Global Economy

bhavani · Post by **bhavani** » 31 May 2010 04:04

http://www.guardian.co.uk/business/2010 ... -downgrade

Credit rating of spain is down graded. Markets will probably tuimble on tuesday in US. Contagion seems to be spreading. Italy's rating will probably take a cut soon.

When will they Ukstan's rating.

This century is turning out to be similar to last century, when an European crisis triggered World war I.

svinayak · Post by **svinayak** » 31 May 2010 04:15

http://www.youtube.com/watch?v=9JydrScfq7E

So this LaRouche guy is basically saying he wants a global banking system out of the reform of a new international monetary system?
It won't work, the central banks have got us into this mess, what will make it get us out?
They are bundling humanity from all the angles into a World Governmental structure? At least it seems to me, it is. We have the UN, why expand it?

We have a global banking "System". But as you point out it is run by private banks. LaRouche wants a system run by perfectly sovereign nation states. No private interests will be allowed to come between one nation and another. The spot market pushing the price of oil up will be made illegal. So the central banks will not get us out of the mess. They will be put under bankruptcy receivership. We the citizens of the sovereign nations of the world will control our own credit utterance.

He says that in OCT 1987 the US financial system had collapsed. This was due to the result of the cold war campaign against SU

Currency and wall of money was used to create money and mortgage based system

Sanjay M · Post by **Sanjay M** » 31 May 2010 06:59

Meaning that creating/sustaining a conflict is a good way to artificially bolster your own value, because then others are forced to crowd around you for shelter. They send more money your way to keep it sheltered, which serves as a form of tribute.

Neshant · Post by **Neshant** » 01 Jun 2010 20:32

sounds like the fake figures of inflation and unemployment put out by the government.

Sanjay M · Post by **Sanjay M** » 07 Jun 2010 02:03

NYT: Hungary is No Greece

Neshant · Post by **Neshant** » 07 Jun 2010 04:04

prad wrote:
Neshant wrote:sounds like the fake figures of inflation and unemployment put out by the government.

please do enlighten us, then, of what the real truth is...

Check out John Williams shadowstats.com

Anyone who is paying attention to the cost of living knows that its going up a lot faster than the 1 or 2% that's quoted by the government.

This is one the reasons I will never buy TIPS (inflation indexed govt bonds). The inflation rate is based on the bogus inflation numbers put out by the govt. So while taxes, prices, fees, bills, licences, food..etc costs are all going up at 5%, the govt figures will claim its going up only by 1% and the investment will be indexed to that bogus 1% rate of inflation.

We are about to find out in the next few years that keynesian economics promoted by the banking cartel called the federal reserve is nothing more than a money printing racket that benefits a few.

akashganga · Post by **akashganga** » 08 Jun 2010 09:22

Stash Cash for Next Flash Crash

http://www.financialsense.com/fsu/edito ... /0607.html

praksam · Post by **praksam** » 10 Jun 2010 01:51

Struggling Towns Begin Printing Their Own Cash

http://www.americanfreepress.net/html/s ... __212.html

svinayak · Post by **svinayak** » 11 Jun 2010 06:24

We've reached the tipping point…
A seismic shift is occurring in the workforce. Globally, several decades of declining birth rates are catching up with us. For the first time in modern history, the number of jobs created could begin to outstrip the number of people who desire to participate in the workforce - creating not just a temporary imbalance for a year or two, but a sustained, systemic scarcity of skilled workers for the decades to come. By the end of this decade, most corporations will begin to experience a talent shortage.

“In the developed countries, the dominant factor in the next society will be something to
which most people are only beginning to pay attention: the rapid growth in the older
population and the rapid shrinking of the younger generation.” - Peter F. Drucker

The impending workforce crisis is the outcome of three relentless facts: the sheer size of the
baby boom (eighty million plus), increasing longevity (life expectancy heading into the 80s), and
a declining birth rate (below replacement). The inescapable projection is a rapidly-aging
population and workforce. But this is not only a crisis. Properly considered and framed, this
problem is a great opportunity for business to benefit from the talents of the older worker. The
question is how quickly management will be able to retool its operating assumptions in order to
take stock and take advantage of these cultural issues for the benefit of business.

A future-vision orientation to these problems and opportunities means understanding where the
workforce is now, what’s happening to it, where it’s heading, and what this means for strategy.
This is more than trouble-shooting – it is preparing to take advantage of the age wave already
well underway. Making the most of a world where the median age is 40 (and rising) means in
effect creating a new world of work. The opportunities offered are many, but they require a
rethinking of assumptions: both about the terms of employment and the mature employee.

