Saving Grace – California Fiscal Crisis

July 14, 2009

By Padmini Arhant

The beautiful Golden State pawned over obstinate leadership and legislature in Sacramento. If the minority representatives and the head of the state confined to their political dictum and ideology, the majority on their part let the myopic view of the state of affairs undermine the social challenges confronting the constituents.

There were too many opportunities aided with pragmatic solutions to resolve the ever-rising budget shortfall (previously at $24.3 billion and now increased to $26.3 billion deficit) without draconian cuts hurting the weak and the most vulnerable in the society.

Sometimes, when there is intellectual deficiency in the leadership to deal with crisis, a wise option for the authority in power is to display humility, heed to genuine concerns and adhere to remedy offered to the problems rather than a Kamikaze approach headed for a disaster. Although, the leadership ignoring sound advice implies personal egocentric satisfaction, the false notions and misguided policies rejecting the population’s misery have led to the status quo.

Sacramento could have averted California fiscal debacle back in November 2008 when the path towards the state budget appeared difficult and beckoning swift reactionary measures to reign in on the economy tumbling downhill.  Instead, the legislature and the leadership stalled action with no respect for the constitutional rule of law mandating the state budget reconciliation by a deadline. The reality being the deadlines have come and gone with no state budget in place.

To reiterate earlier statements, the embarrassing performance by the entire legislative force with the head of the state leading in this respect squandered taxpayers’ valuable resources in political bickering, finger pointing and even assigning the duty to the taxpayers/voters through Special elections on May 19, 2009.

Since Sacramento abdicated their legislative responsibility to approve a functional state budget and a rescue plan for the following year, California is in dire fiscal state with a direct impact on the national economy. The only action from Sacramento seen thus far is the sedative talks to calm anxious residents dependent on social programs and services and the rest of the population eager for the state’s economic recovery.

Contemporary politics seeks comfort in lip service rather than concrete action focused on relief to the victims.  With no end to the on-going tug ‘o war, the ruthless slashing of funds continues with respect to education, health care, environment and the overall economy wounding the present and the future of the society.

In the absence of state budget for the fiscal year, the state treasury forced to issue IOUs declined encashment by the major bailed out banks defaulting on their lending commitment during taxpayer bailout to stimulate the local and national economy. The cumulative effect of the incompetence in Sacramento obvious in the degradation of the once stellar credit rating of the Golden State possibly reduced to junk status in the near future.

As experienced by the national economy, budget financing and legislative funding for reform and economic revival depend on both revenues and savings through spending cuts. The recommendations to raise income taxes from the following sources at the bare minimum slighted when it could have adequately provided for the budget shortfall.

Tobacco and alcohol tax, Vehicle registration fee and most importantly closing loopholes for the Corporations evading state income taxes through tax havens, collecting hefty fines from the environmental polluters i.e. oil, aviation and automobile industry, overhauling of the criminal justice system viz. the state prisons absorbing enormous amount of the budget to name a few.

The administration’s cavalier approach in demolishing the society’s foundation i.e. education, health care, and small businesses…with merciless withdrawal of funds from the budget indicates governance in the barricades, the elitists out of touch with the plight of the populists.

Why California is important for the Naitonal Economic Recovery?

Source: Wikipedia.org – Thanks

Gross domestic product (GDP)

California is responsible for 13% of the United States’ gross domestic product (GDP). The state’s GDP is at about $1.7 trillion (as of 2006).

The GDP increased at an annual rate of 3.1% in the first quarter of 2005.[13]

According to the California Department of Finance, if California were an independent state, it would have had the seventh largest economy in the world.
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California is the epicenter for Science, Technology, and Entertainment besides representing every other sector —
Finance, Manufacturing, Construction, Health, Education, Hospitality, Energy as the pioneer of Green Technology, Environment, Trade, Transportation and Utilities, Information dealing with Motion Picture Broadcasting, Publishing, Internet businesses and Telecommunications to Agriculture and Mining are some of the many core activities creating jobs and contributing to the National GDP.

The impressive growth in California during the Silicon Valley boom stunningly boosted the National GDP with the state experiencing labor capital depletion in many industries. Subsequently the profit earnings in the California technology sector from 2002 to 2007 contributed to the stock market rally with the trend continuing until date. One of the reasons for the current enlarged National Unemployment figures is the double-digit jobless rate in California and the budget crisis exacerbating the national productivity.

With the escalating job losses and the stalemate in Sacramento holding the state budget and the children’s future hostage, the national economy will further deteriorate if the California budget shortfall not met immediately.

The taxpayers’ bailout of the finance sectors and the automobile industry with no accountability or transparency deprived the states like California from receiving generous federal funding to various programs. These bailouts primarily passed to enable liquidity in lending and job protection across the nation. Again, the proof of the pudding reflected in the dismal unemployment figures arising from defaults by the finance sector withholding lending to small and medium businesses as well as the average consumers.

Such violation of trust by the finance sector has attributed to poor consumer spending adversely affecting the retail sector with a ripple effect on the entire economy.

