Thursday, January 20, 2011

Uncle Sam takes a crash course in Mandarin

Uncle Sam is flouting all principles of civil engineering yet again. The wall, which collapsed in 2008, is being rebuilt at a breath taking speed. The reason for the earlier collapse was a weak and ailing foundation. Uncle Sam decided to overlook the fact and went on a rebuilding spree without tending to the root cause. Fed is bellowing 'green brick' bakery to max output during this period and elevating the wall to pre-crash levels.

Besides, modern day financial tools are nothing more than the ways to make money out of nothing. So, how could the money so generated hold any value to it and I fail to understand, how could printing more money will help them bridge the trade gap. In fact, this is just a desperate bid to mask the symptoms - an aspirin tablet.

America has been leading a movement to steel up Chinese Yuan to make American products more competitive in the market and bridge it's ever widening trade deficit. But it's efforts have fallen flat on face. Would American workforce be able to meet the cost effectiveness of the cheap Chinese or Indian labour? The answer is 'NO' for a very long time. A fact, which they acknowledged long time back. Concept of Intellectual property rights and the globalisation of economy are the (bitter)fruits of this very fact and fear. And lately we have seen many arm twisting measures adopted by old and ailing uncle Sam in order to squeeze it's share of nectar in the hive.

In a people vs state contest, People's Republic is proving just too hot for United States to handle, as during his ongoing visit, President Hu retained red hue by playing Santa Claus to avoid black listing on China's currency policy and human rights issues.

Raiders of yester years turned traders and now beggars. The flame of commercialization which they once carried has now been passed on to the masses, which, sooner or later, will turn this 'Eden Garden' into 'Ashes.'