A third of the population—those over 50, and the fastest-growing —are discovering that they
have (if they want it) a second working life ahead of them. This is because so many will spend
just as many years “unretired”--post-career--as they did on the job. In this latest foresighted
study, the facts of an aging society are focused on issues of human potential. These include the
economy, the brain drain, ethnic and gender diversity, skill and education shortages, and a
general tightening of the talent supply. The impact of this age revolution will be wide-ranging as
it drives social policy, lifestyle, health, and relationships. These will all have their effects at work,
or in the “ergosphere”—my term for the dispersed time- and-space universe that defines the
new workplace.

-----

http://www.thefutureofwork.net/assets/R ... Crisis.pdf

Neshant · Post by **Neshant** » 11 Jun 2010 07:40

By the end of this decade, most corporations will begin to experience a talent shortage.

the 'talent shortage' lie was used in the IT industry in the west first to import cheaper labor from India and later to export jobs to India for lower salaries.

there is no shortage of anything.

there only is a shortage when employers want to pay peanuts for labor which does not match the cost of living.

mnag · Post by **mnag** » 12 Jun 2010 08:35

Britain now starts rona-dhona over criticism of BP by Obama. This has been reported in several places and here is one from NPR
http://www.npr.org/templates/story/stor ... =127775629

"

The language and rhetoric of this dispute is going into the danger zone, is becoming too highly personalized. The interpretation over here, not just by me but others, is that it has a certain anti-British rhetoric to it — and that has to be of concern," he said.

Various experts in Britain have pointed out that not only is BP a huge multinational with many assets and employees in the United States, but companies other than BP were also implicated in the oil spill, although they are not taking as much of the blame as is BP. And, they add, the oil was all for the U.S. market.

....

Other commentators and bloggers have picked up on that point. "You want the oil, America?" asked one. "You clean up the mess."

....

svinayak · Post by **svinayak** » 12 Jun 2010 08:59

Joel Woodford (Joelw24) wrote:
I am sure it will come as a great shock to all britons (yes, left lower case on purpose) that we here in the U.S. haven't cared what your country thinks of ours for quite some time. If you care so much for BP then we can scrape up this mess they have created over and dump it on your shores!! Then you can all start paying back the money lost by all the affected industries that will be or already have been devastated by this. Someone else made the point that our anger is at the company NOT your country. If you are so concerned about the perception of your country, then shut up, get over here and help clean it up. If you don't wish to do that, then shut up sit down!!
Fri Jun 11 2010 22:33:54 GMT-0700 (Pacific Daylight Time)

Ooooo...

Singha · Post by **Singha** » 12 Jun 2010 09:21

well the lord of the manor just making his power relationship with the gardener and wagon driver quite clear.

scones, blueberry muffins and tea on the south lawn at 4.00pm please Forsooth! and please polish my croquet mallet!

Neshant · Post by **Neshant** » 13 Jun 2010 02:53

now if the UK has some balls, it would take S&P, Moody's and Fitch to task in the UK for deliberately rating tons of securitized garbage as AAA just like BP is being taken to task in the US.

Prem · Post by **Prem** » 15 Jun 2010 06:16

By John Letzing JP:6752 PC JP:7011 MHVYF SAN FRANCISCO (MarketWatch) -- Japanese firms including Panasonic Corp. (JP:6752 1,259, +39.00, +3.20%) /quotes/comstock/13*!pc/quotes/nls/pc (PC 13.59, -0.01, -0.07%) and Mitsubishi Heavy Industries Ltd. (JP:7011 327.00, +5.00, +1.55%) /quotes/comstock/11i!mhvyf (MHVYF 3.65, +0.26, +7.67%) are heavily recruiting foreign employees in markets such as India and China for key positions in development, design and sales, according to a report Tuesday. The Nikkei business daily reported that Panasonic aims to "ramp up hiring of foreigners across the entire group by 50%" by the spring, as the electronics giant seeks to unveil low-priced items in India and China. Some of Panasonic's new recruits will be placed on executive tracks and will receive up to two years of training in Japan, the report said. Mistubishi Heavy, meanwhile, plans to hire about 4,000 personnel overseas over the next five years, as it seeks to double overseas production, according to the report.

