Germany – Munich Security Conference

February 6, 2012

By Padmini Arhant

The security conference in Munich, Germany hosted speakers on many important issues.

However, the event being related to security – the emphasis on global security is relevant.

The major threat to international security is prolific arms race and nuclear arsenal.

U.S. and NATO nuclear warheads with Intercontinental Ballistic Missiles (ICBM) in Eastern Europe viz. Poland is persisting provocation not to mention over 1000 U.S. military bases around the world having transformed the so-called free world into a beleaguered fortress.

Warsaw Pact replaced with Collective Security Treaty Organization (CSTO) to counteract NATO expansion significantly defines the undercurrent amongst U.S led NATO and Russia in self-defense.

Despite START treaty and other defense programs agreement between the Cold War rivals,

U.S and NATO existing overt and covert operations pose a greater challenge to all sovereign nations around the world.

Conventional and tactical weapons production and exchange is exponentially higher heightening the security risks across the globe.

Energy dependent economies deals with oil rich countries comprising arms exports for oil imports is predominantly responsible for the status quo i.e. ravaging civil wars in Africa, drug wars in Latin America and armed conflicts in democracy seeking Middle East revolutions.

The concept alluding to cause for ammunition supply is evident in Latin America especially Mexico, Colombia, Ecuador, Panama…confronted with narco trade warfare.

Africa – the senseless attacks in the name of religion against Christians in Nigeria or political term dispute in Senegal and cattle raid in the volatile territory near South Sudan resulting in the destruction of lives and livelihood could not have occurred without arms distribution including explosive materials to these regions that would otherwise benefit from economic, educational and basic survival development.

In the Middle East – The fire starters pretense to be fire extinguishers utilizing United Nations Security Council (UNSC) as the tool for economic sanctions and open-end arms embargo exacerbate the prevalent humanitarian crisis in the economic, political, social and environmental aspect.

Notwithstanding the Persian Gulf incursion with extensive troop redeployment from Iraq in Kuwait, Saudi Arabia and Qatar,

While, Bahrain established as the official United States naval fleet base for global showdown.

The growing mistrust and apprehension in the violence ridden atmosphere arguably weakens peace efforts due to global dominance ambitions with military might on the rise.

Asia – The reluctance to pursue peace and military exercise with South Korea to intimidate North Korea and,

Military build up in Asia Pacific with allies like Australia on alert in Darwin base,

Not barring tension on South China Sea is a warning to China – one of the two ultimate targets with Russia being the other in the far-flung dragnet for global conquest.

Indian Sub-Continent – Pakistan hit with drone strikes and CIA paramilitary force on the ground alongside continuous U.S unilateral authorization of NATO assaults in North Western Pakistan such as Waziristan is facilitating militancy and fundamentalism now spreading across the Islamic republics in Central Asia.

Previously the Soviet Union controlled Central Asian territories rich in oil and natural gas could not be infiltrated for occupation or fundamentalist activities currently pervasive in the aftermath of U.S. invasion of Afghanistan and Pakistan.

The fundamentalism inculcating Sharia law is channeled via Pakistan and Saudi Arabia into Islamic states in Central Asia – Uzbekistan, Kyrgyzstan, Kazakhstan, and Turkmenistan…

The religious schools – Madrassas funded by Saudi Arabia to maintain orthodox customs against Islam – the religion of peace and equality per natural creation is an avenue for subjugation in society.

Theological subversions through madrassas in Pakistan or Zionism in Israeli occupied Palestinian West Bank and East Jerusalem contributes to acrimony.

Religion used for malefic intent is sacrilege inevitably affecting the source and instruments in accordance with natural process of reaping what one sows in life.

The irony in post-industrialization era is the decline of tolerance and acceptance with class, creed and gender bias dominant in modern civilization regardless of education, technology and economic advantage.

Social progress measured by economic standards in the absence of moral, ethical and human values is hindrance to humanity prospects for elevation beyond materialism leading to spiritual enlightenment.

Shifting focus on U.S. and NATO strategy in Pakistan with provincial secession movement underway in Baluchistan and Sindh… presumably instigated by western intelligence,

The democratic and military leaderships in Pakistan demand for complete U.S. withdrawal is justified following NATO encroachment killing 24 Pakistan soldiers and Abbottabad mission in 2011.

The possibility for any terror groups, drug cartels and nefarious elements to thrive is remote provided government policies are directed towards nation building devoid of corruption.

Besides effective proactive domestic measures without compromising civil rights in conjunction with intelligence and law enforcement role would eliminate crimes and opportunity for foreign intervention.

Poignantly, state sponsored terrorism is the contemporary enigma for global society.

Waging wars under false pretexts ignoring casualties and international law.

Government crackdown on peaceful assembly and political dissidents subjected to abuse of power.

Legislative actions calling for access denial to cyberspace under the guise of protecting local interests.

Citizens dilemma is dismantling infrastructure with foundation laid on greed, corruption and ideology serving the nexus misguided aspirations at the vast majority peril.

Collectively the task could be undertaken to elect leaderships and representatives meeting the eligibility criteria – integrity, intelligence combined with commitment to public and national service.

Individually the desire for sacrifice originating from compassion would promote peace and harmony within and outside.

Global security is largely dependent on political and economic freedom that guarantees social justice.

Leaderships’ dedication to world peace and cooperation in improving life for all is required to address the manufactured complexity.

Life is purposeful upon kindling the spirit of oneness expressed in alleviating others pain and suffering.

Human potential expended in constructive outcome enhances the quality of life experienced in science and technology.

Such investments in politics and behavioral sociology would deliver positive returns and a paradigm for the future.

Pursuing peace over war is the only meaningful and rational approach to safe existence.

Life is to be cherished and celebrated and not inflicted harm for personal goals.

Wishing success to crusaders of peace and human rights in the world.

Peace to all!

Thank you.

Padmini Arhant

 

 

 

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Pakistan – International Peace Conference Bonn, Germany

December 5, 2011

By Padmini Arhant

The latest developments in the U.S and Pakistan relation are:

NATO advised to cease activity near Pakistan and Afghanistan border specifically territory inside Pakistan in recognition of sovereignty and,

Significantly United States has begun vacating Shamsi air base in Baluchistan – the location used for drone attacks in Pakistan.

