World – Women Leaderships representing Political Establishment Pose Serious Threat to Global Security and Progress

November 7, 2016

Women Leaderships representing Political Establishment Pose Serious Threat to Global Security and Progress

By Padmini Arhant

Women leaderships representing political establishment, secret society and syndicate promote violence, terrorism, nuclear threats, political instability, humanitarian crisis,poverty, economic and social disparity and last but not the least corruption prompted criminal investigations evaded due to immunity.

Synopsis on catastrophe inflicted on the world population by women leaderships representing secret society and political dynasty presented here.

Women’s rise to power ordinarily an extraordinary feat.  However, in politics the status made possible through privileged and political connectivity.

Women leaderships mostly borne out of parental lineage and marital basis around the world conforming to inheritance of power demonstrably weakened women’s stature in leadership role. In politics women pursuing power more symbolic than substantive considering egregious decisions and cavalier approach adopted for individual and vested interests.

Women acquiring position in politics as head of the nation proved prone to abuse of power contrary to womanhood qualities like compassion, care, prudence and responsible conduct. The reason behind trajectory is addiction to power and fame undermining values and rationality making them no different from their male counterpart in that category.

Regardless of region whether west or east, the trend among women political leaderships thus far has contributed to violence, warfare, corruption scandals, political instability, economic chaos and lately terrorism not barring nuclear option frivolously used ignoring serious repercussions from such reckless disposition.

United States is preparing to elect a woman candidate with a track record on corruption scandals such as Whitewater and participation in foreign coups overthrowing democratically elected governments in developing nations exacerbating women, youth and children plight from political turbulence. The political career marred with activities and underhanded tactics including fostering terrorism causing loss of American and scores of innocent civilian lives is not a negligible involvement.

The democratic candidate Hillary Clinton violations of human rights, breach of trust and misuse of public office not surprisingly welcome to those keen on maintaining business as usual.  The democrat candidate Hillary Clinton election would be to serve the bidders and investors in her political campaign besides secret society and not the electorate and the country at large.

As Senator and Secretary of State – both posts resulting from political negotiations and wrangling, the democrat candidate Hillary Clinton spared no moments to exercise excessive authority and aggressive means for destructive purpose.

The foreign policy under Secretary of State Hillary Clinton became the death sentence for millions of civilians in Libya, Iraq, Syria, Afghanistan, Ukraine and population in Africa and Latin America.

Accordingly, the trepidation among victims on the possibility of democrat candidate Hillary Clinton re-entering the White House for fifth term in office is a major humanitarian concern.

The concept of election having been reversed to selection with pre-determined choice, the electorate upended subsequent to casting their ballots to establishment and secret society candidacy.

The vote for such candidate is a deliberate mistake leaving the economy, security and importantly peace at stake.

The highlights on women leaderships authorizing violence, turmoil, political unrest and economic decline.

Beginning with current members the following women leaders might have gained prominence in political arena at the same time instigated pain and misery with no regrets for their action.

UNITED STATES – The democrat Presidential candidate – Hillary Clinton. The entry in politics facilitated by spouse’s position as Governor of Arkansas and later as President of the United States.  The candidate Hillary Clinton politics is money, mistrust and mayhem. The summary on Secretary of State Hillary Clinton clarifies power exploitation for personal gains with no respect for laws and life in general.

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UNITED KINGDOM – The Brexit vote on EU membership terminated incumbency replaced with yet another woman leadership in Britain from the conservative party aka Tory.  Prime Minister Theresa May willingness towards nuclear confrontation confirmed during Parliament question session is alarming in context with nuclear meltdown. Nuclear armament claimed necessary as deterrent apparently reserved as exclusive rights amongst nuclear powers especially the ones complicit in the use of nuclear components as NATO ally viz. Britain on civilians in Iraq, Libya and recently in Syria. The same argument was dismissed during Iran’s nuclear deal in Vienna in 2015 at the Joint Comprehensive Plan of Action (JCPOA) noting the glaring double standards on nuclear entitlements escalating tension in the world. 

Although the nuclear topic merits discussion on entirety, the reality deserves concentration.

Britain’s predecessor, Prime Minister Margaret Thatcher referred to as the Iron Lady led the nation to war in South Atlantic – better known as Falklands for Britain and Islas Malvinas for Argentina arguably disputed until today. Prime Minister Margaret Thatcher conservatism or Thatcherism sparked controversy on many issues including economic plan that left the poor poorer marginalizing vulnerable segments in society. Many remarks from Prime Minister Margaret Thatcher caught world attention and among them were the reference to developing nations as barbaric and on immigration, the woman Prime Minister initiated virginity test on women immigrants into Britain from India and other destinations definitely marked the irony.

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GERMANY – the first female Chancellor Angela Merkel of Christian Democratic Union (CDU), the conservative faction with religious connotation absent Christian principles under incumbent Merkel’s leadership lay emphasis on European Union (EU), European Central Bank (ECB) governing euro currency in euro zone and International Monetary Fund (IMF) along with major international banks as parallel power.

Chancellor Angela Merkel avid advocacy for ECB, IMF and international banks packaged economic and monetary policy premised on austerity demanding fiscal responsibility from euro members in the face of severe economic crisis and soaring unemployment in Portugal, Italy, Ireland, Greece and Spain (PIGS) protracted financial and economic woes experienced until now.

Chancellor Angela Merkel cart blanche role using political threats in the aftermath of Greece public referendum with resounding no on austerity produced resignations from key figures in Greece ruling party in agreement with Greek voters’ option. Chancellor Angela Merkel overture in this instance had no respect for Greece sovereignty.

German Chancellor Angela Merkel representation more of EU than Germany conspicuous in EU vote to lift ban on weapons supply to terror networks in Syria, Iraq and Libya instead of extending arms embargo that could have saved thousands of lives besides averting refugee problems to which Chancellor Merkel explicitly denied asylum to millions forced to leave war torn Syria, Iraq and Libya.

Furthermore, Chancellor Angela Merkel defense contract and arms delivery to Saudi Arabia and nuclear laden submarine as a gift to Israel – the two states central in fomenting terror in the Middle East exemplify indifference to Saudi Kingdom’s human rights abuse using violence and women in particular and similarly Palestinian suffering in Israel occupied Palestine.

The focus on rest will continue shortly.

Thank you.

Padmini Arhant

 

 

 

 

 

 

 

 

 

Written by Padmini Arhant · Filed Under Featured, National and Global Security, Politics | Leave a Comment 

National and International Crises Resolutions

October 27, 2011

By Padmini Arhant

Participation in international summit, forum and problem solving would be meaningful upon ideas and solutions presented after rigorous thoughtfulness reflecting clarity and objectivity viewed in totality serving the greater good, rather than through the prism of slight and spite depreciating the purpose to prolong the status quo.

The hypocritical stance on abstinence vilified while the serious resolutions on numerous issues differed or discarded despite urgent action required to end immediate and decades old crises defines the contemporary political rudiments to uphold counterproductive policies in an effort to declare the position of authority.

Instead of accepting responsibility in the reluctance to move forward on statehood, legislation, corruption and myriad challenges confronting the global society predominantly due to lack of political will combined with polarizing measures entrenched in self-interest,

The scapegoat tactics to evade accountability is detrimental for political survival considering the polarity in maintaining power status but declining the consequences of inaction or inadequate remedies to manufactured crises.

Selective response to human plight exacerbates suffering raising credibility factor on global decision-making process.

