The Mighty Deception – Focus on Politics and Economy

January 9, 2010

By Padmini Arhant

January 19, 2010 marks the first anniversary for the Presidency of Barack Obama. The columnist from the leading national news organization chided the right and the left political factions in the article, the excerpts listed below.

“In a world of ideological sniping, Obama can’t win.”

By Richard Cohen, Washington Post, January 5, 2010

“Last month, no American soldiers were killed in Iraq. Last month, the unemployment rate dipped a bit, the stock market ended the year up, the financial system did not crater, Detroit’s Big Three began to get a pulse – and yet a consensus started to form that Barack Obama, who is either responsible for or merely presided over all this good stuff, is a failure.

On the left, the president is being pummeled for health care legislation that does not include a public option and has not dispatched insurance executives to Guantanamo. On the right, he is being pummeled for socializing the economy, establishing death panels and allowing maniacal Nigerians to load their Calvins with boom-boom and fly into peaceful Detroit. It’s a cartoon.

Any way you measure the polls, Obama did not have a good year.

In foreign policy, Obama has sorely disappointed his fans on the left for escalating the war in Afghanistan and on the right for not escalating it enough…

He has not brought peace to the Middle East.

Obama could be a great president. He has already achieved much – possibly saving the country from financial ruin, salvaging the auto industry, getting some sort of health care reform. Possibly, possibly.

Yet, his numbers sink as his achievements rise. He is the Johnny Appleseed of cognitive dissonance, so utterly detached that when he wins it seems to be only for himself. Pollsters measure him but poets have described him.

William Butler Yeats got it down years ago: “The best lack all conviction, while the worst are full of passionate intensity.”

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Perspective: By Padmini Arhant

The author’s hyperbolic characterization of the left position particularly with the dispatching of the insurance executives to Guantanamo and the article concluding with the quotation ‘the worst are full of passionate intensity,’ suggests the print media eternal love fest with any incumbent administration.

As such, democracy is under siege with the legislations merely passed and mostly stalled at the Corporations’ will, aided by their representatives’ inaction in the Senate and the House. It’s further exacerbated with the established print and mainstream media presenting the figures but not the facts thereby joining the elitists against the populists.

Therefore, it’s essential to place things in perspective for a fair analysis.

Iraq war without casualties in the past month is great news. However, the reason behind that is adopting the “left position” to scale down the troop level and make a firm commitment for troop withdrawal, a diametrically opposite decision by the administration on Afghanistan. Despite the reality, the pledge towards peace and non-violence is characterized as “ideological sniping” rather than pragmatic stance.

The dip in the unemployment rate and the rise in stock market are welcome. Nevertheless, the national unemployment and the states’ joblessness is still in double digit with the middle class dropping to the poorer category and the poor driven to being food stamps dependents.

Stock market performance is directly related to the real and projected industry earnings. Since, the health care reform unarguably in favor of the health care industry in the absence of robust competition such as the government insurance program, the health industry stocks skyrocketed at the confirmation of the public option eliminated from the debate.

In other areas, the defense stocks always thrive rain or shine with the U.S perpetual engagement in warfare. The exception to the genuine growth is the technology sector boosting the figures and again with the drastic employment cuts to survive global competition.

It’s indeed a relief that the financial sector did not crater with the infusion of trillion dollars that has surely benefited the Wall Street more than the main street still being defrauded with no aggressive financial regulations in sight including the oversight demanding accountability on the massive taxpayer bailouts.

Detroit’s big three began to get a pulse – yet the State of Michigan ranks the highest in unemployment rate with an average 15.8 percent described as the worst annual rate in “at least 40 years,” and disproportionately greater among the African American as well as other minority groups.

It’s true that the Obama presidency salvaged the financial and auto industry from ruin and currently involved in the health care reform. Although, the salvation of these sectors were carried out to protect jobs, stimulate the economy by unleashing the liquidity in the financial market while reining in on the foreclosures through affordable lending programs, the progress has been either too slow or in many instances absolutely non-existent due to the bailout beneficiaries’ usual business tactics.

Meanwhile, the financial institution such as Fannie Mae and Freddie Mac executives are back in action with the same modus operandi i.e. extravagant bonuses for extraordinary failures in the sub-prime mortgage debacle that initiated the free fall of the economy into the ditch.

In the health care reform as cited above, the proof of the pudding relies on the economic impact of the remaining uninsured millions other than the 30 millions predicted to be covered under the exclusively private proposal. Other issues, like raising taxes on health care plan opted by the work force in lieu of employment benefits are a matter that will weigh in on the cost factor determined by the supply and demand free market elements.

“Some things never changes,” regardless of the power in the White House or the Congress is evident in the past year evaluation.

The Wall Street traditions continue with the financial, health care, communications and energy industries dictating terms and conditions in defiance of the free market fundamentals.

Among them are:

Demanding bailouts and refusing to be subject to scrutiny,

Legislations drafted to promote obscene profits at the expense of exhausted taxpayers and exploited consumers eventually driving the economy to the cliff and,

Last but not the least the communications industry, Comcast resisting government intervention in the monopoly of the diverse media, such as the takeover of NBC and sister networks along with the national communications service and AT&T barring competition in the deal with Apple computers in the Smart Phone – iPhone subscription services and more.

With respect to green jobs creation, the notion is ideal and it would invigorate the battered economy, provided the energy giants do not railroad the budding entrepreneurs vital to expand the sector for community access and local job opportunities.

It’s clear that the ideological sniping from the left or the right is ineffective with the administrations in power succumbing to Wall Street pressure on all issues.

