Showing posts with label debt. Show all posts
Showing posts with label debt. Show all posts

Tuesday, October 9, 2012

US fiscal cliff, eurozone crisis threaten global economy: IMF


 
The headquarters of the International Monetary Fund (IMF) in Washington, the United States (file photo)

Source: Press TV
http://www.presstv.ir/detail/2012/10/09/265689/imf-warns-of-global-econ-deterioration/

The International Monetary Fund (IMF) has warned that the global economy could get worse due to the eurozone crisis and the US fiscal cliff in the future.

The warning came in an IMF report on Tuesday, ahead of the meeting of finance officials from the world’s leading economies, which will be held in Tokyo later this week.

"A key issue is whether the global economy is just hitting another bout of turbulence in what was always expected to be a slow and bumpy recovery or whether the current slowdown has a more lasting component…The answer depends on whether European and U.S. policymakers deal proactively with their major short-term economic challenges," the report read.

"In the United States, it is imperative to avoid excessive fiscal consolidation (the fiscal cliff) in 2013, to raise the debt ceiling promptly, and to agree on a credible medium-term fiscal consolidation plan,” it added.

The report also shows that the IMF has cut its growth forecast for global output in 2012 to 3.3 percent, down from a July estimate of 3.5 percent, with Asia still leading the group of expanding regions while the countries in the euro area witness a contraction this year by 0.4 percent.

IMF chief economist Olivier Blanchard has also criticized European leaders and the US policymakers for the way they have handled the crisis.

"Worries about the ability of European policymakers to control the euro crisis and worries about the failure to date of US policymakers to agree on a fiscal plan surely play an important role, but one that is hard to nail down," Blanchard said.

Experts say 90 percent of American families are facing unprecedented tax increases because the country is headed toward the edge of what's being described as a fiscal cliff.

Meanwhile, various eurozone member states have been struggling with deep economic woes since the bloc's financial crisis began roughly five years ago.

The worsening debt crisis has forced EU governments to adopt harsh austerity measures and tough economic reforms, which have triggered incidents of social unrest and massive protests in many European countries.

Tuesday, September 4, 2012

Poverty and Rising Social Inequality in India


 
By: Colin Todhunter
Source: Global Research
http://www.globalresearch.ca/poverty-and-rising-social-inequality-in-india/

The issue of poverty keeps rearing its inconvenient head in India. The Planning Commission tends to keep on shifting the poverty line, but it is always at a ludicrously low level, which underestimates the numbers actually living in poverty. But playing fast and loose with India’s poverty line has almost become a trendy pastime.

The truth is that poverty is an embarrassment. It is an embarrassment to many of India’s rich and to a good number of politicians, who like to portray the country as an emerging superpower, with its space program, sophisticated weaponry, sports towns, growth figures, Formula 1 race track and gleaming malls.

Apart from such headline-grabbing trappings, India also houses the second largest number of affluent people in the world, with three million households having over $100,000 of investable funds. While this represents just 1.25 per cent of households, it is again the kind of phenomenon that some love to promote as part the myth of India sitting at the top table of nations.

Reality check. One in four people in India is hungry and every second child is underweight and stunted. In 2011, India was 73rd out of 88 countries listed in the annual Global Hunger Index, six places down from the previous year. The 2010 Multidimensional Poverty Index indicated that eight Indian states account for more poor people than in the 26 poorest African countries combined. According to this measure, Bihar, Chhattisgarh, Jharkhand, Madhya Pradesh, Orissa, Rajasthan, Uttar Pradesh and West Bengal have 421 million poor people. This is more than the 410 million poor in the poorest African countries.

Instead of concentrating on GDP growth figures, how about we focus on the annual poverty alleviation figure? The former fluctuates between eight and nine per cent, while the latter is 0.8 per cent, virtually the same as it was 20 years ago. The sacred scripture of free market ‘trickle-down’ dogma has not delivered.

But, hold on a minute. The eight or nine per cent GDP economic growth figures tell us that India is thriving. Right? Wrong. The rich in India are thriving, but the poor, and these days given the inflationary pressures, many of the middle classes too, are struggling to get by. If the growth figures tell us anything, it is that they – the poor and large sections of the middle class – can be said to be paying for the lifestyles of India’s rich.