Prioritization of one against another pronounces the differential treatment contradictory to economic aspirations in sustaining globalization.

Political, economic and social inequality anywhere is deterrent to long lasting progress elsewhere.

Global society preparedness to overcome calamity in any front is largely dependent on collective involvement with empathy exemplified in result-oriented commitments benefitting all.

Steady economy, safe environment and global peace are fundamental for co-existence in harmony.

United States – Tax reform, electoral reform, jobs bill, and Defense expenditure cuts are few of the many impending tasks requiring attention.

International – Apart from European debt crisis – other significant matter are:

Palestinian statehood,

Extending unanimous support for oppressed and invaded nations’ independence,

United Nations Security Council temporary and permanent membership expansion,

Global Warming – Kyoto Treaty ratification and implementing COP16 agreement,

India – Anti-corruption law – Passing Jan Lokpal bill

Independent inquiry and prosecution in the corruption scandals not excluding black money hoarding and national wealth embezzlements holding –

None above the law.

Concluding communal conflict  – Telangana in India and,

Confrontation with Maoists through peaceful dialogue and viable settlements,

Ending unpopular policy viz. AFSPA (Armed Forces with Special Power Act) obstructing peace in Jammu and Kashmir valley.

Government honoring public plea to shut down nuclear power plant protecting republic interest over foreign power and nuclear industry profit.

Perhaps addressing the outlined economic, political, social and environmental woes could alleviate the burden on the population at large,

Besides utilizing time and resources constructively in the austerity era to expedite the inevitable change premised on universal freedom and prosperity.

Hopefully political and economic leaderships would deliver the anticipated redress to all citizens in dire state.

It could begin with transcending partisanship in addition to profitability aimed at fair income distribution across the society.

Meanwhile, civil society movements like Occupy Wall Street, Anti-Corruption campaigns, Human right activists and environmentalists crusade to restore life and sovereignty deserves multilateral galvanization.

Good Luck and Best Wishes!  To People Power in the targeted goals.

Peace to all!

Thank you.

Padmini Arhant

 

 

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Senate Block Vote on Unemployment Benefits Extension and Delay Medicare Reimbursements

June 23, 2010

By Padmini Arhant

In the past week, the United States Senate was presented with the two most important bills directly affecting the average Americans survival.

According to the reports, the GOP rejected the $24 billion aid to the long-term unemployed citizens in the cash-strapped state governments and the several tax breaks renewal for businesses and individuals.

Apparently, the 56-40 vote on June 17, 2010 fell short of four votes to avoid GOP filibuster. Without any Republican votes for the measure, the Nebraskan Democrat Senator Ben Nelson along with the Connecticut Independent Senator Joe Lieberman contributed to the filibuster.

Today, the Ohio Senators’ repeat attempt to revive the bill by emphasizing on the urgency of this extension remained unsuccessful.
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Per: http://www.wkyc.com/news/local/news_article.aspx?storyid=138410&catid=3 – Thank you.

Ohio’s Democratic U.S. Sen. Sherrod Brown told fellow Senators that “more than 57,000 Ohioans — about the size of Elyria, Ohio or Mansfield, Ohio or twice the size of Zanesville — more than 57,000 Ohioans are estimated to have lost unemployment benefits since the extension ended in May, a month ago.”

“If the Senate does not pass an extension, that number will increase dramatically. More than 90,000 Ohioans could lose their benefits by the end of June. That is more people than live in Youngstown, more people than live in Springfield, more people than live in Cleveland Heights or Lakewood.”

Brown said that, nationwide, since the beginning of June, some 900,000 workers have run out of jobless benefits. That number will surpass 1 million by the end of this week.

Brown said today that he is very disappointed by the obstructionists’ moves to stop the extension of benefits.

“Senate Republicans are denying tens of thousands of Ohioans — and thousands of people in New Hampshire and hundreds of thousands of people in California and Texas and Florida — the Republicans are denying tens of thousands of Ohioans the unemployment insurance benefits they have earned during years of hard work,” Brown told fellow Senators.

“I ask my Republican colleagues who consistently vote no to try to empathize with those who have less privileges than we do, who don’t have huge staffs and don’t have a good salary and don’t have good insurance and don’t have a secure place to live, what their lives would be like if any one of us lost all of those privileges. I think it would make a difference in how they vote.”
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Perspective – By Padmini Arhant

It’s evident from the Ohio Senators’ case scenario that the situation is dire for the citizens in many states with higher unemployment.

Denying thousands of workers the means to cope with the economic recession amid rising or stagnant joblessness under the pretext of national debt or demanding that they are paid for prior to approval is a misplaced priority.

Where the Republican members should be arguing for the prepaid funding is, unnecessary wars such as Iraq and now Afghanistan including the perilous offshore drilling contributing to colossal costs witnessed at present.

It’s common knowledge that the GOP members and the few Democrats against the bill have willfully authorized the defense funding for the prolonged wars and claim no objection to the environmental damages via offshore drilling…

The Nay Sayers fail to recognize the consequences of their action or the lack thereof, leading up to the status quo exacerbation.

When the national figure for jobless benefit is expected to reach a million by the end of this week, the complacency is the affirmation of the elitist least bothered about the populist plight.

Ignoring the struggling families’ desperate economic needs based on partisanship more than fiscal responsibility is politics superseding national interest.

Although, the estimated $13 trillion national debt is a legitimate cause, the divestments from other sources with excess budget allocation including the pork barrel spending could be utilized for this important legislation.

Citizens cannot be possibly deprived of existence in the worst economy and the Republican lawmakers’ argument in this respect does not bode well, considering the positioning is purely aimed at winning conservative support in 2010 elections.

As for the isolated democrats and the independent Senator Joe Lieberman, the clock is ticking with the diminishing public patience on all issues. The proof of the pudding is in the electoral outcome.

Increased awareness and harsh experience by the electorate is a political gamble for the incumbents and the new challengers in the coming election.

People are tired of gridlock and, the ominously missing empathy among the obstructionists is a blatant dismissal of the economic reality endured by the voters.

Therefore, the ideal strategy to resolve the bill passage would be to identify the redundant funds in the fiscal budget and reallocate them for the unemployment benefit extension as well as the retrospective Medicare payments towards health care service.

Regarding the Medicare decrease in doctor payments: The belated Senate vote to spare doctors a 21 percent cut in Medicare payments is proved to have escalated the administrative costs for the providers and the taxpayers.

Much to the AMA (American Medical Association) frustration and AARP, the seniors’ lobby disappointment, the Congressional delay in the particular legislation is stated to affect the large health care program availed by 46 million elderly and disabled people.

Further, the claims processed at the lower rate are forcing many physicians to stop accepting Medicare patients while others considering dropping out of the Medicare program.

The cut appears to have had a direct impact on the billings for the early part of the month because of the Congressional reprieve expiry on May 31, 2010.

Seemingly, the lawmakers’ failure to act earlier is drastically hurting doctors’ cash flow and subsequently the beneficiaries, i.e. the most vulnerable groups in the society – the senior citizens and the disabled population, who also happen to be the nation’s substantial voting bloc.

It is obvious from the facts and legislative events that the representatives declining to vote on the pivotal legislations viz. unemployment benefit extension and Medicare payments to doctors attending to seniors and disabled patients are adding to the national debt crisis rather than alleviating the taxpayers’ burden.

GOP Senators and the Democrats aligning with the Republican members in the voting process are miscalculating the fiscal ramifications and the inevitable political price for their decisions.