Japan firms reportedly recruiting heavily abroad
http://www.marketwatch.com/story/japan- ... 2010-06-14

manish · Post by **manish** » 16 Jun 2010 17:39

Ominous signs for the aging population of Europe...
French raise retirement age to 62

France's retirement age will be raised from 60 to 62 over the next eight years as part of sweeping pension reforms, the government has announced.

French labour minister Eric Woerth told reporters that working longer was "inevitable", and necessary to balance the public finances.

The move is designed to reduce France's pension costs and bring public borrowing down.

EUROPE'S RETIREMENT AGES

* France - 62
* UK - 65 for men, 60 for women
* Germany - 65
* Spain - 65, though retirement at 60 is also common
* Netherlands - 65
* Italy - 65 for men, 60 for women, though earlier retirement is common
* Greece - 65 for men, 62 for women, though earlier retirement is common
* Sweden - 61

I did not know that the retirement age was over 60 already (65 in most cases)!!

paramu · Post by **paramu** » 16 Jun 2010 22:35

What?

There is sexual discrimination in Europe, for retirement age?

manish · Post by **manish** » 17 Jun 2010 10:16

paramu wrote:What?
There is sexual discrimination in Europe, for retirement age?

Good catch. I wonder what their explanation is?

Neshant · Post by **Neshant** » 17 Jun 2010 14:21

India should ask for the same.

------------
Swiss parliament OKs US bank data transfer deal

http://ca.news.finance.yahoo.com/s/1706 ... -deal.html

Prem · Post by **Prem** » 18 Jun 2010 00:54

“Death of an Economic Paradigm”

India, in rejecting much of this ideology, and maintaining firm control over its financial sector, escaped the worst of the crisis. But despite the abject failure of this line of thinking, its hold remains firm in the West. The parallels to the 1920s and the Great Depression are striking. The key elements of the current system then and now—lightly regulated financial firms and markets, comparatively unrestricted and destabilizing international capital flows, economic growth dependent on rising levels of consumer debt—are no longer viable. However, no one in authority seems able to see that the ancien regime is well past its sell-by date. They cling to it because the old system comported itself well for a protracted period, just as the now-repudiated crisis and deflation-generating gold standard once did. Thus, the authorities reflexively put duct tape on the machinery rather than hazard a teardown.But is this paralysis just a failure of imagination on the part of policymakers? They are not just cognitively captured by the financial service industry’s “free markets” ideology. They are also beholden to banksters for campaign contributions and for their careers, both inside and outside Washington, DC. It is not a stretch to say that most central bankers, treasury officials, and Congressman are now sock puppets for global finanzkapital.

http://www.nakedcapitalism.com/2010/06/ ... adigm.html

Prem · Post by **Prem** » 19 Jun 2010 03:14

India Boosts Imports of Colombian Thermal Coal on Demand, Price

June 18 (Bloomberg) -- Colombia boosted sales of power- plant coal to India as Agarwal Coal Corp. imported a second consignment late last month, according to a trader and ship- tracking data. Awobasan, a 150,275 tons bulk carrier, unloaded a 40,010 metric tons shipment of Colombian coal at Gangavaram, a port in south-eastern India, on May 26, according to AISLive on Bloomberg and mjunction Services Ltd., a trader. Colombian coal cost about $92 a ton on a delivered basis compared with $110 for supplies from South Africa, mjunction said. South Africa and Colombia, which last year were the biggest exporters of steam coal to countries with ports on the Atlantic Ocean, are boosting supplies to India, where they get better prices. Both shipped 63 million tons of coal to Atlantic countries last year, according to a January report from Euracoal, a lobby group.

http://www.bloomberg.com/apps/news?pid= ... pATlFn9Etw

Sanjay M · Post by **Sanjay M** » 19 Jun 2010 03:26

Russia to Help Spur New Economic Order, Medvedev Says

Sanjay M · Post by **Sanjay M** » 22 Jun 2010 09:36

Yuan Gain Won't Slow Global Growth But Just Shift it to Other Countries

like India, probably

Ameet · Post by **Ameet** » 23 Jun 2010 11:20

Asian millionaires worth more than Europeans

http://www.google.com/hostednews/afp/ar ... 6jIwmOkXoQ

rsingh · Post by **rsingh** » 23 Jun 2010 20:21

Ameet wrote:Asian millionaires worth more than Europeans

http://www.google.com/hostednews/afp/ar ... 6jIwmOkXoQ

What does it take to be recognized as millionaire..............assets of real cash in bank. If one count the property then every body who has land on road or in small town is a millionaire ( at least in Haryana). People have seen money growing like weeds.