Similar action from United States in exiting other air bases within and around Pakistan would address Pakistan’s legitimate concern towards illegal occupation in a sovereign nation.

Nonetheless, the U.S initiatives in this regard are noteworthy with due acknowledgment to President Barack Obama as well as the U.S and NATO military command in the region.

Meanwhile, the current international peace conference held in Bonn, Germany to review Afghanistan future following U.S. and NATO departure is pivotal for regional stability.

United States invitation to Pakistan for valuable contribution is a unique opportunity to demonstrate Pakistan’s commitment towards peace and accepting responsibility in remaining instrumental to Afghanistan’s progress that would directly benefit Pakistan.

The political turmoil and continuous warfare in Afghanistan pervasively impact the neighboring nations particularly Pakistan forced to deal with containing violence as constant priority due to internal terror and cross border insurgency.

As a result Pakistan investments are diverted to combat zone rather than civilian projects diminishing nation’s prospects to compete effectively in the global economy.

U.S. and NATO troop withdrawal from Central Asia and Indian sub-continent would facilitate peace provided the electoral process is not invalidated with foreign power appointed governments for exclusive interests.

Afghanistan’s struggle begins with rural, tribal and the lower income to middle class in the urban areas vulnerability to political system lacking in credibility.

Although politics and corruption are inseparable in practice,

Afghanistan economic output largely affected from systemic abuse of power at various government levels and bureaucracy thriving on bribery and funds funneled from poppy cultivation.

The culture eroding youth aspirations for nation building ultimately end up serving extreme ideological groups opposed to unscrupulous dysfunctional governance with misplaced loyalty.

Furthermore, the foreign dominance with massive troop deployment with no definitive strategy to leave the nation –

Even though the 2014 time table more likely adapting Iraq situation to remain operative through behind the scenes political maneuver and threats exacerbates the situation for the war fatigued population.

Pakistan sharing the experience in this context is in a position to expedite complete termination of foreign occupation not only in own soil but also beyond Afghan borders spreading into Central Asia.

Unless Pakistan participates in international meeting and engage in dialogue with candor,

The efforts to safeguard sovereignty and avert recurring skirmishes potentially looming into major catastrophe would be futile –

Perhaps leading to regrettable lost moments in diplomacy.

Pakistan leaderships – President Asif Ali Zardari and Prime Minister Yousaf Raza Gillani are urged to set aside the recent rift between Washington and Islamabad.

Instead reciprocate to diplomatic course by participating in Bonn conference for insightful input.

Abstinence from international summit only escalates tension that could be easily avoided to pursue strong economic relationship with participants during session.

Besides the event provides Pakistan to play crucial role in redefining terms on security along with presenting anticipated information on measures adopted to eliminate terror networks undermining military, intelligence and civil society in the country.

It is sincerely hoped that Pakistan would grace the occasion by honoring United States and other attendees’ request to join them in the discussion on Afghanistan and regional matter.

Best Wishes to Pakistan, Afghanistan, United States, India and other members for successful outcome at the Bonn Conference.

Peace to all!

Thank you.

Padmini Arhant

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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G-20 Seoul Summit 2010

November 14, 2010

By Padmini Arhant

The G-20 Summit was held in Seoul, South Korea on November 11 – 12, 2010.

Among many important economic issues, the trade imbalances and currency devaluation had drawn the representatives’ attention.

The two leading economies – U.S. and China expressed concerns over the respective trade surpluses and deficits attributed to currency management.

Likewise, the U.S. Federal Reserve proposal to interject $600 billion for economic revival expected to weaken the U.S. dollar while strengthening exports was met with resistance from competing trade partners such as China, Germany, United Kingdom, Brazil…citing the undue advantages to U.S. in the overseas export market.

It is well known that China has benefited from maintaining renminbi under market value boosting its trade to different nations especially the United States due to MFN and the primary creditor status.

Accordingly, China’s trade surplus would be different when evaluated in real market conditions.

If United States were to pursue similar trend with Federal Reserve intervention then both economic powers would essentially contribute to trade anomalies with their trading partners across the globe.

The arguments on both sides are valid in terms of the policy’s impact on the individual and global economy. Arguably the importing countries, developing nations in particular would be drastically affected with cheaper exports flooding their market giving rise to trade deficits and inflation.

Balance of trade between nations enhancing mutual economic prospects is critical in the competitive global environment.

Therefore, the G-20 leaders’ general agreement on this issue to move toward market determined exchange rate systems deterring currency devaluation and exchange rate or capital flow volatility is a sensitive measure in dealing with trade or currency related disputes.

United States as a consumer economy with Germany and China being the export economy is another contentious issue demanding necessary adjustments to the disproportionate trading activities.

Further, U.S. economic recovery is vital for the global market dependent upon U.S. consumerism and offshore capital investments.

The advanced economies could perhaps share the burden with the United States by allowing imports from low income countries and entry to US manufactured high end goods in return for their shipment to US shores.

At the same time, U.S. targeting the emerging and developing nations for exports has a greater responsibility in adopting fair trade practices rather than free trade impositions such as NAFTA, DR-CAFTA…that is proved to be devastating for the vulnerable population in these regions.

The globalization concept is conspicuously embraced at the meeting with pronounced commitment to reject protectionism.

Yet, the irony is the trade and currency wars prompting decisions to stimulate domestic growth through local demand and supply as stated by China as well as the industrialized nations’ fervor to compete for national productivity unequivocally confirms protectionism.

Since the globalization era, the government and business focus has shifted from their domain to international markets as experienced in the United States that led to the manufacturing sector demise eliminating blue collar jobs and ultimately having a ripple effect on other industries especially the small business economy.

Additionally, the globalization woes were not restricted to the alarming unemployment in the United States and elsewhere. The financial sector deregulation for over three decades resulted in the worst hedge fund mismanagement nearly bankrupting the interlinked economies in the prevalent globalization.

As for the struggling economies, globalization through treaties deprived agriculture and small scale industries survival witnessed in Haiti, Mexico, other parts of Latin America and Africa.