It’s essential for the victims in these two vital legislations to distinguish between those who represent the people from the ones’ sworn allegiance to the special interests – health insurance industry and the likes.

Please remember that ‘Change is made possible by the people.’

For the voters have the ultimate power in a democracy.

Thank you.

Padmini Arhant

Written by Padmini Arhant · Filed Under Economy, Featured | Leave a Comment 

Economic Recovery Plan (ERP)

February 3, 2009

It is obvious from the headlines and news editorials across the nation that the economy is in deep recession.

San Jose Mercury News January 31, 2009 – Thank you.

GDP plunges at 3.8%, worst slide in quarter century

Autos – Valley car sales hit 15-year low – and 2009 looks worse

Wall Street – Worst January ever as Dow drops 8.8% this month

Washington – bruising battle over stimulus, Obama acts to bolster labor

Mortgage crisis spreading to affluent areas.

Meanwhile – Exxon Mobil sets U.S. record; $45.2 billion annual profit.

World Economic Forum in Davos, Switzerland concludes that the world is dealing with financial crisis with no solutions.

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Optimistic View

Despite such gloom and doom, there is light at the end of the tunnel.

A thorough review and analysis of the problems that primarily contributed to the current economic crisis is essential in understanding the fundamental cause of the present economic recession.

Then addressing each issue on priority basis including the failure of various stimulus packages by the previous administration must be an integral part of the remedial measures for the economic recovery.

It is common knowledge that the origin of the current recession stems from various sources,

1. Subprime mortgage crisis contributed to housing market decline.

2. The major components attributing to the decline in housing prices are foreclosures due to default homeowners and delinquencies in mortgage payments.

3. Financial institutions holding high-risk mortgage backed securities sought bailout of their insolvency with taxpayers’ generosity.

4. Banks and other financial institutions decided to stranglehold the credit market leading to liquidity freeze with an adverse effect on consumer based industry represented by small businesses, retail outlets, medium corporations and homeowners alike.

5. Small businesses, Retail industry and medium corporations as the foundations of the economic infrastructure could not survive or sustain growth in the absence of credit facilities blocked by the financial institutions.

6. As stated earlier on numerous occasions, the collapse of small businesses, retail industry and medium corporations have a domino effect on wholesale manufacturers ultimately owned by major corporations in any industry.

7. Hence, the layoffs triggered from the bottom of the economic pyramid spread across the aisle and all the way to the top affecting emerging and viable corporations in many sectors.

8. As a result, the unemployment rate went soaring up to 7.8% with most states reporting double digit in this respect.

9. The credit crunch combined with housing market crisis significantly hurt investor confidence and led to the selling frenzy of stocks and investments by short term and new investors in the stock market. In addition, the current static in the credit market and the general economy has forced average consumers to live off their investments and savings.

10. Despite, capital infusion through bailouts and consistent productivity by all industries, the dismal stock market performance is related to poor earnings from the sluggish consumer spending in the competitive market and globalized economy.

Therefore, Consumer spending is the catalyst for revival of the job sector and corporate growth with desired earnings eventually reflecting in the stock market performance.

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Primary Cause and Effect

Housing market crisis – Decline in housing prices due to Foreclosures, Delinquency in Mortgage Payments with no refinancing opportunities.

Liquidity freeze or Credit Crunch – Small businesses, Retail industry and Medium Corporations deprived of cash flow by banks and financial institutions declared bankruptcy and subsequently the manufacturing sectors as well as the large Corporations producing mass layoffs.

Inadequate Consumer spending – Because of rising unemployment and scarce financial resources with no access to home equity other than dwindling investments in savings and stock holdings.

Lack of Accountability and Transparency from previous bailouts – Wall Street bailout of $700 billion have not been followed through with Corporate executives rewarding themselves to a tune of $20 billion in extravagant bonuses and perks.

Inaction and dormant role by the Congressional Oversight Committee set up for overseeing the purpose of bailout i.e. activate lending to the deserving and qualified business sectors and homeowners has further exacerbated the credit crunch.

Alarming Deficit – Multi-trillion dollar deficit accumulated by the previous administration from excessive borrowings predominantly from China, Saudi Arabia and Japan precipitously diminished the dollar value in the international market.

GDP plunges because of trade imbalances and culmination of all of the above factors in the domestic front of the frail economy.

Financial Commitments – Funding two major wars in Iraq and Afghanistan exhausted the national treasury and reserves besides overshadowing the onset of economic recession at home.

Wasteful Spending – Some legislators’ penchant for pet projects aka pork barrel spending or earmarks to oblige excessive lobbying from campaign donors led to misappropriation of budget replacing funding for essential services benefiting children, disabled and mentally ill patients, senior citizens, veterans, youth population, retirees and all those at the bottom of the socio economic strata.

Ironically, budget is vigorously debated over matters that are counter-productive while ignoring the myopic view of issues…

Universal health care

Energy efficient programs

Overhauling of educational system particularly public schools, state and community colleges through adequate funding.

Effective environmental policies.

Investments in science and technology to advance research and development in the areas of stem cells, regenerative medicine and Genomics.

Creative Arts and learning with a broad perspective of cultural exchanges between nations.

Space exploration in search of knowledge and facts for humanitarian cause.

Channeling appropriation of funds towards Peace Corps to promote peace and diplomacy for national security as opposed to defense spending and proliferation of nuclear technology.

Veteran Affairs involving care and rehabilitation of combat forces during and post war period as well as extending housing, education and health care for their dependents.

Expansion of Sports and recreational activities for public schools and communities through federal funding to States as a measure to keep health care costs down.

An elaborate version will be presented on what federal and state governments can do for the citizens who are taxpayers, consumers and most importantly electorate in a democracy.

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Time for Action – Effective Strategies

Since the cause of the economic crises have been identified, it is time to address the problems with effective solutions i.e. strategies.

The nation desperately needs relief from the burgeoning crises:

Housing market crisis – Immediate measures required with a moratorium on foreclosures for two years supplemented with refinancing for default and delinquent mortgagees at the existing market rate or lower to adjust the deficiency in home value.

Liquidity Crisis or Credit Crunch – It is incumbent on the Treasury Secretary Timothy Geithner and the Federal Reserve Chairman Ben Bernanke along with Congress and the Congressional Oversight Committee to hold Wall Street accountable for the $700 billion taxpayers’ funds and demand they facilitate liquidity and honor the commitment to the taxpayers.

Failure to comply with the requirement should have implications such as sale of all those beneficiaries’ assets and financial instruments withheld as collateral during borrowing assuming the previous administration adhered to the regular lending practices particularly a bailout of this magnitude.

Corporations and legislators alike must be held accountable for their actions and inactions to demonstrate that no one is held above the law in the land of republic.

Consumer Spending – President Barack Obama’s economic stimulus package for $819 billion passed by Congress and now the proposed package worth $867 billion for Senate approval deserves attention and action.

As discussed above, consumer spending is vital and instrumental to stimulate economy.

Again, consumers as victims of mass layoffs, debilitating job market, volatile stock market, and declining housing market have nothing to rely upon for income normally used in purchase of goods and services.

The cash strapped economy has evolved into a stagnant quagmire with disastrous consequences. It is imperative to relieve the economy with necessary tools that are contained in President Obama’s stimulus package.

President Barack Obama has unveiled the American Recovery and Reinvestment Act to revive the economy by easing the burden on consumers with debts, failing small businesses as well as Corporations in requirement of capital investment.

