National and International Challenges
We are living in a world in turmoil, besieged by economic, social and political problems; and in our attempt to solve them, we are creating a bigger mess. We, human beings, are the most dysfunctional creatures that has ever walked the cosmos. We have been endowed with intelligence but we show such incompetence to use it for the benefit of our race. Could it be because of our selfishness and greed? Whether as individuals, social groups or nations we show a strong tendency towards selfishness and greed.
As individuals not only do we strive to protect our personal space and belongings, we crush anyone or anything around us to acquire more. What we can't acquire we destroy because we do not want the next person to have it. Some of us have heaps more than we need and in doing so we deprive others of their needs. Some of the richest people and nations have such excess that they will only be able to use a tiny fraction for themselves. With this excess, however, they could fulfil the needs of the rest of the worlds poor. We do the same as social groups and as nations. We live on a beautiful planet that has everything we need, but for reasons of selfishness and greed we are intent on destroying it and ourselves. What lunacy! What a race of selfish and greedy predators! We are no better than any other animal in this world despite our higher intelligence.
In the UK, we are having the Leveson Inquiry looking into political malpractice fuelled by selfishness and greed from all sides. It is about one media mogul and his political influence using any means to acquire more and more. Politicians of all parties seems to be involved. It is a public inquiry, publicly broadcast, so if you can get access to it, certainly have a look and be your own jury. Lord Judge Leveson will give his own verdict anyway, so you may wish to wait for that.
In Egypt, we have an unprecedented presidential election this weekend. Will the outcome make a big difference? Will the partisans supporting the different ideologies be able to put their differences aside and create together a happy and convivial Egypt? We shall have to wait and see.
Greek elections are also due today. Will the outcome produce a stable and prosperous Greece and a strong collective nations of Europeans under one currency living and sharing happily together? I am sure we can all predict what is likely to happen, but again let us wait and see. Whether Greece leaves the Euro or stick with it, the Euro is in dire trouble. The main reason is that although there is a European Union in name and a single currency, the is no monetary union as such. There is still a predatory approach where countries like Germany and France are selfishly protecting their own economy, citizens and industry and creating dependence on the others. The UK is part of the EU but has kept its own currency. It, therefore, is not directly affected by the Euro and although selfishly protecting itself, is also feeling the European backlash.
Another policy issue that politicians can never get right is the issue of immigration. They always end up creating an us and them scenario that leads to disharmony and animosity. Mr Obama is trying to woo voters with his stance.
In the UK, Home Secretary May has come up with this ludicrous idea that immigrants can only bring their partners or families to the UK, if the earn above a certain limit. If these immigrants are legal should they not be on the same wage as the people of the UK. And if UK citizens can support their families on such wages why can't the immigrants do so? Or is there a hidden pay policy between the UK government and Employers that is using low paid immigrant workers in an attempt to face the economic downturn and/or boost their profit margins? The government claims that this policy reduces immigrants dependence on the state. If we allow immigrants, should we not not give work visas to those who are less likely to seek state benefits over and above that required by other workers.
Unfortunately, the immigration issue is more complex in the UK. Residents from other EU countries can immigrate to the UK freely and they do not need visas, or means of support such as an adequately paid employment. These are the immigrants who are then dependent on the state for state benefits; and the UK government cannot do anything about it. They are not making this clear. They are, therefore, creating hatred and animosity between UK population and non-European immigrants. Non-European immigrants are generally not the indolent people politicians of all parties paint them out to be. I wish they do not project their incompetence to these innocent and hard-working people.
Politicians never learn. We go from one disaster to another. History proves this time and time again. We resort to wars; we find a pertinent cause that can bring people together and distract them form our man-made mess. Can we trust our politicians to get it right? After all, they are not on the breadline; they are all well-heeled and so are their friends; unlike most of the people they govern.
Oh What a Mess!!
Good Luck and Good Bye until the next time.
Knight Owl
Sunday, 17 June 2012
Friday, 8 June 2012
The Austere European Economic Crisis
The European economic crisis is likely to drag the rest of the world economy with it, on the way to another 1930s style depression, if allowed to continue unchallenged. The austerity measures being applied across Europe is reducing economic growth rather than stimulating it. Mr Cameron, the UK Prime Minister, is deluded in thinking that austerity stimulates growth. Ms Merkel, the German Chancellor, on the other hand, is only protecting the German economy but the Germans are paying a heavy price for it even though it is not reflecting in their economy at present.