There is one thing to expect loyalty from the supporters through lavish praise and flattery that would simply qualify as cronyism in the backdrop of ‘business as usual’ environment. Another aspect where the actual situation in people’s life has not changed in terms of retaining jobs, homes and the health care proposal entirely entrusted under private care responsible for the status quo.

My silence is not necessarily my disappearance into the oblivion. Any suggestions and requests made thus far in both domestic and foreign policies have been slighted even though they are decisively in favor of the struggling populace at home and abroad. Perhaps, that might be the cause for the utter disregard of opinions and ideas offered upon several political figures’ insistence to participate in the legislative process.

For instance, my request towards transparency and accountability promised during the election campaign by the Obama candidacy has deviated to closed chamber discussion with lobbyists and party members notably in the health care legislation, financial regulations and climate bill negotiations.

I’ve been urging that the oversight committee (if it exists!) hold the financial sector accountable for the bailouts and demand they comply with their end of the bargain in facilitating the credit flow and lending practices crucial to energize the stagnant economy, is largely ignored.

Likewise, the stimulus packages passed under both Bush and Obama administrations viz. TARP money $700 billion in 2008 and $787 billion in 2009 respectively has substantial amounts in cash that has not been invested vigorously to protect or create jobs in the manufacturing sector and public projects i.e. infrastructure maintenance, green technology etc.

I’m still awaiting on the logical reasoning behind withholding the vast stimulus funds for purpose other than the economic recovery via housing market revival, job growth and tax credits to small businesses and medium corporations who are forced to minimize overheads through job cuts.

In addition, the Congress passed relief funds for meager $75 billion to deal with the housing market particularly to decelerate foreclosures, is reportedly served with an acute amount of approximately $2.3million and not billion. Further, it’s reported that the treasury secretary Timothy Geithner’s explanation was “the funds held in reserve to rescue financial institutions from the housing market downturns.”

I emphasized on the required urgent action during the Bush administration bailout activities in resurrecting the Glass-Steagall Act and the long overdue aggressive financial regulations to prevent the precipitous decline of the financial assets hurting the average citizens. Not surprisingly, it received no attention.

Now, it appears that the recently passed House bill on the financial reform has incorporated some of the rigorous policies instead of the comprehensive GS Act possibly anticipating the standard revolt from the Senate.

Not all is lost but there are serious grievances among the general public that are justified with the families facing economic difficulties and it’s appropriately revealed during the November 2009, gubernatorial and congressional elections.

Considering the facts, should one remain complicit to the prevalent camaraderie between Wall Street and Washington in spite of the culture corroding the systems and bankrupting small businesses and ordinary individuals in the society?

My specific role is to represent the people i.e. the humanity at the domestic and international fronts. The task is to work for the general mass and common good to restore democracy, peace and harmony, social justice and freedom, the basic right of all living beings.

Unfortunately, the guidance on foreign policy has been deliberately dismissed by selective entities with a cavalier approach to humanitarian crisis affecting millions of innocent lives. There will be in-depth discussion in this context to dispel the myths and misconceptions surrounding the international crises.

Washington functions on the dogma that “Those who try to please all, pleases none.” The irony in the legislators’ action is the public interest invariably marginalized over the personal and special interests in the appeasement trend.

Hope and Change is yet to be experienced and possible with a paradigm shift that recognizes alleviating people’s plight as the primary goal in public service.

Thank you.

Padmini Arhant

National Unemployment – A Reality Check

November 10, 2009

By Padmini Arhant

According to the latest reports, the current jobless rate is 10.2% with 16 million Americans competing for 3 million jobs. Apparently, this figure does not include the underemployed. The Corporate related unemployment is further expected to rise up to 10.8% by the end of next year. Another grim factor is the joblessness among the self-employed and the small business retrenchments reportedly escalate the figure to an alarming 17.5% resembling the severe depression era.

Growing unemployment is a major impediment as consumer spending is directly linked to the job market posing a downside for the entire economy. Despite, the economic growth at 3.5% along with the 9.5% annual productivity for the recent quarter, the American workforce is yet to benefit from the surge in these areas.

The most affected sectors appear to be construction, manufacturing and retail. Although, the recent stimulus signed by President Obama extends unemployment benefits for 14 weeks and 20 weeks to the worst hit states combined with the tax credits for the first time and other home buyers, the problems confronting the industries required to generate jobs is attention worthy.

Construction industry is obviously dependent upon the housing sector and the housing market revival methods are due for review with respect to foreclosures and lending practices by the finance sector.

In fact, the credit crunch is predominantly responsible for the sluggishness in the respective areas of the economy. Unless and until the bailed out finance industry honor the commitments made to the American public during the substantial bail outs, the industries tied to credit market particularly the housing, manufacturing and retail cannot emerge from the recession.

If the various bailouts approved thus far have the built-in transparency and accountability factor then the oversight committee ought to investigate the recipients on the investments of those taxpayer funds legislated for providing jobs and stimulating the economy. Regardless, the trillions of dollars accumulated to the national deficit from the banking sector and automobile industry bailouts deserve scrutiny in terms of actual allocation that is not conspicuous given the depressing jobless data.

On the other hand, the government must provide a legitimate reason for not moving forward with the committed investments held in the $787 billion stimulus package including the remainder from the Bush administration passed TARP funds. When the controversial economic stimulus took place at different times, the purpose was to revitalize the economy with the desperately needed job growth besides enabling the relevant productivity levels and overall economic performance.

Any delay in energizing the job market would adversely affect the broader economic prospects for all industries with the consumer base lagging in the necessary spending, the fulcrum of the economic cartwheel.

Manufacturing industry has been harshly hit with the corporate executive failure in the automobile industry precipitated by the finance sector’s liquidity freeze that triggered the economic meltdown in the shadow of the hedge funds and sub-prime debacle. It is imperative to jumpstart the manufacturing sector macro economically to achieve the targeted employment goals.