President Barack Obama during his weekly radio address acknowledged the urgency to get credit flowing again to families and businesses. The President further promised to help lower mortgage costs and extend loans to small businesses so they can create jobs.

The administration, the president said, would ensure that chief executives “are not draining funds that should be advancing our recovery,” and the assistance to the financial system would be accompanied by “unprecedented transparency, rigorous oversight and clear accountability, so taxpayers know how their money is being spent and whether it is achieving results.”

The President was empathetic towards homeowners, students and small businesses in need of loans but left to fend on their own while Banks have been extended a hand with a bailout.

There is obviously a stark contrast in the objectives between the stimulus package of last year and the current one by President Barack Obama.

According to an article by New York Times on this issue – “The previous administration’s The Troubled Asset Relief Program (TARP) was supposed to be used up to buy the banks’ troubled mortgage-related assets. But, the Bush administration’s Treasury Department shifted gears, using the program instead to shore up the banks by injecting them with capital.

But instead of being inspired to lend more, too many banks hoarded their new capital, critics of the financial industry say.”

President Obama is seriously committed towards alleviating the suffering of ordinary citizens with necessary tax breaks of $500 for individuals and $1000 per family and tax incentives to small businesses including corporations with limited resources.

The Obama administration’s economic stimulus package has specific targets to bolster the economy and welcome sharing of public concerns on issues related to jobs, business, mortgage situation…

Since the commencement of his Presidency, the President has pledged support for the victims of the worst economic crisis. It is apparent from the actions taken within short period of the President assuming office.

The new millennium has brought series of disasters on our nation with the economy hitting rock bottom. There are undeniable challenges ahead and it requires the entire nation to come together in resolving every crisis.

Even though, a new President was elected on the message of hope and change , it is the responsibility of every citizen and particularly the legislators as representatives of their constituents to act immediately in the approval of the proposed stimulus package.

Any procrastination will only lead to further deterioration of the worsening economy. It is not the time for partisan politics as the stakes are high with too many unfortunate events unfolding as time goes by.

The victims are none other than the electorate entrusting power to their legislators for action on normalization of job, stock and housing market.

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Summary of Economic Recovery Plan

President Barack Obama’s stimulus package is essential to revive consumer spending, housing market, job market and corporate growth directly influencing stock market performance.

It is important to ensure that pork barrel spending does not find its way in this stimulus package during deliberation by reluctant policymakers.

Economic recovery is inevitable with discipline, determination and drive –

To eliminate or minimize costs proven liabilities.

Strategic planning and monitoring through rigorous oversight.

Implementation of effective policies with guaranteed results.

Targeting problems with efficient programs.

Restoration and preservation of jobs through investments benefiting the workforce.

Reviewing tax structures to create incentives for business sectors dealing with liquidity crisis.

At the same time closing any gaps or loopholes for tax evasions by corporations and legislators.

Relieving homeowners with appropriate measures as suggested above.

Reform of institutions lacking in ethics and moral conduct.

Enforcement of law and order with consequences for non-compliance regardless of hierarchy.

Conscientious effort to reduce deficit by restraining overseas borrowing and commitment towards domestic economic growth within a specified timeframe.

Pursuit of common goals and objectives via collective action is important reflecting every individual’s desire to succeed in all endeavors.

Our nation provided opportunities, prosperity and happiness during economic boom and now it is the moment for all citizens to collaborate and help our newly elected President Barack Obama execute the tasks required for speedy economic recovery.

The fate of our nation is hanging in balance from the monumental crises and legislators in the Senate have an awesome responsibility to move forward and approve the economic stimulus package proposed by President Barack Obama to avert more calamities.

Thank you.

Padmini Arhant

Written by Padmini Arhant · Filed Under Economy, Featured | Leave a Comment 

We need to fix our economy

January 30, 2009

President Obama and his administration are trying to address this serious economic crisis at home.

It takes the entire nation to get involved in the rescue operation.

Let us come together and do everything possible to revive the economy.

Please standby for some important guidelines and suggestions for economic recovery on www.padminiarhant.com.

Also, focus on resolving California’s budget crisis will be presented on the website shortly.

Meanwhile, please follow through the request from President Obama’s administration to create awareness and collective effort required to survive the crisis.

Thank you.

Padmini Arhant

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Last year, America lost 2.6 million jobs. This week, some of our biggest companies announced plans to cut tens of thousands more.

The economic crisis is deepening, but President Obama and members of Congress have proposed a recovery plan that will put more than 3 million Americans back to work.

You can learn more about how the plan will help your community by organizing an Economic Recovery House Meeting.

Join thousands of people across the country who are coming together to watch a special video about the recovery plan. Invite your friends and neighbors to watch the video with you and have a conversation about your community’s economic situation.

The economic crisis can seem overwhelming and complex, but you can help the people you know connect the recovery plan to their lives and learn more about why it’s so important.

Sign up to host an Economic Recovery House Meeting the weekend of Friday, February 6th.

The President’s plan passed the House of Representatives on Wednesday. But if it’s going to move forward, we need to avoid the usual partisan games.

That’s why supporters are opening their homes to talk with neighbors and friends about how the plan will work — and what it means for their community.

The video will outline the basics of the plan and how it will impact working families. It will also include answers to questions from folks across the country. Invite your friends and family to watch the video, discuss the plan, and help build support for it.

Don’t worry if you’ve never hosted a house meeting before — we’ll make sure you have everything you need to make it a success.

Take the first step right now by signing up to host an Economic Recovery House Meeting:

http://my.barackobama.com/recoveryhost

Time and again, you’ve demonstrated your commitment to change. Now you can help America move in an important new direction.

Please forward this email to your friends and family, and encourage them to get involved as well.

Thank you for your hard work,

Mitch

Mitch Stewart
Director
Organizing for America

Written by Padmini Arhant · Filed Under Business, Economy | Leave a Comment 

Radio Show Schedule

January 22, 2009

I will be doing a live radio show for 120 minutes from 2.00P.M to 4.00P.M. (PST) on the following days:

January 23, 2009 Friday from 2.00 – 4.00 P.M (PST) to accommodate listeners from all time zones.

Category: Current Events

Topic: Corporate Bailout

Discussion:

What should financial institutions do with the taxpayers’ bailout?

Why have they not utilized those funds to stimulate economy?

What is public demand from them and the legislators?

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January 30, 2009, 120 minutes 2.00P.M – 4.00P.M

Category: Current Events

Topic: Economy and Health Care

What should the new administration do for you and the economy?

How do we fix the Health Care system?

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Podcast live : http://www.blogtalkradio.com/Padmini-A

Guest Call-in-number: (646) 727 -3778

I invite you all to participate in the public forum and share your concerns, ideas and knowledge.

Your comments and thoughts are welcome in the political discourse.

Let us keep democracy alive and help our new President Barack Obama and Vice President Joe Biden in rebuilding our nation.

Look forward to the session.

Thank you.

Padmini Arhant

P.S. My apologies for not being able to schedule a convenient time on January 21, 2009. I am aiming to provide as much time as possible through whatever avenues available in getting us back on our feet.

Your participation is a huge encouragement and always appreciated – Thank you again.

Written by Padmini Arhant · Filed Under Business | Leave a Comment 

Change we can believe in – The ideal Secretary of State

November 24, 2008

Let us see what the American electorate and some courageous journalists/reporters thoughts are in this respect.

The authors in the capacity as responsible journalists and citizens have raised some relevant questions of the most important aspect of new presidency i.e. recruiting staff members for key positions and administrative tasks.

