. Since she was not even in the country how can she claim she rescued the children,” Ribhu told PTI.

“We were not involved with her as she was called by BBC although she visited one of our rehabilitation centres,” Ribhu added. (via NGO to sue Lindsay over false claims).

Just how deep can this get?

There a been some 4 very curious ‘incidents’, originating in Britain and targetting India(ns).

The latest first. Lindsay Lohan comes to India – to fight child trafficking, in India. Why did BBC think that Lindsay Lohan was appropriate! Fighting her own demons of alcoholism, drugs, family conditions, was she even in position to make any contribution? On what basis did the BBC select this topic.

Importantly, did anyone in India ask for BBC or Lindsay Lohan’s help in fighting child trafficking?

What about your own backyard

After all closer home to the BBC there are some really interesting topics.

For instance, the national industry of Spain is prostitution? Just where are all these women coming from? Just why does the Spanish society need so many prostitutes?  BBC would do well to put Lindsay Lohan on this job.

Slice and dice …

  1. Now Spain has a population of 40 million people.
  2. There are a 13 million of these between the age of 15-64 years.
  3. Assume that half of these 13 million are the right gender – that is 6.5 million women.
  4. Assume further that a quarter of these 6.5 million women cannot ‘qualify’ to become prostitutes due to age, health, infirmity, deformity, appearance, etc.
  5. That leaves us with roughly 4 million ‘eligible’ candidates – of which 400,000, i.e. 10% of ‘eligible’ women are prostitutes.

Western propaganda

Spain is a part of the EU, the Developed World, the OECD, etc., etc. Makes one think …

Coming to the UK, Amnesty International says,

Home Office research found that up to 1,420 women were trafficked into the UK for sexual exploitation in 1998. The figure was based solely on reported cases

Maybe BBC can help Amnesty and the UK Home Office to estimate the ‘unreported’ cases.

Nail 'em and jail 'em

Nail 'em and jail 'em

Nail ’em and jail ’em …

Even closer home, right in the UK is the rather disturbing statistic. Britain has imprisoned 10,000 Muslims as prisoners. Out of 670,000 British Muslim male population aged between 20-60 years of age

A survey estimates British-Muslim population at 2.4 million. Chop and slice the data and the picture gets scarier. This survey by The Times says “high number of Muslims (are) under the age of 4 — 301,000 as of September last year”. The same study estimates that 942,000 of British Muslims are 19 years or below. Of the remaining another 124,000 are above 60 years of age. Half of the remaining 1.34 million (i.e. 2.4 million less 1.06 million) are women – an unlikely target for imprisonment. Of the remaining 670,000, a 10,000 are in prison – which means about 1.5% of the ‘eligible’ British Muslim population is in prison.

Climate change - The Maldives Trojan

Climate change - The Maldives Trojan

Aviation safety, for instance  gives standard advice – ‘save yourself first’. Then save others. And by this time, you folks should have known better. So, BBC and Lindsay Lohan have their hands full.

Oh!

And by the way! We pagan sinners cannot be saved.

The Maldives trojan

Britain executed a well planned maneuver, by putting up President Nasheed of Maldives against India, at the Copenhaen Climate Change talks. Propping up Maldives as ‘fifth’ column was done over the last more than 20 years. Based on excellent PR and media management skills, the Maldives was the British Trojan horse that India was blind-sided on.

Intelligent British media

In the last 10 years, as some jobs moved ‘offshore’ to India, there was fear about India(ns). Then came the hatchet jobs.

So much so, The Sun and the Channel 4 mounted elaborate sting operations on Indian call centres, carrots were dangled, Indian call centre employees were tempted – and when the penny dropped, there was gleeful celebrations about the lack of security in India. ‘We told you so’ was the popular, smug, self-satisfied refrain, with smirks in British media.

Not to overlook responsible British media, which clearly spelt out that

“fraud is a bigger problem in UK institutions, a fact largely overlooked by the media. It is also more likely to occur in any other developed market we choose to do business with.” The same article went ahead and pointed out how “Accountants Ernst & Young found in a survey of Western corporate managers that almost two thirds expected to encounter more fraud in emerging markets than at home. Yet 75 per cent of fraud occurred in developed markets, the firm said. Forrester Research found in 2005 that the UK and US suffered more computer security breaches than India.”