So much for the free market integrity and reliability in turning the economy around through capitalist mechanisms, that is generating job losses rather than job creation.

California on the other hand could emerge out of the existing crisis with federal assistance and approval of $26.3 billion in borrowing at nil interest rate. The amount returned progressively through state bonds over a set period would benefit both the state and the national economy in alleviating the financial meltdown. The Federal Reserve and Treasury could lend the necessary amount to California recovery plan from the residual amounts of the previously approved financial bailouts and TARP funds returned by some Investment banks like Goldman Sachs.

Meanwhile, the citizens of the great Golden State must engage in changing the political system with efficient bipartisan legislature and leadership in Sacramento. When the programs and services restored to benefit the people of the state, the interim relief and long-term stability to the nation’s largest GDP growth state is inevitable.

If the Federal Reserve or the Treasury unable to provide any relief to California then,

Considering the grave fiscal scenario facing the state of California, the SOS from the citizens of this state require urgent action by the Congress, Senate and the White House in the swift approval of the amount – $26.3 billion. Unfortunately, any opposition to the financial aid will have serious political backlash in 2010 and 2012 elections – demonstrated by the electorate during the special elections on May 19, 2009 rejecting both political parties for their insensitivity to the crisis.

As for the head of the state – The actions or the lack thereof until now evidenced in the areas identified below –

Following the electorate dismissal in the Special elections on May 19, 2009, the Governor appointed committee has business representatives with deep pockets favoring their own agenda against the less fortunate citizens to resolve the budget crisis, confirming the authority’s allegiance to the special interests.

The disingenuous remarks on the immigration issue related to the undocumented workers without any progress in issuing drivers license that could have not only generated state revenue but also moved the matter from the back burner is yet another political gimmick.

Recently the Governor’s controversial posturing threatening to fingerprint i.e criminalize the food stamp recipients targeting the disabled, the jobless and the elderly as the means to detect alleged fraud and forgery in an effort to saving costs against above mentioned nominal tax increases is beneath the humanitarian character and deplorable on all accounts.

The opposition minority has no time left to procrastinate by wasting taxpayer dollars to defend the ‘so-called’ fiscal-responsibility when the exercise proven counterproductive.

Similarly, the ruling majority must review and revise the union based workers’ and state employees’ disproportionate employment benefits costing taxpayers excessively, more relevantly in the public safety employment, and other government jobs.

A dilemma for the California voters is, if the right pledged to the appeasement of the Corporations investing thousands of dollars in political campaigns and legislative matter, the left compensated with the Unions and Corporations’ influence on the legislative issues.

Therefore, it is in the best interest of the nation to reform private contributions in political campaigns and promote public financing to implement checks and balances apart from maintaining costs at all levels of the electoral process. Also, the open primaries in the state elections will facilitate moderate representation from the right.

Given the unacceptable partisanship creating gridlocks and a colossal failure to balance the budget, it is appropriate for the State of California to end the term of the administration and those responsible in leading the state from prosperity to an economic ruin.

Effective immediately, the countdown begins for Sacramento to follow the guidelines by sparing the education, health care, energy, environment and all the essential programs and services benefiting the people and enacting the relevant tax increases with the elimination of redundant spending in other areas.

It’s incumbent on Sacramento to finalize on the meaningful state budget in order to settle the debts to different creditors and restore the pre-recession California image and credit ratings.

Thank you.

Padmini Arhant

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

Iranian Uprising – 21st Century

June 20, 2009

Apocalyptic New Era

By Padmini Arhant

The Presidential election results were out in the Islamic Republic of Iran and predictably, the theocratic rule through flawed electoral process declared the incumbent President Mahmoud Ahmadinejad the winner, with a landslide victory against the reformist leader Mir Hossein Mousavi of the Islamic Iran Participation Front, recognized as the largest reformist party.

Iranian youth, women and everyone oppressed by the existing regime mourning seeing no hope in the horizon for Iran aligning to the twenty first century nation governance. The re-nomination of the President Ahmadinejad by the un-elected and self-proclaimed clerics under the Supreme Leader, Ayatollah Ali Khamenei indicates the iron-fist authoritarianism executed as the guardian of the sacred Islamic religion.

The theocratic power claiming to be the representative of peaceful and respectful Islam effectively shackled the Islamic vows – equality, freedom, justice and compassion shared among all, with sheer denial of the humanitarian rights granted by the holy Islam.

Ironically, the election is anything but democratic with the election results not conforming to the actual data in more than one account. According to reliable sources, the higher voter turnout was encouraging and huge enthusiasm among the majority confirmed the readiness for the change that’s long overdue in the Islamic Republic and the entire Middle East. Upon opposition’s refusal to concede to the false ceremonial victory by the current President Mahmoud Ahmadinejad, the streets in Tehran and the holy city Qom reverberated with chants against the undemocratic verdict.