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The author, Mr. Pinsker has highlighted the ironies between the Lincoln Presidency and the scenario with the future Obama Presidency.

Obama shouldn’t copy Lincoln’s Cabinet style – Matthew Pinsker, author of “Lincoln’s Sanctuary: Abraham Lincoln and the Soldiers’ Home,” wrote the article for the Los Angeles Times.

Consider this inconvenient truth: Out of the four leading vote-getters for the 1860 Republican presidential nomination whom Lincoln placed on his original team, three left during his first term – one in disgrace, one in defiance and one in disgust.

Chase was the defiant rival.

As Goodwin acknowledges, the Treasury chief never reconciled himself to Lincoln’s victory, continuously angling to replace him.

Lincoln put up with this aggravation until he secured renomination and then dumped his brilliant but arrogant subordinate because, in his words their “mutual embarrassment” was no longer sustainable.

The significance of Seward’s contributions as Lincoln’s secretary of state have been challenged by many historians, and his repeated fights with other party leaders were always distracting.

Lincoln was a political genius, but his model for Cabinet-building should stand more as a cautionary tale than as a leadership manual.”
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One of my favorite and esteemed journalists, Mr. Friedman poses a potent issue…

Cabinet post for Clinton presents special concerns – Thomas L. Friedman is a New York Times columnist.

“So President-elect Barack Obama is considering Hillary Clinton as secretary of state,

How should we feel about that?

My question is whether a President Obama and a Secretary of State Clinton,

Given all that has gone down between them and their staffs, can have that kind of relationship,

Particularly with Clinton always thinking four to eight years ahead, and the possibility that she may run again for the presidency.

I just don’t know.

When it comes to appointing a secretary of state, you do not want a team of rivals.”

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Hillary Clinton a better fit for Senate than secretary of state – David S. Broder, Washington Post columnist.

As per the article…

What President-elect Barack Obama wants and needs in the person running the State Department is a diplomat who will carry out his foreign policy.

He does not need someone who will tell him how to approach the world or be his mentor in international relations.

The last thing he needs is a secretary of state carving out an independently based foreign policy.”

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Obama staff: friends, others – Administration a mix of loyal advisers, Clinton Veterans – Charles Babington and Liz Sidoti, Associated Press

A particular segment of the article is noteworthy:

“Obama raised eyebrows this month when he tapped some of Clinton’s closest allies for important jobs.

John Podesta, Clinton’s former White House chief of staff, is heading the transition effort. Illinois Rep. Rahm Emanuel, a former top Clinton adviser, is Obama’s chief of staff.

Former Clinton appointees Eric Holder and Janet Napolitano appear in line for Cabinet posts.

Even more, startling to many, Obama has signaled plans to name former first lady Hillary Clinton as secretary of state.

Some Obama supporters have praised him for reaching out to his toughest primary opponent.

But others question why they worked so hard to defeat Clinton only to see her, and many close to her, grab prizes in the new administration.

They note that Obama repeatedly campaigned against “the politics of the past” and Washington “dramas,” thinly veiled jabs at the Clinton presidency as well as President George W. Bush’s tenure.”
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Letter to the editor of mercury news on various dates: Thank you.

Voice of the Electorate…

Business as usual despite change vows –

Barack Obama sucked people into believing he is all about change, which they want more than anything else.

Then once we elect him, he surrounds himself with all the very same people who have absolutely no reason, or desire to change anything. All that has changed here is the name of the guy on top who’s getting his pockets lined.

Good luck, America…it’s business as usual.

David Harbert
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After election, all we can do is hope –

“It hasn’t taken very long for the media to turn pessimistic on Barack Obama’s ability to deliver on his sweeping promises for change and reform.

Instead there are predictions of smaller incremental improvements, like “Obama can make quick, modest gains on health care”.

This could be the test Joe Biden predicted would come during the early months of the Obama administration, but rather than some external foreign crisis, this will be a test of his internal mettle – a crisis of conscience.

Will Obama have the courage to stand up to the powerful interests in Washington and do what he thinks is right, or will he back down and give up on his promises?

We’ve already voted, now all we can do is hope.”

Rob Morgan
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Don’t see much change so far –

I did not vote for either Barack Obama or John McCain, but as Obama won the election, he is now my president and I am anxious to see how he will move our country forward.

But throughout the campaign, I kept hearing about “change” and now I see that Obama and his selections are not much “change” at all.

Where are the new faces?

Where is the “change”?

Unfortunately, at least now it seems we’ll all have to wait another four years for “change.”

Brian Chang
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Where are the fresh faces in Cabinet?

I didn’t vote for Barack Obama, but I’m hoping that he will be a great president because the country needs one.

But I look at some of his nominations for Cabinet and staff positions and wonder where the “change” is going to come from since, as I read online today more than half of the people named to Obama’s transition or staff posts have ties to President Clinton’s administration.

And people like Hillary Clinton as possible secretary of state and Tom Daschle as health and human services secretary seem like “more of the same.”

I was hoping for some fresh faces, but maybe that is still to come.

Randy Breunling

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From: "David Plouffe, BarackObama.com"

To: Padmini Arhant

Sent: Tuesday, November 18, 2008 1:47:54 PM

Subject: Where we go from here

Padmini –

Please take a few minutes and help shape the future of this movement.

Share your campaign experience and your thoughts on the best way to keep supporting our agenda for change.

The inauguration is just 63 days away, and as President-elect Obama and Vice President-elect Biden prepare to take office, they’ll need your support more than ever.

You’ve built an organization in your community and across the country that will continue to work for change — whether it’s by building grassroots support for legislation, backing state and local candidates, or sharing organizing techniques to effect change in your neighborhood.

Your hard work built this movement. Now it’s up to you to decide how we move forward.

Take this short survey and share your ideas:

http://my.barackobama.com/whatsnext

Thanks to you, this country has an historic opportunity. Electing Barack was the first big step, but there’s a lot of challenging and important work ahead.

Together, we can keep making history,

David

David Plouffe
Campaign Manager

Obama for America
———————————————————-

To: info@barackobama.com

Re: Where we go from here
…
Padmini Arhant

Dear David,

The past week has been hectic for me.

Therefore, could not reply to your request.

However, please view my feedback in the blog post on the relevant topic.

Thanks and Best Regards

Padmini
————————————————————————

Analysis:

It is evident from the above articles and comments that the American electorate as well as the nationally acclaimed journalists and authors have spoken regarding the appointees to various posts and nominees for key positions.

I concur with all of them against leaning back to the Clinton era for most important administrative posts and cabinet positions.

The Obama movement for “change” is unique and it should reflect that message starting with the appointment of staff members all around.

It is fair to admit that the former President Bill Clinton had a successful two terms from the economic standpoint.

However, it is worth remembering that foreign policy matter suffered a great deal in many respects, including a terror attack on the World Trade Center.

We are in a new millennium and a dynamic Presidency ahead of us, there is talent galore to fill in cabinet and other administrative positions.

They do not have to be Clinton associates and advisers.

Further, the movement to transform Washington was a pledge to the American electorate with a commitment to have Obama administration represented by outsiders and not insiders of past power and establishment.

Many aspiring and deserving individuals without any ties to political interests in Washington will enthusiastically serve the Obama-Biden administration in utter loyalty and competence unlike seen before.

It is also important to consider many qualified volunteers and campaign staff across the nation for administrative posts who generously offered their time, resources and support for the success of the Obama-Biden candidacy.