Globalization is effective when trading between nations promotes economic growth for all unlike the purely profit oriented corporatization of developing nations for cheap labor and natural resources that mostly benefits the big corporations wielding power on the political systems.

Hence, protecting the agriculture, SME (small and medium enterprises), independent entrepreneurships is crucial for realistic economic gains and in achieving the UN adopted Millennium Development Goals.

In this respect, the G-20 Financial Inclusion Action Plan, the Global Partnership for Financial Inclusion and a flexible SME Finance Framework providing increased access to financial services and expanding opportunities for poor households and SME is praiseworthy.

Simultaneously, the IMF and World Bank elaborate coordination in assisting the national and regional economies is an important step to mitigate disparities and alleviate vast majority suffering.

However, the G-20 assurance translated into action could significantly improve the economic standards of the rapidly deteriorating middle and low income groups in the global society.

The G-20 strategies for the finance industry with a new financial regulatory framework comprising instruments and practical tools to avert the repeat erroneous undertakings,

Notwithstanding the oversight and supervision amid several preventive adaptations with financial assistance is a formidable structural reform.

Besides the macro prudential plan on fiscal, monetary, economic and trade policy to expedite economic and job resurgence would be comprehensive in addressing the universal challenges emanating from the complex global transactions.

The debate on deficit control and economic stimulus programs reflected the stark contrast positions across the Atlantic with Europe’s preference to slash national debt through austerity and U.S. reliance on deficit spending.

Although both methods are relevant in debt reduction and economic growth acceleration, extreme measures are counterproductive with an inevitable setback in the desirable objectives.

Adopting moderate course to obtain steady growth and deficit decline would guarantee the anticipated outcome.

Poignantly, France pension legislation passed despite the overwhelming public disapproval based on the bill’s detrimental effects is representative of mandatory implementations without due diligence not to mention the utter disregard for the republic financial security and personal well-being.

France government action to safeguard the minority interest at the majority plight is a misplaced priority exacerbating rather than resolving the economic situation.

Unfortunately, now the U.S. Congressional Republican members’ pledge to replicate the French authorities’ act by attacking Social Security and prolonging retirement age signifies a pattern designed to reverse progress.

American citizens across the political spectrum have a moral obligation to defend the retirement savings through Social Security. The elected officials attempt to jeopardize the only reliable source of income would drive the economy to the point of no return.

Regarding climate change – The G-20 affirmation to safeguard the marine environment is notable but the unwillingness to renounce fossil fuel use poses an impediment in combating global warming.

The unanimous clean energy application throughout the world is the only alternative to life sustenance on the planet.

By and large, G-20 scope to limit risks in the financial sector, stabilize the global financial markets, build a job generating economy, narrow the development gap, eradicate corruption, facilitate modern infrastructure are among the impressive immediate aspirations.

G-20 future meetings could broaden the aspects by specifying the programs in fighting hunger and disease through food distribution and affordable health care at the national and global front.

The political and business leaders’ consortium to recognize failures and devise constructive policies is commendable at the G-20 Summit.

Cooperation and sincere involvement for greater good would enable the G-20 nations in delivering the promise to the world.

Good Luck and Best Wishes to the honorable world leaders in reaching the milestones on global peace and prosperity.

Congratulations! To South Korean leadership on the successful G-20 summit hosting.

Thank you.

Padmini Arhant

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

Euro Crisis and Impact on Global Financial Markets

May 27, 2010

By Padmini Arhant

It originated in Iceland with the pervasive subprime mortgage factor and similarly affected other economies like Ireland, Greece, Portugal and Spain, referenced as PIGS.

Although, every nation in this category share the contaminated ‘derivative’ traded internationally, the lack of deficit control with the national budget exceeding the GDP growth also contributed to the meltdown and subsequently reflected in the poor credit rating.

More prominently, Greece identified with:

“Goldman Sachs between the years 1998-2009 has been reported to systematically helped the Greek government to mask its national true debt facts.

In September 2009 though, Goldman Sachs among others, created a special Credit Default Swap (CDS) index for the cover of high-risk national debt of Greece. This led the interest-rates of Greek national bonds to a very high level, leading the Greek economy very close to bankruptcy in March 2010.”

The culmination of internal and external mismanagement primarily led the Mediterranean economy to the brink of collapse seeking bailout from the European Central Bank (ECB), EU and IMF.

European Union was challenged with a predicament in the Greece bailout to either ignore the problem or address it to avert the contagion in Europe.

Since Greece is an EU member using the reserve currency euro in the 16 of the 27 states representing the eurozone, the former alternative would have had serious ramifications.

Besides, the euro being the second most traded currency in the world after the U.S. dollar; it has multifaceted impact on the financial markets dealing with high volume trading especially in the futures exchange.

The industrialized and emerging economies are in a bind with the euro value reduction, due to the competitiveness expansion in export trade. For example, the export oriented Germany is at a competitive edge with the United States, Japan and China irrespective of Germany specializing in high end industrial and heavy machinery equipments.

Hence, the euro crisis upside is the European nations gaining export affordability.

Accordingly, the emerging economy and the major U.S. creditor China is concerned about the potential split in global market share and availing the opportunity to reject the U.S. request for currency (renminbi) value adjustment, which has been set below the market determination despite China’s extraordinary trade surplus.

China’s currency, renminbi (RMB) or yuan (CNY) has been withheld from floating as the international currency in the foreign exchange market to protect the status quo.

At the same time, the positive aspect of the dollar appreciation is omitted in the evaluation and that being the foreign investments in U.S. dollars particularly the Treasury bills held by China is strengthened in value and guarantee long term security in futures contract.

Financial stability measures adopted by EU, IMF and ECB with approximately one trillion dollars of which a conditional rescue loan worth $110 billion to Greece is approved to reverse the negatives in the financial markets reacting to the euro downslide from the unsustainable government debts and deficit level.

Had the eurozone requirement on its union members to keep deficits below 3 percent of GDP maintained, Greece and other struggling economies need not have been subject to harsh austerity strategies that has resulted in protest among the mainstream population in Greece and Ireland.