The ‘prequel’

Nearly 15 months ago, a Scottish newspaper, The Sunday Herald ‘revealed’ that an Indian hacker had broken into the credit card database and stolen some 8 million records. The supposed ‘victim’, Best Western Hotel immediately rejected this claim, and revealed that 10 (ten only) records had been stolen. If you check this story today, The Sunday Herald has (of course), removed the Best Western rebuttal of this story. How did the newspaper identify the nationality of the hacker? A journalist’s ‘secret’ sources!

What tripe are Indians being fed?

Propaganda - otherwise known as maya in Sanskrit

So, it was evidently planted and created for the Indian media. The story was dated August 23rd, 2008, Saturday, and carried the next day, on a Sunday for maximum impact – and for the business press to pick up and run the story on Monday morning. The story was planted through IANS, a supposed ‘pro-Indian’ news agency. Did anyone come back and retract this story? Of course, not!

The Great Indian hacker hoax

In modern times, India is not a big player in spamming or in software virus – though a power in computing industry. In August 2008, a hoax story alleged that an Indian hacker, had broken into a credit card database, and sold it to the European underworld. Some ‘experts’ feared that this would spark of a crime wave across Europe.

The Incident

“A Sunday Herald investigation has discovered that late on Thursday night, a previously unknown Indian hacker successfully breached the IT defences of the Best Western Hotel group’s online booking system and sold details of how to access it through an underground network operated by the Russian mafia.” reported The Sunday Herald from Scotland.

The ‘venerable’ Scottish newspaper, went on to quote a security expert, Jacques Erasmus, an ex-hacker who now works for the computer security firm Prevx. Erasmus declared,

“The Russian gangs who specialise in this kind of work will have been exploiting the information from the moment it became available late on Thursday night. In the wrong hands, there’s enough data there to spark a major European crime wave.”

The Sunday Herald had no hesitation in saying that the

“nature of internet crime makes it extremely difficult to track the precise details of the raid, the Sunday Herald understands that a hacker from India – new to the world of cyber-crime – succeeded in bypassing the system’s security software.”

What got me wondering was the motivation of this story? How did this story land up in IANS agency? Where did the ‘original’ writer, Mons. Iain S Bruce, get to know that an Indian was behind this ‘heist.’ Who was behind this ‘leak’ to Bro.Iain S Bruce? What are the ‘sources’ of Shri Iain S Bruce?

Chickens … home … roost

A team of researchers including professors of University of Brighton published a report in July 2009 titled “Crime online — Cybercrime and illegal innovation”. It was picked up by online news channels and quoted in news items to propagate lies about so-called cybercrimes in the business process outsourcing (BPO) industry of India. The report tries to present data from the annual reports of the Indian Computer Emergency Team, and Symantec in a way that suits its story, of India being a centre of cybercrimes and in general being a weak state. (via Phishing study: Bunch of lies).

Plodders – all of you!

NASSCOM investigated this scam report -and wrote a few articles in India media.

I got bad news for you, Mr. Kamlesh Bajaj!

Nasscom, your team and maybe you should include yourself. Plodders! All! The report you quote came out in July – and you are responding to it it after 3 months. What more, if you had dug deeper, you would have come out with more – dirt, that is.

I am waiting.

In the meantime, I believe that this was a dry run.

Funding India NGOs

Statistics released by the home ministry regarding ‘foreign funds to NGOs’ show that India, which has a total of 33,937 registered associations, received Rs 12,289.63 crore in foreign contributions during 2006-07 as against Rs 7,877.57 crore in 2005-06, a substantial increase of nearly Rs 4,400 crore (56%) in just one year.

The US, Germany, the UK, Switzerland and Italy were the top five foreign contributors during 2006-07. These five countries have consistently been the big donors since 2004-05. Spain, the Netherlands, Belgium, Canada and France are the other countries which figure prominently in the list of foreign donors. (via Foreign funds to Indian NGOs soar, Pak among donors-India-The Times of India).

Foreign aid kitty - Table courtesy - Times of India

What does this mean …

Rs 12,289.63 crore is roughly US$3 billion – based on average dollar value for 2008.

And it is a lot of money.

That is more money than what the US Govt. gave as aid to more than the 100 poorest countries. Till a few years ago, India annual FDI was US$ 4 billion – just a little more than the US$3 billion that India received as charity through various NGOs in 2008.

The total US Official Development Assistance to the whole of sub-Saharan Africa (more than 40 countries), in 2007, was “US$4.5 billion was contributed bilaterally and an estimated $1.2 billion was contributed through multilateral organizations”.

