Karl Marx who wrote the world famous book DAS KAPITAL, where in he had visualized a society in which everything would be owned by the Government of that country and such Government will work for the betterment of the society. He envisaged an ideal condition wherein all the people will be treated equally and there will be no classification of society based on economic class.
When the red army captured Moscow and then formation of Union Of Soviet Socialist Republic, his dream of a society having all people as its equal citizen started to materialize. But with Stalin in power, the first signs of the crack in the systems appeared. While taking over the land of millions of farmer under the plan to centralize the agriculture, many were brutally killed. That was the first sign of failure of Communism. The atrocities of KGB on innocent civilians that followed for decades just to achieve what Marx had envisaged on paper. The iron curtain was so feared that nobody dared to talk about the Government, their problems, their complains. Communism was to fail as it was not as per the aspiration of Karl Marx. It had become a utterly authoritarian government.
I remember I was very young when Mr. Gorbochev was elected as the Chairman of Communist Party of USSR. He was termed as one of the most progressive leaders in USSR at that time. He introduced GLASNOST, meaning openness and PERESTROIKA meaning reforms. The Soviets started to respond, fear about the Government started to come down. Gorbochev was seen mingling with workers of factory and discussing relevant issues with these workers.
The Soviet people felt a sigh of relief and hoped that the years of repression and exploitation by the Communist Party in the name of the rights of labourers and equal distribution of wealth for many decades. People had no basic facilities and no one was willing to work hard. Even if he was to work hard, he will get the same amount of remuneration as any other worker. This reduced their inclination to work.
Gorbochev was a very wise leader and he forced years of repression to end. But when this process was going on, people of Russia, thought that they had all the resources and the most powerful amongst the other Republican States, why should they share their prosperity with other States of USSR. That caused split of USSR forever.
The Communist ideology failed because it had reached a stage of no return and at a point where no correction either was possible or never ever thought of applying one on hand. Gorbochev did tried to do that, but resulted in the breaking up of a super power.
Gorbochev could have had used military force to keep the USSR together, but I wonder even he was not interested in the independent Russian State. Perhaps he liked what Boris Yeltsin did in Moscow rally when Yeltsin climbed up on a military tank and challenged USSR authority.
One can doubt that it was his support for breaking up of USSR in disguise, he could only himself answer this question. May be as other ordinary Russian he thought that other States of USSR, were burden on the Russian Economy, so he allowed Boris to even humiliate him in the Russian Parliament.
Communists were born out of the extreme exploitation by the capitalist ideology in other Western countries in late part of 19th Century and in the beginning of the 20th Century. History is full with the atrocities committed by the top industrialists in the western powers. Such an exploitation was necessary to sustain Industrial revolution. Industrial prosperity of developed countries is founded on blood and exploitation of their nationals. Though they are now acting as the guardians of Human Rights all over the world, is part of their hypocrisy, in which they are unbeatable.
Karl Marx, who wrote Das Kapital, sitting in the library of London, fuelled one of the greatest revolution across the Globe against the Capitalism. The communist ideology hated capitalism and for more than 80 years it fought a ideological war with the other Capitalist countries like USA, UK, Germany, France, etc.
But it collapsed as it was not acceptable to people of USSR. It had not considered the basic human nature of competition and aspiration to lead a better life. Communist ideology was just like a four side wall. Nothing can come in, nothing can go out. It failed to bring prosperity to all citizens, but instead it assured poorness to all of its citizens. This was common sight, except for the people who were close to power. They prospered unabashed. USSR collapsed because it had reached a stage of extreme exploitation in the name of interest of labour and utter hatred for Capitalism. It disregarded the basic human instincts to own property, a basic inclination to work and work harder.
Remembering Communism as inspired by Karl Marx was important in the light of recent collapse of pillars in wall street. The economic earth quake hit Lehman Brothers, Meryle Lynch and A.I.G., all of them were top Investment Banking multi nationals, brought tremors in the world markets and can have potential of hurting economies world over. The hit it has taken on the confidence of investors all over the world is worst than the 9/11 attack on WTC.