Regardless, the current global financial crisis calls for wasteful expenditure elimination and the national budget review to direct investments in high value returns.

Appropriate actions involving tax hikes and spending cuts are necessary to balance the budget.

However, spending cuts targeting the fundamental programs inevitably generating revenues through productive workforce and consumers is counteractive.

Restoring essential programs and services for the job creation and preservation, youth education, citizens’ health care, social security, safe and clean environment nurture healthy and middle class society to ease the burden on the top 1% or 10% wealthy taxpayers in different economies.

Most importantly, the defense budget consuming a significant proportion of taxpayer revenue in the prolonged wars could be divested to peaceful and profitable opportunities benefiting the citizens at the domestic and international front.

The ideal solution for the European Commission and the monetary union to avoid rising deficits in Europe without compromising the member states’ sovereignty in their national fiscal policy decisions would be to establish an independent, non-partisan committee by the states to examine the individual spending and tax plan, rather than the centralized monitoring or the neighboring authority verifying it.

Further, the constitutional amendment by Germany to contain the deficit to 0.35 percent of GDP by 2016 provided the higher deficit not attributed to GDP decline is a trendsetter in curbing the economic crisis.

In concurrence with the economic experts’ advice – The ECB expediting the credit approval on government bonds used as collateral upon qualifying the self-regulated constitutional limit on deficits is prudent in deterring broad speculative lending activities.

Alongside, the EU sweeping financial reform with tough standards against the hedge fund managers including the two proposals by German Parliament:

Global financial transaction tax and Financial activity tax focused on CEO’s Personal Income & Bonuses are effective steps with the exception of the global financial transaction tax because it is eventually transferred to the end-consumer and may not be a viable option for all participants.

Nevertheless, international agreement on financial regulation by G-20 and other nations is crucial in order to emerge from the existing crisis and prevent the future economic recession.

The systemic risk in the multi trillion dollars ‘derivatives,’ that caused the financial debacle in Europe, Middle East (Dubai), North America, Asia and elsewhere demands stringent policies and independent investigations on fraudulent ventures.

The financial overhaul passed by the U.S. Senate last week has been under scrutiny by analysts with mixed response and elaborated in the article titled:

“New Financial rules might not prevent next crisis – Associated Press, Sun May 23rd. 2010 at 3.55 PM EDT. Reported by Jacobs from New York and contributed by AP writer Jim Drinkard.”

Unequivocally, closing the loopholes as detailed in the cited article and other reports is paramount to establish a financial system free of K street influence.

The apparent revolving-door relationship between Wall Street and Capitol Hill in which employees and consultants have moved in and out of high level US Government positions, with the prevalent conflict of interest is a hindrance to any legislation.

Only the electorates with the voting power in a democracy can remove the persisting obstacles by rejecting the special interest representatives in politics against meaningful legislation.

People as the consumers, taxpayers and voters are the ultimate force in achieving the progress for common good.

Thank you.

Padmini Arhant

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California Status Quo under Republican leadership

February 5, 2010

By Padmini Arhant

Courtesy extended to enlighten the ignorant and the oblivious presenters representing the selective news media.

California economic and social calamity is falsely attributed to the “liberals” in the state by the illusionists in the magic kingdom.

Therefore, it’s important to dispel the myth and introduce sanity in the political discourse.

Being compelled by civic duty to lay facts against fiction – pervasive with respect to the California state affairs, the following data is presented for accuracy.

Fact Check: Source – wikipedia.org – Thank you.

The current governor is Arnold Schwarzenegger, a Republican who was elected on October 7, 2003.
He was reelected on November 7, 2006.

His current term will expire on January 3, 2011.

The Governor of California is the highest executive authority in the California state government, whose responsibilities include making annual “State of the State” addresses to the California State Legislature, submitting the budget, and ensuring that state laws are enforced.

*The Executive Budget – The governor has the final responsibility for preparing and submitting to the legislature an annual budget containing most of anticipated state income and expenditures.

The final budget requires a two-thirds approval of the legislature.

* The Veto – The governor has the option to veto a bill within 12 days after being received from the California State Legislature. The Legislature can override a veto by a two-thirds majority vote in both the Assembly and the Senate. The governor may exercise a line-item veto, rejecting individual items in any appropriations bill.
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A Californian Perspective – By Padmini Arhant

Regarding “The final budget requires a two-thirds approval of the legislature” – The Republican minority have successfully derailed legislation proposal to revive the state economy resulting in an embarrassing prolonged budget crisis.

Californians’ interest on every issue ranging from job creation, education, health care, energy to environment has been rejected by the Republican members due to the pesky ‘two-third’ legislature approval.

The republican minority in the State of California emulates their counterparts in Capitol Hill and takes enormous pride in the California Status quo, i.e. successive budget deficits with no revenue based on ideological stance against tax increases on wealthy corporations and individuals.

Furthermore, the republican fiscal policy dictated by the doctrine:

“Ready my lips, No New Taxes.” That cost the former President George H.W. Bush his second term – is the formula widely used with the draconian cuts affecting the large consumer population from the younger to the older citizens in the state and across the nation.

In the absence of pragmatic approach to the burgeoning economic crisis,

The “Golden State,” is now a bankrupt state under Republican leadership with a state deficit at a staggering $19.9 billion and still bleeding because of the dominant Republican ideology in the State Assembly and legislature akin to the republican representatives’ performance in the United States Congress.

California has been under Republican duress regardless of the party ratio. The State Treasury is forced to issue I.O.U’s to creditors and furloughs (mandatory reduction in working hours) to the state employees in the year 2009 and 2010.

In addition, California being the eighth largest economies in the world is governed by clueless Republican leadership determined to drive the state economy over the cliff with the Republican candidates vying for the governor position to exacerbate the crisis, otherwise to accomplish the task.

Similarly, the Republican candidate – the Hewlett Packard former CEO, Carly Fiorina competing for the U.S. Senate against the incumbent – Democrat Senator Barbara Boxer, is conspicuously avoiding the public furor over the massive layoffs carried out under her management, reportedly leading the company to the brink of insolvency.

