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To bypass US, make a US of us...
The Tatas with near hundred companies have created a captive economy which can sustain in lean times by supporting each other. India needs to emulate the same to avoid pinpricks of global recessions...
The US is nowadays the favorite whipping boy of the world. If it does well in it’s economy, it is blamed for its carbon emissions and replacing the cultivation of foodgrain with the production of biofuel. Therefore when the economy of the US starts faltering, ideally the world should be happy as it gives the right kind of opportunity to dethrone the sole remaining superpower of the earth. A slowing American economy is also a harbinger for reduction in the level of carbon emissions as bankrupt Americans coupled with more bankrupt banks would consume less thereby consuming lesser fuel. But alas, even in it’s demise, the world abuses it. When it booms, the Americans are asked, ‘Why are you booming?
Your consumptions and insatiable appetite would someday ruin the world’, while at the first impression of a slowing down in the American economy, it is then abused again, ‘Why the hell are you slowing down? Why can’t you manage your own backyard properly? Don’t you realize that many millions across the world would be unemployed if your economic machine stops rolling?’ One should pity the Americans. It’s like damned if they do and damned if they don’t. But why is it that for all the hype of emerging economies all across the developing nations, the world’s well being is still dependent on the consumption pattern of 300 million Americans? And for a change, is it possible to forgive the poor Americans and think about alternatives so that the world can be relieved of the typical cycle of recession and boom while out rightly relegating the FIIs to oblivion for their ‘fair weather friend behavior’ and the habit of pulling the carpet beneath the feet and catching nations off guard especially when they are about to celebrate their newfound economic well being? Look at India. While everyone was expecting that the sensex, after having a stupendous run for quite sometime and having breached the magic figure of 20,000 would embrace 30,000 soon, things went awry.
Even before the euphoria could settle down, the investors were shaken up from their siesta with rude jolts whose end is still not in sight. The sensex is tumbling every day and is becoming more in flux than the twists and turns of the film ‘The Runaway Bride.’ And all of a sudden the fairy tale of India’s incredible growth story seems so elusive. The economy still remains the same with more or less the same growth rate but suddenly there’s so much gloom all around as if there’s no tomorrow. That’s the power of sentiments and that’s the caveat attached with the blessings of globalization. Just consider this most weird and yet the factually true correlation.
The Ahmedabad Police is having sleepless nights in securing the Kankaria lake for fear of more suicides by investors who have lost millions due to sudden crunch of the stock market, which happened because the American banks were losing money for giving loan to those Americans with questionable creditworthiness who borrowed and spent but did not return the money on time which led to massive losses for the American banking sector, the economic hit of which may be to the extent of $600 billion which in addition to the trillions of dollars having already been spend on the American ‘War on terror’ is leading to an American economic slowdown because of which the Indian companies see a reduction in their future estimate of earning leading to reduction in the price of their shares leading to suicides of those who have put either all their savings or rather have borrowed money to invest in the stock markets for quick gains. Phew!!! Not that leveraging to that extent is good but in essence this time the suicides were happening for no fault of the Indian economy. India is just paying the price of not having a strong internal economy.
By:- Pathikrit Payne
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