Investors has lost money which can not be imagined and the time it could take to bring back the confidence of gullible investors. This is the worst ever hit on the Capitalist form of economic arrangements and society after The Great depression of 1930. If one remembers those days, 9000 banks all over USA had gone bankrupt within 6 months. The crisis had its roots in the Share Market. People took the loan and invested in shares and in 1929 US treasury increased the lending rates, which triggered one of the biggest ever fall of market leading to major loan takers failing to pay back their loans and banks failing to honour their obligation for lack of liquidity, resulting in banks going bankrupt.
Here in this case it is sub-prime lending and loan takers have started to fail in repaying these loans, leading to all those financial institutions who directly or indirectly were involved in sub-prime lending. There may be many causes and the American experts will go deeper into it, but this issue was discussed long back with one friend, about the sub prime problem.
The Americans were not that alert in handling the scenario. The sub-prime happened due to many reasons and one of it was the job out sourcing to countries like India. The logic can be explained like this, that if the USA was allowing the jobs to be out sourced to other countries like India, Pakistan and even China, the purchasing power of the natives would get reduced and could result in the lesser buying, lesser demand and lesser production and lesser jobs . Whic h will fuel the bad loans as people do not have money to eat how they will think of paying back the loans they had purchased.
Increased loan repayment schedules, forced many to sell their homes, meaning more houses were put in the market for sale, while there were no or fewer buyers, this agonized the house onwers as they had paid more to buy these houses, they can not sell them as these houses would not fetch them the right price nor they can stay with it as they had no repaying potential , as he had competitors in form of Indians, Chinese, Sri Lankans etc., who took away their jobs for cheap. The multinationals had a practise to shift their jobs overseas for cheap and increase their profits. Here the intention was good as more profits will make these firms to invest more and create more jobs. This did happen but the jobs were created outside USA.
It was wondered that how this could have been allowed ! Was the economic interest and making profits was so important and above national interest that it was overlooked for such a long time. All the MNCs were busy making more profits by transferring jobs to India like countries .The Govts there supported this move of exporting jobs and also allowed tax concessions to these companies. The sub-primery crisis was going to happen.
Let me be very clear, that there may be many more complex reasons and explanations, this is all logical explanations and conclusions. You might do several complex calculations but the basic remains plus, minus multiply and division. Like wise USA may have the most complex financial structures, but the fact said above can not be refuted either.
Anyway, third world countries did benefit from this lapse on part of Bush Administration for sometime. But when the America is in danger, rest of world can not stay away from the US economic meltdown. All markets all over the world have shown down ward trend. All markets are collapsing. FIIs are pulling their money back from all the world markets and are booking profit, to hedge against the possible loss at home in sub-prime lendings.
In both above cases of Communism and Capitalism, extreme points in both the systems have failed. The President Bush is perhaps right in declaring a $ 700 Billion package for the Banks in USA, he is perhaps little late in taking corrective measures. He should have been quick enough to control out going jobs from Americans in the first place.
Congress has hesitated to approve such a package as it amounts to simply printing of fresh dollars and pumping the same into the American Economy, this could increase the inflation in US economy and could result in decrease in the value of dollar at international level, which could trigger the crude price upward and collapse the stock markets further. American nightmare will hurt all economies of the world. But above all Govt interference with the economy is against the capitalist practise. So it could hurt their ego. How they could go the USSR way of helping the economy with Govt interference when required. That is the real casue of concern for Congress.
It may happen other way round also that the money so pumped will boost the liquiidty with the American Banks, which could help them to tide over the liquididty crunch and they start fresh lending. Such lending could start a positive cycle of demand and supply and creation of new jobs and increased purchasing power in the Americans. The world markets could boom again.
Remember the economic systems, may it be Capitalism or Communism are devised with intention of something good hapening to mankind. But inherent quality of dishonesty, misappropriation and exploitation by powerful , of those who are less able, will never make either of these systems workable.