Conservative media and press is aggressively engaged in camouflaging Republican leadership and the minority representatives’ flaws by denigrating the democratic majority in California, dealing with a similar dilemma experienced by the fellow democrats in the Capitol Hill.

With democracy undermined during the national and state elections and expected to worsen with the Supreme Court conservative justices’ decision, it’s necessary for the Californians and the rest of the nation to be discerning in the media propaganda targeting the captive audience and concerned citizens.

Democracy is meaningful with citizens’ participation in the information process to counteract the widespread rumors, distortions and fear mongering tactics applied to evade responsibility in various discipline – predominantly by the controversial news media anchors/talk show hosts and last but not the least the selective legislators as the elected representatives.

Citizen reaction and involvement is the effective means to bring about the ‘Change,’ desperately required in the state and national politics.

Reality being – the political decisions or the lack thereof determine the ‘average’ citizens present and future.

So, please remain alert and exercise your democratic rights by calling your representatives to perform their duties for which they were elected to the public office.

Democracy thrives with the well-informed electorate.

Thank you.

Padmini Arhant

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American Democracy at Work

February 5, 2010

Dear Fellow Americans,

The health care legislation is being stalled in Congress by the legislators on the special interests’ payroll.

Despite being well informed on the horrendous economic liability accumulated to our national debt from the abominable health care costs and that an estimated 45,000 Americans are dying every year due to lack of health insurance, these legislators simply don’t care about these facts because they feel secure about their job.

Is American Democracy so weak that you will take a “NO” for everything that concerns your interest from the party of “NO” aka GOP, The Grand Obstructionist Party and the special interest loyalist on the democratic side?

C’mon America, show your power. Call your local representatives in the House and the Senate and demand that you want the health care legislation now.

Remember, the crying baby is the one that gets the mother’s attention.

Thank you.

Padmini Arhant

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Response to President Barack Obama – Re State of the Union Address

February 5, 2010

By Padmini Arhant

Hon. President Barack Obama
Washington, DC

Dear Mr. President,

I appreciate you sharing your concerns and the strategies to revive the economy, the priority for the democratic Congress.

The Democratic Party has suffered major setbacks in the recent elections and obviously, the trend cannot continue in the 2010 elections – for the work to rebuild our nation has just begun with your Presidency.

Considering the American plight particularly in the job front, the economic measures taken thus far by your administration is reassuring and the challenge lies in the legislation approval, amid lack of cooperation from the Republican members in Congress.

Although, you are earnestly seeking bipartisanship in the legislative process, the opposition is utilizing the cynical response to stall progress for political reasons especially in the election year.

They understand that their delaying tactics would let the steam evaporate leaving the charred inaction on national issues becoming a political liability for the democratic majority.

When in fact, the responsibility or rather the blame squarely lies with the trouble makers on both sides and they deserve to be voted out of power.

Needless to say that, the Democratic Party under your leadership and the distinguished members in Congress have a great opportunity to accomplish the immediate and long-term goals for our country provided, we remain steadfast in our objectives and confront obstacles through result-oriented actions.

As you stated eloquently in your State of the Union Address, people can no longer survive on rhetoric and the time is running out for the members of both political parties. It is not that people have no patience.

When the situation is desperate with many families struggling to make ends meet in the harsh economic times, the public trust is won by delivering the most required solutions to the current problems and that being job security, housing as well as affordable health care.

Despite the Supreme Court conservatives’ decision potentially causing impediments in free and fair elections, the grassroots support could be earned by staying on course in dealing with the economic woes confronting our nation.

We cannot ignore the external threats through lobbyists and their representatives to block legislations. It’s reflective of their insecurity in the wake of unprecedented call for reform in Washington.

Therefore, it’s up to us to demonstrate our resolve and integrity to stand by the people and do what is right for them. Your economic policies to help small businesses, middle class and students are prudent.

Similarly, it’s important to provide jobs for the blue-collar workers in the manufacturing sector, who are facing equal hardships due to massive layoffs from the economic recession and globalization.

With respect to health insurance, I understand the hostility surrounding the issue from the expected sources. However, I still think it’s imperative to move ahead with a public option for economic viability and social equality.

It would not only prove our determination to succeed in closing the widening gap between the haves and the have-nots but also strengthen public confidence in the Democratic Party as achievers.

Once the legislations are passed and the opposition is made aware of our intention to proceed in the tasks ahead regardless, it will weaken the opponent’s resistance to issues dedicated in improving average American lives, not to mention the culminated risks for them in the coming elections.

Further, prioritizing public needs over the industry demands is the key to electoral victories evidenced in the Massachusetts election with a political mandate to perform in people’s interest and focus on the national progress in economy, health care, education, energy and environment.

I commend you and your administration for the excellent work in the budget preparation. Nevertheless, implementing the policies efficiently is crucial to gain credibility. Again, I’m not going to pretend on the uphill battle in the legislative matter.

Sometimes, one has to adopt the tricks of the trade practiced by the opposition when they were in a majority i.e. passing legislations through reconciliation process etc.

I reiterate that adopting republican strategies in the legislative process cannot possibly cause an uproar among the conservatives on both sides, for it would prove their double standards and the priorities in pubic service.

If it’s good for the goose, it’s good for the gander!

As stated earlier, the purpose of my political involvement is to be the voice for the weak and the oppressed. My passionate expression is to reveal the frustration among the victims at home and overseas.

Your tremendous efforts will come to fruition and I’m working with you alongside to promote the policies developed to change the status quo.

Adversity often drives down motives. During this period, the people are vulnerable to propaganda, and as we know, it’s available in abundance.

That’s why, it would be helpful for democrats appearing on radio and television networks including the cyberspace to remind the electorate constantly of your administration’s past year achievements, present targets and future vision.

In addition, updating official websites with credible data on employment, education, health care and other issues would keep the electorate well informed as opposed to being misinformed by the opposition media.

Otherwise, transparency and accountability will go a long way now and during the elections. I’m tirelessly engaged in the humanitarian cause and trying to assist the people in alleviating their suffering.

I extend my unwavering support to your Presidency, Congress members and the Democratic Party, with the hope that every action is devoted to benefit the people and not the governments or corporate power at home and around the world.