Any ballot recount in selective areas to satisfy the republic with an insatiable appetite for emancipation is equivalent to an illusionist’s performance in charming the tense audience. Tragically, the religious order’s deception of the Islamic faith dedicated to truth, equality and justice for all vilified in the endorsement of killings and violence against peaceful protesters by the paramilitary under the top hierarchy’s direct command, reminiscent of the Tiananmen Square event.

The recent incidents in Tehran and other parts of the nation is a reminder that permanence is not in the laws of nature and change is the natural course of action to prove it. Despite resistance to positive reform, a priority beginning with the free and fair elections, the theocracy in Iran struggling to maintain credibility as the religious force inculcating bias in the contradictory version of democracy dominated by religion over the independent state rule.

Whenever any puppet government controlled by the ultimate religious authority or dynasty challenged to demonstrate democratic values towards the nationals, defiance is inevitable. Therefore, the victims subject to hard line approach viz. muzzling the voice of democracy in the technology-oriented age. Evidently, the Iranian republic determined to free themselves from the prolonged tyrannical rule of law under the guise of Islam – conflicting to the egalitarian religious philosophy.

The current events in Iran is a test for the theocracy led by the Supreme Leader Ayatollah Ali Khamenei and the clerics’ respect for the holiness, Prophet Mohammed’s teachings to value humanitarian rights and disavow violence, deceit, disorder in any form or shape. Importantly, the involvement of religion in the state affairs and the Supreme Leader as the head of the state is a gross violation of Islam juxtaposed to Islamic law prohibiting spiritual leaders from aspiring political power, materialistic gains and supremacy.

Autocracy implemented through theocracy is sacrilegious in the highest order.

It is imperative for the Islamic Republic of Iran to honor the will of the people towards democracy with an absolute guarantee of equal rights for all citizens of different faith and ethnicity in the historic Persian land. The reference particularly applies to the persecution and systemic abuse of the Baha’i population along with disregard for the faith until date.

Since the election outcome debunked with reprehensible practices such as vote rigging and unscrupulous means by the state in producing unrealistic victory for their choice of representative effectively disposes the results null and void. Henceforth, the reformist candidate Mir Hossein Mousavi aptly qualifies in requesting the Iranian electorate to recall the nominee, Mahmoud Ahmadinejad and the Guardian Council responsible for the protocol reportedly swayed to the theocratic preference has created a self-dispensable status in the so-called democratic election.

With the overwhelming international support and solidarity for the Iranian moderates in the ongoing political upheaval, the camouflaged autocratic leadership in Iran is on the verge of collapse serving testimony to the apocalyptic new era pledged to deliverance around the world.

The concurrent election results throughout the Middle East, with Iraq rejecting the Iranian supported political and terror faction, Lebanese sidelining the once popular and terror sponsor Hezbollah backed by the troubled Iranian theocracy, Palestine more eager to attain the dream of freedom empowering FATAH over HAMAS is a confirmation of the apocalypse.

Although, credit for changes in the Middle East attributed to the previous and present United States Presidency, the real agent behind the democratic transitioning is the long brewing unprecedented will of the population with technological know-how rising to the occasion comprising free speech and human rights.

Similar scenario witnessed in Egypt initiated by the anti-government centrists and pro-democratic aspirants including the Muslim Brotherhood – the Hosni Mubarak government’s traditional rival. In this instance the moderates in Egypt were disappointed with the omission of Egyptian government’s prolonged human rights violation in President Obama’s Cairo address, even though the objective for detour appears to rest on the potential Egyptian influence on the Arab world in the recognition of Israel and resolving the two-state solutions crisis.

Many outspoken pro-democracy groups operating within and outside of Egypt shared their anguish over a missed historic moment by the United States Presidency to curtail excessive oppression in the Pharaoh land.

Back to Iranian political uprising contributing tremor across the Middle East – it’s no coincidence and remains an affirmation to pervasive democratic movement brought upon not by Super Power aggression instead, through peaceful and powerful populace demand, yet another desirable path in accordance to the apocalypse.

The contemporary political unrest in Iran is likely to subdue the theocracy limiting and possibly eliminating the intervention of religion in the state rule to promote real democracy. As for the reformist leader Mir Hossein Mousavi’s parallel political stance with the opponent President nominee Mahmoud Ahmedinijad regarding Iranian nuclear program and Israel…

The notion between the Israeli Knesset and the White House ambivalence to the controversial re-nomination of the President Mahmoud Ahmadinejad implies – “It’s better to deal with the devil you know rather than the Saint you don’t.”

This posturing by Washington and Jerusalem is disturbing considering the pivotal role by both nations as part of the military industrial complex in the lucrative and prolific nuclear and arms weaponry exhibited by the United States in Iraq and currently in Afghanistan. Likewise, by Israel in the aggression against Palestinians in Gaza in December 2008 accompanied by repeated retaliatory threats to strike Iran’s nuclear site with or without the United States alliance warrants a great deal of concern.

Israel’s selection of President Nominee Ahmadinejad over reformist candidate Mousavi suggests Israel accepting Ahmadinejad’s provocative gesture as an opportunity for military action. Such political maneuvering by Israel could prove immensely detrimental to its own national security other than raising a credibility issue as a viable peace partner in the Middle East.