Evidently, the prevailing policies and the applied mechanisms are either inadequate or ineffective. Perhaps, the additional or aggressive measures could bolster the weak sectors in promoting the anticipated job growth, the real indicator of the economic pulse. Nevertheless, the consolidated interjection of the monetary reserves and management resources from the private and the public sector is paramount to resuscitate the ailing job market.

A disturbing aspect of the impressive 9.5% productivity report is the executive attitude towards the workforce. In spite of the workers’ significant contribution, i.e. limited labor force tripling the mass production, the management has categorically denied wage increases, additional hiring or other compensations in the form of bonuses etc. claiming that it would be detrimental to the organization ‘s profit oriented schemes.

It is elaborated as corporations aimed at increased earnings in the backdrop of weak dollar, declining exports, business decision to operate on lower inventories and other economic woes. As reasonable as they might be, somehow the conditions seem to apply only towards the labor force explicitly stated by the industry spokesperson that the workers should remain content with the fact that they have a job in the gloomy economy.

Meanwhile, the CEO’s salary package maneuvered from the Congress chided bonuses to lucrative shares and stock options with immediate encashment irrespective of the corporate results; the disingenuous modesty is adequately serving the highest in the hierarchy. Never mind the exploitation of the workforce, the human capital in this context.

In terms of the businesses with cash reserves operating on small inventories, the strategy is counterproductive, not to mention the catastrophic impact on the wholesale, small businesses and the retail industry. The wholesalers relying on the medium and large corporations’ inventory purchases forced to carry out massive layoffs potentially having a ripple effect on the economy with a possible inflation.

The swift passage of the ‘Cap and Trade’ bill boosting the green technology sector would be a phenomenal job growth subsequently alleviating the burden on the national deficit.

In light of the available facts, it would be appropriate to attribute the unemployment status to the myriad of activities or the lack thereof by both private and the public entities. It could be highlighted as the culmination of stringent corporate policies, limited private and public investments, reining credit flow, uncontained foreclosures and lack luster home sales in the housing market…causing the precarious unemployment situation.

Therefore, the government and the free market thorough evaluation of the status quo are essential to invigorate the frail job market.

A jobless economic recovery ultimately leads to a negative economic trend in the absence of robust stimulants explained above. Jobs represent the nerve of the economy with serious economic and political ramifications.

Contrary to the rhetoric echoed in the chambers of Congress and the media, the health care reform is equally important in the equation because it bankrupts the small businesses and individuals alike. Both groups are constantly struggling to make ends meet with the atrocious health care costs prohibiting investments in other necessities.

Economy and health care matter are intertwined and partisan politics has no place at the critical moment debilitating many American lives.

It is incumbent on the United States Senate to rise to the occasion and overwhelmingly approve the health care bill with the federal run health care program titled as the ‘public option’ in recognition of the American plight.

The simultaneous actions by Washington and free market are vital in curbing the rising unemployment statistics. Job assurance to every American translates into job security for the legislators and the executives. Since jobs create taxpayers and consumers,

Washington and Wall Street cannot thrive without progress in the main street.

Thank you.

Padmini Arhant

Federal Republic of Germany – Bundestag Election

September 28, 2009

By Padmini Arhant

Congratulations! to the Chancellor of Germany Angela Merkel and the FDP leader Guido Westerwelle on the re-election of CDU-CSU (Christian Democratic Union and Christian Social Union) in grand coalition with the Free Democratic Party in the 17th German Federal election on September 27, 2009.

As a major economic power and the largest exporter as well as the second largest importer of goods, Germany is significant to the global economy and the international progress. The export-oriented nation has been drastically affected from the global economic crisis. It experiences the common woes like the financial market failure leading to the government bailouts; massive job loss in the manufacturing sector especially the automobiles and heavy industrial equipments…having a ripple effect on other sectors in the economy.

However, Germany has contained the crisis from further deterioration due to the various government run programs viz.

The comprehensive system of social security, universal health care established in 1883 – now comprising 77% government funded and 23% privately funded health care system, public or affordable housing in suburban settings providing decent dwelling for the lower income originally created in the early twentieth century by the Social Democrats to curtail visible poverty.

The recent victory by the conservative coalition attributed to the poor voter turnout with the sizable electorate not having confidence in the major or minor political parties, although the ‘Green’ party focused on vigorous environmental policies gained impressive margin against others.

It would be interesting to monitor the measures adopted by the winning coalition in the economic recovery, given the FDP’s economic policy subscribed to the government involvement ‘as extensive as necessary’ and ‘as limited as possible.’ Otherwise, the party embraces the free market structure with privatizations, deregulations, restraining public subsidies – the predominant source of the present global economic meltdown, while maintaining the strong unionized work force and the vast government social infrastructure. Perhaps, the platform contributed to the surprise emergence of the once minority party successfully eliminating the Socialist Democrats that took a severe blow in the latest election.

With the rising unemployment causing much frustration among the population, the coalition has a tough balancing act to leverage the situation in the four-year term offered by the German electorate as a second chance to transform the campaign promise into a reality.

Regarding other issues of national concern, the electorate appears to be less enthusiastic in their country’s involvement as a NATO member in the eight-year old Afghanistan war. This is despite the relatively minimal troops’ presence in the region proving the unpopularity of the Afghanistan war.

Germany like the rest of the world is confronted with the economic, social and environmental issues and the industrialized nation’s rapid revival is crucial for the global economy as a member of OECD, G8 that is appropriately the present G20, besides being the biggest development aid in the world.

I take the opportunity to wish the leaderships and the people of Germany lasting peace and prosperity to share with the rest of the humanity.

