U.S.Economy & Financial Markets

October 11, 2018

U.S.Economy & Financial Markets

Padmini Arhant

The Federal Reserve preparation to hike interest rates in December 2018 in consideration of historic lower unemployment and GDP forecasts is received cautiously with financial markets reaction to United States and China trade war alongside unnecessary economic sanctions against Iran and Venezuela having drastic impact on global economy.

The Federal Reserve move on gradual rate increase to maintain inflation at current 2 percent bearing low unemployment is a step focused on limited factors such as job and GDP data. However, the fact of the matter is there are other aspects with potential reverse outcome on Federal Reserve’s action to interest rates hike that merits attention.

On the job status, the unemployment figures might be impressively low. Nonetheless, the cash flow in the economy is still lagging in small and medium businesses and other areas of the economy involving direct consumer purchase such as the housing market and automobile industry.

In general, the consumer spending is fairly weak and reflected in retail industry poor performance with many brick and mortar stores struggling to survive in the anemic retail business. The retail figures at the end of holiday season this year will further indicate the condition one way or another. The conventional retail chains and big stores are facing tough competition from e-commerce with online giant like Amazon forcing  shutdowns on major retail stores unable to compete effectively given the popularity and convenience of online marketing.

The e-trade is a big challenge to standard retail business and that in a way controlling inflation on many goods and services in the market. Again, the purchasing power among majority of consumers in the middle and lower incomes category is static and even remain below the expected level despite low unemployment in the economy. One of the reasons behind this sluggish consumer spending is lack of fair income distribution.

Although the job market might appear to be favorable, the buying power among consumers on big budget items like home and cars as well as other essentials are nowhere near  anticipated market share with significant impact on construction industry and manufacturing sector.

On the international front, United States administration policy towards Iran and Venezuela is triggering currency devaluation in emerging economies like India and developing nations such as Pakistan, Turkey and countries in Latin America dependent on crude oil imports from overseas. The U.S. dollar pegged to oil trade, the strengthening of U.S. currency is mainly associated with global transactions in dollar and the alternative being euro depleting foreign currency reserves for most nations worldwide.

European economy barring Germany, Norway and few Nordic states are yet to recover from recession started back in 2007 and experienced until now. Many EU members like PIGS ( Portugal, Italy, Ireland, Greece and Spain) along with Eastern European EU states are not relieved from economic crisis and barely able to meet financial obligations amid EU enforced austerity contributing to depressed economic growth and development.

The debt saddled nations are driven towards debt servicing to enrich international monetary authorities and prominent bankers profiteering on the extraordinary debt burden of these countries confronted with liquidity crunch creating the dilemma of debt trap causing economic downturns for nations in this situation.

In the given scenario, euro as the optional trading currency is superficial posing needless strain on global economic activities especially in the backdrop of fragile European economy and United States politically motivated sanctions against Iran and Venezuela compounding the problems on the energy demands and supply chain for nations like India and China with massive energy consumption to fuel the economy. The other efforts in this context such as raising OPEC output to deal with United States sanctions on Iran and Venezuela do not satisfy market requirement that are already felt with unaffordable fuel prices in India, Pakistan, Sri Lanka and many parts of the world.

United States and Europe would be ultimately affected as the western multinational corporations are predominantly benefiting from global presence and operations right from production to sales, distribution and service  in many industries invariably exposed to common energy and economic issues striking the consumer base in Asia and other regions instrumental in boosting global economic progress.

The global economic regression is directly related to these unwanted events with immediate repercussions on allies and those behind the strategy. China trade war is another dimension with United States having granted the former MOST FAVORED NATION (MFN) status and many United States companies involved in manufacturing goods from China that are not only available in America but also in the global markets. China has long been the world’s central exporter and wholesaler with businesses from far and wide ignoring labor exploitation in addition to normal employment and environment violations in the profit-oriented system. As such, China’s reciprocation to U.S. actions are not without consequences for both economies engaged in mutual trade warfare.

Accordingly, discernment on decisions against China, Iran and Venezuela from the U.S. administration under President Donald Trump is critical to save the economy from possible meltdown in the aftermath of global economic decline that are visible in the wake of current account deficits among many nations trying to maneuver the difficult predicament of survival and resolution to impending economic woes generating anxiety in the global domain.

As for the Federal Reserve resolve to move forward on the overnight federal funds rates over the next year and beyond from the present 2 and 2.5 percent to about 3.4 percent to contain inflation at 2 percent would predictably slow the positive economic trend hurting prospects in the already suppressed housing market and retail sales as highlighted above.

The macroeconomic forecasts on United States GDP for third quarter at 3.7 percent and 2.6 percent for fourth quarter with the Federal Reserve revision showing higher growth figures based on the latest tax cuts and government spending prompting Federal Reserve position on premature rate increase neglect stagnancy in ordinary household income.

The mere job growth in the absence of affordable living standards confirm income disparity. The per capita average net income and cash flow determining consumer price index and inflation is trailing behind projections and proposed changes to rates could wipe the gains realized in the recession free economic span in the past decade until now.

In a nutshell, the exponential rise in minimum wage and average income i.e. per capita income in correlation with GDP is important besides minimizing joblessness in the economy prior to addressing inflation alone in the macro and micro economic management.

Thank you.

Padmini Arhant

PadminiArhant.com

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Unilateral Sanctions – Compliance vs. Prudence

August 8, 2018

Unilateral Sanctions –

Compliance vs. Prudence

Padmini Arhant

 

Following the article on this site https://padminiarhant.com/united-states-and-israels-unilateral-sanctions-are-illegal-and-invalid/ on August 7th, 2018.

Those leaderships claiming to reluctantly observe illegal sanctions are essentially confirming their loyalty to hegemony over the people and nation they are elected and expected to serve in the so-called free world.