An oil enriched and Shiite dominant Iran’s strong emergence in the Arab world posed a huge challenge to other oil-abundant nation like Saudi Arabia and others fearing identical fate with the impending overthrow of the political dynasty contrasting political theocracy in Iran, while both kingdoms sharing abandonment of democracy in the legislative rule.

Meanwhile, the massive rally and protests on behalf of the reformist party candidate Mir Hossein Mousavi justified when,

The reformist leader commits Iran towards modern democracy in every aspect of governance,

A nuclear free zone as the concept of nuclear energy program to generate electricity does not fit in with Iran being the third richest nation in oil reserves,

Oil reserves in Iran

From Wikipedia, the free encyclopedia

http://en.wikipedia.org/wiki/Oil_reserves_in_Iran

“Oil reserves in Iran, according to its government, rank third largest in the world at approximately 136 billion barrels (21.6×109 m3) as of 2007, although it ranks second if Canadian reserves of non-conventional oil are excluded. This is roughly 10% of the world’s total proven petroleum reserves.

Iran is the world’s fourth largest oil producer and is OPEC’s second-largest producer after Saudi Arabia. As of 2006 it was producing an estimated 3.8 million barrels per day (600×103 m3/d) of crude oil, equal to 5% of global production.[1] At 2006 rates of production, Iran’s oil reserves would last 98 years if no new oil was found.”

Further, recognize and embrace Israel as a sovereign state,

Last but not the least; relinquish terror sponsorship in Iraq, Palestine and Lebanon including conciliatory partnership via arms supply to belligerent North Korea.

Otherwise, Iran reflecting true reform in alienating from the ideological, theocratic principles and doctrine prevailing over the fundamental democratic values desperately required by the deserving Iranian population.

The imminent victory for peace against violence will testify the strength of populace power in the declining theocratic regime systematically misrepresenting the sacred and peaceful Islam.

The Iranian electorates’ perseverance towards democratic goals will be a trailblazer for other nations to follow suit in the Middle East.

Persian, … šāʾ Allāh (ar | ما شاء الله), which means, "God has willed it". …-

Insha’Allah (إن شاء الله) – Allah Willing.

Thank you.

Padmini Arhant

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

National Security Act – Torture

May 6, 2009

By Padmini Arhant

Torture

The nation riddled with recent events pertaining to national security.  In the past few weeks, there have been vigorous debates and discussions on the release of the torture memos describing the torture tactics applied on the speculative terror suspects in Guantanamo Bay and those held in Bagram Prison, Afghanistan.

There are polarizing views regarding the release of these materials claiming the potential threat to national security including the CIA and FBI operatives’ difficulty in performing their duties to keep the country safe.  Those in favor of transparency welcome the Obama administration’s gesture subject to further course of action. Merely releasing the materials will not suffice considering the misuse of power and gross violation of humanitarian laws.

In addition, the subsequent argument on the possible prosecution of the individuals responsible for torture against the Geneva Convention contributing yet another dilemma in the definition of torture and accountability factor.  Obviously, the predecessors’ supporters vehemently oppose the entire action thus far – from revealing the information to investigation.

The Obama administration‘s ambiguity on the humanitarian issue perceived as the White House conspicuously avoiding ‘retribution’ smear and possible distraction from the legislative matters like the universal health care.   Meanwhile, concerned citizens intrigued by the extreme strategy implemented to justify the imminent danger hypothesis, a constant practice by the previous administration notably the successful fear-mongering tactic during and after the Iraq invasion and occupation.

A full disclosure of the interrogation techniques particularly the notorious water boarding , ill-treatment and the indefinite imprisonment of the ‘so-called suspects’ in these captive centers confirm the serious violation of International Code namely the rejection of GCIII and Habeas Corpus.

It is important to examine the exact interpretation of the International laws set up for guidance and ethical purpose.  Further, the enforcement of these laws is to ensure precisely the state/the authorities remain confined to the jurisdiction of power against unarmed human beings in detention.

Source: The Wikipedia.org (The Free encyclopedia) – Thanks

The Third Geneva Convention of 1949 (abbreviated GCIII or GPW) , one of the Geneva Conventions, is a treaty agreement that primarily concerns the treatment of prisoners of war (POWs), and also touched on other topics. It replaced the Geneva Convention (1929).

According to Article 3, Part 1, General Provisions referred to as ‘Convention in miniature,’

“Noncombatants, combatants who have laid down their arms, and combatants who are hors de combat (out of the fight) due to wounds, detention, or any other cause shall in all circumstances be treated humanely, including prohibition of outrages upon personal dignity, in particular humiliating and degrading treatment.

The passing of sentences must also be pronounced by a regularly constituted court, affording all the judicial guarantees, which are recognized as indispensable by civilized peoples.  Article 3’s protections exist even if one is not classified as a prisoner of war.”

