Freedom of Expression
Below given are excerpts from some of the important U.S. economist opinions’. Almost 80% of them are worried about the future of America. I am putting it all because many Indian youth are still dreaming of US and wish to go there; these bits of reports may alert them and they shall think twice before going to US in future. Mr. Manmohan Sigh, prime minister of government of India, has warned Indians in US to return and that is one good thing he has done. I would suggest these Indians to think of other options such as Mauritius, New Zealand and for Muslims Turkey.
These are the flashing news on U.S. economic front...
December 15, 2009
How Washington Will Mess with Your Money in 2010
In this era of growing government involvement, it is no surprise that Washington is poised to be the biggest economic wild card of the new year.
Indeed, investors who are trying to estimate the impact that politics will have on their portfolios in 2010 are likely finding this attempt at analysis to be an exercise in futility.
If that has been the case, read on: Political pundits - even those who claim to be impartial - spend a lot of time trying to score points for their side. But they are not really that interested in the economic aspects of the endless (Pakistan- Afghan border) battle. I certainly do not claim to be any more unbiased than the next person. However, I thought it worth trying to take an educated guess at what will actually happen, and what it will mean for our money and U.S.
As Time’s “Person of the Year,” Fed’s Bernanke Joins a Long List of Infamous Underachievers
Federal Reserve Chief Ben Bernanke has ballooned the national debt to $2.2 trillion...
He has bailed out Big Banks, Big Auto, and Big Insurance - Big Everything... He has put the dollar at extreme risk, and Ben Bernanke said - to hack with our grandchildren's future... we must live at present!!!
There is a culture in our society that rewards bad behavior. Well, Time magazine's anointment of U.S. Federal Reserve Chairman Ben S. Bernanke as its "Person of the Year 2009" is an example of the same bad behavior.
For starters, no other U.S. central bank head has been a "Person of the Year." Not even William McChesney Martin Jr. (Fed chairman, 1951-70) who defined monetary policy accurately, saying the Fed's job was "to take away the punchbowl just as the party gets going." Not even Paul A. Volcker (Fed chairman, 1979-87), who bravely pursued a tight-money policy that broke the back of inflation.
But cause a major global financial disaster, as Bernanke did by first supporting and then implementing policies that inflated the largest housing bubble in U.S. history? Then you get Time's nomination...
However, by accepting re-nomination for a second Fed term to start next month, he will be universally blamed when the current commodities bubble bursts, as it surely will, causing yet another deep recession. US government is equally to be blamed for the blunders he is doing. The way our (U.S.) government economists behave shows that they are at lose!
Bernanke will be remembered by the next generation as a man mesmerized by the memory of the Fed's mistakes at a single point in history - 1930-32 - for whom (Ben S. Bernanke) printing more money was the right answer in every economic situation. He seems to be dog sure that at any cause world will continue to accept and respect Dollar as standard international currency, whatever is the reduction in its real value! The present actual value of dollar is 25 rupees but we still respect Dollar at 45 rupees, why?
Even if vast new economies in India and China continue their emergence, competing with their U.S. counterpart to produce ever-cheaper goods and services, at some point their ability to dampen general inflation ends, and inflation reappears. When that happens, it will do so suddenly and destructively, as the pent-up force of a decade of excessive monetary creation sweeps away all that is in its path.
It is unlikely that Bernanke will win the Time award again - not even next year. But as others that came before him have found, the magazine never takes the honor away, either. At this rate Fed will seize to function effectively and that is the end of FED. So, commodities will crash and inflation will soar?
Bernanke will go down in history, as the worst Fed chairman ever and the destroyer of the US economic system. Rome (U.S.A.) is burning and nobody cares!!
American economy is a source of all evils. A.H., WWI and WWII, political fractions, famine, plagues those are all product of US economical schemes with a purpose to destroy all “non U.S.” population. Communism is just mirage created to scare people and force them to remain in grips of monetary policies for easier and guaranteed execution when time comes. That is what our Bernanke is up to. To finish what was conceived in 1693, the great dreams of Gorge Washington! U.S. has done so much bad to all simple and truly innocent small countries that it deserves this doom. Present President could have sacked Bernanke and put up a better person but the bad destiny of US made him accept this evil man to hold the position all along and continue that means US stars are over for sure. To add to that, intense desire to continue at Pakistan- Afghan border will bring the end much earlier.
To fool U.S. citizens government policy makers used the mirage of Communism for many decades and now as that are mirage has become non effective, we see they are creating a new mirage of AlQaeda to frighten our citizens! How long this dirty game will go on?
December 20, 2009
Healthcare and Climate Change are big pressures to bear with!
- healthcare reform will be presented as only moderately expensive.
The truth, of course, is very different.
Healthcare reform actually represents a big expansion of government. In fact, we could be talking about boosting, gross domestic product (GDP) by as much as 1.5%.
However, most of that expansion will not occur until the changes kick in, down the road a little. For those opposing the new bill, the sad history of the “Medicare Catastrophic Coverage Act of 1988”, repealed in 1989 after huge protests, will be a comfort. They will have two elections - in 2010 and 2012 - to try to elect a Congress that will repeal or drastically modify the legislation before its major provisions kick in.
While healthcare reform looks like a win for the Obama administration and its congressional supporters, "cap-and-trade" legislation does not. One way or another - at a point of extreme economic difficulty - this legislation would impose huge new burdens on the economy. And the "Climate gate" revelations about the allegedly nefarious methods of global warming scientists have - at the very least - undermined the credibility of the underlying science.
But here is the thing: U.S. President Barrack Obama now has an alternative avenue to get carbon controls imposed. He can simply encourage the “Environmental Protection Agency (EPA)” to impose them. The bureaucratic process will be lengthy, businesses will undoubtedly sue, and court battles will be prolonged.
However, if President Obama serves two terms - thus remaining in control of the EPA -this pathway will allow him to establish carbon controls that are every bit rigorous and contain fewer wasteful loopholes than any legislation he is likely to obtain through Congress.
This is bad news for the U.S. economy: The controls will reduce growth much more than a simple carbon tax, which is the approach to controlling carbon emissions that economists prefer.
Healthcare bill and “Climate change” are going to be measure hurdles in improving the economy of people in the US. Heavy taxation is expected to come up by 2012 on wards. Jeopardizing all economic plans for the ordinary people of this country. Technically although GDP will improve that will be an eyewash for the experts, in fact the conditions will become all the more arduous for the common man! There are chances that non US citizens such as Indians, Pakistanis, Bangladeshi are likely going to pay more taxes than the U.S. citizen. In a way U.S. government will want these alien people to quit America.
December 23, 2009
The U.S. budget deficit will eat up everything -
The Obama administration will proclaim its fiscal rectitude loudly, if only to reassure the bond markets. And it will probably include only modest additional spending items in its 2011 budget, which the administration is supposed to present in February.
Tax increases will occur in 2011 from the expiration of most of the Bush administration tax cuts, so the Obama administration will not propose many additional increases (beyond those in the healthcare bill). Those increases will be left for the fiscal 2012 budget, presented in February 2011. By that time, it will be clear from bond-market activity that the U.S. budget deficit must be attended to.
At that point, tax increases are likely to be substantial.
So friends, this is what we see from the eyes of US experts. You may be wondering why I am giving so many details of US economic condition, but the only purpose of this exercise is to inform our boys that they should now forget US as final destination!
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