Month: December 2010

Fall of USA

USA ceased to be a superpower in 2008. American dollar does not deserve to continue as reserve currency. American budget deficit continues to grow. Extension of Bush-era tax cuts means there is no hope of deficit coming down in the next two years. With 600 billion dollars being printed dollar will weaken further. USA may not remain a great power.

For USA to remain a great power it has to cut its expenses. It should stop fighting useless wars in Afghanistan, Pakistan, Yemen and Somalia and call back remaining troops in Iraq.

USA should open its borders to Mexicans. That will provide labour and demand for houses will go up.

Troubles in eurozone prevented euro from becoming an option as reserve currency. Russia and China have agreed to accept each other’s currency. Many countries are likely to follow suit and dump dollar.

Brazil is rising as a power. In Security Council it refused to vote against Iran. It has recognized Palestine. It won bids to host Olympics and Football World Cup.

China is a rival to USA. It has large presence in Africa. It supports North Korea.

Military might is not enough to be a superpower or great power. USSR had military might. With disintegration of USSR there was no rival to USA. In 1991 USA went to UN Security Council which voted 12-2 for Gulf War, with China abstaining. In 1999 there was no Security Council vote. USA led NATO in bombing Serbia. In 2003 there was no unanimity in NATO about Iraq War. USA attacked Iraq with few countries supporting it.

Empires rise and fall. No country can remain a superpower for ever. Fall of USA was inevitable.

Border with China

China is in illegal occupation of Indian territory. Its maps do not show Jammu & Kashmir as Indian territory. Part of Jammu & Kashmir is occupied by China.

India should show Tibet and Sinkiang as separate countries and say it has no border with China. That will make China understand India. Many countries do not recognise Tibet as part of China. CNN map is an example. There was trouble in Sinkiang some time back.

India can change its policy. Declaring Tibet and Sinkiang as separate countries will mean India will not negotiate with China about border but ask it to vacate the territory it illegally occupies. This time during Wen Jiabao’s visit the declaration did not mention One China. India can recognise Taiwan. India can issue stapled visas to people from Tibet and Sinkiang.

If China breaks up relations with India, China will be the net loser. Chinese exports to India are more than India’s exports to China. China does not want India to be a permanent member of UN Security Council. It did not want any ambassador to attend Nobel Peace Prize ceremony where a Chinese dissident was to be given the prize. India did well to defy the boycott call.

Economic Traitor

Praful Patel is an economic traitor. As civil aviation minister his actions have led Air India to loss and disaster.

There was Indian Airlines. Praful Patel changed its name to Indian. That did not make any difference for better. Then Indian Airlines was merged with Air India. The merger was supposed to save money. Things went from bad to worse.

Air India suffered. Private airlines prospered. For months some of them did not pay fuel bills. During IPL Air India passengers had to wait for hours as scheduled flights were delayed to fly IPL teams.

When private airlines increased fares Praful Patel did not tell passengers to fly Air India. He told private airlines to reduce fair and threatened them if they did not do so. What is Praful Patel’s problem if private airlines charge “astronomical” fares? Why cann’t Air India use this opportunity? Air India could have gained. It needs thousands of crores of rupees to keep going.

Praful Patel has asked for extra 3,500 crore rupees for Air India and has warned of strikes by Air India employees if wages are recast. Air India has an accumulated loss of 7,200 crore rupees and working capital loans of around 18,000 crore rupees. Praful Patel is responsible for the mess. He should warn the employees that if they do not agree for recasting of wages Air India may be wound up. Some years back air traffic controllers who created problems by strike or work-to-rule were sacked. Former employees of Air India should not have perks.

People’s money should not be wasted on Air India. If there is no possibility of improvement without spending further money it should be privatised or wound up. Employees who go on strike can find jobs somewhere else. Praful Patel should not continue as minister.