Besides, I firmly believe that bringing more progressives into the Democratic Party is always best, for it’s easier to triumph in the legislative affairs of the people. They are also more amenable to work for common good.

You mentioned to me that you’re not a quitter, but a fighter. I believe you and you need to prove that to the American electorate. The health care reform is the place to start in proving the democrats’ ability to move the nation forward.

Rest assured I’m with you and the Congress in reaching these milestones.

I wish you success in all your endeavors.

Thank you.

Sincerely,

Padmini Arhant

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

President Obama’s $3.83 trillion Fiscal Budget

February 3, 2010

By Padmini Arhant

President Barack Obama unveiled his 10-year macro budget with various economic commitments.

2011 Fiscal Budget is projected with the total revenue $2.56 trillion and total spending @ $3.83 trillion leaving a deficit @$1.27trillion.

According to the impressive layout from the article:

Budget outlook: Budget deficits Published By Jackie Calmes – New York Times and,

Presented by San Jose Mercury News – February 2, 2010 – Thank you.

Targeted Revenues – $2.56 trillion

Individual Income Taxes – $1.12 trillion predominantly derived by ending the extravagant tax cuts allowed to wealthy individuals during the prior administration rule for e.g. the couples making over $250,000 and individuals earning above $200,000.

Corporate Income Taxes – Tax increase on wealthy corporations – Expected income – $270Billion

Social Security and Payroll taxes – $935 billion

Excise taxes – $74 billion

Custom duties – $27 billion

Estate and gift taxes – $25 billion

Other $87 billion
————————————————————————————————–
Budget Spending – $3.83 trillion

Mandatory Spending:

Interest on debt $251 billion

Other – $ 648 billion

Medicaid – $297 billion

Medicare – $491 billion

Social Security – $730 billion

Discretionary Spending:

Defense – $895 billion

Other – $520 billion
——————————————————————————————

Views and Analysis: By Padmini Arhant

The budget’s focus on two most important factors unemployment and the lack luster consumer spending, responsible for slow economic recovery – is a major step in reviving the sluggish economy.

Unemployment addressed by providing $100 billion to boost the small businesses, medium corporations, middle class, social safety net programs, aid to state and local governments and expanding federal student loan program to enable the Pell grants for easy eligibility would remarkably tackle the national double-digit jobless figures.

Since President Obama pledged to reverse the trend by converting the U.S. market, presently a supersize importer to a profit-oriented exporter, the details on the manufacturing sector are missing.

Manufacturing being deeply hurt in the economy with jobs shipped to China, the blue-collar workers in this area require massive attention as the others in the construction industry. Unless there is a provision already made in the $100 billion fund.

The budget provides further economic stimulus through tax credits to average income families –
$400 for individuals and $800 on combined income including tax cuts for workers and other businesses through 2011 – An enormous supplement towards consumer spending and job creation.

Tax cuts to big businesses should be conditional upon preservation and creation of jobs in the national economy.

Federal aid to state and local governments should contribute to the national GDP considering the severe state budget crisis that has directly affected the public services such as education, health and environment suffering serious job losses from the state spending cuts.

Soaring annual deficit expected to be $1.6 trillion for 2010 due to burgeoning economic crisis dropping to $1.3 trillion in 2011 and, then onwards remaining high based on the rising health care costs and retirement programs for the baby-boom population.

The President’s effort in this regard should mitigate the deficit largely through proposed strategies
and they are –

Slashing funding for numerous redundant programs and freezing discretionary spending for three years.

Raising fees, taxes on banks and the wealthy.

According to the reports, the President approach towards a comprehensive deficit-reduction plan is to set up a bi-partisan commission represented by the lawmakers from both political parties and budget experts. Their task is to involve a package consisting tax increases and spending cuts to slash deficits as well as stabilize government borrowing by 2015.

Although, the Republican lawmakers had initially agreed to the measure, they later defeated the President’s bi-partisan commission plan and retracted from their position confirming the Republican members’ traditional partisanship towards the democrat President.

Despite the setback, the President’s decision to move forward in this regard is wise and the American electorate must remember the Republican members’ refusal to cooperate for the national interest, i.e. alleviating the national debt burden on their children, in the 2010 elections.

Criticisms against the President’s position on Medicare and Medicaid as the entitlement programs and tax revenues not adjusted against the annual deficit reduction by paying down an accumulated debt do not serve the economic viability, but only offer sound bites in the political discussion.

Again, deficit reduction is paramount and it should not happen at the cost of the vulnerable population – the senior citizens and the poorer families who are otherwise the consumer taxpayers.

In terms of paying down the national debt, it could be adjusted from the inevitable economic growth through vast investment in job creation and consumer spending.

Bi-partisan consensus on the economic revival as the immediate priority is oxymoron, if the administration is not allowed to expedite the process through aggressive policies combined with direct interjection of funds into the revenue sectors.

War spending in the amount of additional $33 billion and a total budget $160 billion for the two simultaneous wars in Iraq and Afghanistan is an area that could be drastically modified with a concrete exit strategy from both territories in the near future.

Iraq troop withdrawal this summer has been committed by the President and the savings from it could be utilized in paying back the national debt as it would result in the return savings via interest payment contraction on the borrowings.

Passing the health care legislation with a government insurance program should unequivocally cut the health care costs and decrease the deficit because of the widely acknowledged health care expenditure draining the present economy. Even more reason to introduce the public option in the legislation to minimize the projected escalation in health care spending cited above.

Other areas aimed at reducing national deficit are the cutting and eliminating minor domestic programs and major military equipments.

Raising taxes on big banks and oil companies is an effective means to earn income and a long overdue transformation from the Bush-Cheney era.

The White House being optimistic in cutting the inherited deficit in half by 2013to slightly over 4 percent of the GDP juxtaposed to the projected $1.3 trillion deficit exceeding 9 percent of the GDP at the dawn of Obama Presidency highlights the stark contrast in economic policies between the two administrations.

Overhauling finance and energy sector in addition to the health industry would yield the desirable outcome in the national debt decline.

Allocating necessary funds towards education, science and research, food and drug safety, NASA space programs innovation and climate change legislation reflect short and long-term aspirations.