Thank you.

Padmini Arhant

Revolt against Health Care Reform Politics

August 6, 2009

By Padmini Arhant

Here we go again! To quote the former President Ronald Reagan revered by the political faction on the right, the obstructionists rise against health care reform under the guise of ‘fiscal governance’ with the stagecraft artists as citizens screaming and ranting over the health care policy for all.

Should anyone be surprised about the sources responsible for the spectacle at the town hall meetings?

When the propagandists can’t think for themselves, they often lavishly steal ideas from others and misuse the Gandhian principle of non-violence and peaceful protest discussed earlier for their own diabolical means, despite the action being detrimental to national progress.

Surely, Gandhi will be turning in his grave on the abuse of his noble wisdom…at the narcissistic profiteers in the health care industry using the selective media muscle power drive insanity to no point of return.

Out of sight, out of mind and the opposition goes ballistic to stampede the health care legislation.

The noise and raucous in the public arena instigated by the agents of warfare against welfare of the people in a democracy are leaving no stones unturned for their vile personal agenda i.e. dominate and deploy the destructive forces in health care matter directly related to economic and employment recovery.

Amazing passion displayed by the representatives interestingly missing in action during the pivotal moment of American economic down slide circa 2000 – 2008, now suddenly emerging out of woods to salvage the nation from the alleged danger zone initially created by the oligarchs and the great intellectual minds of the fiscal conservatism.

What America needs to recognize is the reality of the exclusive private health care management rather mismanagement that has bankrupted every citizen and the entire nation. Please refer to numerous facts based articles on the website www.padminiarhant.com explaining why America should address the contemporary nightmare called the ‘health care.’

If the health care system is so magnificent as propagated by the hired appointees of the health care industry, then why are there many infants, children, youth, middle aged and elderly alike left in the lurch by the trillion dollar health industry that thrives on the sick and the dead ones negotiating people’s life over their personal luxury?

It’s no longer the majority or minority issue as the Republican motto to push and personalize legislations into a political vendetta is the norm and frankly successful thus far.

Regardless of the democratic majority in Congress, both the House and the Senate, the conservatism in the Republican minority and the Democratic Party viz. the Blue Dogs, prevails in the demagoguery aimed at self-promotion guaranteed with health industry funding.

How does the (GOP) Grand Obstructionists Party maintain political edge over democratic doers?

By simply abusing the legislative and Presidential power. With the democratic majority in Congress, their Republican President George W. Bush although nicknamed “the lame duck” President excessively exercised the veto power and proved the Congress the sitting duck. Likewise, the legislative Republican minority boycott national interests substituting betrayal of their constituents’ trust with cronyism to the campaign financiers.

However, not anymore, the ammunition is bound to exhaust firepower after some time. The United States of America held hostage for too long by the failed ideologies of the far right and certain media miscreants indulging in the national disaster at all costs and anti-health care legislation is the classic example.

Yet another irony is, they proclaim to be patriots and relentlessly engaged in grandstanding the President’s genuine effort to revive the economy and job growth, the foremost concern and requirement of every American family, small businesses and large corporations. Without the major health care overhaul and the release of the national health from the shackles of the health industry’s profit over patients’ policy, it’s impossible for any hard working American to gain financial freedom.

Therefore, this message is directed at all those citizens tired of ‘politics and business as usual’ to reject the conservative political fanaticism fueled by the Corporate investment flourishing through exploitative tactics in the present health care system more appropriately the mismanaged private health DEBACLE in human history.

If each and every one of you out there, a caring, compassionate and cost conscious citizen in favor of national rescue from the ailing economy, the sluggish stock market and the severely hit employment sector, pledge your solidarity and support to President Obama then,

We can absolutely defeat the monstrous attacks on the monumental health care legislation providing choice, quality and affordability with or without conservative backing.

Peaceful, non-violent measures targeting the grassroots supporters at all levels and encouraging the legislators to move forward with the health care reform must be the citizens’ goal in proving people power against partisan politics.

Effective immediately, display your prowess in the health care battle by jamming the cyberspace via twitter, text, phonecall, rally and rock the movement on the streets, with your loud and clear voice confirming democratic vote for health care reform.

The time has arrived to save yourself and your loved ones from the deadly virus containing deceit and lies by the health industry’s special interests and their paid loyalists.

Take control of your life by not letting the lobbyists run you over on the health care epidemic crippling our economy and the people.

Where there is a will, there is a way as ‘impossible’ exists in fool’s dictionary.

We will do it with poise and peaceful means. Now is the time to replace the conservative propaganda machine with collective progressive action.

You want to be a silent sacrificial lamb or a roaring lion to take back America from the clutches of corporate funded conservative catastrophe.

Come on; demonstrate that people awakened by the woes of private health care system refuse to surrender to the health care/insurance industry and their minority political mannequins in Congress.

Yes We Can / Si Se puede and We Will pass People’s Health Care Legislation with public option that ensures ‘mass protection’ and not mass deception under the status quo.

Thank you.

Padmini Arhant

P.S. Don’t miss the comments by the duty bound citizens listing the Republicans up for re-election in 2010 election in the article titled “Mobilize America for Health Care Reform.” With the conservative democrats – oust the stallers and bring in the movers. Please take necessary action strongly recommended to free the great nation, United States of America from political stranglehold.

National Unemployment and the Economic Status

July 23, 2009

By Padmini Arhant

The ravenous economy has absorbed about $3.7 trillion dollars via bailouts and stimulus plans, (please refer to individual stimulus package topics for breakdown) yet the nation’s jobless rate rising like a tidal wave rather than settling along the shores. Several arguments mounting regarding the precarious job situation across the nation with some fifteen states like California, Michigan, Indiana, Ohio and others experiencing double digit in job losses accumulated over a period of time.

