RGarg 20 Sept 2017 11 points

RGarg 11 points
20 Sept 2017

Draft ONLY for circulation amongst wellwisher friends , no political issues implied or imagined .
for brief comments ...ravigarg1@yahoo.com

1...Even I am seeing major signs of stalling /activity reduction in most sectors of indian economy , except in a few specific sectors where govt is spending borrowed money CONSUMPTION EXPENDITURE FROM BORROWED CAPITAL .

2 ..There is the technology based huge huge reduction in employment that shall increase . The impact of tech may cause more of PERMANENT job loss , than we may have studied ... Between previous ten years say 2007 and next ten years say by 2027 , more than 50 percent full time and part time paid jobs shall melt away PERMANENTLY .. Jobs are being lost due automation and inventions in agriculture , mfg., mining , transportation , offices , banking , govt services , power production . (Yes limited jobs FOR LIMITED TIME are being created in roads rail infrastructure . ). Modi s govt has NOT caused this job loss due technology yet it seems Modi does not have a time bound strategy to manage this job loss.

3... The recession in the West shall increase and shall reduce demand in india export sector . In any case due govt servants sectors ridiculous high salaries and low productivity , India shall not catch up with Exporters in other countries .

4...China continues its ruthless exports thru immense subsidies , that shall trouble us further .

5... Russia due major devaluation is now a major agri exporter including wheat ! .. An opportunity worthy of immediate study .

6...Net negative impact from other developments in near future ...?wars that may consume our savings unproductively , repayment of huge loans guaranteed by Indian Govts -state and national , past and present , that are simply rolled forward currently or otherwise hidden in govt. statistics ,inflation is being masked due tinkering with figures that shall get exposed .

7... Govt is spending money in few sectors like defence procurement , show-off fast trains , farmer loan write-offs ; now all this is REVENUE EXPENDITURE with BORROWED CAPITAL ..The tax base to pay for all this is not going to come from new huge tax paying projects as none NONE are coming up .. Same time to pay for its egoistic extravagance modi govt is using gst etc that is really reducing the economic activity in a major way !

8...Whereas I like to be realistic about the future , at individual level I am not a prophet of doom ! Within above reality there are opportunities for businessmen and biz advisers amongst us .. some opportunities with a sense of social responsibility and some other opportunities with competitive smarts .Where are these opportunities ? Comment and contact RGarg via ravigarg1@yahoo.com

9...The 3 major devices that are creating hugely significant distortions in indian economy shall be permitted to continue by modi govt . These devices are extremely powerful , these devices can be managed if intelligently handled to jump start employment and economic growth very significantly .

10...Three specific Suggestions , 1 Fully tax away 100 % of asset price increases ie property ,shares , govt licences . 2 take away the inflation linked feature of salaries , income,pensions allowed to so called govt servants 3 interest rate for employment creating projects to be frozen at 0 percent . None of these 3 suggestions are my original , and all are tried and proven successful historically .

11...Roads rail infrastructure is being financed by borrowed capital that will not be recovered via such projects ( -not by current or future SAVINGS- ).. complex argument yet arguable coz govt does not create any report showing return on borrowed investment report . Also the building boom of show off roads flyovers malls in cities simply multiplies costs of services for the export economy .

RGarg 20 Sept 2017.

Neoliberalism and the New World Order. IMF-World Bank “Reforms”, The Role of Wall Street

Neoliberalism and the New World Order. IMF-World Bank “Reforms”, The Role of Wall Street

Neoliberalism and the New World Order. IMF-World Bank “Reforms”, The Role of Wall Street

Neoliberalism and the New World Order. IMF-World Bank “Reforms”, The Role of Wall Street

https://www.globalresearch.ca/neoliberalism-and-the-new-world-order-imf-world-bank-reforms/5572157

Michel Chossudovsky: That’s a very important question and it really has to do with monetary policy. Monetary policy really defines the sovereignty of a country. It’s the ability of a country to actually finance its own development through lending to the private sector, the building of public infrastructure and so on. To do that, you have to be able to increase the levels of internal debt. We do it in the United States and Canada and so on. We use debt operations to fund the infrastructure, roads, schools and hospitals

http://unctad.org/en/Docs/osgdp20091_en.pdf CB

The first obstacle for developing countries in principle could lie in the way how base money is distributed from the central bank to commercial banks. For most developing countries, the technical process of money supply is quite different from that in developed countries: While most industrialized countries rely on indirect instruments such as open market operations to provide liquidity to the banking system, many developing countries lack deep financial markets to conduct open market operations in and hence have to rely on direct monetary policy tools such as bank-by-bank rediscount quotas or credit restrictions (Chandavarkar 1996: 3). However, closer examination shows that this structural difference might have less impact on the credit-investment process than one could think. While open market operation frees central banks from allocating reserves to different banks or regions by discretion and hence uses market forces to do so, there are little a priori reasons why the allocation of reserves by the fiat of the central bank should hamper the credit creation per se. Of course, the absence of a working money market will result in some loan demand with higher expected returns to the banking system being not satisfied. However, as the literature on adverse selection, moral hazard and asset price bubbles underlines, loans with a higher expected return are not always the most efficient from a macroeconomic perspective. Hence, a slight distortion in the allocation of reserves and credit might not be severe from a macroeconomic level. As long as credit or rediscount quotas are not misused to push the commercial banking system into loans which are not economically viable, but the indirect monetary policy instruments are used in good faith, they need not per se be an impediment to the creditcreation process. Hence, market imperfections in the money market do not plausibly pose a major obstacle for most developing countries to use the banking system to expand credit to its corporate sector. The second set of rest