Habeas corpus (IPA: /ˌheɪbiːæsˈkɔːpəs/) (Latin: You (shall) have the body[1]) is a legal action, or writ, through which a person can seek relief from the unlawful detention of him or herself, or of another person.  It protects the individual from harming him or herself, or from being harmed by the judicial system.  The writ of habeas corpus has historically been an important instrument for the safeguarding of individual freedom against arbitrary state action.

Simply put,

Habeas corpus, a legal action through which a person can seek relief from unlawful detention.

The due process for such petitions is not simply civil or criminal, because they incorporate the presumption of nonauthority.  The official who is the respondent has the burden to prove his authority to do or not do something.  Failing this, the court must decide for the petitioner, who may be any person, not just an interested party.  This differs from a motion in a civil process in which the movant must have standing, and bears the burden of proof.”

Here are some news articles detailing the torture on presumed ‘suspects’ held in captivity by the U.S authorities.

Warning: The following articles are graphic and may not be suitable for all.

“I Could Not Stop Screaming”

“The British newspaper Guardian (2/18/2005) reported that one Bagram prisoner, a Palestinian named Mustafa, was blindfolded, handcuffed, gagged, and forced to bend down over a table by three American soldiers.  He said, “They forcibly rammed a stick up my rectum… I could not stop screaming when this happened.”

In another case reported by the Guardian, a Jordanian prisoner, Wesam Abdulrahman Ahmed Al Deemawi, said that during a 40-day period at Bagram he was threatened with dogs, stripped and photographed “in shameful and obscene positions” and placed in a cage with a hook and a hanging rope.  He says he was hung from this hook, blindfolded, for two days.

Both men were freed from U.S. detention last year after being held at Bagram and Guantánamo.  Neither has been charged with anything by any government.

Dilawar, a 22-year-old Afghan taxi driver and farmer, was killed by U.S. torturers at Bagram in December 2002.  He had been beaten and chained by his wrists for four days. After his last torture session, Dilawar was chained back to the ceiling.  Several hours passed before a doctor saw him—by which time he was dead and already beginning to stiffen.

“An official of the Afghan Independent Human Rights Commission questioned –

“Are They Going to Vanish Forever?”

“The Americans are detaining people without any legal procedure. Prisoners do not have the opportunity to demonstrate their innocence.”

Despite the unprecedented human rights violations… translated barbaric in modern times, the defense for the authorities authorizing and executing the medieval customs against unarmed detainees charged guilty without due process is astonishing.  The world witnessed the pervasive prisoner abuse in Abu Ghraib, Iraq, Bagram, Afghanistan and Guantanamo Bay through explosive visuals, editorials, columns and interviews predominantly from the international sources and on-line mass media.

Incidentally, the torturers’ loyalists cry ‘foul’ against the latest revelation.  Even though, the international news organizations and human rights groups have been reporting these incidents all along per above articles.  Contrasting the detainees position, all those responsible for the unconscionable crime against humanity involving innocent victims in the witch-hunt for terror suspects, are also exempt from due process however, with the distinction of them proclaimed “Patriotic” in their utter disregard for International laws and human rights.

Clearly, the abuse of power in this context from the pyramid‘s apex to the base is symbolic in the embarrassing chapter of American history.  Ironically, the explanation for torture attributed to national defense while ignoring the brutality against other nationals and their families’ ordeal.

One might argue if it’s worth treading the retribution path rather than moving forward.  It’s possible to move forward if the past had no remnants of violation of the laws involving global citizens in prolonged detention specifically in the absence of any evidence or trials.  Similar treatment of American nationals would have created pandemonium at all levels.

Besides, such practices open the floodgates for misuse of power by future administrations notwithstanding other nations…currently witnessed in the treatment of American journalists imprisoned on allegedly espionage charges by Iran and North Korea.

Whenever there is excessive abuse of power, unequivocally democracy threatened aside from the Constitution made irrelevant.  Therefore, it’s incumbent on the people in a democracy to ensure that neither the state nor any authority is above the law in the land of justice.

Please stand by for more information and analysis on related topics.

Thank you.

Padmini Arhant

Written by Padmini Arhant · Filed Under National and Global Security | Comments Off on National Security Act – Torture 

Radio Show Schedule

January 22, 2009

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

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

Category: Current Events

Topic: Corporate Bailout

Discussion:

What should financial institutions do with the taxpayers’ bailout?

Why have they not utilized those funds to stimulate economy?

What is public demand from them and the legislators?

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

Category: Current Events

Topic: Economy and Health Care

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

How do we fix the Health Care system?

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

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

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

Your comments and thoughts are welcome in the political discourse.

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

Look forward to the session.

Thank you.

Padmini Arhant

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

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

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

Auto Rescue Plan – $17.4 Billion

December 22, 2008

The White House decision to honor and acknowledge the plight of American workforce is praiseworthy.

During tough economic times, important decisions made to protect national interest is the best action for a nation dealing with crisis in all fronts.

Failure to avert the collapse of the huge manufacturing sector would have led to dire consequences with ripple effect on national and subsequently global markets.

For all those concerned about the erosion of free market system,

They must realize that the free market system with no oversight or regulations was heading towards a free fall denting the economic infrastructure with respect to financial and manufacturing sector.