The governments and the head of the state are obligatory to prioritize national requirements on growth and development in exploring trade activities worldwide that best suit their domestic economy rather than complying with politically motivated unilateral sanctions from United States and Israel – the two nations to presumptuously assume authority in imposing trade embargo on foreign states and territories targeted as adversary and mistakenly treated as dominion republics.

In the United States, the administrations submitting to foreign lobby such as Israel’s advocacy groups and organizations actively engaged in promoting and implementing economic blockade on those they consider nemesis such as Syria, Iran and Palestine, along with a desire for them not to exist in the region contrary to Israel’s perception of the reverse.

The terror sponsorship against Syria is testimony to this fact wiping Syrian civilization since the onset of warfare in 2011 up until now. The foreign trend in Syria assassinating professionals in Scientific Research, medicine, journalists and others from diverse fields in economic sector contributing to rebuilding their nation is aimed at depriving Syria from organic talent and self-reliance. Syria savaged from international coalition recruited terrorism involving United States, Israel and key western allies together with Middle Eastern cohorts playing significant role has been under economic sanctions for more than a decade alongside combating terror.

Similarly, the north African nation Yemen has been under brutal assault facilitated by United States arms to Saudi Arabia and Israel’s intervention in Yemeni political affairs.

The lobby through members in U.S. Congress and the administration regardless of political faction left or right care less about sovereignty or foreign nationals rights in their domain. Besides, the sanctions on these nations lasting several decades in the case of Cuba and North Korea while Syria, Iran and Venezuela continue to be placed in extended sanctions predominantly due to hostility from United States and Israel’s representatives in political circle and institutions pledged to specific agenda viz. regime change.

President Donald Trump’s administration reinforcing sanctions against Iran, North Korea and Venezuela and allowing sanctions on Syria as well as Cuba to remain clarifies political expediency. Not to mention the flip flop posturing in inviting Iran for unconditional talks and in the same breath slamming sanctions reflect indecisiveness and external dominance on U.S. foreign policy.

The decision denying economic opportunity to United States companies and businesses in these parts of the world is a big mistake. The removal of sanctions would enable global progress benefitting United States economy in exporting higher end goods and services to these regions in technology, infrastructure development, medicine and scientific education, training and expansion that are guaranteed to be appreciated in contrast to subjugating citizens with harsh economic misery provoking anti-American sentiment. 

The economic gains are enormous in lifting sanctions against all these nations providing the people of these countries job prospects and skills to improve their living standards that in return would enhance consumer base for United States in the global market.

Instead the incumbent administration’s contradictory position to favor foreign lobby political aspirations at United States economy’s expense is against America First and Making America Great Again promise. The move exemplifies America Last in violation of public trust and campaign appeal.

As mentioned above, the other nations’ ruling parties in governance choosing to comply with unilateral sanctions arguably anxious about securing term in office or response from those behind these sanctions. What they forget is, in compliance to these unlawful sanctions, they are renouncing myriad options to engage with nations of their choice, the states within their region as neighbors in particular have greater economic advantage.

Furthermore, before hegemony remove such governments from office in case that appears to be the immediate concern to these office bearers, the electorate would reject them in the polls for failing to address their needs and economic woes in leaning towards personal political security. Notwithstanding the obvious stance undermining state sovereignty and independence highlighting them as proxy to hegemony.

The true believers in freedom would not compromise their sovereign status and surrender to foreign diktat on sanctions against those whom they identity as their rivals prompting unjustified actions.  Those who acquiesce to decades old policy of isolation and discrimination via sanctions are certainly not going to derive economic profitability or political sanctuary leaving them behind in vassal statehood to hegemony exploitation.

On the other hand, those nations declining the status quo and moving forward to renew ties with nations under illegitimate sanctions in an effort to strengthen their economy as well as extend expertise and support to nations affected under sanctions would forge better relations and international partnerships on most matter.

It all comes down to prudence delivering positive outcome compared to compliance on arbitrary sanctions serving as a reminder on default in defending liberty and independent status of own nation and the missed moment on economic dealings.

Padmini Arhant

Author & Presenter PadminiArhant.com

Prakrithi.PadminiArhant.com

 

 

 

 

 

 

 

 

 

 

United States and Israel’s Unilateral Sanctions are Illegal and Invalid

August 7, 2018

United States and Israel’s Unilateral Sanctions are Illegal and Invalid

Padmini Arhant

 

Since the beginning of the twenty first century and more so in the past decade up until now, the trend with United States and Israel imposing unilateral sanctions against selective nations is illegal and bear no legitimacy whatsoever considering own track record on human rights, nuclear testing and meddling in foreign governance.

United States Presidency is mistaken for Universal authority. Only the citizens in the United States are eligible to elect the President and members of Congress not the entire world.  

Unfortunately, the US system in that respect as well is far from democratic with the electoral college votes overriding popular votes in the final outcome.  In the democratic party, the Super delegates undermine primary voters’ choice by exercising the privileged status to them in the party selection process. Accordingly, the U.S. administration authorized sanction on any nation without the approval of international community and that means every nation in the world could not be effective or expected to be followed in the absence of global consensus.

The same principle is applicable to Israel’s action on Gaza. These sanctions are politically motivated and premised on satisfying the so-called ally and/or shadow power demand aimed at regime change for unfettered access to those nations’ natural resources and exert strategic dominance.

Hereafter, effective immediately the sanctions against all nations are null and void. UNSC is no longer an authority to decide on global matter. The issues will be presented in common domain and depending on the nature of the problem and event, the UN General Assembly with all members and that would include any state under occupation denied UN full membership to participate in the one vote per nation on international affairs.

Any objection to UN role as the comprehensive body comprising all nations in the world without exception would then lead to the formation of new international consortium adapting the global representation by respective states big and small barring hierarchy in sharing concerns and grievances on political and other issues to derive resolutions. The newly formed international group would function as a fair and accessible body allowing all nations in the world to be involved in decision making through ballot on their population behalf to reach peaceful and amicable solutions on disputes worldwide.