CB aaa credit limits

http://unctad.org/en/Docs/osgdp20091_en.pdf

Dear Russia: An Enemy Is Not a Partner.

Dear Russia: An Enemy Is Not a Partner.

Dear Russia: An Enemy Is Not a Partner.

By Dr. Paul Craig Roberts

Global Research, September 07, 2017

Paul Craig Roberts Institute for Political Economy

Region: Russia and FSU, USA

Theme: Law and Justice, Media Disinformation

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Russians are concerned about Washington’s arbitrary closing of their San Francisco consulate and the illegal searching of diplomatic properties. There is no question that Washington has violated diplomatic protections and international law.

Why did Washington show its outlaw face to the world?  

Was it to show that as strong as Russia is, Russia cannot protect herself from Washington? No international law, no diplomatic immunity can stand in Washington’s way. Washington can violate all law with no consequence.  

Washington’s view is that might, and only might, makes right. Law is thrown out of the window, so why does Russia rely on law in her dealings with Washington?

Was it to plant some fake evidence in the Russian properties of Russian complicity in the US presidential election that elected a candidate that preferred peace over conflict with Russia?

Russia’s foreign minister Lavrov has told the US Secretary of State that Russia is going to sue over the seizure and search of Russia’s diplomatic properties. So, here we see again the Russians trying to deal with Washington through law, courts, diplomacy, whatever, and not facing the real issue.

What is the real issue?  

The Real Issue is that the US military/security complex, the most powerful component of the US government, has decided that Russia is the ENEMY that justifies its $1,000 billion annual budget and the power that goes with it.

In other words, Russia is designated America’s Number One Enemy, and there is nothing whatsoever Russian diplomacy, Russian measured responses, and Russian references to her enemy as her “partner” can do about it.

Dear Russia, you must understand that you have been assigned the role of “the Enemy.”

Yes, of course, there is no objective reason for Russia being designated America’s enemy. Nevertheless, that is Russia’s designation. Washington has no interest in any facts. Washington is ruled by a shadow government and the deep state, consisting of the CIA, the military/security complex, and financial interests. These interests support US world hegemony, both financial and military. Russia and China are in the way of these powerful interest groups.  

The case against Russia becomes more absurd by the day. Newsweek just published a story that suggests Russia is behind the Boston Marathon Bombing. 

Russia can’t do anything about her designation as Enemy Number One.

So, what can Russia do?

All Russia can do is to turn her back to the West, while watching very closely for the coming surprise attack. There is nothing in America for Russia.

Any American investment in Russia will be used to damage Russia.

Russia does not need any American capital. The Russian central bank’s belief in Russia’s need for foreign capital is proof of the successful brainwashing of Russian economists by American neoliberalism during the Yeltsin era.

The Russian central bank is so brainwashed that it is incapable of understanding that the Russian central bank can finance Russian development without any foreign  loans. The Russian government still doesn’t seem to understand that the only reason sanctions can be imposed on Russia is because Russia is ensnared in the Western financial system. The economic advice that the Russian government gets from its brainwashed neoliberal economists serves Washington’s interests, not Russia’s.

Russia should not be using Western financial clearing mechanisms that serve Washington’s interests. 

When will the Russian government cease pretending that its enemy is its partner?

Why can’t the Russian government recognize the reality that stares her in the face, that continually insults and abuses Russia?  

Why is Russia so determined to be part of the corrupt and declining West that Russia accepts every insult, every abuse?

The West has room for only one autonomous power. There is no room for a second.

China, intent on being rich like capitalists, also seems unrealistic in its dealings with Washington.

The orchestrated “Korean crisis” is not about North Korea. It is an orchestration that lets Washington put nuclear missile bases on China’s border, just as the orchestrated “Iranian crisis” was the excuse for putting nuclear missile bases on Russia’s borders.

Russia cannot be both sovereign and part of the West, and China cannot afford to confuse self-preservation with economic deals with America.

If the two powers capable of constraining Washington’s unilateralism show confusion over the consequences, they will make war more likely.

The original source of this article is Paul Craig Roberts Institute for Political Economy

Copyright © Dr. Paul Craig Roberts, Paul Craig Roberts Institute for Political Economy, 2017

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