Not surprisingly, criticisms with an ominous prediction such as a possible return of the ‘Great Depression’ from various political and economic factions pouring against the current administration’s level of action and apparent inaction in averting the precipitous decline of the job market.

The irony being, President Obama’s opponents and fierce critics expressing deep concerns over the present generation’s children and grandchildren burdened with the burgeoning multi-trillion dollars national deficit from the ‘supposedly’ bizarre and revolutionary health care reform.

Unfortunately, the pervasive selective memory among the cynics forbids anyone from reminding the junkyard legacy by the previous administration. Nevertheless, it’s important to revisit the situation in order to find a pragmatic and an effective cure for the epidemic unlike a band-aid treatment tactic by the prior administration.

As detailed earlier on many occasions, the wild adventures in the past eight years eroded the fundamentals of the capitalist system. Immediately following the 9/11 attacks, the widespread panic about the United States economic and national security surely had an impact on the American investments ranging from housing to stock market including the exodus of some expatriates selling homes combined with the withdrawal of their investments.

The Bush-Cheney administration laid out the extravagant scheme to trump the situation with yet another war by invading Iraq when the mission in Afghanistan had barely begun. Conservative ideology dictates that wars promote prosperity. Actually, the notion might not be far-fetched because wars are highly beneficial to the nexus group gambling with others’ life and nation’s wealth.

When the administration inheriting a surplus economy engaged in a dubious agenda at the most improper and inconvenient time, the market conditions in 2002 and onwards became more volatile due to enormous speculations surrounding the United States affordability to wage another war.

The Bush-Cheney administration sailed through the storm with false assurances and blatant lies that Iraq war would be self-funded through oil revenues expected to be reaped exclusively by the United States in return for the establishment of democracy.

One must also not forget the administrations’ prophesy on the premature valentine’s day celebration by the cheering Iraqis handing out rose bouquets to the U.S. occupying forces at the expense of their blood and national treasury.

The excessive borrowing commenced at the dawn of the Iraq war with the fiscal conservatives now objecting to their constituents’ health care benefits, then turning a blind eye and signing a blank check to an unarguably a corrupt administration.

Funding two simultaneous wars converted the national surplus to national deficit adversely affecting the Treasury Notes and subsequently the U.S. currency in the international market. In the backdrop of the weakening Bond market, the stock market performance accelerated with investors’ confidence in the growth of different sectors specifically the oil and defense stocks due to the on-going wars, technology sector and the financial sector with hyperbolic balance sheets.

Above all, during that time the Federal Reserve and the Treasury’s overly cautious inflationary measure by reducing the interest rates beyond market conditions and unleashing the free market from necessary regulations in an utter conflict of interest essentially provided a fertile ground for the financial sector to exploit the unique opportunity in the lending activity.

In addition, the conglomerate like AIG and major investment banks extending towards the commercial bank’s activities risking long-term investments for short-term gains induced further competition for the traditional banking sector adopting strategies detrimental to the key components of the economy viz. the housing market, retail and commercial lending.

The financial sector’s unethical and unscrupulous practices in every aspect of lending targeting the nerve of the economic system i.e. the consumer, exacerbated the economic recession.

From the notorious sub-prime mortgages in the housing market now appropriately defined as ‘toxic assets’ bundled into the mortgage backed securities exchanged through international trading, to teaser rates offered on credit card later escalating to atrocious interest rates exceeding market affordability…are primarily responsible for the chronic ailments of the current real estate and the liquidity crisis.

Unequivocally the present woes of the economy are attributable to the overwhelming greed by the financial sector and the defiance for any rule of law until date. As clarified by President Obama during the press conference on date, the financial regulatory reforms are in order.

Since some prominent economists have been recently pushing for more stimulus over and above the total $3.7 trillion dollars, it’s necessary to obtain the facts and details on earlier investments to evaluate the methods applied as a result of the negative economic growth and dismal unemployment rate.

Please refer to stimulus package details followed by careful analysis in the subsequent segments.

Meanwhile, it’s imperative and incumbent on all bailout recipients and the previous administration officials regardless of hierarchy to come forward, testify under oath to Congress as the representatives of the American electorate, and explain exactly where and how the trillions of dollars have been invested.

Is it a coincidence that Goldman Sachs after being assisted by the former Treasury Secretary Henry Paulson in gobbling Bear Stearns and Lehman Brothers, emerges with a bumper profit rewarding its every employee with a despicable amount $700,000 bonus the past week ? – Absolutely not.

It’s about time the criminals of the financial world are brought to justice in order to avoid a twenty first century revolution in the world’s modern democracy.

Congress must act in the interest of the people and abide by the constitutional rule of law with an honest and thorough investigation of the massive bailouts carried out at the expense of the hard working American taxpayers.

Thank you.

Padmini Arhant

Pulse of the Economy

June 11, 2009

By Padmini Arhant

With a finger on the pulse of the economy, the recent reports on employment, housing, financial and stock market post stimulus funding worth $787 billion approved by Congress in February 2009, has drawn both praise and criticism from different quarters. The praise is always welcome and encouraging for any administration and the Obama administration is no exception to the rule, particularly when they are relentlessly engaged in stabilizing the economy as the top priority.

Whereas, the criticism aimed at the President is no revelation considering the partisan Washington atmosphere. The results thus far, indicate the current national unemployment rate at 9.2% against 8% in the pre-approval stimulus package forecast. Further, the reports reveal the economy shed 1.6 million jobs with the White House claiming 150,000 jobs saved since the passing of the stimulus measure. Obviously, it’s a contentious issue for all Americans receiving pink slips for paychecks and IOU’s in the state of California respectively.