If the present austerity measures along with protecting the Euro continues, growth is Greece, Spain, Portugal, Italy and the Republic of Ireland will continue to falter with continued demands to be bailed out by the rest of the Eurozone. The bulk of this bailing out will come from the Central European Bank supported by Germany and France in the main. The disastrous consequence will first be felt in France followed by Germany and their economy will join the downward trend. This will quickly spread to China, India and the USA and the rest of the world will follow in turn.
President Obama is the only world leader who has shown the recognition that the austerity measures are having a negative effect on the economy. On his own however, he cannot make a big difference. The US economy will grow up to a certain extent but when the rest of it trade partners cannot trade with it because of the austerity measures, its Growth will hit the buffers. The same thing will happen in Germany and France because, although they have the infrastructure to manufacture goods, no one will be able to afford to buy these goods. When this happens they will have to cut back and their growth will also hit the buffers. China, India and the rest of the world will be dragged with Europe and the USA.
The Greek elections due in a week or so may change what happens in Europe if the anti austerity party wins and does what is preaches. Changes in Europe, if that happens, will hasten the turmoil and how we come out of it will depend on political leadership. Is Ms Merkel likely to change her policies to fit in with the anti austerity measures? Mr Cameron is only a side player and up to now he has not shown any understanding of this crisis. Mr Holland has not shown his colours. Who is going to take the lead, take the bull by the horn, and steer away from austerity and towards growth. Who is learning from the USA and the Obama government handling of the economy?
The politicians and some economists say we can't spend our way out of the recession. If we can't spend, who will buy the goods and services that industry delivers? What happens then; industrial slowdown and eventually meltdown. The result bust not boom. No tax receipts, no revenue and more state support and benefit. Where will the funds come from? It does not take a genius to figure out what happens next; and all our politicians are supposed to be well educated. In Britain, the Majority of our Cabinet Ministers are Oxford graduates (maybe there lies the problem).
It can be done. It will need strong leadership and it calls for unity and not putting ones own country first. A level playing field is required for the whole of Europe. Convergence instead of divergence is called for. The richer European countries will have to be charitable in helping their poorer neighbours and they will all have to adopt an anti austerity policy and the state will have to take the lead. Private enterprise do not share the values that is likely to promote national, continental and global growth.
Good Luck and Good Bye until the next time.
Knight Owl
If the present austerity measures along with protecting the Euro continues, growth is Greece, Spain, Portugal, Italy and the Republic of Ireland will continue to falter with continued demands to be bailed out by the rest of the Eurozone. The bulk of this bailing out will come from the Central European Bank supported by Germany and France in the main. The disastrous consequence will first be felt in France followed by Germany and their economy will join the downward trend. This will quickly spread to China, India and the USA and the rest of the world will follow in turn.
President Obama is the only world leader who has shown the recognition that the austerity measures are having a negative effect on the economy. On his own however, he cannot make a big difference. The US economy will grow up to a certain extent but when the rest of it trade partners cannot trade with it because of the austerity measures, its Growth will hit the buffers. The same thing will happen in Germany and France because, although they have the infrastructure to manufacture goods, no one will be able to afford to buy these goods. When this happens they will have to cut back and their growth will also hit the buffers. China, India and the rest of the world will be dragged with Europe and the USA.
The Greek elections due in a week or so may change what happens in Europe if the anti austerity party wins and does what is preaches. Changes in Europe, if that happens, will hasten the turmoil and how we come out of it will depend on political leadership. Is Ms Merkel likely to change her policies to fit in with the anti austerity measures? Mr Cameron is only a side player and up to now he has not shown any understanding of this crisis. Mr Holland has not shown his colours. Who is going to take the lead, take the bull by the horn, and steer away from austerity and towards growth. Who is learning from the USA and the Obama government handling of the economy?
The politicians and some economists say we can't spend our way out of the recession. If we can't spend, who will buy the goods and services that industry delivers? What happens then; industrial slowdown and eventually meltdown. The result bust not boom. No tax receipts, no revenue and more state support and benefit. Where will the funds come from? It does not take a genius to figure out what happens next; and all our politicians are supposed to be well educated. In Britain, the Majority of our Cabinet Ministers are Oxford graduates (maybe there lies the problem).
It can be done. It will need strong leadership and it calls for unity and not putting ones own country first. A level playing field is required for the whole of Europe. Convergence instead of divergence is called for. The richer European countries will have to be charitable in helping their poorer neighbours and they will all have to adopt an anti austerity policy and the state will have to take the lead. Private enterprise do not share the values that is likely to promote national, continental and global growth.
Good Luck and Good Bye until the next time.
Knight Owl
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