The logic of ‘development’

Step inside the gated communities or a plush 27-storey one billion dollar plus Mumbai house and arrive in a Forbes nightmare world of privilege and wealth. Step inside the brand spanking new shopping malls, and you could be forgiven for thinking that you were in London or New York, with the plastic food joints, bland international chains and an air-conditioned macburger world of cola dens and coffee bars. These swish temples of modernity are a statement of perhaps where India wanted to be, of where part of India thinks it now is.

But India is capitalism’s success story, isn’t it? Or so the media like to tell us. Despite the logic of capitalism being to drive down costs and increase profits, politicians in the West are trying to change perceptions of India among their own populations. They are attempting to eradicate the notion of it being a land of call centres and back offices that takes jobs from the West and replace it with the idea that trade between India and the West is a two-way relationship that is creating jobs, growth and higher living standards for all concerned.

The reality is somewhat different. For example, a deal struck between India and the US for Harley-Davidsons a couple of years ago will not benefit plants in the US because a new assembly unit in India is to be built. Setting up shop in India not only often leads to the use of cheap exploited labour that works long hours with few if any rights, but also puts downward pressure on existing labour costs in the West. This is the whole logic behind ‘outsourcing’. It’s a win-win situation for CEOs and shareholders alike.

Servicing the well-to-do by providing them with Harleys, overpriced coffee and i-phones is what ‘development’ is all about for those who will financially profit. On his visit to India in 2010, it was noticeable that Barak Obama and his entourage had little to say about the 75 per cent of the population that lives on less than two dollars a day. Not much was said about India’s warped development that creates rich-list billionaires while maintaining so many in poverty or merely hovering above it. There seems to be no invite, no reservation at the top table, no impending arrival at destination corporate-driven-nirvana for those people and others like them.

In the West, workers’ jobs and wages are heading one way – downwards. In large parts of India, especially with increasing food, worklessness and petrol costs, things are just as tough. Listening to political leaders you’d be hard pressed to notice though. They and the media are adept in twisting the truth and passing off such things to their respective populations as necessary blips in the journey towards to some cheap con-trick notion of the promised-land.

There is a shift in power occurring across the world – from the poor and less well off to the rich, boosted by an economic system that ensures the flow of wealth goes upwards via what academic David Harvey calls ‘accumulation by dispossession’ and these days reflected in massive handouts to bankers, public services cutbacks or wages that continue to fall in real terms. When politicians speak of ‘inclusive growth’, it is nice talk. But that’s all it is. How could it be anything else, especially in India as the government continues to sell the country to western financial and corporate interests?

The new colonial masters

India has been moving increasingly closer to the US in recent years and, by implication, complying with its geo-political and economic hegemony. In return for the US sanctioning, supplying and facilitating the development of India’s nuclear industry (despite India not being a signatory to the Non-Proliferation Treaty and having developed a nuclear bomb – contrast its treatment to that of Iran, which is a signatory and cannot be proved to be pursing a nuclear weapons programme), the Indian economy is being prized open on behalf of western retail, agribusiness, pharmaceutical and various other concerns.

On August 15, India celebrated Independence Day. Some 65 years earlier, Nehru stood in Delhi and spoke about a tryst with destiny. Free from the shackles of British colonialism, India was on course for a bright new future.

But appealing to base instincts, greed and narcissism has become the priority value of ‘modern’ India. Shopping and consumerism have become the concerns and priorities of India’s misinformed and misled creamy layer. Misinformed by news outlets that pass off infotainment for news. Misinformed by a government that cosies up to western multi-nationals with secretive ‘Memorandums of Understanding’ and then proceeds to target some of the poorest people in the country as ‘the enemy within’.

Part of India’s own self proclaimed ‘war on terror’ is taking place in the highly mineral rich mountains and jungles of Chhattisgarh, Orissa, Jharkhand and Andhra Pradesh. State governments have already signed hundreds of agreements with companies to begin mining and build steel and aluminum plants and other industries. How easy it was for the Indian government to discredit any legitimate protestor in those regions as a Maoist or Naxalite insurgent. How easy it was for it to then attempt to secure those areas for rich foreign companies by killing thousands and forcing nearly 50,000 adivasis (tribal people) into camps in order to control dissent.

