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Random Thoughts
The Aftermath
by
Gaurang Bhatt, MD
America – The idiocy of
the American electorate in electing retarded Republican Bush has led to
doubling of the national debt, galloping inflation, increasing job
losses, collapsing economy, trillions lost by individuals, corporations
and pension plans and loss of American prestige. Republicans are selfish
immoral intellectually bankrupt slaves of the rich. Clinton Democrats
and Blair laborites are mere incompetent imitators of the Republicans.
The upcoming election results will be a measure of the stupidity of the
public more interested in abortion, gay marriage, sham capitalism,
religious and other bigotries. Obama who had exploited the idea of
change may win but if he still follows warmongering, pandering to Israel
at the cost of national interests, he will at best only reduce the pace
of worsening instead of McCain who will take us over the precipice
sooner and faster.
The reality is that round the clock printing of dollars by the Federal
Reserve will neither reflate the economy, nor put a floor on home prices
or a ceiling on inflation or budget, trade and current account deficits.
Sooner or later there will be a national outcry against expensive
foreign wars and their persecution by any president will be impossible
because of refusal to accept the cost in blood and treasure. Both lying
presidential contenders said that the current economic crisis will not
alter their spending plans and priorities. They both vowed to blindly
support Israel, ignoring the final comments of the outgoing hawkish
Israeli prime minister Ehud Olmert, who unequivocally stated that Israel
would have to vacate the West Bank and share Jerusalem with a new
Palestinian State, return Golan Heights for a peace deal with Syria and
abandon the threats of attacking Iran, if it wants to live in peace and
security.
Other countries will balk from financing American deficits and
policies, even allies like Japan and the EU. It will take decades to
repair the emotional, financial and political damage. There are some
diehard Obama supporters who believe that Obama is triangulating to the
center to win the general election, but will show his true liberal and
populist colors by ceasing all wars and favoring the lower socio-economic
masses. He has taken so much money from vested interests and has the
same tired hacks like Rubin, Brzezinski etc. as key advisers, to usher
in new and sensible policies like those espoused by Ron Paul or Ralph
Nader.
Ten million home owners owe more in mortgage or home equity debt than
the present market value of their homes. They either paid highly
inflated prices far above real value when they bought their homes, or
extracted too much money from their houses via home equity loans, often
for conspicuous or foolish consumption. Thus home prices will continue
to decline, further accelerated by job losses, sinking or flat incomes
and by paying down debts reducing consumer spending and home buying.
Many individual and state government pension funds and state budgets are
in bad shape. This will compel individuals to work longer, postpone
retirement and state and federal governments to raise taxes and reduce
services. The lack of capital, increased regulation and oversight and
the prolonged poor economy will prevent corporations from increasing
their earnings and dampen market recovery.
Most people are unaware that the British have announced plans to
withdraw from Afghanistan in the near future and their diplomat and
general in Afghanistan have declared that war is unwinnable and Karzai
is an
abject failure. The French and Germans have refused to increase troop
strength and policy in any significant way. Pakistan stopped resupply of
NATO troops from Karachi to Kabul and threatens to do so if the US
troops cross into Pakistan in hot pursuit. Saudi Arabia just convened a
peace conference with Taliban and Afghan government representatives with
full clearance from America. Increased belligerence and finger pointing
will prompt Russia, China, North Korea, South Korea, Latin America and
Islamic countries to gang together to oppose US policies and interests.
Iraq’s prime minister Maliki refuses to give blanket immunity to US
troops and forced idiot Bush to agree to a deadline for withdrawal which
he was unwilling to announce for five years. No country pays the
slightest heed to Bush’s gibberish announcements, threats or idiotic
ranting, not even North Korea. Even his own party prevented him from
going to the Republican convention.
European investors and institutions have lost trust in US securities
because of the toxic junk assets that were peddled as triple A by our
rating agencies and which have clogged the EU banks and financial
institutions and brought the entire world financial system to its knees.
The world is at crossroads between two evil forces battling for
supremacy. They are deflation and inflation and within a few weeks one
or other will triumph or even worse their joint progeny “Stagflation”
may triumph, as Zeus overthrew his Titan parents. It will be gold, oil
and commodities which will foretell who triumphs. Currencies are now
backed by nothing and have become fiat paper of no value, as all
countries run the printing presses overtime. Stocks and bonds are of
dubious value as governments allow fictional accounting known as lying
on balance sheets. It will need an astute investor a lot of time and
effort to read between the lines on annual reports to pick out the good
companies from the Enrons, WorldComs, Lehman, AIG and other bogus ones,
now permitted to falsify their junk assets as gilts and goodwill a
tangible asset.
Unique amongst all countries is the stupid UPA government of India which
is the only rat to board a sinking ship instead of abandoning it, by
first boarding the sinking Soviet ship when the West was triumphant and
now is boarding the sinking ship of America when Russia is likely to be
triumphant. It reminds me of the tragic fate of Babruvahana by the wily
craft of Krishna, but devoid of his honorable motives and moral courage.
The stupid Indian government has bet all its chips on Karzai and against
the Taliban who may win out as America involves them in the peace
process and offers to share power with them. India should hold its nose
and use its resources to favor the Northern Alliance, even though they
are equally bad. It should have put in more effort by joining the
Shanghai Cooperative Organization and joined Russia and Iran in
thwarting a return of the Taliban which colluded with Pakistani
terrorists during the hijacking of the Indian Airlines plane.
Afghanistan and Pakistan must be dismembered into small states most of
them landlocked to prevent the spread of militant Islamic terrorism and
deprive Indian Muslims of divided allegiance.
October 11,
2008
Image under license with
Gettyimages.com
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