WORLD'S ECONOMIC CATASTROPH....!!!!

              In the year 2008 & 2009and subsequent blog write ups in 2009, I had advocated the pumping of cash into the failing economy of USA & Europe. It was then presumed that the cash pumped into economy will boost the morale of sagging business community of those regions, it will support the Government backed effort to look into the banks & other financial institutions getting support so that they will not fail the people of their country at the same time they will ensure that the money is used as oiling the economic giant wheel. In fact these governments perhaps had no other choice at the same no other way out of it. 

            These governments perhaps missed the line in between that the funds so released needed to come back to Government in forms of taxes, bonds and other investments to avoid inflationary pressure. The losses on the non-performing assets could have been better handled with the buying of those assets by the governments from these banks so that the funds can get pumped in the market economy at the same time the government sell those NPA at losses and cash so received could be adjusted against the cash so issued to the banks to pull back those cash from the economy, minus the loss.

This could have released these banks from the losses and could have saved deposits of the people at the same time the banks getting bad. But the channel used by the these governments went wrong somewhere and the funds again ended up in the hands of the rich people, who grew richer! It seems to me that the present agitation which could get momentum to capture Wall Street, all over the world against the richer class and could develop into a bloody class war of 21st century.

   It has been the story all over the world that the governments are less inclined to control the rich class. I am not a communist, but some of the principles of Das Kapital as written by  Karl Marx, was very good. The greed for profit by the large corporate houses have made the life hell for the people. Higher profit tends to make rich class richer and poor class poorer. The cost of many items, which we use in routine life, is so meager that we can not understand the justification for the price fixation and their actual cost structure..!

The capitalist ideology has not won over Communists. But they failed because of the people who followed and executed with utmost dishonesty. Communism failed because of its inner high handedness, while the capitalism has failed because the people's interest was overlooked at each and every move.The Government machinery has never bothered to ask why so much difference in the cost of a mobile phone or any electronic gadget and its sales price tag? The Governments all over the world have followed American & European economic models of free economies, let the entire economy at the behest of the market forces.

  The basic fundamental difference between the Communists ideology and Capitalist ideology is the profit earning and looting by the big corporate houses. Capitalists economies won the so-called race because profit did not go to any person, but shared by many persons, called Shareholders. But the real cream was pocketed by the Executives. They ruled the corporates with iron hand and had lavish life style. The burden of their lavish life style was always on the consumers, who were punished just for nothing.These corporates executives are kings of their small kingdom and the have been enjoying fruits of misconceived economic system. Surprisingly, these Governments raise hackle for human rights violations at any internal incident of any country around the world, but turn blinds eye when corporates take the jobs of natives under the pretext of the cheap labour to other part of the world, creating job vacuum at home which could be one of the reason of recession being faced by these rich countries.

But there is no system prevalent anywhere in the world that those guilty of taking wrong decisions, knowingly, have ever been punished !!!! It is always people like you and me are caught in the quagmire of inflation, rising cost of living, unemployment, dwindling savings and uncertain future.

 What I foresee if the time to control those tyrant leaders, who have imposed communism on the people of the world. It is time for capitalists, democratic countries to come clean on major issues related to common man. The persons manning the Govt. posts must understand the priorities. they must understand that a mobile phone is perhaps not important, but the food is.