UN General Assembly in September this year would be subject to litmus test on functionality and effectiveness in addressing decades old unresolved disagreements and conflicts with assembly members casting vote to end human suffering and misery from prolonged violence and mass subjugation.

From now onwards, all nations regarded sovereign and independent not excluding the states under occupation are to resume bilateral and multilateral trade, educational, environment, cultural and diplomatic relations with others around the globe.

No single nation assuming the Superpower status could individually dictate sanctions and economic measures or military actions to hurt or harm nations targeted for vested interests.

United States and Israel enforced trade embargo and other restrictions on selective nations being unlawful hitherto, the status quo is declared invalid moving forward with the renewal of trade extending economic partnerships towards all nations that were confined to arbitrary sanctions viz. Syria, Iran, Cuba, North Korea, Venezuela and others in the category.

All nations in recognition of their sovereignty and free status are at liberty to conduct trade and economic activities with nations mentioned above and others to suit national requirement for growth and development.

The changes are necessary to relieve the population of these nations from struggles experienced under unipolar (UNSC), United States and Israel’s decree that are unjustified considering own legacy and contemporary engagements qualifying them for sanctions per their criteria. The concept of punishing nations through sanctions for prioritizing their national interests in investing state resources in the lives of the people or defending territorial integrity that are constantly threatened and violated by those behind these sanctions are unwarranted and provocative exacerbating sanctioned citizens plight. Not to mention those authorizing these sanctions in return committing crimes against humanity inflicting pain and tragedy on the citizens of these states.

The arguments to this effect are to be presented in the UN General assembly providing each side the opportunity to present their case and exchange views in a civil manner to arrive at conclusions favoring humanity rather than the strategy of isolation and incarceration exerting authority to promote agenda benefitting the exclusive club reining control over global system.

Earth’s endowments are meant for all beings and species in the natural creation and not to be treated as private estate of any particular conglomerate asserting entitlement.

Padmini Arhant

Author & Presenter PadminiArhant.com

Prakrithi.PadminiArhant.com

 

 

 

 

 

 

 

 

 

 

India and United States – Facts on Economic Matter

September 27, 2015

By Padmini Arhant

The incumbent Indian Prime Minister Narendra Modi overseas visit propagated as boosting foreign investors confidence in India is the current review.

For any nation, economic growth is vital to improve the living conditions especially in countries with vast majority in abject poverty, hunger, disease and illiteracy suffering over generations for better life.

The economic development to address burgeoning issues like unemployment, inflation, local business opportunity, rural economy assisting farmers in the agricultural front rather than seizing farmland to benefit corporate donors funding election campaigns, affordable housing, healthcare and education would be constructive.

On the other hand, promoting foreign agenda on behalf of financial institutions having reputation in sinking economies leave population in debt slavery under the guise of progress.

The plan executed to benefit core members in the gambit exacerbating economic woes and myriad problems for the nation.

In terms of foreign investments in India – the reform pledges to attract multinational corporations (MNC) ventures conforms to neo-liberalization – the hallmark of hegemony global economy policy.

The fact of the matter is capital funding in a nation like India need not be derived from foreign source. 

India’s predicament is outbound capital flight through black money, assets held in offshore accounts and tax evasions amongst the rich, famous and powerful depleting state treasury.

Any financing from abroad in Indian economy is typically utilizing India’s due national revenue laden with interest paid by the people and shared between external and internal operatives behind hoarding money in tax havens and Swiss banks fostering money laundering.

The ruling power in India were to crackdown on corruption beginning with political establishment in black money recovery instead of clamping down on humanitarians and peace activists –Prime Minister Modi and delegations’ business oriented foreign trips expenditure could be divested in domestic economy.

Furthermore, kickbacks on private and public sector deals and embezzlements ranking high on corruption scandals the government protection with political impunity is a serious setback for the economy.

The government response to these scams inversely punish those investigating corruption with job transfers to remote locations or removal from respective positions – the common occurrence in civil administration. 

Indian Administration Service (IAS), Indian Civil Service (ICS) and Indian Police Service (IPS) notwithstanding criminal bureau of investigation (CBI) officials are routinely subject to such treatment in high profile graft probe.

Upon collecting national income from the economic, entertainment and other commercial sectors with appropriate tax policy,

The banking sector capitalization facilitating liquidity flow for trade and commerce in the small, medium and large (SML) enterprise is viable without having to pay exorbitant interests risking state holdings to foreign lenders often submerging economy witnessed in Greece and similar experience by developing nations in the World Bank and IMF authorized financial undertakings.

The abundance in entrepreneurial skills and business acumen in India combined with financial resources could accelerate domestic productivity in the long proposed Make in India goal.

However, the ruling government arrival in foreign land touting for Make in India while spending $2.5 billion in defense purchase increasing India’s recent military expense to $10 billion is a huge contradiction in action deviating from projection.

The political trend with leaderships desire to extend term in office guaranteed in cooperation with foreign defense industry representing the military industrial complex. The quid pro quo apparently slight electoral discretion.

United States corporations vying for investments in India or elsewhere ignore ailing economy and fairly high joblessness at home despite tax breaks and other incentives to revive manufacturing, retail and export market.

The two scenarios – India and United States economies require native production to curb job losses and restore economic activity across the spectrum unlike priority to disproportionate military disbursements.

Hegemony sponsored neo-liberalization seeking open end access for multinational companies  in foreign marketplace whether emerging or developing economy favor shareholders and key investors profiteering to global labor force and indigenous businesses detriment.

Yet neo-liberalization falsely promoted as globalization against protectionism although the implementation thus far mainly safeguards MNC monopoly.

Public debate and scrutiny on government decisions pertaining to economy, political, social, environment and other related areas necessary to reinstate democracy.

Otherwise taxpayers funded governments and representatives are staged as the most powerful political figure, authority and cult phenomenon warning fact finders to refrain from challenging status quo confirming the departure from democratic system.

