Is the concern over US Debt paranoia and are we creating permanent unemployment?

To place a lot of importance to the debt that the US has accumulated is to ignore the other strengths from which the US comes to table with.  The impact of debt in case of US specifically is the sum total of its economic, military and political clout.  Fortunately for the US, and unfortunately for the world, debt is not the only thing that plays a role in the debt-dynamics between US and the world.  We saw that in the 1980s as well, when Dollar was the currency for Oil Trade despite an eroding Do … [Read more...]

Crony Capitalism, dysfunctional Republicans and Democrats and the doom of American Economy

Is the American economy doomed?  An ex-White House Budget Director, David Stockman, thinks so.  He thinks US is compromised economically, morally, and intellectually. 1980s White House budget director David Stockman was a right-hand man to his boss Ronald Reagan.  Deep in the heart of the Reagan revolution.  In 1985, Stockman resigned.  Moved on.Now he’s looking back on 80 years of American history and economics and politics – and warning we are in giant trouble.  Practically doomed, Stockman s … [Read more...]

Is a Healthy Economy based on a Happy Country?

Is it important to have high economic numbers like GDP etc, or have people who are really happy.  Here is an interesting discussion on the happiness index and measures. How do we measure the health of the economy by how happy we are? Several national leaders and economists are increasingly looking at their countries’ collective happiness. The small Kingdom of Bhutan doesn’t use GNP (Gross National Product) or GDP (Gross Domestic Product) but GNH – “Gross National Happiness” – to reflect the statu … [Read more...]

Cadbury’s Integrity Gap: Was Avoiding Taxes using a non-existing factory!

Not only have the Indian companies been adept at cheating the tax payers along with their brothers - the politicians, but they have taught the foreign companies to also learn some neat tricks.It now seems Cadbury's was avoiding taxes by showing a factory that wasn't! Cadbury Plc, now part of Mondelez International Inc (NasdaqGS: MDLZ - news) , used a nonexistent factory in India to avoid about $46 million (30.4 million pounds) in taxes, the Wall Street Journal reported on Tuesday, citing a re … [Read more...]

The Indian wildcard – growth vs rage for inferno: The growing youth population

India's growth rate of GDP has faltered to just around 5% in the last year or so.  It was hovering at 8-9%, which though far less than China's for most of last 25 years, but still substantial for an increase in jobs and prosperity for many.What people are losing sight of is that in the coming decades, not only will India need to increase the growth of the economy, but also its education infrastructure.  Because the population is increasing at a rapid clip.  Specifically the youth.  From 15-50. … [Read more...]

Indian Budget: Highlights, Reactions, and where your money is going

Yet another budget has come out.  This time by P. Chidambaram.  I still remember people rushing home and sitting very meaningfully in front of the TV to see the budget being presented.  The Accounting, Economics and Finance professionals trying to analyze and debate the budgets.  I am not sure how it happens now, but there was a time when Indian Budget presentation was almost like a "Super Bowl" even in many homes.  Professional friends would come over and there would intellectual debates and dis … [Read more...]

A history of the financial crisis from economist Alan Blinder

In his new book, After the Music Stopped, economist ALAN BLINDER offers a history of the financial crisis — its causes and the government efforts to fight it — and provides his prescription for the work that needs to be done to prevent it from happening again. He says the economy experienced a perfect storm beginning in 2007 when the housing bubble burst, the bond market imploded and the U.S. financial system had grown too complex and unregulated for the public good. Blinder has long been an adv … [Read more...]

Is China’s Fast-Growing Economy Headed for a Crash?

Will the Chinese economy continue its torrid pace of growth and overtake the U.S.'s top status? Or is it a bubble destined to burst, taking the world economy down with it? Paul Solman interviews a highly-respected China "bull" and a prominent China "bear" as part of his ongoing Making Sen$e project. … [Read more...]


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