Some 300,000 people have been forcibly displaced. Hundreds of thousands of security personnel have poured into the region with sophisticated military hardware.

Despite Nehru’s misty eyed views, the Indian and western elites are now the new colonial masters in India. Is this the bright new future he had in mind?

But imagine for a moment a world where India pursued a more independent path that would be strident in its rejection of predatory capitalism and US-led militarism increasingly aimed at China, India’s neighbour.

Imagine a model of development that would in fact be inspired by particular policies adopted by the likes of Cuba, Bhutan, Venezuela, Costa Rica and Bolivia, which place strong emphasis on health, ‘happiness’, education or bio-diverse agriculture and not least on the rights of indigenous peoples, sustainability, respect for the environment and/or common ownership.

Unfortunately, imagination does not match the reality.

For many foreigners who visit India, it is the land of the great philosophies. It is the land of spirituality, morality and enlightenment. Many view India through this distorted prism. It is this rose-tinted perception that brings them here. For other foreigners, however, it is a land ripe for the taking. And Washington knows it.

India threw off the shackles of colonialism in 1947. And long ago it threw off the shackles of any moral philosophy. There’s a new game in town. And it’s based on selling anything you can get your hands on to the highest bidder, even the soul of the country. Now there is a new colonial master on the block.

Whether it’s the waging of war on its poorest people or the collusion with foreign governments and corporations to loot the economy for profit, successive Indian administrations have conspired to deceive their own people as they work hand in glove with Wall Street and proponents of ‘free trade’ and neo-liberalism to sell the lie of freedom and independence to an affluent section of the population eager to believe it and willing to regard the oppression of the country’s poorest folk as ‘collateral damage’ in the drive to secure ‘necessary economic infrastructure’.

With 75 per cent of the population living on less than two dollars a day, the influence of western agribusiness leading to well over 200,000 farmers’ suicides and large parts of the country under military law, politicians and the media abroad still talk of India as capitalism’s miracle, as democracy’s great success story. The old clichés and convenient lies are often trotted out about a land of enterprise and growth, Bollywood and glitz, millionaires and cyber parks.

But there’s always Bollywood novacaine, the infotainment obsessed media or the latest Forbes rich list to distract or dull the pain, isn’t there? Better still – the stroke of a bureaucrat’s pen in drawing a new poverty line will do just fine.

 

Wednesday, February 23, 2011

Oil hits new high over Libya revolution



Source: Press TV
http://www.presstv.ir/detail/166755.html

The revolution in Libya and concerns over supply disruptions in the country have pushed crude prices to a two-year high of over 100 dollars a barrel.

Brent crude rose above $111 per barrel on Wednesday, while light, sweet crude for April delivery briefly touched $100 a barrel on the New York Mercantile Exchange.

The price hike comes as the Libyan government has lost control to pro-democracy protesters in many cities in the east, where much of its oil producing capacity and port operations lie.

The Libyan crisis is threatening the livelihood of foreign companies with vested interests in the North African nation.

Foreign oil companies, namely ENI of Italy, Spain's Repsol, French energy giant Total, Norwegian Statoil and the oil subsidiary of Germany's chemical group BASF, have halted much of their energy production in Libya and moved personnel out of the country.

Libya has proven oil reserves of 44 billion barrels, the largest in Africa, according to the International Energy Agency and exports most of its crude and gas production to Europe.

But Libyan ruler Muammar Gaddafi said in a defiant speech on Tuesday that he would not step down and threatened tougher action against protesters.

This has raised concerns that long-lasting supply disruptions or even permanent damage would happen to the OPEC member's oil industry.

Libyan revolt prompts oil price surge



Source: Press TV
http://www.presstv.ir/detail/166446.html

Recent violent political uprisings in the Middle East and North Africa and concerns over disruptions in the oil supply have pushed world crude prices to their highest levels in two years.

The Libyan revolution and political turmoil in other oil producing countries triggered a surge in Brent crude prices in London, boosting the value of a barrel of oil to above $107 on Tuesday.

Son of Libyan ruler Colonel Muammar Qaddafi, Seif al-Islam, has warned of an ensuing civil war in the country, adding that it may jeopardize Libya's vast oil resources.

