Sunday, February 8, 2009

Growth, Bonus, Greed = Irresponsible risks

During corporate meetings which discuss future targets, I used to be amused at the growth targets set. When growth targets are linked to fat bonuses, we cannot blame the executives for irresponsible risks they take to achieve those targets.

The system is flawed, greed for money cannot be a good driver of human civilization.

Monday, February 2, 2009

Protectionism, Fascism, Nationalism are cousins

It is feared that world economy is moving to protectionism. This is shown by American fiscal stimulus bill provisions for buy American. I would like to equate this to Fascism or Nationalism and also explain why Nationalism will one day lead to regionalism and casteism and all kind of hate between people.

When you protect American interests you are caring people in one region distressing countries which are exporting to America or the country that is showing protectionism. This is very close to Nationalism that is shown for example fascists in India. This nationalist financial protectionsim is closer to the regionalist financial protectionism shown by MNS - regional nationalist Hindu party in Mumbai. (In Mumbai these parties wanted jobs to be reserved for locals)

This nationalism can easily mutate to the regionalism shown by MNS in Mumbai - Attacking Biharis from the poorer parts of India. Soon you will have one region turned against another, one caste turned against another. Once you detonate the nationalist bomb (hate, fear against a community/nationality), you will never have control over it.

People who support and confuse patriotism with Nationalism should realize that Nationalism can easily mutate into other dangerous cousins that will be very difficult to cure. If you see India now you will realize what will happen when you elect a fascist party like BJP to power. (I always avoided naming the party directly, but I think it is time that people talk about it as that party is not just another party)

America should stay away from protectionism, India should stay away from nationalism and regionalism its side effect.

Sunday, February 1, 2009

Western economic hypocrisy - Asset prices, interest rates, government spending

America and western countries advised countries and regions facing crisis in the past to do following:

1. Do not prop up asset prices

2. Keep interest rates high

3. Reduce government spending

Why west is not ready to take their own medicine? Is it because it is Chinese money that America is spending?

Free market or capitalism means hegemony of rich economies. (I would not like to call America a rich economy, America is like Citibank, poor but critical to the system)

There should be more participation from poor economies in world economic affairs. World is living by fleecing poor economies especially in Africa. One day world will have to answer to the atrocities being committed against them even now.