The main criticism being the Obama administration’s optimistic approach in selling the stimulus plan not correlating with the job market results, a fair analysis is due to clarify doubts and speculations on the stimulus plan prospects and its effect on the economy.

According to the White House and other reports, only $44 billion i.e. 5.6% spent from the $787 billion stimulus funds with an accelerated investment committed this summer. In light of the above scenario, the 150,000 jobs rescued towards 5.6% funding is a confirmation of President Obama’s cautious and calculated expectation from the economy.

Even at the present conservative trend, the job market results for the remaining 94.4% of the stimulus fund upon targeted investment should adequately restore the employment rate from the growing underemployment and unemployment status with a combined saved and created job ratio yielding approximately 2,528,571jobs in a similar environment.

It is not uncommon for the critics and analysts to focus on the dismal job market figures affected since the onset of the economic recession in December 2007. The skeptics’ myopic view neglecting economic progress in other areas is attention worthy. Various reliable sources confirmed the financial sector strengthening with the bailout funds interjection in an effort to amortize the toxic assets from the sub-prime mortgage debacle. The leading financial institutions such as Bank of America, J P Morgan and Chase and other banks in the top ten range enabled capital management viability proven in the balance sheets.

The rapid foreclosures primarily responsible for the declining housing prices nationwide conversely contributing to the median home prices plateau with the 47 percent foreclosed homes resold in the entire Bay Area in April 2009 compared to 52 percent in February 2009 – indicating the desirous regress in foreclosures and signs of early recovery in the housing market.

The reports also confirm the home sales and value up for month and down for the year attributing to the Obama administration’s strategy of “the combination of lower prices, average mortgage rates of 5 percent or less for smaller loans, and a new $8,000 federal tax credit for first-time buyers” in the anemic housing market.

When the foreclosures pervasively diminished or extinguished nationwide with the stimulus programs, the housing market rebound will be visible motivating the lenders to participate in the melting liquidity market. However, caution required with the rising bond market’s pressure on interest rates imperative in alleviating the housing market crisis.

In the stock market – the significant gains by the commodity market and technology sector reflected in the recent rally is invigorating. Other industries lagging behind in performance likely to benefit from the steadily easing financial market credit crunch, promoting private sector investments directly related to boosting the job market, housing market and consumer spending essential for speedy economic recovery.

As for the quasi investment deals in the GM takeover causing pandemonium among the well-wishers across the aisle, the taxpayers’ financial commitment to rescue jobs slighted for political bickering. The ‘bankruptcy’ triggered cynicism about the government imprudence in investment goals with taxpayer dollars, while conveniently ignoring the fact that the auto industry problem originated during the former administration’s era and their $17 billion initial investment in the corporation set for failure.

Ironically, the temporary and modest government intervention in the free market characterized as ‘nationalization’ of industries necessitating required action from colossal mismanagement.

Meanwhile, the Obama administration’s objective in the GM deal to avert the deepening crisis in the frail industry challenged by the competitive global market is a thoughtful approach. Now with taxpayers as the majority shareholder in the once iconic corporation the management goals anticipated to synchronize with the twenty first century demands ensuring excellence in purpose, productivity and profitability.

Moving on to the other pertinent and popular health care issue debated and discussed to reject rather than embrace the premise of the President Obama’s health care plan – choice, affordability and quality, the perfect remedy to relieve the economy from the health care burden costing the nation in trillions while leaving the uninsured in millions.

Despite the innuendoes and insinuations about the mounting debt, the investments miscategorized as ‘squandering’ in the national economy ranging from health care, education, energy, environment, housing to financial sector and other industries is a pledge towards substantial economic security for the present and future generation.

The controversy surrounding the diverse investments costs applied to two particular sources viz. borrowing from China and tax hikes on the corporations and wealthy groups. Contrarily, the tax breaks to the top ten percent in the highest income bracket and corporations evading tax through tax havens with limited free market regulation or deregulation in the past eight years aside from being counterproductive resulted in approximately $9.5trillion dollars national debt with a cumulative effect on the status quo of the economy.

There was no clamor over the increasing liabilities on the baby boomers and the younger generation in the extravagant spending on illegal wars with a guarantee to fund itself from oil revenues in Iraq…an unequivocal myth until date.

Then the financial sector bailout with respect to AIG and oligarchs to a tune of $700 billion and more in 2008 with no accountability or transparency exacerbated the liquidity crisis against the intended proposal. Interestingly, the past events currently dismissed as irrelevant claiming that Obama administration disavow the incidents pertaining to the prior administration yet owe an explanation for the phenomenal deficit, the previous administration’s legacy to its successor.

Only if the opposition’s present vigilance on fiscal responsibility existed from 2000-2008, perhaps the People’s Republic of China and The Kingdom of Saudi Arabia would be vigorous competitors to the world financier ‘The United States.’

The demands from the conservative right exceedingly high launched with rhetorical comments and negative attacks such as “false Prophet’s failed Presidency.”

In the absence of any ideas and solutions to the burgeoning crises created by the previous administration’s historical blunders serving testimony to the beacon of incompetence and failures in Presidential history, the political posturing is paradoxical.

With respect to the economy in the ‘Golden State of California’, the clock is ticking for the state and the local government authorities to resolve the budget crisis and close the $24 billion deficit in the state budget and $73 million in the San Jose City budget.

Even though the strategy in both situations is scrambling to wipe the deficit by any means with mostly eliminating the vital services and benefits to the weak, the poor and the vulnerable, the repercussions of draconian cuts with no tax increases will far outweigh the immediate illusory results not barring the political risks in the 2010 gubernatorial elections.