The systemic abuse of power and misrepresentation is the ominous sign of decadence.

Citizens fearing political class in contrast to politics concern over electorate reaction determines republic rule.

Peace to all!

Thank you.

Padmini Arhant

 

 

 

 

 

 

Greece – EU Ultimatum With Austerity

July 15, 2015

By Padmini Arhant

Following the national referendum early July, the international creditors and EU members, the German leadership in particular ruled out economically viable options such as debt write off and financial plan aimed at restructuring, capitalization together with growth oriented reforms besides spending cuts to rescue Greece from precipitous decline.

The recent EU summit has enforced more austerity in defiance to Greece citizens’ rejection of the failed policy responsible for Greece deterioration and similar impact across Europe leaving 25 million and more workers in the unemployment category.

The EU decisions evidently prioritize pride and pecuniary power over pragmatic solutions to debt crisis.

Another obvious sign in the ongoing development is EU re-attempt to remove incumbent government considering earlier outcome with plebiscite on austerity attached to government resignation upon YES vote went the other way.

Accordingly post EU marathon meeting, the determination to cause political instability instigating infighting in Greece during prime time of government preparing to present EU recommended grave austerity programs to the Parliament is not a coincidence.

The turbulence in Greece with external meddling in political affairs of a sovereign state has striking resemblance to events in Ukraine.

Ironically, the austerity proponents in EU consciously ignore the costs related to holding referendums and frequent elections by stirring political tensions to jettison the premier and the government not approved by them.

The involvements also pronounce the respect or the lack thereof for foreign state sovereignty.

I reiterate on EU bureaucracy costing EU citizens a fortune and yet EU dogma on austerity is extremity overriding rationality.

When a nation is deprived of income due to lack of investments in the economic sector saddled with common currency euro compromising competitive edge in trade and microeconomic activities,

The spending cuts and draconian measures arguably exacerbate economic conditions stifling any chances of recovery.

EU offer on the third bailout €86 billion tied to harsh financial terms is aimed at ejecting the present government rather than addressing the economic recession and liquidity problems in the country.

The contemporary practice to destabilize nations for ulterior motives guaranteed to affect sources especially in the inter-dependent regional and global economic environment.

EU and euro zone protectionists’ egregious doctrine on severe austerity proved a phenomenal failure and no longer sustainable. 

France is an  example of austerity stricken economy producing massive layoffs  and government legislation extending retirement age while reducing pensions and wages crippling the French work force.  

French Prime Minister Manuel Valls emphasis on Greece remaining in euro zone otherwise opposition to GREXIT was explicitly stated as geopolitical importance clarifying EU real intentions slighting Greece and other member states viz. Spain, Italy, Portugal and Ireland…economy. 

EU steps against Greece economic stimulus is counterproductive.

The insistence on trying same experiments expecting different results defy basic intelligence not to mention the expenses incurred in the repeat trial and error methods aggravating the process.

EU commitment is saliently towards saving euro zone and parallel government in Brussels than outreach member states with necessary financial package.

Greece government approach to resurrect economy and release the people from indebtedness lies in independent economic and financial management reinstating the original currency drachma backed by sound monetary, fiscal and trade policy.

The opportunity is far better and greater with people governed state in control of national assets and treasury unlike existing hierarchy subjecting member states to individual and EU parliamentary procedure on critical economic matter contributing to waste of time, resources and money in the austerity dominant era.

Perhaps Greece resonance in this respect could avert political turmoil ending economic misery.

Good Luck! To Greece population in claiming political and economic freedom.

Peace to all!

Thank you.

Padmini Arhant

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Greece – Fix It Or GREXIT Dilemma

July 7, 2015

By Padmini Arhant

Greece despite unequivocal NO vote against austerity compromised soon after the outcome with the finance minister Yanis Varoufakis resignation on euro zone officials demand stating the minister was unwelcome in the meeting.

The euro zone and EU gesture speaks volume of the respect or the lack thereof to democracy given the promotion of western democracy worldwide.

Furthermore the disposition reflects on the one world government (NWO) i.e. EU in Brussels direct interference in political governance of the member state and dismissal of sovereignty.

EU and euro zone expect Greece to stay in the Union to share the burden on euro volatility alongside stifling competition on trade and tourism favoring the major players Germany using euro and England opting out of euro.

However, there is no incentive provided to Greece in alleviating economic hardship with financial assistance to restore domestic banking system, emergency liquidity and internal cash flow to stimulate economy.

Greece using euro as the national currency is unable to exercise money circulation and distribution along with controlling inflation otherwise Greece has no control over EU and euro zone implemented monetary, fiscal and trade policy.

In fact this situation applies to PIGS states and Eastern European members economy under Brussels mismanagement.

EU and TROIKA austerity imposed on Greece and other recession hit economies exacerbating financial problems in the private and public sector.

In the absence of economic growth with capitalization at affordable borrowing rates, the cash strapped nations are pushed towards adversity with austerity.

The austerity proponents exempt them from fiscal restraints considering expenditure in Brussels run parallel government appoint delegates in various positions leading to unnecessary bureaucracy.

The costs are transferred to the citizens of the member states especially in the lower economic strata like Greece. Hence EU insistence on Greece for additional hikes in Value added taxes (VAT) to perpetuate Brussels extravagant operation only serving oligarchy and vested interests.

TROIKA involvement in Greece deviating from financial activities to choosing governments with frequent elections and forcing the recent referendum cost the state in contradiction to their prescription on austerity.

The plebiscite outcome with a YES vote anticipated by TROIKA was aimed at removal of Syriza led government from power preparing Greece for yet another polls to install TROIKA approved government at exorbitant expense to the people in Greece.

Again there is no recognition amongst TROIKA imposing will that contributes to more spending in the intentionally caused political tensions for instability.