Prem · Post by **Prem** » 23 Jun 2010 23:52

Where's All the Gold? Start with the Federal Reserve
http://www.dailyfinance.com/story/inves ... /19524762/

Most interesting is the rapid rise of China and India as gold bugs. The Middle Kingdom's gold reserves presumably held steady at 1,054 tonnes year-over-year, according to the World Gold Council, but then secrecy is one of the communist government's strengths. It was just little more than a year ago when China revealed it had quietly purchased 454 tonnes of gold over a six-year period. That's roughly equivalent to the current holdings of Turkey, Greece, Romania and Poland combined.
India, the world's largest consumer of gold, made a splash when its central bank bought 200 tonnes from the IMF back in November. Russia, meanwhile, has been stocking up on gold for years, boosting its reserves by about 132 tonnes in just the last 12 months.

svinayak · Post by **svinayak** » 24 Jun 2010 01:10

Prem wrote:Where's All the Gold? Start with the Federal Reserve
http://www.dailyfinance.com/story/inves ... /19524762/
Most interesting is the rapid rise of China and India as gold bugs. The Middle Kingdom's gold reserves presumably held steady at 1,054 tonnes year-over-year, according to the World Gold Council, but then secrecy is one of the communist government's strengths. It was just little more than a year ago when China revealed it had quietly purchased 454 tonnes of gold over a six-year period. That's roughly equivalent to the current holdings of Turkey, Greece, Romania and Poland combined.
India, the world's largest consumer of gold, made a splash when its central bank bought 200 tonnes from the IMF back in November. Russia, meanwhile, has been stocking up on gold for years, boosting its reserves by about 132 tonnes in just the last 12 months.

I had the information of China buying gold for some years now. They are after Nazi era gold bars which is still in circulation. High value gold bars are traded between nations and secret groups. Top wealthy families of Taiwan, PRC and others are doing the trading.

One of my friend got an offer to buy gold bars. The scheme is like this. First go to central american country and check out the gold mine. See the gold process and then order the gold bars. 10Kg gold cost is $383k at the mine. Then go to any major bank in central america and receive the gold after payment. Deposit of 10% is needed. Then transfer the gold to US bank in FL. It is tax free to import gold inside US as per the IRS regulations.

I was also made the same offer.

paramu · Post by **paramu** » 24 Jun 2010 01:49

As an individual, how would you trust the quality of gold bars you buy?

svinayak · Post by **svinayak** » 24 Jun 2010 03:33

You see the gold itself and ask for certification from global gold council or similar stds.

Neshant · Post by **Neshant** » 24 Jun 2010 07:38

Acharya wrote:You see the gold itself and ask for certification from global gold council or similar stds.

I wouldn't be trusting any such scheme. My BS alarm went off.

You'll be lucky if you aren't grabbed and held for ransom in that south american country.

There is no gold at a lower price unless you are running a cash-for-gold outfit and reeling in suckers.

svinayak · Post by **svinayak** » 24 Jun 2010 19:38

Neshant wrote:
Acharya wrote:You see the gold itself and ask for certification from global gold council or similar stds.
I wouldn't be trusting any such scheme. My BS alarm went off.

You'll be lucky if you aren't grabbed and held for ransom in that south american country.

There is no gold at a lower price unless you are running a cash-for-gold outfit and reeling in suckers.

I am not an expert in this. There are people who will tell how the certification process is done. With that kind of product there will be global standardization for legal mines and govt approved industries.
The caution is not to bring in any money and only use the wire transfer and bank transfers.
The prices difference between the mine and the retail market will be there but not everyone can really exploit it.

Neshant · Post by **Neshant** » 25 Jun 2010 08:58

Acharya wrote: The prices difference between the mine and the retail market will be there but not everyone can really exploit it.

Mine operators know what the spot price for gold is and what the premium on the spot it. They know far more than anyone else about what the price of gold is and they even forward hedge their production.

Don't go transferring your money anywhere, you will not be able to get gold for less as there are no suckers. But you will be taken hostage and held for ransom when you get there.

Chinmayanand · Post by **Chinmayanand** » 26 Jun 2010 03:20

Not an imperial rule

India has done well to reiterate its strong opposition to the idea of a global tax to create a corpus for future bailouts of banks. The idea is absurd. There is no reason why all banks — guilty and innocent — should be tarred with the same brush. It is rather like levying a tax on all corporates to create a fund to pay for the misdemeanours of a few.