What is the source of these funds …

The rich, the poor and the middle class in these ‘charitable countries’ are themselves deep in debt. Where are they getting the money from? Why are they being so liberal towards India? What is the source of these funds?

Where this money going …

Is it going as thinly disguised aid to Naxal affected areas – where some ‘Christian’ missionaries are working to ’save’ the tribals? Is it going towards publicity for causes which are thinly disguised trade issues. For instance, child labour – which is, in many cases, a system of apprenticeship for traditional skills.

Or are these NGOs promoting policy frameworks which are distorting India’s social systems? The Population Myth /Problem /Explosion for instance was promoted for the first decade by Ford Foundation, the Carnegie Foundation and USAID. Are they behind the NGOs which are promoting Section 498 laws as a legal solution – a solution that ‘benefits’ about 5000 women and creates about 150,000 women as victims.

These are laws and policies which are undermining the Indian family system. Which country in the world has a stable family structure with such low divorce rates as India?

The Clintons, The Gates, The Turners, et al

The ‘progressive liberal’ establishment in the West is viewed rather benignly in India – and seen as ‘well wishers’ of India. Many such ideas are welcomed in India without analysis. These ideas are viewed positively, as the source of such initiatives is seen as well-intentioned.

A ‘tolerant’ and ‘open’ society like India can be a complacent victim to trojan horses.

Racism in Detective Fiction

Postcolonial postmortems By Christine Matzke, Susanne Muehleisen page 88

From the book "Postcolonial postmortems By Christine Matzke, Susanne Muehleisen page 88

How very true!

Monster fiction for children!

Monster fiction for children!

Whatta shot!

Ms.Christine and Susanne, you have hit the nail right in the centre of head! Your aim is truer than you imagine. Though I don’t know if you have hit the nail deep enough – deep into the heart of darkness in the Western heart, which gave rise to these genres of Western ‘literature’.

An Indian columnist laments how Indians lack literary talent and ability!

The Indian churail (or pisach or djinni) faces similar problems as the Scandinavian myling or the Er Gui of China: they don’t translate well outside of their culture.

India may have had local incidents, where an oppressive zamindar may have created a market for horror stories and monsters – but without genocide, slavery and massacres to fall back on, popular imagination simply does not have the fodder to create ghouls and monsters.

And that is reason for Indian churails being rare – not lack of literary ability in Indians.

Where Marx comes alive – Pallavi Aiyar

August 9, 2009 1 comment

For greater good of the most many ...

For greater good of the most many ...

perhaps nothing exemplifies European socialism more than the maze of regulations governing the retail trade in Belgium. It took a panel of five young government officials from the Directorate for Regulation and Organisation of the Market, armed with pages of notes, to explain the main highlights of these to me.

This is what I learnt: In Belgium, shops can only legally go on ‘sale’ twice a year, in January and July. It is only during these periods that shops may sell goods at below cost or ‘extremely reduced’ profit. For six weeks before the sales period, shops may not advertise price reductions.

Although offering discounts (as long as these do not amount to a loss) is legal at other times of the year, for a month before the biannual sales, textiles, shoes and leather products may not be discounted at all. Moreover, the sales are reserved for the ‘seasonal renewal’ of stock, so products deemed non-seasonal may not be included in the sale. Sofas, for example, are considered seasonal but antiques are not.

To implement all of this, two hundred-odd inspectors from the Directorate wander around the country inspecting and many complaints regarding non-compliance are also phoned in.

The rationale behind this mountain of red tape is the protection of small and medium enterprises (SMEs) which it is believed would go bankrupt if big retail were to be allowed to dump in an unrestrained manner. (via Pallavi Aiyar: Where Marx comes alive).

Europe has come a full circle!

The State has slowly and surely, completely taken over. The hard-fought liberties, the Magna Cartas, the Liberté, Egalité, Fraternité, have been in vain. The people have just stepped up to the dias and handed over all the power back to the State. The much touted Renaissance and Reformation have all come to nought.

For the Rest of the World, what is truly a cause of anxiety is that the East seems to be embracing Western political ideology and constructs with reckless enthusiasm – in their quest for ‘progress’ and ‘modernity’. And the public sector behemoths may yet cause some damage.

Remember the East India Company – a public sector company.

Mercantilism reconsidered by Dani Rodrik

July 28, 2009 1 comment

Healthcare is killing

Healthcare is killing

the mercantilist mindset provides policymakers with some important advantages: better feedback about the constraints and opportunities that private economic activity faces, and the ability to create a sense of national purpose around economic goals. There is much that liberals can learn from it.