TROIKA striking down proposals from the current Greece government and extending status quo might satisfy egotistical stance and essentially conflate the problems affecting the creditors and debtor.

Euro future is hanging in balance with disproportionate benefits to members within circuit not to mention the superficial value on the commodity conforming to currency maneuver trend.

Greeks with similar desire to stay in euro zone and EU need to review the experience in the past years up until now.

The dependency on TROIKA and EU for necessary breakthrough has not been forthcoming to relieve the ailing economy and instead the woeful measures are regarded the appropriate remedy saturating public and private debt in the country.

Greece political party Syriza concerns about leaving euro zone upon no positive developments in the negotiations between government and TROIKA would have to be transformed into preparedness with alternatives in returning to drachma that facilitates independent strategy on monetary, fiscal and macroeconomic conditions customizing applications to match targeted growth and output.

As for explanation to the electorate on the issue – any discerning citizen would realize impediments no longer obscure in the false sense of security in euro zone and TROIKA cart blanche authority ignoring reality in the harsh austerity.

The political party shift to a position away from the one adopted on campaign trail would be a broken promise when the decision is to serve the purpose other than republic progress.

In this instance Greece cornered without flexibility to restructure financial operations for economic boost besides debt settlement.

The extreme demands necessitate the viable option to reinstate drachma with sound monetary policy and financial as well as economic reform attracting investments in the economy and capital infusion in the banking sector.

The excessive reliance on bailouts from external sources with the pledge to remain under euro zone confined perimeters and TROIKA doctrine as safe haven when results proved to be counterproductive exemplify confidence and trust deficit in self-emergence and competence.

Nations survive and thrive upon sincere commitment to lead and perform exceeding the expectations demonstrated in hard work and integrity as collective responsibility with transparency and accountability to eliminate corruption and contain failures in all endeavors.

The comprehensive financial and economic plan on Greece recovery will be submitted subject to outcome on EU summit and financial discussion between the incumbent Greece administration and the other side.

Greece could FIX IT in the event of GREXIT with pragmatic solutions and disciplined methods blended in inspiration and optimism for economic resurgence.

Greece crisis will be monitored with relevant input until the matter is resolved.

Peace to all!

Thank you.

Padmini Arhant

 

GREECE – Plebiscite on TROIKA Austerity

July 4, 2015

By Padmini Arhant

Greece forced into referendum on austerity by IMF, ECB and EU is greed driven strategy.

Greed is a terrible disease and those affected by this illness could contain symptoms with self-restriction. When they are overwhelmed with greed they succumb to fate. Greed consumes them.

Greed is the cause for them to become international predators than creditors.

Even Jesus Christ could not reason with moneylenders and compelled to use violence. Jesus Christ whipped them and condemned their unreasonable conduct.

TROIKA could address this matter through proper engagement with the present government and accommodate reality into equation.

Austerity has been devastating for nations and the people in Greece are simply threatened to submit to TROIKA’s extortion.

TROIKA and forces galvanizing YES vote in the plebiscite do not necessarily win with fraudulent means to show victory.

The YES vote to TROIKA would give legitimacy on debt slavery. The YES voters are in kamikaze operation for they are not only doomed, their careless action would make the remaining citizens to share similar destiny.

TROIKA’s bailout requirements is a direct claim and control over Greece economy and human capital i.e. the citizens to bear debt burden lasting over generations when the survival of the present population is made nearly impossible with their austerity policy.

Austerity on Greece is prosperity for TROIKA. Again not everlasting as anything founded on deceit and exploitation would expedite the source conclusion.

TROIKA is clueless about austerity considering the life of opulence they maintain as entitlement at Greece and other nations expense.

In the Dark Age, human mind is able to relate to pain only through personal experience. That’s why there is apathy to human suffering among those prioritizing personal well-being and pleasure.

The financial institutions behind GREECE meltdown were handsomely rewarded for the reckless and unlawful indulgence as investment bankers trading hedge funds with toxic securities in the global market.

These firms were treated with special attention using United States taxpayer funds in the bailout.

Now United States as the chief controller of IMF together with EU and ECB lack credibility in their demand on GREECE and people of other recession hit economies to oblige.

The people are enduring the sins committed by financial brokers and major players in the windfall adopting unscrupulous practice.

The compare and contrast between Germany and Greece do not reflect the facts and as usual missing in substance.

Greece contribution to the world with philosophers like Aristotle, Socrates, Thales and Epicures to name a few amongst several renowned in this field, astronomers – Aristarchus and Eudoxus, physicists viz. Archimedes, mathematician Pythagoras and political scientists are slighted in the biased comparisons presented as analysis by TROIKA hired communication media.

Germany success as euro zone member and leading state in EU is because of exceptional advantage to Germany over the rest in the 28 members bloc.

Germany – the predominantly export oriented nation specializing in heavy metals and high end manufacturing goods related to automobile, aviation and other transportation industry use euro in leveraging against Greece and counterparts from eastern Europe in trade.

German deutsche mark was not feasible in the export trade especially with Europe in deep recession and vagaries in the global economy.

On the other hand euro facilitates Germany to neutralize volatility via distribution amongst members in EU.

The debt saddled states like Greece, Spain, Portugal, Italy, Ireland (PIGS) and eastern European countries are essentially providing for Germany in the balancing act with investors raking profits in Greek bonds compared with low yielding German security in the lending exchange amongst TROIKA.

The banks capitalization exclusively focused on lending for debt repayment to TROIKA ignores economic development in Greece and PIGS states.

Greece returning to original currency drachma would enable export to developing nations and emerging economies besides tourism generating revenue with global visitors from far and wide.

Germany described as nation not paying high wages as Greece is a misnomer.

In fact Germany social security payments and unemployment benefits are far greater in the industrialized world and adapted by Australia in the hand out to those choosing to remain unemployed leaving the immigrants to drive the economy.

Australian dole checks largely drawn by white majority in the country is the influence of Germany policy.