Following the special election results on May 19, 2009, it’s incumbent on the state legislature to adopt several guidelines and viable options provided by concerned citizens through many sources in resolving the fiscal crisis. There is no patent right on the thoughts in the matter affecting the entire state and the community at large. It is a patriotic and civic duty of every citizen volunteering suggestions to deal with the stalemate confronting the California state legislature.

Governor Arnold Schwarzenegger’s recent comments on undocumented workers and their plight aptly placed the sensitive immigration issue in perspective. It’s time for the Governor to translate into action by issuing drivers license to the undocumented workers in the State of California that would not only aid the budget but also enhance the opportunity as the preliminary step towards legalization of the Californian residents.

More often, the leadership is subject to test the will, wisdom and courage against the odds exclusively the unpopular decision eventually ending in greater good for all.

I wish Governor Arnold Schwarzenegger and Mayor Chuck Reed of San Jose ‘Good Luck’ in their decisions appropriate to defend many but might offend few in the process.

Thank you.

Padmini Arhant

Balancing California Budget

February 12, 2009

The golden state is in deep economic crisis, sharing the status quo of the nation.

As per Wikipedia.org – California would have the 7th highest GDP in the world if thought of as a country (not including the US as a whole, if so, it would be 8th).

A great state like California being the epicenter for – besides earthquakes,

Technology

Biotech and stem cell research

Entertainment symbolized by Hollywood

Diverse talent and skill pool making outstanding contributions in various fields.

Yet, the fundamental responsibility of the state government to balance the budget postponed indefinitely due to partisan politics with Republican minority misusing the two-third majority approval against the incumbent Democrats in the legislature.

As a result, the taxpayers of the economy are abandoned and the entire population is at the mercy of the minority rule upholding the conventional ideology against contemporary wisdom.

It is Déjà Vu for those following the federal government struggle to get the economic stimulus bill approved by both Houses of Congress.

The dilemma of balancing the budget with the political parties’ resistance to compromise is a daunting task for any administration. It is beyond comprehension that failed policies and inconvenient principles continue to dominate the center stage at both state and federal level in legislative matters.

California budget deficit currently at $42 billion with unemployment skyrocketing to 9.3% and expected to worsen by the year-end;

Clearly, the economic recession is widespread and taken severe toll on the present and future taxpayers of the economy.
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Challenges:

How does the state reduce the budget deficit of $42 billion?

Generally, the options would be exploring ways to generate revenues and cutting costs proven liabilities with no income or other benefits to the taxpayers of the economy.

Revenues:

How does the state generate revenues?

Usually, the government revenue sources are taxes paid by individuals and Corporations.

They are in the form of income tax, estate tax, corporate tax, payroll tax, sales tax, customs and excise duty on export and import items as well as fees and charges for any government provided services. If the state has other assets in the form of government bonds and treasury bills, they comprise negotiable instruments to borrow money.

In addition, the government could potentially expect income from investments in industries via quasi contracts, state run institutions, sale and/or leasing of government land to private sectors and trade goods and services with neighboring states or foreign governments. Some states find ways and means to share natural resources with their neighbors within and outside the nation for income.

Then, a federal aid to boost social services, health and educational programs is other channel for financial assistance.

Obviously tax increases is the common strategy for meeting budget shortfall. If income and aid are available from stated sources, then funding expenses is affordable.
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Spending or Costs Elimination:

In this category, the lawmakers vehemently opposed to tax increases propose massive cutbacks and reduction in spending by a sweeping shutdown of essential services and programs with dire consequences in the long term.

Ironically, investment in education, health, housing, energy and environment are easy targets as “wasteful spending” for legislators in opposition to tax hikes during budget crisis. Those policy makers fail to understand the importance of protecting and nurturing the beneficiaries of these programs as they contribute to the economy today and tomorrow as taxpayers.

Lately, legislators have taken a swipe at education or investment in public school systems at both state and federal levels. It is tragic that such measures are even contemplated leave alone legislated in the industrialized and advanced nation that should be leading the world in K-12 educational program.

The public school system in the State of California and across the nation is in shambles. The infrastructure and the general classroom environment are in desperate need of face-lift to improve academic performance by students of all socio economic backgrounds.

Every dollar spent in a child is an investment in future.

Complete overhauling is required in areas like classroom size, materials including new Textbooks, enriched curriculum with emphasis in Math and Science, Music and Arts, Sports facilities, recruitment of qualified teaching staff, Teachers’ salary, training and professional development, new energy efficient buildings regardless of districts and zones in every state.

Undoubtedly, education must be a priority with K-12 system being the foundation for young minds entering the academic world. The reason United States is lagging behind in international standards is due to neglect of our school system particularly the early learning stage (K-12) when the opportunity to help every student thrive is available to educators.

Therefore, the state and the federal government are obligated to enhance achievements in educational programs through investments in the state-of-the-art educational system.

Similarly, health, housing, energy and environment are equally important as the taxpayers benefit from adequate health care, proper housing, affordable energy, clean and safe environment.
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Pragmatic Solutions:

The best option to reconcile California budget is to consider both tax increases and costs reduction as suggested by many analysts and experts on this issue.

According to the analysis by San Jose Mercury News, February 8, 2009

Budget spending outpaced inflation and state’s growth.

Interestingly, the social services and K-12 education received proportionately less funding as compared to the extra spending identified in Criminal Justice, health care and filling the gap for the reduced vehicle license fee in the analysis of actual spending in 2007-2008.

First, action is required to identify the revenue sources via tax increases.

1. Marginal increase in Sales Tax of goods and services including the sales on the cyberspace would provide an even tax distribution for the society.

2. Increasing Vehicle License fee for all is necessary to address the massive deficit. In this context, it is important to raise another explosive issue of undocumented workers in California without drivers’ license or vehicle registrations.