Mind you these qualities are and will always remain on paper and they can not be expected from the people who are and who can make difference. You may perhaps change the systems form Capitalist to Communist, but what about the human mind, which has unlimited greed for money and lust for power !
(Continued........)
When the red army captured Moscow and then formation of Union Of Soviet Socialist Republic, his dream of a society having all people as its equal citizen started to materialize. But with Stalin in power, the first signs of the crack in the systems appeared. While taking over the land of millions of farmer under the plan to centralize the agriculture, many were brutally killed. That was the first sign of failure of Communism. The atrocities of KGB on innocent civilians that followed for decades just to achieve what Marx had envisaged on paper. The iron curtain was so feared that nobody dared to talk about the Government, their problems, their complains. Communism was to fail as it was not as per the aspiration of Karl Marx. It had become a utterly authoritarian government.
I remember I was very young when Mr. Gorbochev was elected as the Chairman of Communist Party of USSR. He was termed as one of the most progressive leaders in USSR at that time. He introduced GLASNOST, meaning openness and PERESTROIKA meaning reforms. The Soviets started to respond, fear about the Government started to come down. Gorbochev was seen mingling with workers of factory and discussing relevant issues with these workers.
The Soviet people felt a sigh of relief and hoped that the years of repression and exploitation by the Communist Party in the name of the rights of labourers and equal distribution of wealth for many decades. People had no basic facilities and no one was willing to work hard. Even if he was to work hard, he will get the same amount of remuneration as any other worker. This reduced their inclination to work.
Gorbochev was a very wise leader and he forced years of repression to end. But when this process was going on, people of Russia, thought that they had all the resources and the most powerful amongst the other Republican States, why should they share their prosperity with other States of USSR. That caused split of USSR forever.
The Communist ideology failed because it had reached a stage of no return and at a point where no correction either was possible or never ever thought of applying one on hand. Gorbochev did tried to do that, but resulted in the breaking up of a super power.
Gorbochev could have had used military force to keep the USSR together, but I wonder even he was not interested in the independent Russian State. Perhaps he liked what Boris Yeltsin did in Moscow rally when Yeltsin climbed up on a military tank and challenged USSR authority.
One can doubt that it was his support for breaking up of USSR in disguise, he could only himself answer this question. May be as other ordinary Russian he thought that other States of USSR, were burden on the Russian Economy, so he allowed Boris to even humiliate him in the Russian Parliament.
Communists were born out of the extreme exploitation by the capitalist ideology in other Western countries in late part of 19th Century and in the beginning of the 20th Century. History is full with the atrocities committed by the top industrialists in the western powers. Such an exploitation was necessary to sustain Industrial revolution. Industrial prosperity of developed countries is founded on blood and exploitation of their nationals. Though they are now acting as the guardians of Human Rights all over the world, is part of their hypocrisy, in which they are unbeatable.
Karl Marx, who wrote Das Kapital, sitting in the library of London, fuelled one of the greatest revolution across the Globe against the Capitalism. The communist ideology hated capitalism and for more than 80 years it fought a ideological war with the other Capitalist countries like USA, UK, Germany, France, etc.
But it collapsed as it was not acceptable to people of USSR. It had not considered the basic human nature of competition and aspiration to lead a better life. Communist ideology was just like a four side wall. Nothing can come in, nothing can go out. It failed to bring prosperity to all citizens, but instead it assured poorness to all of its citizens. This was common sight, except for the people who were close to power. They prospered unabashed. USSR collapsed because it had reached a stage of extreme exploitation in the name of interest of labour and utter hatred for Capitalism. It disregarded the basic human instincts to own property, a basic inclination to work and work harder.
Remembering Communism as inspired by Karl Marx was important in the light of recent collapse of pillars in wall street. The economic earth quake hit Lehman Brothers, Meryle Lynch and A.I.G., all of them were top Investment Banking multi nationals, brought tremors in the world markets and can have potential of hurting economies world over. The hit it has taken on the confidence of investors all over the world is worst than the 9/11 attack on WTC.