Meanwhile, local tribes in the north African country took control of headquarters of an oil company in Ubari city in southwestern Libya on Monday.

Libya exports 1.1 million barrels of oil per day. It was the world's 12th largest oil exporter in 2009 and has proven oil reserves of 44 billion barrels, the largest in Africa, according to the International Energy Agency.

The British Petroleum (BP) has also suspended its exploration programs in the volatile country. Shell, Marathon Oil and other producers have begun relocating employees to safer areas until tensions alleviate in the country.

The Libyan regime has resorted to employing indiscriminate machine gun fire in its brutal crackdown on mass protests as the prospect of its downfall has gained further momentum by intensifying revolt against the four-decade-old rule of Qaddafi.

In response to rising prices, the Organization of Petroleum Exporting Countries is already pumping the most amount of oil since approving production cuts in December 2008

Wednesday, January 19, 2011

Fox News: US must take Iraq, Kuwait oil


Fox News talk show host Sean Hannity said the US has every right to take Iraqi and Kuwaiti oil.

Source: Press TV
http://www.presstv.ir/detail/160892.html


Following a significant hike in oil prices, an angry Fox News host has exclaimed that the United States has every right to take the oil from Iraq and Kuwait.

On his Friday show, the Great American Panel, Sean Hannity, said that Iraq and Kuwait should "pay for their own liberation" by the United States.

"I say why isn't Iraq paying us back with oil, and paying every American family and their soldiers that lost loved ones or have injured soldiers - and why didn't they pay for their own liberation?" Hannity asked.

He added that the United States has every right to go into Kuwait and Iraq and "take all their oil."

Hannity's controversial comments follow a recent hike in global oil prices and a continuing financial crisis in the US.

However, responding to Hannity's remarks, political and military analyst Michael Burns said that the United States "may go bankrupt" even before it leaves oil-rich Iraq and Kuwait.

"We are occupying those countries. We are there for the long term and … we are not going anywhere. But I guarantee that we'll go bankrupt before leaving those countries. That's for sure," Burns told Press TV on Tuesday.

In 1991, the US military drove Iraqi troops out of Kuwait after executed Iraqi dictator Saddam Hussein invaded the country and annexed it to Iraq.

Twelve years later, US troops invaded the Iraqi capital, Baghdad, and toppled Saddam to bring what they called "liberation" and "democracy" to the Arab nation.

This is while, since the US-led invasion of Iraq in 2003, more than 1,300,000 Iraqi civilians are estimated to have been killed and some 4.7 million Iraqis have been displaced.

The devastating war has also left 4,435 US troops dead and more than 31,827 others injured.

Thursday, January 13, 2011

Oil prices hike in Asian markets


Prices of Brent crude oil touched its highest level in 27 months due to production shutdowns and increasing global energy demand

Source: Press TV
http://www.presstv.ir/detail/159928.html


Oil prices have climbed in Asian trade markets for a fourth consecutive day with the Brent crude oil reaching its highest level in 27 months.

The price of New York's light sweet crude for February delivery reached $92.08 per barrel after gaining 22 cents during Wednesday's trading.

Analysts believe that the persisting hike in oil prices is attributed to a sharp decline in the US crude stockpiles.

The US crude stockpiles sank by over two million barrels last week with rising demand for oil amid unusually cold climate across the United States as many states were hit by severe blizzards and heavy snow storms over the past weeks.

Meanwhile, the price of Brent crude oil touched its highest level in 27 months due to production shutdowns and increasing global energy demand.

Brent reached $98.80, its highest level since April 2009, before trimming gains and eventually closing at $98.12, up 51 cents.

The rise came after two Norwegian oil fields were shut down on Tuesday due to a gas leak. However, they reopened soon after trading ended.

Alaskan oil production also continued to be hit by a pipeline leak. US light crude reached $91.86 after witnessing a 75-cent rise.

The leak in Alaska caused the US state's main Trans-Alaska Pipeline to shut down.

However, output through the pipeline was resumed at two thirds of its usual level on Wednesday.

“Brent was now expected to hit $100 a barrel,” said Commerzbank oil analyst Carsten Fritsch, quoted by BBC.