The present recruitment or nomination is suggestive of nepotism and favoritism that is typical of Washington all along.

Naturally, the electorate is frustrated not seeing any identifiable change that is desperately required for national interest.

Secretary of State – The most sensitive cabinet position given the present volatile world environment.

Unfortunately, from the track record of the incumbent administration in international affairs, there is an urgent requirement for mending process with peace and diplomacy.

Senator Hillary Clinton is a hard working public official and aptly qualified as a Senator to represent the people of the Great State of New York.

Nevertheless, the reason Senator Clinton lost the primary election was her gaffes regarding foreign policy experience…

Bosnia sniper attack,

Her vows “To Obliterate Iran with Nuclear Weapons”

Failing to acknowledge until the end of the Primary season that her vote for Iraq War was indeed a mistake.

Notwithstanding other facts detailed during Democratic Primary election about her foreign policy resembling the present administration rather than the future Obama administration.

There will be many awkward moments with great conflict of interest if the voting record and political platform of the Secretary of State is drastically different from the President they are serving.

Not excluding the lack of respect and unnecessary diplomatic tension it would create among the international circle.

In a nutshell, Senator Clinton’s experience and leadership is suitable for fulfilling the commitments towards the people of the great state of New York considering the recent political turmoil experienced by them.

Some might argue that disagreement is healthy and perhaps adds a new dimension to the Obama-Biden administration.

Their argument is valid provided, the disagreement is not to undermine the elected President, the highest authority.

Usually, there are two possibilities for individuals to disagree with one another.

First, when the ulterior motive is to promote personal agenda.

Alternatively, when the individual in disagreement genuinely cares about the issue and offers an objective viewpoint to guide the stray party.

Therefore, the ideal candidate for Secretary of State symbolizing the real change,

The promise by Obama-Biden administration…

Is an entity — with a consistent and proven voting record, personal philosophy and firm commitment towards peace and diplomacy in national and international legislations.

Even though, there are quite a few choices available,

The candidate with the following credentials is best suited for the Secretary of State position –

Legitimate concern for civil rights and ethics

Voting against unjustified wars

Voting against unlawful tapping of private communication among citizens of the United States

Reaching across the aisle to work with opponents in a maverick style – a valuable asset in resolving many international conflicts,

That candidate is none other than the elected official from the Great State of Wisconsin, Senator Russ Feingold.

Senator Feingold will demonstrate leadership, experience, patience, confidence and intellect in resolving many pending international conflicts especially the Middle East between the States of Israel and Palestine and other global matter.

It is evident that Senator Feingold by voting against Iraq war displayed courage and judgment like the President-elect Barack Obama.

The similarity between them is uncanny in terms of many issues and policy matter.

At the same time, Senator Feingold has respectfully disagreed with President-elect Barack Obama on issues like Public Financing and FISA.

Senator Feingold has the right balance — maturity and experience in handling any international crisis with poise and diligence to the satisfaction of the American electorate and international community.

Inconclusively, Senator Feingold’s appointment will create an opportunity to expedite the Israeli-Palestinian conflict in the best interests of the people of the two nations entitled to independence, peace, security and sovereignty.

Also, curb global terrorism the premise of unresolved Middle east conflict.

Finally, I’m confident that President-elect Barack Obama and Vice President-elect Joe Biden will deliver the “authentic Change we can believe in” all matter.

Thank you.

Padmini Arhant

Written by Padmini Arhant · Filed Under Featured, Politics, United States | Leave a Comment 

Stock Market Performance

October 14, 2008

The Stock Market came roaring back on October 13, 2008 and was a major cause for celebration across the globe.

The collective and collaborative effort by the “Heads of Government” through G7 and G20 meetings, in coordination with the global monetary authorities like the World Bank and the International Monetary Fund yielded the much-required morale boost in the financial markets. Their immediate action to respond to the crisis is praiseworthy.

Despite the consolidated action to jumpstart the markets, the stock market is struggling to sustain the momentum gained on the previous day. Obviously, the indication is that the measures in the past hours and days to guarantee the smooth functioning of the financial system is not adequate.

A selective opinion highlighting the reasons for the problems currently experienced in the credit markets –

Source – http://www.americaneconomicalert.org – Thank you.

Why Federal Reserve Policy is Failing

Monday, October 06, 2008

Commentary by Thomas I. Paley, Ph.D.

The Federal Reserve and U.S. Treasury continue to fail in their attempts to stabilize the U.S. financial system. That is due to failure to grasp the nature of the problem, which concerns the parallel banking system. Rescue policy remains stuck in the past, focused on the traditional banking system while ignoring the parallel unregulated system that was permitted to develop over the past twenty-five years.

This parallel banking system financed vast amounts of real estate lending and consumer borrowing. The system (which included the likes of Thornburg Mortgage, Bear Stearns and Lehman Brothers) made loans but had no deposit base. Instead, it relied on roll-over funding obtained through money markets. Additionally, it operated with little capital and extremely high leverage ratios, which was critical to its tremendous profitability. Finally, loans were often securitized and traded among financial firms.

This business model has now proven extremely fragile. First, the model created a fundamental maturity mismatch, whereby loans were of a long term nature but funding was short-term. That left firms vulnerable to disruptions of money market funding, as has now occurred.

Second, securitization converted loans into financial instruments that could be priced according to market conditions. That was fine when prices were rising, but when they started falling firms had to take large mark-to-market losses. Given their low capital ratios, those losses quickly wiped out firms’ capital bases, thereby freezing roll-over funding.

In effect, the parallel banking business model completely lacked shock absorbers, and it has now imploded in a vicious cycle. Lack of roll-over financing has compelled asset sales, which has driven down prices. That has further eroded capital, triggering margin calls that have caused more asset sales and even lower prices, making financing impossible for even the best firms.

Though the parallel banking system engaged in riskier lending than the traditional banking system, those differences were a matter of degree. Traditional banks like Washington Mutual, Wachovia, and Citigroup have also all lost huge sums. However, the traditional banking system is more protected for two reasons.

First, traditional banks are significantly funded by customer deposits. Ironically, such deposits can be withdrawn on demand and are in principle even more insecure than short term roll-over funding. However, they stay in place because of federally provided deposit insurance.

Second, traditional banks are significantly shielded from mark-to-market accounting because they hold on to many of their loans. These loans are therefore priced by auditors on a mark-to-realization basis. However, if they were securitized their market value would be significantly lower owing to current disruptive market conditions.

The bottom line is that the banking system is in better shape not because of its virtues, but because of policy. Deposit funding is safe because of deposit insurance. Banks are spared mark-to market losses because of different accounting rules. And the Federal Reserve is providing banks with massive liquidity infusions through its discount window and its various emergency auction facilities.

Policy has therefore ring-fenced traditional banks. But in the meantime it has left the parallel system in the cold, leaving a gaping hole in the policy dyke.

This policy stance reflects the Fed’s continuing attachment to an antiquated view of the system whereby it takes responsibility for traditional banks and nothing else. Such a policy makes no sense and will fail. The Fed encouraged development of the parallel system, and that system undertakes many of the same activities as traditional banks. Meanwhile, failure of the parallel banking system will continue putting downward pressure on asset prices and lender confidence.

The Treasury’s proposed seven hundred billion dollar asset purchase program will help put a needed floor under asset prices. However, it does nothing to tackle the parallel banking system’s roll-over funding crisis that is crimping lending and pushing firms into bankruptcy. That is causing distress to spread far beyond the mortgage market, undermining the ability of any asset purchase program to put a floor under asset prices.