The revival of sluggish economy is dependent on stabilizing the commercial sector providing millions of jobs that are in steady decline due to mismanagement, lack of accountability and corporate greed in many instances.

Therefore, the recent governmental intervention is necessary to restore investor and consumer confidence at all levels which in turn would contribute to the anticipated economic stimulus.

However, it is disappointing to note that the White House has unfairly targeted the United Auto workers (UAW) union with disproportionate demands such as,

Ref: Various news reports…

1.“The UAW union asked to rework contracts to make wages and work rules comparable with those at nonunion plants in the United States owned by foreign automakers by December 31, 2009.

2. The UAW asked to accept stock rather than cash for the billions of dollars of pension and retiree health care liabilities shifted from the companies to the union.”

The success and failure of any organization lies with management of capital and resources available to the head of the company responsible for the entire workforce.

Stock performance is dependent on the viability of the company based on executive decisions leading productivity to profitability.

Hence, shifting the entire burden of liabilities to labor rather than management reflects cohesion with the corporate executives primarily responsible for the precipitous losses suffered by the manufacturing sector.

With the loan granted to GM and Chrysler, it is imperative for not only these two automakers but also the entire auto industry to move towards energy efficient preferably environment friendly automobiles to free the nation from energy dependence and environmental hazards.

Overall, the rescue plan is the step in the right direction to protect nearly a million jobs in the auto industry.

Such action to salvage the American workforce will pay off through consumer spending, an essential catalyst for economic recovery.

As for the bailout precedence, it is noteworthy that the grim reality of accelerating unemployment and liquidity freeze in the credit market prompted similar action.

Finally, it is incumbent on the financial institutions to respond to the urgency of the economic revival by reinstating responsible lending practices to businesses with sound management focused on profitable ventures.

Thank you.

Padmini Arhant

Written by Padmini Arhant · Filed Under Business | 1 Comment 

Time for Action on Auto Rescue Plan

December 16, 2008

Once again, partisan politics prevails over national interest in the backdrop of the economic crisis due to skyrocketing foreclosures, credit crunch and now,

Record unemployment at 6.7%, expected to rise further from the lack of action by the legislators, leaving the fate of the million workers in our nation hanging in balance.

The extreme demands by the legislators voting against the rescue plan to,

The United Auto Workers (UAW) union to agree to steep wage cuts to bring their pay equivalent to the Japanese auto industry is preposterous and poses the legitimate question to them in return.

Have these legislators made similar demands to the CEO’s of the auto industry prior to urging UAW to agree to such double standards?

Further, the following question from a wise representative of democracy to the so-called lawmakers otherwise the boulders contributing to the roadblock or failure of any important legislation is praiseworthy.

Even though the question is in context with the California State of affairs, it is still relevant as the Californian legislators particularly the Republican Party representatives have sworn to mimic their federal counterparts in escalating the economic recession.

Ref: Mercury news, December 12, 2008 – Thank you.

"What sacrifices are our leaders making?

Considering the latest estimates of the financial crisis facing California, I think we should all be asking our elected officials what sacrifices they plan to make during these hard times.

We the taxpayers are bracing for increases in taxes and fees, decreases in services, huge layoffs of public and private sector employees.

I have yet to hear anything about cuts being considered to the compensation, pension plans, health care, car allowances, per diem, etc., that our representatives enjoy.

The fact is that these so-called leaders are at the helm of this shipwreck.

Ultimately, it is their responsibility to run this state in a fiscally responsible manner.

They have failed miserably.

We should demand that any plan to bridge this budget gap start with cuts to those who failed us. "

Ken Kramasz

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The demand is fair and justified.

More grinding facts on the consequences of bailout failure:

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Article: Suppliers see their demise if Big 3 become insolvent

By Bill Vlasic and Leslie Wayne, New York Times.

Ref: Mercury News, December 12, 2008 – Thank you.

The excerpt from the article deserves attention.

“The hypotheticals about the domino effect of the companies’ troubles through the vast network of auto supplier firms – which employ more than twice as many workers as the carmakers – are becoming real.

Top of Pyramid

The Big Three, and their foreign competitors, are what most people think make up the entire auto industry.
But the car manufacturers are just the top of the pyramid.

While GM, Ford and Chrysler employ 239,000 people in the United States, the country’s 3,000 or so auto suppliers have more than 600,000 workers.

Most of the suppliers are not highly waged; they have no big pensions,…

Washington has a myopic view of the auto industry.

They just think of the Big Three and don’t think of us,” i.e. the suppliers.

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Challenge the Opponents:

What strategy or proposal the White House and the opposing legislators have in mind about the economy?

So far, they have been highly successful with their dogmatic policies that have led the economy towards recession.

With the lack of action in this matter, the collapse of other industries is imminent worsening the situation comparable to a black hole.

Aren’t they satisfied with the calamities they have brought upon this nation, that they are further determined to see through the peril before their much-awaited departure from the White House?