Concerns over sustainable deficits in the long run are justified. At the same time, the confidence in the guaranteed economic boom is disappointingly low especially after successful intervention to avert the financial collapse in the year 2009 that stabilized the stock market up until now, apart from dealing with other economic woes.

“Limited long-term solutions in the budget expressed by the skeptics” – They fail to view the entire picture in detail that ensures the economic security throughout the decade and beyond primarily owing to the robust fiscal policy adopted in the budget.

In fact, it’s possible to balance the 2011 budget with a shortfall exacted at $1.27 trillion.

Defense spending $895 billion is blown out of proportions and require trimming.

Discretionary ‘other’ spending $520 billion upon careful review could lead to huge savings.

The combined total for these two expenses are $1.4 trillion that could be easily restrained to below trillion dollars for the prolonged deficit sustainability.

On the revenue side – Corporate Income Taxes estimated @$270 billion is relatively low for the world’s leading industrialized nation with U.S corporations playing a prominent role as the multinationals offshore. Therefore, the Obama administration could close loopholes in the tax evasion through tax haven and extract more income to reduce the deficit.

Foreign Corporations in the United States should be evaluated for their operation in promoting local employment against enhancing economic prospects to their country of origin.

Likewise, in excise taxes and custom duties – the tariff and import duty revision on overseas items could produce additional revenue.

Similarly, updating the estate and gift taxes including the ‘other,’ is an opportunity to extract more income.

President Barack Obama and the administration have prepared the budget diligently. It deserves praise and credit for the broader vision. The economic recommendations are solid while remaining essential.

However, a daunting task is the legislation on national issues such as health care, finance and energy crucial to contain the agonizing deficit. The grueling legislative process is dominant in opposition and weak in positive action.

Therefore, the opposition from both sides of the aisle must work together with the majority in resolving the economic crisis to benefit the people across the political spectrum.

People should coalesce nationally in this respect and help President Obama and Congress in seeking legislation approval on the listed national issues from across the political aisle, particularly free of filibuster threats.

Perhaps, bust the filibuster movement is imminent.

The legislations are urgently needed for instant economic relief.

Finally, the fiscal budget has –

Remedy for the past problems, Solutions to the present challenges and Investment in future goals.

Thank you.

Padmini Arhant

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

State of the Union Address by President Barack Obama

January 29, 2010

By Padmini Arhant

President Barack Obama presented the first State of the Union address to the joint session of the United States Congress.

Appropriately, the core message was about the economy and the various proposals to revive the nation from the prolonged economic recession that began in 2002.

Attention to the small businesses, students and the average American families who represent the significant consumer base is timely and the commitments are economically viable.

The tax cuts to Corporations preserving American jobs is a necessary strategy to deal with the double digit unemployment risen to the current rate by 2.6 percent, since inheriting the 7.6 percent rate in January 2009 when the former President George W. Bush and Vice President Dick Cheney left office.

In fact, the $787 billion funding towards President Obama initiated American Investment and Recovery Act helped to contain the economic crisis and the unemployment to a marginal increase against the financial sector avalanche.

There was a large emphasis on education to improve Math and Science skills among K-12 students.

In addition, the President laid out the programs to ease the burden on the students attending Community College through tax incentives, affordable loan payments, increasing Pell Grants and even enticing them to join public service in exchange for the loan adjustment. Of course, the families were included with a $10,000 tax relief for their children’s college education.

As highlighted by the President, sound education is the stepping-stone to progress and prosperity in a society and the effective means to reduce poverty. Also, it would decrease the prison population that is straining the state budgets like in California.

In social issues – the President pledged to repeal the ‘don’t ask don’t tell,’ discriminatory policy in the United States military against the gay service personnel who are equally dedicated in their patriotic duty. A remarkable recognition and long overdue.

On the discretionary budget-spending freeze scheduled to begin in 2011, it’s relieving to note that the safety net for the retirees and senior citizens available through social security, Medicare and Medicaid for the low-income families would not be affected.

However, it’s essential to apply tighter control on the defense spending that is disproportionately increasing against health care, educational and environmental cause regardless of party representation in the White House.

The President urged both parties in Congress to rein in wasteful spending in the form of earmarks or pork barrel – It’s necessary to be discerning in the expenditures given the accumulated national debt.

Job creation through public projects such as high-speed railways and infra structure maintenance is coherent with the former President JFK’s achievement in connecting America from coast to coast.

It’s a worthwhile investment and pervasive in dealing with the energy and environment issues.

The President is right on target in this respect due to multiple benefits on these projects viz.

First, it would decrease unemployment and boost the economy simultaneously.

Second, it enables energy conservation with mass transit possibly becoming the desirable public transportation, besides having a positive environmental impact.

Third, from the health standpoint – the automobile accidents being the leading cause of premature deaths and often leaving the victims with horrific physical injuries in the industrialized countries, the proposed system is a preventive measure in that regard.

Moreover, the stress factor that is common among the motorists could be eliminated as well.

Last but not the least; the local economies would enormously gain from an efficient public transport system attracting tourists within and outside the country.

It’s gratifying to note the President’s affirmation on the health care reform – Echoing the President’s message – Health care legislation cannot wait indefinitely for it’s proved to be a burgeoning crisis contributing to national deficit due to horrendous costs not to mention the loss of lives.

The President also detailed on the financial reform that ought to be implemented to save the domestic and the global financial markets from major catastrophes in the future. It’s crucial for the legislation to be loopholes free to deter the industry from circumventing the rules and regulations.

With respect to the on-going wars in Afghanistan and Pakistan, the capturing and killing of terrorists might be a partial success for the military operation. Nevertheless, terrorism emanating from despair and desolation cannot be eradicated with military might and sophisticated drone attacks.

In the absence of a functional government facilitating basic necessities like clean water, agricultural and industrial growth, education, health care and social equalities that guarantees freedom to live life with dignity, the regions will continue to be the breeding ground for terror.

The President fulfilling the campaign promise on troops withdrawal from Iraq by this summer deserves praise and credit. Again, the veterans returning home after a traumatic combat situation have to be suitably provided for their settlement in the civilian environment. These patriots and their families cannot be abandoned after their sacrifices for the nation.