Investors has lost money which can not be imagined and the time it could take to bring back the confidence of gullible investors. This is the worst ever hit on the Capitalist form of economic arrangements and society after The Great depression of 1930. If one remembers those days, 9000 banks all over USA had gone bankrupt within 6 months. The crisis had its roots in the Share Market. People took the loan and invested in shares and in 1929 US treasury increased the lending rates, which triggered one of the biggest ever fall of market leading to major loan takers failing to pay back their loans and banks failing to honour their obligation for lack of liquidity, resulting in banks going bankrupt.
Here in this case it is sub-prime lending and loan takers have started to fail in repaying these loans, leading to all those financial institutions who directly or indirectly were involved in sub-prime lending. There may be many causes and the American experts will go deeper into it, but this issue was discussed long back with one friend, about the sub prime problem.
The Americans were not that alert in handling the scenario. The sub-prime happened due to many reasons and one of it was the job out sourcing to countries like India. The logic can be explained like this, that if the USA was allowing the jobs to be out sourced to other countries like India, Pakistan and even China, the purchasing power of the natives would get reduced and could result in the lesser buying, lesser demand and lesser production and lesser jobs . Whic h will fuel the bad loans as people do not have money to eat how they will think of paying back the loans they had purchased.
Increased loan repayment schedules, forced many to sell their homes, meaning more houses were put in the market for sale, while there were no or fewer buyers, this agonized the house onwers as they had paid more to buy these houses, they can not sell them as these houses would not fetch them the right price nor they can stay with it as they had no repaying potential , as he had competitors in form of Indians, Chinese, Sri Lankans etc., who took away their jobs for cheap. The multinationals had a practise to shift their jobs overseas for cheap and increase their profits. Here the intention was good as more profits will make these firms to invest more and create more jobs. This did happen but the jobs were created outside USA.
It was wondered that how this could have been allowed ! Was the economic interest and making profits was so important and above national interest that it was overlooked for such a long time. All the MNCs were busy making more profits by transferring jobs to India like countries .The Govts there supported this move of exporting jobs and also allowed tax concessions to these companies. The sub-primery crisis was going to happen.
Let me be very clear, that there may be many more complex reasons and explanations, this is all logical explanations and conclusions. You might do several complex calculations but the basic remains plus, minus multiply and division. Like wise USA may have the most complex financial structures, but the fact said above can not be refuted either.
Anyway, third world countries did benefit from this lapse on part of Bush Administration for sometime. But when the America is in danger, rest of world can not stay away from the US economic meltdown. All markets all over the world have shown down ward trend. All markets are collapsing. FIIs are pulling their money back from all the world markets and are booking profit, to hedge against the possible loss at home in sub-prime lendings.
In both above cases of Communism and Capitalism, extreme points in both the systems have failed. The President Bush is perhaps right in declaring a $ 700 Billion package for the Banks in USA, he is perhaps little late in taking corrective measures. He should have been quick enough to control out going jobs from Americans in the first place.
Congress has hesitated to approve such a package as it amounts to simply printing of fresh dollars and pumping the same into the American Economy, this could increase the inflation in US economy and could result in decrease in the value of dollar at international level, which could trigger the crude price upward and collapse the stock markets further. American nightmare will hurt all economies of the world. But above all Govt interference with the economy is against the capitalist practise. So it could hurt their ego. How they could go the USSR way of helping the economy with Govt interference when required. That is the real casue of concern for Congress.
It may happen other way round also that the money so pumped will boost the liquiidty with the American Banks, which could help them to tide over the liquididty crunch and they start fresh lending. Such lending could start a positive cycle of demand and supply and creation of new jobs and increased purchasing power in the Americans. The world markets could boom again.
Remember the economic systems, may it be Capitalism or Communism are devised with intention of something good hapening to mankind. But inherent quality of dishonesty, misappropriation and exploitation by powerful , of those who are less able, will never make either of these systems workable.
Mind you these qualities are and will always remain on paper and they can not be expected from the people who are and who can make difference. You may perhaps change the systems form Capitalist to Communist, but what about the human mind, which has unlimited greed for money and lust for power !
(Continued........)
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