The urgent implication is the Fed (and other central banks) must extend its safety network to include the parallel banking system. Just as the traditional banking system needs liquidity assistance, so too does the parallel system. That assistance can be provided through such vehicles as the discount window and Federal Reserve auction facilities, and it should be allocated to qualified firms able to post appropriate collateral.

A credit based system is a chain, and a chain is only as strong as its weakest link. The Federal Reserve’s antiquated view has it protecting links connected to the traditional banking system while neglecting everything else. That is a recipe for failure.

Dr. Thomas Palley is a widely published economist and was formerly Chief Economist at the US-China Economic and Security Review Commission.
____________________________

Analysis: Certainly, the emphasis is on the oversight with effective policies for the entire financial structure to alleviate stagnation in the liquidity markets. The investor confidence overall is marred with concerns and skepticism despite stunning performance on October 13, 2008.

The resistance from the free market system towards proposed measures is one of the factors for the current trend. However, the necessary action could eliminate many underlying problems surrounding the entire financial infrastructure, contributing to the volatility in the markets.

Meanwhile, the investors’ active participation to restore momentum and strengthening market gains across all sectors is important for the common good and benefit in the short and long run.

An optimistic approach to the crisis with an absolute integrity in the implementation of policies will assist the markets to rebound now and in the future.

Thank you.

Padmini Arhant

Written by Padmini Arhant · Filed Under Business, Featured | Leave a Comment 

Health Care

October 11, 2008

Courtesy: Nobelprize.org – Thank you.

Press Release

6 October 2008

The Nobel Assembly at Karolinska Institutet has today decided to award

The Nobel Prize in Physiology or Medicine for 2008 with one half to Harald zur Hausen for his discovery of “human papilloma viruses causing cervical cancer”and the other half jointly to Françoise Barré Sinoussi and Luc Montagnier for their discovery of “human immunodeficiency virus”.

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Congratulations! to the recipients on the highest honor for their contributions to “Health Science”.

The medical community has achieved breakthroughs in most areas of health science. The quest for cure continues in all facets of modern medicine through scientific research and development.

Nevertheless, the challenge being, the achievement not shared among the general population even in the most advanced nation like the United States. Unfortunately, the average citizen cannot afford the best medical treatment due to the lack of Universal Health Care for the entire population.

The discussion on health care in the current “Presidential race” emphasized the need and urgency to care for the sick. However, there are no specifics provided to the public with respect to fund allocation and general layout.

The candidates have elaborated on the general plan. It is still important to disclose the exact costs involved to provide national health care. Besides, appropriation of funds for this purpose, the policy must detail the choices, if any, to the public and whether there are any fixed costs allocated in the health care budget.

The deductibles on all of the health care plans offered by various groups in the insurance industry exponentially rises with the rising costs of health care reflecting inflation. In this category, the lower and middle income population is the most vulnerable of all.

Attempts in the past towards general health care to the mainstream population fell short of targets predominantly due to the lack of “structured plan”. Within the nucleus of the health care plan, organization is required for different health care needs and priorities. The reason being, each segment of the population fall under different categories.

It is equally important to include the veteran groups and their families’ health care costs. Again, the G.I.bill should have a provision in this regard. The mental health care patients’ insurance costs were included in the recent $700 billion “bailout” legislation. Congress’ action is noteworthy in this regard. The Senior Citizens, is another group deserving immediate attention and focus for their various situations.

The investments on “preventive medicine” always pay off in the end. Whether it is prenatal, neonatal, infant care or adolescent and all the way through geriatric programs. All programs catering towards healthy life style cuts health care costs considerably for the nation. Therefore, the health care policy should vigorously promote and provide incentives to organizations involved in this effort.

Health care is more effective and efficient with minimal external intervention from the government and insurance industry alike. The government should facilitate the program by making it affordable to the wide cross section of the society. At the same time, it should leave the decision making process on patients health to the patient and the professionals involved.

The United States, as an industrialized nation should prioritize health care to all citizens and invest more in educational programs for youth to address issues like; obesity, teenage pregnancies and other social problems contributing to the health care costs.

In terms of humanitarian aid, the United States has always been in the forefront to help other nations combat various health crises. It has earned special recognition in helping the international community reach the milestone with the “AIDS” epidemic. The task is not over and the achievement thus far is praiseworthy.

The concept….“Health is Wealth” is the stepping stone towards peace, progress and prosperity for all nations.

Thank you.

Padmini Arhant

Written by Padmini Arhant · Filed Under Health | Leave a Comment 

Stock Market Crisis

October 10, 2008

Courtesy: http://www.godlikeproductions.com – Thank you.

Whats Driving the Stock Market Chaos??

Denninger Speaks… – Thank you.

Quote

What The Media *Didn’t* Cover

So yesterday the “news” was all about the long end of the Treasury curve rocketing higher (yield), which many people believe is about “risk acceptance” and The Fed (along with other central banks) cutting rates by 50 basis points.

Uh huh.

Let’s talk about what’s really going on.

First, our rates. The EFF (Effective Fed Funds) rate has been trading at 1.5% now for a couple of weeks. Two percent schmoo percent; a target rate only in name is no target at all. In reality the 50 bips cut, even though it resulted in an instantaneous 40 handle rocket shot in the /ES futures Wednesday morning, was entirely a CONfidence game (with the emphasis on “Con”!)

The RTS (Russian Market) is down 87% YTD, and is closed until further notice. The Nikkei is trading below the DOW – that’s not good. Indonesia’s stock market was shuttered Wednesday and remains closed after tripping “lock limits” within 90 minutes of the opening bell. As of Thursday morning the RTS was closed again after Putin allegedly strong-armed a whole bunch of Russian wealthy to “stick it in” (to the stock market); this sort of v-fib in a market does horrifyingly bad things to ordinary investors who find themselves out just before the market rockets higher without underlying economic cause.

Iceland has essentially melted down. Their currency went straight into the toilet and two of the three largest banks were nationalized – all in the space of 24 hours. The culprit? Bad loans. Where have we seen this movie before?

Mexico’s peso has fallen some 40% in days against the dollar. Great if you’re traveling there as an American. Sucks severely if you’re a Mexican. That alleged fence on our southern border is going to need reinforcements.

Wednesday morning Britain and the EU zone all announced major bank rescue operations. Same deal – “throw money at it, paper it over.”

Nowhere a mention of forcing balance sheet transparency and truth.

Except in one place – here in the US! Plans to standardize CDS contracts and force them onto an exchange are actually under way. This is a major positive move and fulfills one of the three prongs of my view of how to solve this problem, once implemented. We’ll see how much pushback we get, and whether OTC derivatives are actually banned (as they should be), or whether the big trading houses and banks insist on being able to play “pick pocket” along side the “regulated” world.

The NY Fed announced plans to extend a further $39.6 billion credit line to AIG. The tab is now almost $120 billion dollars. Where did the other $80 billion go? Has it been vaporized trying to raise capital to pay down CDS contracts that have gone the wrong way on them?

Speaking of which, Thursday is D-Day – D standing for either “derivative” or, if things go sideways on people, “detonation.”

See, this is the day that Lehman’s CDS contracts are supposed to be resolved. Since Lehman’s bonds are trading at ~20-30% recovery (horrible, on balance) the writers may have to fork up 60 to 70 cents on the dollar.