All these legislators including Senate Democrats in opposition to saving jobs and helping families through this rescue plan ought to think wisely, as they might be inadvertently putting themselves on notice in 2010.

For some, it might happen even sooner as there is a process called recall in a democratic system.

The people of the United States have learned a harsh lesson through Bush administration.

Conventional wisdom dictates that when something is of no value, it is best to discard and replace it with one of use that serves the purpose.

In the case of the incumbent administration, the notion might be what harm any inaction might do now as the term is nearing end.

History will do its part with judgment on the performance of any administration regardless of the cosmetic presentation by the representatives of the outgoing administration.

Notwithstanding the impending justice to be delivered for crime against humanity specifically violation of constitution thus far by oligarchy and their members.

In addition, the repercussions of the failures of any administration or individuals representing a political party cannot be ignored, especially if they are encouraging their clan (as it appears to be the norm in contemporary politics including democracy ) to retain Power further down the road.

No matter, how one circumvents the situation leading to the downfall of the once prosperous economy, the fact remains that willful negligence or malevolent policy to settle scores with opponents will result in their own ouster from the positions as legislators.

The elimination of the namesake lawmakers aka troublemakers will be the result of illogical conduct and abuse of power against the people and nation they falsely pledge to serve at all times and diligently during crisis.

Options for the White House to salvage the demise of the political party they represent in the coming elections is to act in the best interests of the people who are the electorate with the ability to entrust Power through electoral process.

Up until recently, the serious backlash suffered by the Republican Party represented by the incumbent administration in 2006 and 2008 is ominous that those who fail to deliver their commitments to democracy will share similar outcome reaching the point of no return to power.

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Action Required:

It is incumbent on the Treasury department and the White House to come forward and immediately release the unused $15 billion from the $350 billion financial bailout draw down currently held in cash to rescue the autoworkers and millions of jobs at stake.

Failing to avert the inevitable collapse of the industries providing food and livelihood for the electorate with power to elect officials to serve the public will be detrimental to the success and approval of the final bailout $350 billion defending the finance industry.

The authorization of the $15 billion from the current $350 billion is imperative barring any mandatory demand for wage cuts and benefits to the workers and UAW.

Any conditions to the rescue plan will apply to the CEO’s of the industry from cashing in bonuses and extravagant remuneration including kickbacks and shady Washington deals with the lobbyists by the legislators elected to protect national interest rather than self-interest.

Urgency of this auto rescue measure will prove the effectiveness of democracy in action.

Therefore, it is the responsibility of the Treasury department along with the White House to act promptly by releasing the cash held $15billion from the previously approved taxpayers’ $350 billion for the financial bailout and save the American workforce as well as the economy.

Procrastination rather than action in this matter will lead to the unrequested irrelevance and perhaps the end of a major political party in the coming elections by making way for the emergence of new political faction in the near future.

Thank you.

Padmini Arhant

P.S. The suggested plan of action also applies to the California legislators, currently engaged in threatening democracy and progress in all fronts of the legislation.

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

Bailout Failure

September 29, 2008

The democratic system has failed to rescue the nation at the hour of crisis. The party bickering and “partisan politics” has taken precedence over “main street” struggles. It is clear from the action of the legislators voting against the “emergency” plan that their concern for the return to power is paramount than the “average citizen’s” livelihood. The explanation for their refusal to cooperate does not resonate with the realities in the “main street”. The nature of global economy is slighted with distracted opinions and determined position in this crucial legislation.

Excerpt of one of the legislators reason to vote against the bailout.

Source : Democracynow.org – Thank you.

According to Democratic Congressman Rep. Dennis Kucinich – “Is this the United States Congress or the Board of Directors of Goldman Sachs?” Rep. Dennis Kucinich Rejects $700 Billion Bailout
The House is set to vote today on a $700 billion emergency bailout plan for the financial industry. The proposed legislation was forged during a marathon negotiating session over the weekend between lawmakers from both parties and Treasury Secretary Henry Paulson. The 110-page bill would authorize Paulson to initiate what is likely to become the biggest government bailout in US history, allowing him to spend up to $700 billion to relieve faltering banks and other firms of bad assets backed by home mortgages, which are falling into foreclosure at record rates.

AMY GOODMAN: Right, but the Democrats are in charge of this.

REP. DENNIS KUCINICH: Right. You know, I’ll tell you something that we were told in our caucus. We were told that our presidential candidate, when the negotiations started at the White House, said that he didn’t want this in this bill. Now, that’s what we were told.

AMY GOODMAN: You were told that Barack Obama did not want this in the bill?

REP. DENNIS KUCINICH: That he didn’t want the bankruptcy provisions in the bill. Now, you know, that’s what we were told. And I don’t understand why he would say that, if he did say that. And I think that there is a—the fact that we didn’t put bankruptcy provisions in, that actually we removed any hope for judges to do any loan modifications or any forbearance. There’s no moratorium on mortgage foreclosures in here. So, who’s getting—who’s really getting helped by this bill? This is a bailout, pure and simple, of Wall Street interests who have been involved in speculation.