For example, given these days of heightened awareness of corporate culpability a la the Gulf of Mexico oil spill and the Bhopal gas tragedy, it is like an environment tax levied on all business to pay for the sins of a BP or Union Carbide. No right-thinking person would argue in favour of such a levy, so why should anyone think there is a case for such a tax on banks? The only reason, but one that will not wash in a globalised world, is the need for cash-strapped governments to find resources to bridge their yawning budget deficits. Hence the unilateral move announced by the UK this week to levy a tax on banks in the UK and the prospect that Germany and France might follow suit. The prospect of additional revenue (estimated at $3.1 billion) was, no doubt, a factor that weighed with the UK. But measures like this are bound to hasten the demise of London as the world's leading financial centre.

‘Banks started the crisis and they should pay,' said the UK's freshly-minted Chancellor of the Exchequer, George Osbourne. And while it might go down well with the public to hold banks responsible for the crisis (absolving central banks, especially the US Fed, for loose monetary policies that created the conditions that led to the crisis), he might like to do some homework and check out on the banks responsible for the crisis. A universal tax on banks is unfair to countries whose banks did not overstep the line, thanks largely to more effective regulation. If western banks are in a mess and needed huge taxpayer-funded bailouts, the blame rests squarely on them and their regulators . To the extent these are powerful banks, ripples from their near-collapse have already been felt globally and, in a way, the rest of the world has already paid for their sins. To levy tax on their banks would be to rub salt into their wounds. The forthcoming G-20 meet must express strong disapproval of the UK's ill-conceived measure.

RoyG · Post by **RoyG** » 26 Jun 2010 22:58

World economy needs more stimulus spending: Singh

Press Trust Of India
Toronto, June 26, 2010

Prime Minister Manmohan Singh said today that the fragile world economy needs more stimulus spending and not cutbacks to ensure a sustained recovery.

"The purpose of G-20 should be to ensure that the momentum of recovery is sustained and enhanced in the years to come," the Prime Minister told the Toronto Star in an interview published today, shortly before his arrival for the G-20 summit in Toronto over the weekend.

He said that the Group of 20 major and emerging economies should not rein in budget deficits too fast but coordinate policy to ensure a sustained economic recovery.

"But right now, the danger of deflation in the global economy is, in my view, much greater than the danger of inflation," the economist-Prime Minister said.

Wading into the hottest topic of the G-20 summit, Singh said that he sided with US President Barack Obama against German Chancellor Angela Merkel and Britain's Prime Minister David Cameron, who have both launched cutbacks and austerity programmes to control mounting deficits and debts.

Without taking names, Singh made it clear where he stands, "My own feeling is that early fiscal retrenchment carries very considerable global risks" of jeopardising worldwide economic recovery.

Singh complained of "Sikh extremism" in Canada, and charged that Canadian Sikh extremists "have links to or are themselves wedded to terrorism."

He will be raising the issue with Canadian Prime Minister Stephen Harper tomorrow. Singh suggested that Canada and other NATO members should not abandon Afghanistan next year.

Doing so would "only embolden the radical forces opposed to the emergence of a peaceful, pluralistic and democratic Afghanistan."

He praised Canada's "well-governed economy," its "exemplary" banking system and strong financial regulatory regime.

That allowed Canada to escape the financial crisis relatively unscathed, just like India. Both can now contribute to the world economic recovery.

http://www.hindustantimes.com/Fragile-w ... 63646.aspx

Sanjay M · Post by **Sanjay M** » 28 Jun 2010 07:38

Lefties want spending for the sake of spending (ie. so they can have jobs)
Righties would like spending to happen because there's something worthwhile to spend on (ie. spend on innovation, to make more worthwhile products that people will want to buy)

Pulikeshi · Post by **Pulikeshi** » 29 Jun 2010 17:38

Sanjay M wrote:Lefties want spending for the sake of spending (ie. so they can have jobs)
Righties would like spending to happen because there's something worthwhile to spend on (ie. spend on innovation, to make more worthwhile products that people will want to buy)

If you take that stereotype even further -
Communists == Destroyers
Lefties == Consumers
Righties == Producers
Libertarians == Judge & Jury

Vipul · Post by **Vipul** » 30 Jun 2010 20:01

India becomes full member of global financial watchdog FATF.