The $64,000 question is how many of those contracts net out. The real liability is what’s left once everything is “balanced” (a long and short held by the same guy net to zero, assuming that both contracts are “money good”, leaving the holder with no liability – and no asset)

This has the potential to be a big “nothingburger”, a minor tremor, or a 250′ high tsunami that washes over Lower Manhattan (and the City) tomorrow. There’s no good way to know in advance which outcome will manifest, since nobody (at present) knows what the true netted-out open interest is. This is one of the problems with not having a public exchange; lack of knowledge.

The bright light of reality will shine tomorrow……

The architects of this, by the way, are the folks who took the cuffs off the banks, going back to the Gramm-Leach-Bailey law and the repeal, piece-by-piece prior but finished by GLBA, of Glass-Steagall. GLBA, by the way, was passed in 1999 – just as the Internet bubble was in full force. Coincidence? No. The root cause of this mess? Right there. Thank Congress, and make sure you include those members who have been around for the entire thing, including John McCain.

On the equity market side shorting is once again available, the order having expired. The lack of shorts was a definite factor in the stiff selloff that we’ve seen, and Chris Cox owes investors in America an apology – on the air. This was an objectively stupid decision, as shorts provide necessary liquidity during serious downturns. Without them you get “no bid” circumstances, and they sporadically appeared during the last few days in financials, which certainly exacerbated the selloff.

In the bond markets Treasury refunded some “off the run” bonds and got an ugly surprise – the market didn’t want them. They had to pay a 40 bips “tail” to get them to go, which may be the start of a really troublesome trend. See, Treasury is now throwing over $100 billion a week into the market, and this only works on days when the market is crashing. THEN you can get people to suck up all you puke out, but the rest of the time you’re going to have to pay up, and Treasury has had to do so – dearly.

This may be the start of the “bond market dislocation” that I have long feared. I hope and pray not, but if this trend continues Treasury is going to find that it cannot sell its debt into the market without slamming rates higher, especially on the long end of the curve, which means an instantaneous implosion of what’s left in the housing market.

The ugly is that 3-month LIBOR widened today, as did the TED Spread. Both should have come in. They did not. LIBOR is essentially unsecured lending and the bad news is that a lot of corporate (and some personal) borrowing is indexed off it. If you are, you’re screwed.

Why has LIBOR refused to come in despite these “coordinated” effort? Its simple: the underlying trust issue has not been addressed, and nobody is seriously proposing to do so.

Paulson and Bernanke now are truly caught in the box, as I have been talking about for more than a year. As they introduce and fund these silly programs like the “TARP” each new program produces more foreclosures by depressing home values and thus tightens the spiral.

See, as long rates go up house prices go down, since the value of a home for most people is Dependant on what they can finance, and that is directly related to interest rates. Get out your HP12C and run the principal value change for a fixed payment if interest rates change from 6% to 8% or 10% – that’s the impact on the value of your house from these changes that are occurring in the Treasury marketplace.

This outcome is what I warned of in “Our Mortgage Mess” back in April of this year; a potential ramping of borrowing costs for government debt, which will not only make sustaining government spending (and perhaps government operation) impossible, but in addition destroy private credit by driving costs in the private sector skyward as well.

Simply put, the “TARP” or “EESA” must be repealed here and now.

It is unacceptable to risk Treasury Funding destruction in order to bail out some bankers. And make no mistake – there is and will be no benefit to taxpayers.

We are also now entering into earnings season, and Alcoa was a warning blast. They missed badly. That won’t be the last.

This is the “value trap” problem that many investors fall into. You see the market down 30% and think its a great buying opportunity.

It is a great buying opportunity only if earnings going forward can be sustained. But in this case, they cannot. It is flatly impossible; with Treasury borrowing money like a madman, tacking on more than 20% to the national debt in the space of months, carrying costs will inevitably rise as will taxes. Both of these have a multiplier effect (in the wrong direction) on corporate profits, and in addition the “faux profits” from financial engineering have all disappeared at the same time.

The S&P 500’s profit, in terms of gross dollars, are almost certainly going to come in by 50% from the highs, and that assumes we get a garden-variety recession and not something worse. This of course puts “Fair Value” on the SPX down around 750, or another 25% down from here.

The ugly stick potential is what I discussed yesterday, and that risk is very real. Treasury borrowing cost ramps can produce a 1930s-style dislocation in credit, and if it happens then you will see mass bankruptcies not only in corporate America but among individuals as well as borrowing costs ramp to the point of shutting down the marketplace for credit.

Treasury and Bernanke claimed that “credit markets seized”; this is only half-true. Credit markets always close to those who are lying, because there is no reason to loan someone money if you’re not reasonably sure you will get paid back.

But there is a second form of seizure and this is the frying pan into which we’ve now jumped – that is a credit market that prices beyond what the market can bear at its imputed rate of return. In that market credit is available but it does not matter, as you can’t make enough profit to generate a positive carry on the borrowed money, and consumers in that environment fall into a vortex of interest payments that spiral faster than they can borrow to stay ahead of them.

That rabbit hole is how we got the 1930s, and it is the danger we now face. Congress was in fact conned by Treasury, George W. Bush and the banking industry (including Ben Bernanke), who instead of forcing the malefactors into the open and exposing those who were bankrupt (or just plain corrupt – notice the common stem on both words?) threw them a line – unfortunately, the line is cleated to the entire economy of the United States, and they have enough negative buoyancy to drag us all under the waves.

——————————————————

Analysis: This is one of many opinions floating around all over the cyberspace regarding the latest downward spiral in the stock market. The consensus is clear; a few operatives with a major stake in the gamut of the financial world are driving the mania for their profiteering with utter disregard for the rest of the population around the world.

It is time for the people of the United States and around the world to rise to the occasion and intervene as the snowballing of losses in market shares is not a natural event. Clearly, this kind of manufactured, well-orchestrated and premeditated mechanism is the result of greed, corruption and cronyism that is rampant and has now come to surface.

Not surprisingly, there is no investigation or reports by the media as the Corporations, the de facto beneficiaries own them. The world must awaken now and deal with the reality to bring all of these entities to justice. It is time to make every one of them accountable for their actions and inaction as well as make them absorb all of the losses generated by their devious “modus operandi”.

The current situation is not an isolated occurrence. The cause and effect factor is evident in the existing stock market turmoil. As suggested earlier, the unethical practices resulting from the lack of accountability and oversight is contributing to the pandemonium in the market worldwide with the infusion of the “survival of the fittest” theory.

The world is shocked and in despair, seeing no end to the plundering of wealth that rightfully belongs to the righteous and not the self-righteous. However, it is presumptuous of those involved in this mass abduction of world treasury that they will not be exposed and brought to spotlight.

Perhaps, Armageddon is the only alternative now to restore morality and world order. The degradation of principles, ethics and democratic values by the ruling power will not escape the judicial verdict.

Therefore, it is in the best interest of all those involved in the conspiracy to come forward and demonstrate figment of integrity by stabilizing the stock market decline or be prepared to deal with the wrath of natural phenomenon.

Further, to those entities responsible for the current economic disaster, “the end justifies the means”.
Any attempt to ignore the warning will be an invitation to their peril.

If the authorities in power fail to exercise diligence, proper management, and immediate interventional policies to stabilize the market, they will share similar destiny as the recently convicted O.J. Simpson.

The judicial mantle seized by the power is in denial and defiance of the existence of force that will deliver justice.

The mortals brought nothing upon their birth hence; take nothing upon death.

Thank you.

Padmini Arhant

Written by Padmini Arhant · Filed Under Business | Leave a Comment 

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