AMY GOODMAN: Congressman Kucinich, can you explain how it is that the Democrats are in charge, yet the Democrats back down on their demand to give bankruptcy judges authority to alter the terms of mortgages for homeowners facing foreclosure, that Democrats also failed in their attempt to steer a portion of any government profits from the package to affordable housing programs?

REP. DENNIS KUCINICH: Well, I mean, those are two of the most glaring deficiencies in this bill. And I would maintain there was never any intention to—you know, well, many members of Congress had the intention of helping people who were in foreclosure. You know, this—Wall Street doesn’t want to do that. Wall Street wants to grab whatever change they can and equity that’s left in these properties. So— .”
____________________

Review: There is no disagreement in this context. However, the repercussions of failing to act is far greater than the stakes involved in the initial bailout that is being carried out cautiously and judiciously by the remaining members of the “Congress”. The legislators’ rhetoric does not serve the purpose as the U.S economy is the engine of the global markets and the ripple effect is already felt in Europe and worldwide. Today’s plummeting of the stock market is yet another sign of the “financial catastrophe” at our doorstep.

With respect to the elimination of “bankruptcy provision” as discussed in the above interview, the “Democratic Presidential Candidate”, i.e. Senator Barack Obama’s position is apparent in the “housing market” debacle. It is time for the Democratic Party to be forthcoming to the democratic base as well as others and explain the reason behind such notion to alienate the worst hit population i.e. the “homeowners” in this bailout proposal.

As for the GOP members of Congress, defying the national interest by voting against the bailout proposal, the following questions arise,

1. Where were the legislators when the economic meltdown was happening under their watch?

2. Why did they not alert their own party and the administration that is notorious for reckless
policies and “bankrupting” the economy under their reign of power?

3.Whatever happened to the passion and pessimism about the “Wall Street” performance leading
the world’s economic power on the verge of collapse?

Alas, “Rip Van Winkle” is awakened by the financial “thunderbolt” and causing havoc in the “Capitol Hill” , the heavenly abode of the legislators.

Ironically, the two extreme political factions appear to come in terms with agreement on a single platform , i..e. protests the bailout and attempts to derail the entire economic infrastructure. The spectacular performance is to earn voter confidence and retain power for further economic disasters.

It is time to focus on the dire situation and market reaction in the United States and worldwide that is beckoning to act promptly and effectively by facilitating liquidity in the financial market.

The lawmakers concerned about taxpayers must also realize that taxpayers’ investments are the major casualty in the current political fiasco.

It is the duty of every legislator to put “partisan politics” aside and act diligently by coming forward and resolving the national and world financial crisis in the best interest of the people, responsible for their power.

Thank you.

Padmini Arhant

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

Economic Security

September 28, 2008

The legislators are currently addressing the financial crisis confronting our nation and it appears that a consensus has been reached to bailout the Corporations from the burden of bad debts. According to the lawmakers, the “bill” is structured to largely benefit the taxpayers and assist with the stabilization of the financial market.

It is important to recognize the fact that the twenty first century economy is a global economy and the investments are tied to one another directly or indirectly and traded in the global markets. Therefore, it is vital for the U.S. economy to remain stable and provide necessary market assurance to both domestic and foreign investors with stakes in U.S. investments.

The other important factor for the unprecedented government intervention in a “free market” environment is to eliminate loopholes to avert such catastrophe in the future. When the actual agreement proposal is presented to the taxpayers, it should reflect the absolute protection of the taxpayer’s funds and profitable return on any investments.

At the same time, politics should not take precedence over “American taxpayers” interest in terms of “Appropriation of funds” for a certain political faction like “ACORN” or for that matter a “private sector” from the “Wall Street” with any misrepresentation to provide insurance on the “mortgage backed” securities with no prospective buyer in sight.

The “bill” must include provisions for full disclosure of the deals regardless of the nature and size of the bailout amount.

Further, it is essential for the “impending bill” to fund the bailout in “installments” rather than a lump sum settlement as it would indicate the initial results on the venture carried out on a “trial and error” basis. This would also allow public opinion to analyze the “pros and cons” of such investment and facilitate the required liquidity in the financial market with a “majority” approval.

The task ahead of our nation is to restore economic security with the revival of the “housing” and “job” market. As stated earlier, the “housing market” crisis is directly related to the “credit crunch” and “subprime mortgage” failure leading to “foreclosures” and that could be resolved by overhauling the lending practices and assisting the “homeowners” with affordable revised mortgage package. The foreclosed homes should be made available for sale to potential investors with verifiable income and credit history.

Commercial lending should resume freely yet carefully to promote and revitalize the small businesses and Corporations relying on credit for the growth and development in the job market. The flow of goods and services without any disruption will contribute to the anticipated growth and help the nation in reducing the multi-trillion dollar debt due to trade and budget deficit which otherwise will be the inevitable burden on the next and future generation.

It is time to focus on this crisis as “national” rather than “individual” and collectively deal with the issue for a better future of all.

Thank you.

Padmini Arhant

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

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