Germany industrial output is from East Germany more than the west given the hard labor tradition under Soviet rule. Germany productivity also attributed to immigrants in Germany despite reservations towards immigrants in deutsche land.

Greece need to allocate budget to expand broadband access and invest in technology based government services that would cut down bureaucracy and shift the labor force in technology oriented jobs for efficiency and transparency.

Greece could also mobilize the nation towards renewable energy like solar and hydropower minimizing energy dependency and costs in the public and private sector.

Greece anti-corruption measures beginning with government from top to bottom would build trust and seriousness in the treatment of the epidemic.

Further on the economic front – Greece needs to use the natural resources such as marble, clay, nickel, coal, bauxite, ore and chromate notwithstanding lignite, petroleum, iron ore, zinc, lead, magnetite, salt and hydropower potential to the maximum.

Greece could promote local production and business in these areas with incentives to small, medium and large companies inviting subscribers to government projects and spearhead domestic campaign to bring offshore holdings to jumpstart economy.

Agriculture land to grow crops and produces for the country and overseas markets would be another economic boost alleviating poverty and unemployment.

Tourism showcasing the Greek islands and Parthenon’s and other attractions would be lucrative with drachma as the currency rather than euro to stifle competition from neighbors on euro currency that makes travel expensive for foreign tourists visiting Europe.

These are preliminary steps to rebuild Greece economy and improve financial situation.

Greece should recognize that existence in tandem with EU and TROIKA financing would only deplete the treasury. The money borrowed from them on austerity basis proved destructive thus far.

Calling for direct investments and job-oriented programs are the meaningful ways to revive economy.

The resistance from TROIKA in this context exemplifies profiteering from citizens’ economic misery that cannot be extended any longer.

Lending for exacerbating economic woes via austerity is TROIKA doctrine. The scenario is imposed with no flexibility for reconciliation.

TROIKA trend is unsustainable for them and the victims of austerity.

The prevalent austerity to intensify citizens plight best renounced and instead the practical approach to resurrect economy is the viable solution to Greece problem.

Greece is at the crossroads and citizens exercising discernment with NO vote in the referendum paramount to SAVE GREECE from foreign seize of assets along with economic and political freedom.

Nation prevails with people pledging allegiance to sovereignty.

May wisdom and rationale provide guidance in the Greece referendum!

Good Luck! to citizens and the government in Greece in the solidarity against austerity.

Peace to all!

Thank you.

Padmini Arhant

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Global Economy – Exacerbating Crises With Erroneous Policies And Stratagems

August 30, 2013

By Padmini Arhant

The economic woes confronting the world are unemployment, underemployment, trade deficits, lower consumer and investor confidence and rising debts in the sluggish economy.

The economic downturn that began in December 2007 attributed to financial crises and sub-prime mortgage as well as hedge fund debacle relieved bankers from liabilities using  taxpayer bailouts transferring the burden on ordinary citizens in the economy.

Bankers in control of money management in the United States through privately owned and run Federal Reserve assumed absolute power with no oversight despite huge anomalies found during internal audit. 

The missing $ 9,000,000,000,000 i.e. $ 9 trillion acknowledged by Inspector General Elizabeth Coleman during Congressional hearing is the tip of the iceberg with more alarming activities surfacing on bankers’ modus operandi.

The banking syndicate comprising Bank of England  – epicenter for fraudulence having laid the foundation on monopoly over national and world economy leads the Federal Reserve in the United States, European Central Bank (ECB), IMF, World Bank and major European Banks with monetary policies aimed at maintaining the status quo.

While IMF and World Bank have successfully derailed economies of developing nations,

The strategy for Europe and North America premised on severe austerity stressing the need to address fiscal cliff generated by banking and financial sector has resulted in dire economic consequences witnessed in Portugal, Ireland, Italy, Greece and Spain (PIGS) although the rest of Europe are not far behind in sharing the dismal state.

The elite group reining authority over global economy is deploying methods in withdrawal of quantitative easing restricting cash infusion or economic stimulus allowing arbitrary interest rates adjustments at Federal Reserve discretion.

Federal Reserve Chairman Ben Bernanke issued a statement on June 20, 2013 that quantitative easing program is in the process of elimination completely by the middle of 2014. 

The detrimental plan produced shock waves in stock markets worldwide the following day i.e. Friday, June 21, 2013.

Regardless, the drastic measure is already underway with limitations on interjection ignoring the necessity for economic revival.

The constraints on liquidity flow facilitating interest rates to rise evidently counterproductive considering the adverse impact on business and home ownership  in the growth deficient economy.

Consumer spending contraction affecting retail industry with ripple effects on manufacturing and interconnected operations extends negative trend in the economy.

Federal Reserve decision to deoxygenate i.e. deprive economy from necessary money distribution via cash and credit backed with redeemable bonds and securities in the absence of growth oriented investments deepening economic problems and stalling recovery.

The money supply held within major private banks lacking in transparency and accountability misleads economy and in worst case scenario adopt aggressive tactics like assets seizure and savings depletion sparing neither the states nor individuals witnessed in the Mediterranean nation – Cyprus deal.

Furthermore, Wall Street financing of political system undermines sovereignty leaving the voters at financiers’ mercy on legislation.

The predicament for citizens is subjugation voiding their ballots in the polls with corporate funding of political campaigns and recipients allegiance to donors against electorate and national interest.

United States administration and congress with rare exceptions prioritizing corporate agenda over constituents’ basic needs like jobs, housing, health care and environment pose greater challenge for the people paying the price in political stalemate on issues concerning the vast majority.

The nation is grappling with multitrillion dollars expenditure on military expeditions and permanent army bases across the globe.

Simultaneously ineffective regulations accommodating past practices into the present and erroneous strategies targeting safety net features plus lifeline products favor financiers and special interests groups in the national and international domain.