“It seems only a matter of time, if sentiment remains positive and more disruptions on the supply side come in,” he added.

The Trans-Alaska Pipeline is important because it carries almost 12% of US crude output. It is due to become fully operational later this week.

Wednesday, January 5, 2011

Rising oil prices derail global economy


Source: Press TV
http://www.presstv.ir/detail/158700.html


The International Energy Agency (IEA) has warned that increasing oil prices are entering a "danger zone" that could threaten the fragile global economic recovery.

"Oil prices are entering a dangerous zone for the global economy," chief economist Fatih Birol from the IEA told the Financial Times newspaper on Wednesday.

"The oil import bills are becoming a threat to the economic recovery. This is a wake-up call to the oil consuming countries and to the oil producers," he further explained.

Oil prices have edged closer to $100 a barrel in recent weeks and Brent crude hit $95 a barrel for the first time in 27 months on Monday.

The economist also pointed out that it was not in the interest of any country to see such increasing oil prices.

According to Birol, the need for oil import will decrease and economies would further weaken if prices persist to rise.

The official further added that oil-consuming countries also need to reduce their reliance on oil, especially for transportation.

The warning from the IEA puts the pressure on oil producers to increase production to bring down prices but officials from the Organization of the Petroleum Exporting Countries said recently that they did not intend to change oil quotas.

The IEA's warning comes just months after International Monetary Fund officials dismissed suggestions that rising oil prices would hamper economic recovery.

Friday, April 2, 2010

Saudi Arabia to invest $400bn in Turkey





Source: PressTV
http://www.presstv.ir/detail.aspx?id=122233&sectionid=351020204


Saudi Arabia's Finance Minister Ibrahim Abdul Aziz al-Assaf says the kingdom will invest USD 400 billion in Turkey over the next four years.

Assaf made the remarks at a joint news conference with the Turkish Finance Minister Mehmet Simsek in Ankara on Thursday, adding that the two countries planned to organize a forum for joint investments.

He said that the governments of the two states should provide opportunities for the private sector to use great potentials in the economy and commerce spheres.

Assaf noted that Turkey and Saudi Arabia were determined to boost their bilateral trade volume up to 10 billion dollars.

For his part, Simsek said Turkey wants to draw funds from the Persian Gulf countries to finance its deficit.

"The [Persian] Gulf is a region which has current account surplus. Turkey on the other hand is a dynamic fast growing country which relatively has a savings gap. Turkey and the [Persian] Gulf region can complement each other," said Simsek.

Saturday, July 25, 2009

Money for Healthcare





By: Stewart Brennan

The annual cost of the Canadian health care system is about 100 Billion dollars. Considering that we are 33 million people or 10% of the Population of the USA, American costs would be 1 Trillion dollars. This is based on a linear comparison of population VS costs, and also using the Canadian model. Given time, the costs will rise because the Healthcare system is based on the fluctuating needs of the sick and injured.

Cost should not be the major issue unless the majority of the population that pays income tax is impoverished. An impoverished nation is not able to support its basic needs or infrastructure and simply cannot afford it. This is what the US politicians, the corporations, the insurance cartels, and the Banksters are claiming in the USA; that “America does not have the money for single payer healthcare”. Well that is just a bunch of crap!

There are some things that require a closer look and the spending of public funds is a major one. For example, it costs the US tax payers 1 Trillion dollars to maintain the more than 700 military bases in Europe and Asia, and that does not include funding the wars or giving money away to countries like Israel, Saudi Arabia, and Egypt.

The US debt is currently 15 Trillion dollars. That equates to an annual interest payment of 600 Billion dollars to private banks before the principal is even touched. The US GDP is about 56 Trillion dollars annually. Think about that for a moment. Where is that money going? What are the US government’s priorities?

The Insurance cartel, turn a profit of over 10 Trillion dollars a year from the US citizens through healthcare insurance. No wonder they have a huge lobby spewing negative ads to proposed changes in the health care system! Obama is not going to change things if he continues to involve the insurance companies. Following this path is not called change; it is called the status quo.

Change will come when people become political atheists and not bicker among themselves through party affiliation. There has to be a 3rd voice...and that is the voice of common sense and reason.

Be Well,
Stewart Brennan

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