Monday, May 13, 2013

Fore-ordained Domino Effect Part II

The mirror Illusion

So how did we get here, how this mirror illusion projected by corporate driven servants of governments will lead to our harsh impregnable downfall reality? After researching a lot on Indian financial system, I am quite frankly befuddled by how our economic system is so deeply corrupted, and the ones in powers are busy making vacuum legislation amendments, with almost close to 0% of these amendments are actualized, implemented or controlled. Developing countries like India, Brazil, South Africa, etc. need a concrete constitution, local effective public governed bodies to control and regulate them; mainstream media to promote the actual causes of the reasons behind this massive class divides of rich and poor. We don't only need amendments, but we need implementation of those amendments, especially in our monetary system.

So where has our foolproof, progressive economical system taken us, let's look deep!

Currently our country is under international debt or in other words "external debt" of. 92,693,078,53863 US Dollars according to World Bank debt statistics 2013; well it's not much considering our country is the number 30th in rank for countries under international debt and we just come below Iceland and Turkey, in other words it's called "Un-payable debt" and mind you it's with time limit.

So where did all this absurd amount of debt come from, it came from the World Bank of course, which is dominated by US and yes I am forgetting IMF, which is dominated by Europe, Eureka! The most honest and respectable organizations of this world fighting against poverty, building up the sovereignty and Blah! Blah! The interesting fact is that World Bank decides on voting basis which country should get more loans or more development projects and major decisions will require 85% votes for an approval and United States holds 16.4% of total votes, which is the highest grid followed by Japan which holds 7.9%. Wait let me check my math skills..... Oh yeah! US can block any changes because without US, Bank can never reach majority. One country dominated bank has no reasons to be not fair and forthright! It's all in your head, World Bank was made to eradicate poverty period and that's the bottom line because someone wearing a blue turban said so!

So how can a government pay of these huge debts, the lame theory is that government predicts that it will come out of our pockets as "All types of Taxpayers" according to statistics based on the nations "Gross Domestic product". GDP of the country in simple words is a market value of final production of goods and services within country in a given period, in short it indicates the country's "standard of living". 

So the chief economists of world bank sitting in their cosy chairs think that better the country's GDP and its growth percentage is more likely that country will eventually be debt free, This means that country can be given more loans for development purpose or economical restructuring.
Let's just see some statistics, according to World Bank.
India has the fastest growing GDP after China and is now emerged as a global player.







GDP growth






 So moving on, there are obviously certain tools to calculate GDP Right, it's not a magical figure which appears in a super lotto ball handpicked by a Sardar who eats so much of Italian shit! (Fast Food LOL) that he has forgotten how to speak in English and sometimes he doesn't speak at all just stares and after some time still staring. . . There are many approaches to derive GDP like product approach, income approach, but the most common is expenditure approach. So GDP is calculated in many countries by the following mentioned formula

Which is then further calculated on standard of per unit or per person (per Capita) in US Dollars, because, US Dollar is a reserve currency (In India its calculated a little differently, but concept is the same to derive at per capita standard of living) So do you feel that GDP can actually be calculated with one hundred percent accuracy? I don't think so as "Simon Kuznets" the economist said 'Economic welfare' cannot be adequately measured unless the personal distribution of income is known and no income measurement undertakes to estimate the reverse side of income that is, the intensity and unpleasantness of effort going into the earning of income. That means we really can't derive to an accurate per capita figure for personal distribution of income.

 An Austrian School economist further criticizes that GDP is an empty abstraction devoid of any link to the real world, and, therefore, has little or no value in economic analysis. Frank says the GDP framework cannot tell us whether final goods and services that were produced during a particular period of time are a reflection of real wealth expansion or a reflection of capital consumption. For instance, if a government embarks on the building of a pyramid, which adds absolutely nothing to the well-being of individuals, the GDP framework will regard this as economic growth. In reality, however, the building of the pyramid will divert real funding from actual wealth-generating activities, thereby stifling the production of wealth. In simple words it cannot calculate that the money is actually used for increasing the standard of living for the people of country. We can thus conclude that the GDP framework is an empty abstraction devoid of any link to the real world.

So wait a minute! So all the governments are taking loans after loans and increasing external debts of their respective countries from these dubious world banks on basis of statistics which does not quantify the ability of that country to pay that loan off and hence piling on huge actual unrealistic debts especially on working class people of that country.

Wow! Now that's just, damn stupid!