Issuing drivers license and allowing all undocumented workers to register their vehicles would not only generate income for the state, it would also strengthen state and national security with the documentation of all residents in the state.

Subsequently, acquiring vehicle insurance by the undocumented workers would minimize the burden on registered owners in addition to stimulating the economy through insurance industry.

At present any vehicle registration or insurance by undocumented workers carried out in a back alley manner depriving the state due proceeds.

3. Target items for tax increase to reduce health care costs such as tobacco, hard liquor products and items subject to possible health abuse.

4. In the establishment of social standards, tax increases on winnings through gambling and advertisement sales of pornography (assumed to be a multibillion dollar industry) is justified to make way for important social services and programs.

5. Review and revise taxation policy for California Corporations hoarding income in tax havens along with their offshore subsidiaries.

6. Airport tax, Port fees, dutiable goods, customs and excise duty are other sources of revenue.

7. Increase tax on entertainment industry to pay for education, kids welfare, community hospitals, colleges and institutions.

8. Specific environmental protection act by levying heavy penalties on environmental pollution (air, land and sea) through negligence such as oil spilling, carbon emissions and violation of aviation standards.

9. Marginal increase in gasoline tax would enable energy efficient programs such as solar, wind and hydro thermal power.

10. Last but not the least, leasing government land to corporations and scientific institutions, university laboratories or airline industry with enforcement of strict environmental regulations, not excluding sale of government assets no longer useful in the short or long run.
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Costs Reduction:

Criminal Justice System:

A thorough examination of the Criminal Justice system is necessary from the analysis and news reports.

The State must devise a mechanism to reduce prison population through major social reforms at all levels beginning with the juvenile detention center.

Further, the parole system, three strikes law and other misdemeanor charges reassessed and offenders deployed in monitored community services rather than crowding prisons is the ideal strategy to cutback spending.

Health Care:

Healthy Approach to reducing health care costs –

Medicaid for senior citizens and economically disadvantaged population.

Promoting preventive care with immunizations.

Early diagnosis of diseases through annual or bi-annual medical checkups and

Subsidized prescription drugs through tax incentives to pharmaceutical and bio-tech industry are few possibilities to deal with health care crisis.

Counseling services and Therapy for psychological and other mental health problems as a preliminary screening process to ease the substantial costs in this regard.

General well being encouraged through active life combined with healthy diet in schools and other areas of the community.

Vehicle License Fee backfill – To be reinstated as outlined above.

General Government – Electronic record keeping and updating technology would considerably improve efficiency and prohibit excessive spending in administrative services.

Higher Education – Engagement in community development activities in return for student loans is a progressive cost recovery scheme.

Transportation – Cost savings methods and effective transportation means aimed at conservation of time and energy recommended for this expense.

Resources and environment – Best to follow guidelines suggested above for environment.

All other costs and spending not discussed or highlighted must be carefully reviewed and those proven redundant with no benefit to taxpayers or the State eliminated to reconcile the budget.
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Time for Action by California Legislators

Investment in better education and all of the essential services means building future with healthy, responsible and productive citizens as opposed to increasing prison population demanding major diversion of funding to criminal justice system.

There is an urgency to underscore the fact that not all taxpayers necessarily benefit and appreciate the frugal tax savings by preventing tax increases because such action favors the wealthy minority while leaving the majority marginalized in a society.

If the legislators really care for their constituents and the state/nation they pledge to serve, they need to pause and reflect on the realities of depriving majority of the population to decent lifestyle and economic prosperity, the predominant cause of the current sluggish consumer spending.

Often, provision of unemployment and social security benefits, Medicaid, health insurance, food stamps…dismissed as socialized enigma in a Capitalist economy. Unfortunately, a reminder is required that subscribers of these benefits and services ultimately contribute to the success of the capitalist system as consumers of various products and services.

As stated earlier in the blogpost titled Redistribution of Wealth, Oct 31, 2008, www.padminiarhant.com

Promoting economic status as highlighted above…

Eventually, create a fair system of sharing the economic burden by all rather than only by the affluent ones.

Such farsighted and permanent solutions are in direct contradiction to the myth and misnomer of the doctrine against short term tax increases essential to combat severe economic recession.

Socialism, Marxism may well be the nemesis to Capitalism,

Capitalism cannot thrive without consumerism – – That is the fact

California budget crisis must be resolved with no further delay.

It is time for legislators to set the priorities right to fit in with the new millennium goals.

Thank you.

Padmini Arhant

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

Radio Show Update

January 24, 2009

Schedule Update:

January 24, 2009, Air time – 8.00 – 10.00 P.M(PST)

Category: Current Events

Topic: Wall Street Bailout

Discussion:

What should financial institutions do with taxpayers’ bailout?

Why haven’t the financial institutions invested funds to stimulate economy?

What is public demand from them and the legislators?

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January 25, 2009,  Air Time 2.00 – 4.00P.M (PST) – (5.00 – 7.00P.M EST)

Topic: Free Palestine

Discussion:

1. How can we help to expedite independent state for Palestinians free of Israeli blockade, occupation and aggression?

2. What should the new administration do to be a trustworthy partner and unbiased peace broker in the Middle East conflict?

3. How can we help Israeli population elect a moderate government in early February favoring peace and diplomacy over military action for their national security and sovereignty?

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January 30, 2009, 120 minutes 2.00P.M – 4.00P.M – Cancelled due to restrictions on segments at frequent intervals.

Category: Current Events

Topic: Economy and Health Care – Please refer to blog post on www.padminiarhant.com for details and I invite you to post comments.

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.

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

Look forward to the session.

Thank you.

Padmini Arhant

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?

———————————————————————————-

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.

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