The efforts to privatize social security having been the only reliable source of income for retirees and baby boomers nearing retirement alongside home mortgage ponzi scheme replicated in student loan scams forcing fresh graduates and predecessors submerge in financial debts prior to the start of career stifle productivity and revenue reflected in national GDP and current account.     

Additionally, trade policies under globalization benefits stake holders in multinational companies and the top 1% drive to accumulate wealth at the remaining 99% labor costs  empower the privileged class widening the gap between rich and poor in the world.

Besides the taxation policy disproportionately favor the affluent members with offshore tax havens and Swiss Bank accounts set up to promote tax evasions protecting illegitimate holdings and profiteering from illegal wars wasting taxpayer funds. These issues apparently not an important factor in discussion on fiscal responsibility.

The destructive course is unsustainable having exhausted means to exploit workforce and taxpayers worldwide with reckless and irresponsible activities discarding ramifications experienced by significant population struggling to make ends meet in their life.

In conclusion, the economic freedom made possible with republic governance engaged in money printing and circulation conforming to traditional function including monetary policy is the immediate priority to release nations from fictitious debt cycle developed for siphoning national treasury. 

The deceptive concept creating the perception of generational indebtedness with gloom and doom exempt the real beneficiaries in disguise as moneylenders from universal rules and standards.

Global action demonstrated in national call to abolish the Federal Reserve and counterparts in Europe and elsewhere is the way forward assigning the role to public represented democratic government with appropriate checks and balances for efficient performance.

The era of selective prosperity and opulence thriving on stratagems triggering global confrontation and warfare  is nearing termination in accordance with natural law setting expiration date for a new beginning.

Best Wishes to humanity at large for quantum leap progress uplifting the poor, the disadvantaged and the disenfranchised exemplifying meaningful accomplishment.

Peace to all

Thank you.

Padmini Arhant

 

 

 

 
 
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May Day 2013 – Honoring Labor Force

May 1, 2013

By Padmini Arhant

May Day is observed as an international Labor Day honoring work force – the invaluable resource to the economy.

Human capital being integral part of business contributing to economic growth requires acknowledgment and development for a nation to be strong and competitive within and outside the country.

Regardless of economic system – market economy or socialist structure, the workers represent productivity base in manufacturing and service industry while middle and senior management maintain organizational performance introducing ideas, research and innovation, policies and overall decision making process.

Capitalist and socialist economies with the former comprising majority private sector and latter public enterprise involving government or national funding dependent on skilled workers and ingenuity to produce required output maximizing available potential at any given time.

The foundation for this achievement begins with affordable quality education, training and technological expertise.

Additionally, expansion of knowledge through continuous learning and acquiring aptitude enhances qualifications in a particular or diverse field broadening the horizon.

However, the dilemma for highly qualified and those meeting relevant employment requirement is prevalent job insecurity with corporations prioritizing short term soaring profits over sustainability and stability.

In the contemporary setting, company expectation on individual capability far exceeds actual overhead costs with preference for competence on par or adjustable level.

The requisite allow businesses to grow quantitatively considering the options at their disposal marginalizing workers for primary shareholders substantial benefit in the organization.

Furthermore, neoliberal concept imposed in globalization framework facilitating multinational operations anywhere and accessibility to vast labor market plus manual functions substitution with technology poses greater challenges for job applicants having to compete at national and international front despite satisfying eligibility criteria.

As a result, new entrants lacking in job experience wait longer for a breakthrough and earn less besides burgeoning student loan debt in the United States also currently turned in financial institutions favor comparable to housing market ponzi scheme.

The late twentieth and dawn of twenty first century initialized global investments perhaps to boost international trade activity.

The implementation focused on venture capitalists profiteering with anticipation of Midas touch phenomenon.

Superficial indulgence contributed to economic boom followed by bubble burst amid Wall Street wild speculative explorations overshadowed by U.S. invasions of Afghanistan and Iraq costing trillions of dollars – the culmination led to status quo.

Subsequently, the dynamics of corporatism and socialist capitalism in the too big to fail frenzy anchored on big banks bailouts and insurance industry constricted liquidity withholding cash flow otherwise divested in banking sector acquisitions and mergers depriving economic stimulus in the United States and Europe.

Meanwhile, U.S. tax dollars divestments continue until today extending illegal occupation of foreign land beyond scheduled withdrawal date in Afghanistan, aggression in Mali and sponsoring terrorism to destabilize sovereign states Libya, Iraq, Syria and the entire region.

The current domestic and foreign policy in the United States and EU is predominantly responsible for inter-continental and global economic meltdown with massive unemployment having contagion effect.

Neoliberalism conceptualized to benefit top 1% at the remaining 99% expense under globalization auspice drastically affected blue collars and bulk employment in various industries with labor and environment laws undermined to suit corporate maneuver backed by political establishment.

Whenever working conditions and union disputes are brought to public focus – the typical reaction to critical matter is attributed to Marxism or Communism.

Inventing communism – the deceptive utopian theory in practice aligned with hegemonic goals i.e. reining political control over nation and territorial annexations aimed at foreign resources has been a convenient tool to justify wars like Vietnam and,

Consequently replicating model in the creation of al-Qaeda serving false pretext for the so-called war on terror to invade and occupy sovereign states in the world.

Reverting to workers related issues – even though there are variances in corporate treatment across the globe the common denomination leads to exploitation.

The recent incidents involve stalemate between Colombian workers and General Motors,

The miners problems in Latin America and South Africa ending in casualty.

In other instances Walmart, Honeywell job replacements and denial of health care benefits to United States staff with corporate record profits reserved for executives extravagance.

Likewise Walmart neglect of safety procedures in Bangladesh garment factory that claimed around 100 lives with no accountability.

France stifling pensions, teachers and nurses strikes expressing huge disappointment share United States counterparts sentiments in incumbent Presidency elected as Socialist government and in reality sworn allegiance to oligarchy.

France and euro zone members under EU governed strategy exacerbating people suffering with joblessness from severe austerity.

