The United States of America, the most powerful nation in the world miitarily is caught in the most deadliest of debt trap of US $14.3 trillion. The economy is shrinking into recession. The unemployment rate is pushing to 9.5%. Its sovereign credit worthiness has been tarnished. Consumer confidence is at the lowest. Jobs creation is nil. The President is struggling to find a way out of this situation but politics is preventing his efforts.
It is nothing better in Euorope. Every nation and its banks are about to become insolvent. Many banks have collapsed. Greece, Ireland have already become insolvent sovereignty. Italy is on the way. Britain, Germany, France.. all the nations are debt ridden. The Euro is plunging. The macro banking system is collapsing.
In this breathless scenerio, countries such as India, Russia, China, Malaysia are sitting pretty. India has a foreign currency reserve of US $ 320 Billion. So also the other countries. The growth rate in India is 8% even in this dim situation.
What is the reason, the real reason?
Why is such a massive economy such as that of the USA running into trillions of Dollars, and Europe be destabilised by small matters such as housing mortgage scams, Greece default?
The reasons are greed of the private financial institutions, extravagent spending of the Americans more than their earnings, no savings habit, no production taking place in the local shop floors, lack of micro-economic incentives for small and medium entrepreneurs, over emphasis for environmental cleanliness which resulted in the closure / shifting of a lot of labor intensive industries in metallurgical / chemical / pharmaceuticals fields, too much of eating and drinking, too much of pursuit of pleasure and very little control by the Central Governments.
Capitaist economy is an unstable equilibrium.
Otherwise why such a small country's Greece's inability to pay back the loans to bankers in Europe should destabilise and threaten the entire economic and financial system of Euorope?
Why should home loan scams undermine the credibility of USA whose GDP runs into trillions?
It is time that these capital nations analyse the reasons and take bold steps to restructure their economes, lest many more will go jobless, many banks go bankrupt.
It is nothing better in Euorope. Every nation and its banks are about to become insolvent. Many banks have collapsed. Greece, Ireland have already become insolvent sovereignty. Italy is on the way. Britain, Germany, France.. all the nations are debt ridden. The Euro is plunging. The macro banking system is collapsing.
In this breathless scenerio, countries such as India, Russia, China, Malaysia are sitting pretty. India has a foreign currency reserve of US $ 320 Billion. So also the other countries. The growth rate in India is 8% even in this dim situation.
What is the reason, the real reason?
Why is such a massive economy such as that of the USA running into trillions of Dollars, and Europe be destabilised by small matters such as housing mortgage scams, Greece default?
The reasons are greed of the private financial institutions, extravagent spending of the Americans more than their earnings, no savings habit, no production taking place in the local shop floors, lack of micro-economic incentives for small and medium entrepreneurs, over emphasis for environmental cleanliness which resulted in the closure / shifting of a lot of labor intensive industries in metallurgical / chemical / pharmaceuticals fields, too much of eating and drinking, too much of pursuit of pleasure and very little control by the Central Governments.
Capitaist economy is an unstable equilibrium.
Otherwise why such a small country's Greece's inability to pay back the loans to bankers in Europe should destabilise and threaten the entire economic and financial system of Euorope?
Why should home loan scams undermine the credibility of USA whose GDP runs into trillions?
It is time that these capital nations analyse the reasons and take bold steps to restructure their economes, lest many more will go jobless, many banks go bankrupt.
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