Warning the rebels in Iran and North Korea on nuclear programs is warranted. But, the successive failures in the multilateral talks in 2009 and 2010 among the 6 powers including Russia on Iran’s nuclear program suggests the inherent mistrust and power struggle conspicuous in the United Nations Security Council.

Reiterating the earlier suggestion, the solution to resolve the international crisis on different fronts is to expand the U.N. Security Council from 5 to 11, with the inclusion of new and conciliatory members like Japan, Brazil, India, South Africa, UAE and the present defacto member, Germany.

In other international crisis, even though the Israeli Palestinian conflict was not part of the address, the President responded to a town hall participant’s question on this issue.

Despite Israel being the United States strongest ally and the political predicaments prevalent more in Israel than Palestine, Israel’s settlement expansion along with brutal occupation and humiliation through check posts in Palestine must be condemned unequivocally to reflect fairness and United States commitment to an independent two state solution in the region.

To summarize the first State of the Union address by President Barack Obama, the content was relevant with the economy being the primary focus and the well-articulated objectives strengthened the urgency to act on the issues confronting the nation.

The presentation was immaculate for it had the measured composure and at the same time the passionate delivery revealed empathy, resilience and resolve to energize the party members and the democratic base especially after being let down in the preceding political upheavals.

Now, the responsibilities lie with the Congress members of both political parties to lay their ideological differences aside and coalesce to pass the legislations designed to alleviate the average Americans’ suffering, for which the representatives were elected.

The people on their part, i.e. the students, working families, senior citizens, businesses and alike have a unique opportunity to renew democracy by calling the local representatives in the House and the Senate to pass the pending legislations on financial reform, health care and climate bill.

Democracy is efficient with the main street activism to promote the desired ‘Change,’ in Washington and Wall Street.

When we could succeed in 2008, we will do so in 2010, if you make it possible.

Please extend your support to our President Barack Obama and those Congress members who are devoted to your interest and not the special interests.

Thank you.

Padmini Arhant

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

Financial Crisis Inquiry

January 14, 2010

By Padmini Arhant

Today, the financial crisis inquiry commission summoned the financial sector executives to investigate the activities that primarily contributed to the financial market’s downward spiraling and led the economy to the brink of collapse. The inquiry is a step in the right direction to convey a strong message that no one is above the law and democracy cannot be undermined.

Although, the executives are perceptive in self-defense and evading responsibility for the financial meltdown, the fact of the matter is, these financial moguls capitalized on the economic vulnerabilities during the Bush administration. It’s generated from the deregulations and substantial prime rate reduction alluring average citizens with a political slogan that linked patriotism to home ownership.

More concessions were offered by the Bush-Cheney Presidency through massive tax cuts for corporations, financial institutions and the wealthy individuals boosting the investment banks’ portfolio, thereby driving them from equity markets to speculative trading.

It created an enormous capital infusion with investment banks competing with the commercial banks in the absence of Glass Steagall Act. Followed by AIG collaborating in the insurance deals on the credit borrowings invested in derivatives and hedge funds with risky assets as collateral and underlying value further exacerbated the risk management.

When the bubble burst, so did their balance sheets. It went disarray with the majority lead players burdened with toxic assets that transformed into dead weight liabilities in the form of large risk exposure eroding their capital and solvency, consequently relying on the taxpayer bailout to salvage the financial market and the economy.

Apart from the financial institutions, the architects behind the policies since the early nineties are equally responsible for the debacle.

For instance, the former Federal Reserve Chairman Alan Greenspan,

The former treasury secretary Henry Paulson and the current treasury secretary Timothy Geithner,

The present Federal Reserve Chairman Ben Bernanke along with the financial team under the Obama administration represent the convenient exchanges between the Wall Street and Washington through the revolving door of Goldman Sachs, Merrill Lynch, Morgan Stanley and the Lehman Brothers prior to being acquired by Barclays…to name a few.

As found in other national issues such as health care, communication and energy, the prevalent culture between Washington and Wall Street is a huge conflict of interest leaving the average taxpayers and consumers at the mercy of the “corporate owned government” enterprise.

Investigation is necessary to determine the cause of the status quo. However, it’s significant to have the financial sector pledge to revive the credit market through liquidity flow to small businesses and corporations. It would jumpstart the economy, since financing businesses and corporations positively impact the job market. Meanwhile, the manufacturing sector could be resurrected pervasively, producing the desirable drastic unemployment contraction.

Simultaneously, the finance industry is required to stimulate the real estate and construction areas of the economy. Considering the dismal job growth accompanied by the plummeting residential and commercial real estate values due to the sub-prime mortgage fiasco,

The financial institutions should invigorate the financing and refinancing options to homeowners and commercial estate holders by offering reasonable, incentivized programs that would allow the property owners to comply with the payments and retain the values respectively. The viable strategy would ease the burden on the lender and the mortgagee leading to the property value appreciation.

President Obama’s proposal to levy taxes against the financial institutions that have benefited from the taxpayer bailout is right on target. Not surprisingly, the financial industry is resisting the tax, estimated to yield $120 billion in revenue for the ailing economy. Taxpayers from bottom up shared the trillions of dollars finance industry bailout.

Having stabilized the balance sheets from the massive interjection of funds, the institutions are now challenging the government against the tax proposal by warning that any such levies in the form of fees and taxes would be hurting the consumers, claiming that the customer will ultimately bear the charges through bank fee hikes.

Alternatively, the banks are threatening to move jobs overseas upon any tax or fee imposition.
Despite the pre-existing exorbitant fee and charges applied to banking transactions, the banks’ retaliation to tax proposal via potential fee increase or job export is not only outrageous but also audacious.

Financial sector being the economy’s engine, the credit flow across the spectrum is pertinent to the swift economic recovery including the financial market gains.

The financial institutions’ lack of concern for ethics and the excessive greed triggered the financial market crisis ultimately affecting the global economy. Therefore, there is an urgent requirement for aggressive financial reform to prevent history repeating itself in the near future.

Thank you.

Padmini Arhant

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

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