Notwithstanding U.S. present stance threatening social security, Medicare and lifeline programs with educational funding slashed citing budget constraints endanger citizens survival and future prospects under the guise of fiscal responsibility.

In comparison, Washington misplaced loyalty through multi billion dollars financial aid to Israel to oppress and persecute Palestinians as well as orchestrate terror in Syria, Iraq, Libya and throughout Middle East has no stumbling block in elevating debt ceiling or national deficit with generational impact.

Ordinary citizens as workers, consumers, taxpayers and electorate are consistently ignored with corporate earnings shared among core management and key investors widening economic disparity and social inequality in society.

Workers bear the brunt in the misuse of power either by Union leaderships sometimes betraying union with complicity in corporate mismanagement and discriminatory dealings or company failure in resolving crises effectively for common good.

In certain circumstances, union extreme demands upon employers taking undue advantage of dependability like in Australia generates loss of revenue with pervasive adversity.

Alternatively political imprudence and cavalier approach in relentless warfare whether conventional, drones or terrorism in proxy versions directing national assets to destructive purpose evidently a huge economic liability and devastating to nation at large.

Summarizing the importance of Labor Day – An occasion with a reminder for economic and political leaderships to appreciate the significance of labor force with investments in education, and jobs providing opportunity to excel in entrepreneurial, scientific and academic fields, arts and entertainment…or any discipline strengthening national achievements in every frontier.

Lastly adopting the principle – Work is worship and workmanship delivered with commitment and interest would guarantee success in all endeavors to mankind.

Wishing the world fruitful labor days all year around.

Peace to all!

Thank you.

Padmini Arhant

India – Neo Liberalization Economic Policy is Anti-Republic Ideology

December 4, 2012

By Padmini Arhant

The Congress party led UPA (United Progressive Alliance) coalition government welcomed neo liberalization economic policy considering hegemony influence over the administration key members and party chief in advancing globalization evidently suitable to establish feudalism under the pretext of modern capitalism.

Notwithstanding the fact, the head of the state and main cabinet ministers held positions at World Bank prior to being nominated by hegemony to promote the debilitating neo liberal concept in India.

Hegemony agenda on world economy is redefining capitalism exclusively benefitting the multinational corporations at small medium enterprise as well as average citizens detriment.

Not only the term neo liberal is deceptive but also the hegemony distortion of liberal and progressiveness in economics and politics confirms steadfastness to legalize authoritarianism consistent with the trend to the White House latest action legitimizing arbitrary drone strikes generating massive innocent civilian casualty.

The genuine liberal and progressive characteristics pose impediments to hegemony extremism and ultra conservatism essentially the protectionism that guarantees financial security to corporate conglomerate on their terms and conditions worldwide.

Hegemony is strongly opposed to protectionism that ensures public and national interest like preserving natural resources and human capital from foreign exploitation.

However, the obstacle is maneuvered through hegemony nominees in political system among the ruling power along side weakening opposition to rein control on government legislation that governs the economic sector implementing policies conforming to conglomerate agenda – i.e. broader access to market share and profits divestment offshore preferably in tax havens evading scrutiny.

The neo liberal ideology targets nations exacerbating society endurance on pervasive corruption advising subservient political power to remain committed in declining anti-graft legislation despite national demand.

Indian government is currently engaged in passing Foreign Direct Investment (FDI) allowing Walmart and other mega corporations’ retail monopoly regardless of the measure proved counterproductive.

Similar trade policies introduced under Free Trade Agreement – FTAA, NAFTA and CAFTA in Latin America and Asia was responded with factory workers and manufacturing sector protests in Columbia, Panama, South Korea…and elsewhere.

FDI devastating impact on vast majority surviving as retailers and local street vendors is apparently not a major concern for the political leaderships sworn allegiance to external global power.

India is unfortunately subjugated through elusive economic proposals favoring hegemony goal to derail growth widening the existing gap between the rich and poor.

FDI implementation would cost small businesses and shop keepers livelihood even driving them to situation experienced by farmers forced to commit suicide due to corporations like Monsanto stranglehold on farming community at the national political power invitation.

Besides FDI facilitates foreign exchange inverse flight contrary to political misconception on Forex reserves advantage currently debated in Indian Parliament aiming to circumvent the matter by seeking vote on Foreign Exchange Management Act (FEMA).

The traders nationwide should demonstrate against the erroneous decision and scuttle the misguided economic strategy threatening India’s domestic prospects linked with appropriate income distribution.

Another contentious factor with FDI is subsidized labor with cheap overheads, a common attraction for foreign absorption of market holdings resulting in huge employment displacement largely affecting women and marginalized demography.

In this instance it is noteworthy that Muslim and diverse groups are potentially at risk given their involvement in commercial activity as the chosen and sometimes circumstantial profession.

Instead the government utilization of capital and foreign exchange reserves in export oriented technology and mechanisms from within and abroad to enhance infra structure modernization contributing to work force expansion rather than contraction could be beneficial to India and global economy reviving multilateral trade.

FDI in this context deprives fair competition with the premise disproportionately lucrative for big corporations predator instincts significantly affecting job market and economic viability.

Obviously, the political opposition is subjected to task in exemplifying prudence and diligence that would determine their commitment or the lack of in safeguarding economic future heavily compromised upon Parliament approval of the FDI bill.

Simultaneously, Indian democracy is challenged in foreign disguised control via proxy rule necessitating civil society activism and intervention to avert catastrophe.

The business associations across the country are required to come forward and assume responsibility in preventing history from repeating itself semblance with East India Company venture that led to imperialism two centuries ago.

Hopefully rationality would prevail in abandoning FDI used as political tool to undermine the legitimacy of largest democracy in the world.

Wishing small entrepreneurs and mainstream success against political collusion in disenfranchisement on economic opportunity.

Peace to all!

Thank you.

Padmini Arhant


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