manish · Post by **manish** » 02 Jul 2010 16:03

X-Posting from PRC econ dhaga:

manish wrote:GE's Immelt has some not-so-kind words to say about PRC...and also about Obama.
GE CEO hits out at China, Obama
Jeffrey Immelt, General Electric's chief executive, has launched a rare broadside against the Chinese government, which he accused of being increasingly hostile to foreign multinationals.
He warned that the world's largest manufacturing company was exploring better prospects elsewhere in resource-rich countries, which did not want to be "colonised" by Chinese investors. "I really worry about China," Mr Immelt told an audience of top Italian executives in Rome, accusing the Chinese government of becoming increasingly protectionist. "I am not sure that in the end they want any of us to win, or any of us to be successful."
So far it was the technology and services cos that were complaining publicly, now looks like the manufacturing sector guys are starting to get impatient as well.

And for BO...
Mr Immelt also had harsh words for Barack Obama, US president, lamenting what he called a "terrible" national mood and expressing concern that over-regulation in response to the global financial crisis would damp a "tepid" US economic recovery. Business did not like the US president, and the president did not like business , he said, making a point of praising Angela Merkel, Germany's chancellor, for her defence of German industry.
At this rate, raising 2012 campaign funding is going to be a tough ask for the messiah. Anyways, in the post-BP spill world, chief executives need to be extra careful - probably GE realised this and issued the following lifafa...
In a statement, GE said Mr Immelt's remarks had been taken out of context and contested the accuracy of the reporting. "Mr Immelt's comments at a private dinner focused on the relationship between business and government in general and did not single out President Obama. Mr Immelt also discussed the attractiveness and importance of China as a market for GE."

Prem · Post by **Prem** » 05 Jul 2010 22:33

Its not olee GE CEO now Andy Grove echo similar views.
http://www.bloomberg.com/news/2010-07-0 ... grove.html
How to Make an American Job Before It's Too Late: Andy Grove

Recently an acquaintance at the next table in a Palo Alto, California, restaurant introduced me to his companions: three young venture capitalists from China. They explained, with visible excitement, that they were touring promising companies in Silicon Valley. I’ve lived in the Valley a long time, and usually when I see how the region has become such a draw for global investments, I feel a little proud.
Not this time. I left the restaurant unsettled. Something didn’t add up. Bay Area unemployment is even higher than the 9.7 percent national average. Clearly, the great Silicon Valley innovation machine hasn’t been creating many jobs of late -- unless you are counting Asia, where American technology companies have been adding jobs like mad for years. The underlying problem isn’t simply lower Asian costs. It’s our own misplaced faith in the power of startups to create U.S. jobs. Americans love the idea of the guys in the garage inventing something that changes the world. New York Times columnist Thomas L. Friedman recently encapsulated this view in a piece called “Start-Ups, Not Bailouts.” His argument: Let tired old companies that do commodity manufacturing die if they have to. If Washington really wants to create jobs, he wrote, it should back startups.

Ambar · Post by **Ambar** » 07 Jul 2010 08:19

RoyG wrote:World economy needs more stimulus spending: Singh

Press Trust Of India
Toronto, June 26, 2010

Prime Minister Manmohan Singh said today that the fragile world economy needs more stimulus spending and not cutbacks to ensure a sustained recovery.

He praised Canada's "well-governed economy," its "exemplary" banking system and strong financial regulatory regime.

That allowed Canada to escape the financial crisis relatively unscathed, just like India. Both can now contribute to the world economic recovery.

http://www.hindustantimes.com/Fragile-w ... 63646.aspx

Its a clear sign that our beloved PM is getting a bit soft in his head.Relentless stimulus and loose monetary policies since 60s have time and again wrecked havoc in US.Stimulus during the S&L crisis,stimulus before Y2K,stimulus after 9/11 and stimulus now..the result? Bigger budget deficits,larger debts more 'roads to nowhere' and mindless programs like 'cash for clunkers' destroying perfectly running automobiles and inciting already burdened consumers with poor credits to take more credit so that they can buy fancy cars.

According to Manmohan Singh,we should not worry about deficits.Really? If that's the case,we might as well make do without taxes.EU is on a path to self-destruction and US is confused between the throttle pedal and the brake pedal.MMS thinks India will hammer on 10% GDP for the next 100 years ..nothing can be farther away from the truth.Let true capitalism work,those who have made mistakes should be allowed to face the consequences.Stimulus and more government spending is not the solution,this is exactly the mistake Indira Gandhi did for years and years and we almost went bankrupt in the early 90s.