Indeed, the inability to see the advantages of close state-business relations is the blind spot of modern economic liberalism. Just look at how the search for the causes of the financial crisis has played out in the US. Current conventional wisdom places the blame squarely on the close ties that developed between policymakers and the financial industry in recent decades. For textbook liberals, the state should have kept its distance, acting purely as Platonic guardians of consumer sovereignty. (via Dani Rodrik: Mercantilism reconsidered).

Public sector or oblivion?

During the Great Depression, more than 19 auto companies (similar to the number of banks today) were folded into the Big 3. The Big 3 lived to fight for another 70 years. In their death throes, the US Big Auto is likely to go the way European auto sector has gone – public sector or oblivion.

What is on the table

Hobsons choice?

Hobson's choice?

2 out of the G-7 countries are bankrupt – US and Britain. Their industrial base was supported by raw materials and captive markets – acquired by genocide, and the loot of centuries.

France, Germany, Canada, Italy  and Australia (not in G7) are tethering on the brink – under the weight of their social security system, and most of their business is in the public sector. A geriatric Japan is dependent almost entirely on exports to these declining seven. Japan’s investment in India and China has been negligible.

Real low … real truth (seen an oxymoron like that?)

The real question – who will pay for this financial crisis?

Not the Americans! No siree. Definitely not. Neither the American super-rich or the American welfare-poor! Not the American tax payers or the American tax evaders? Not the American Whites or the American Blacks?

It is the Chinese, the Russians, Indians, Brazilians, and above all, the Africans, who will pay for these bailouts! They (BRICS+Africa) have done, what bankers call non-recourse lending! The Chinese, Russians, Indians, Brazilians and the Africans, have no recourse. Who will the Chinese go to, for redeeming their US$2 trillion? The bankrupt US of A?

Welcome to the real world.

US economic outlook

How the West can become competitive?

How can the West become competitive?

US auto is down – but not yet out. It will limp along for few more decades. The US is still the prime force in the computing industry – though not on the manufacturing side. US oil industry no longer dominates international markets the way they did in mid-20th century. The US nuclear industry faces increasing competition from a public sector French and Russian industry. The seemingly strong position of the US in agriculture is based on two aspects. Massive direct subsidies – of more than 8 billion dollars. And indirect subsidies of possibly another US$ 8 billion. Most of which goes to the 46000 farmers who account for 50% of the US agricultural production. The communication sector has again seen the erosion of US competitiveness – with the domination of GSM technology seemingly solid for another 10-15 years. The global financial markets were dominated by the US organizations in the past – but with the global financial crisis and the end to dollar dominance may see reduced clout for US firms.

Big Government ... Big oil ...

Big Government ... Big oil ...

With such an economic outlook over the next 10-25 years, what the US leadership may focus on, is Arctic oil. Oil will remain a strategic asset only with high prices (slower production increase and faster demand growth) and if no other energy source appears. Oil finds in the Atlantic and Pacific republics may spoil the party – for instance, Cuban oil.

Much like the respite of the North Sea oil to Britain, Arctic oil may provide a temporary halt to the slide in US economic dominance. If the US can lay its hands on a significant part of it!

The other option is to nationalize the US economy. Like France, Germany and Italy. The economies of France, Germany and Italy are practically run by public sector monopolies – or subsidized behemoths, who make survival of competitors difficult by their ability to sustain losses – based on Government largesse.

The lure of ‘capitalism’ …

The Franco-German-Italian public sector model may be the only answer

The Franco-German-Italian public sector model may be the only answer

Why is the West so keen on calling these publc sector, subsidy driven regimes as Capitalism? Capitalism depended on looted capital and slave labour to prosper – resulting in the famous ‘laissez faire’ quip. Capitalists wanted and got ‘laissez faire’ capitalism – which was a ‘coda’ for unlimited slavery. The restrictions on laissez faire were actually restrictions on slaves.

Now under socialism, they get unlimited protection from ‘destructive’ competition. Which is being papered over by names like crony capitalism, free market capitalism. etc.,  etc.

After the multi-trillion dollar bailout, which has just begun, and with more than US$4 trillion with China, Japan, Russia and India, neither is the outcome certain nor is the outlook bright.

Last but not the least, we must remember the power wielded by the Chartered Companies of Europe – another word for public sector.  East India Company was a public sector company!

The Rest of the World needs to be careful of these public sector monsters!

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