United States is politically deadlocked. No matter what President Obama proposes to the joint session of Congress on Thursday, most Republicans are not likely to back him.
The Tea Party segment of Republicans in the House (a significant number) is working on one item agenda only - get rid of Obama. The have made their disdain known openly for an African American President, calling him Hitler, anti American, the Other Guy and several such unfortunate names. They are hell bent on this, even if it destroys the U.S. economy, which was quite obvious during the recent debt negotiations.
This gridlock is damaging U.S. economic recovery. A large number of jobs that should have been created after the 2008/9 recession ended, have not been created. The unemployment picture is depressing as 14 million employable workers are not employed. Unemployment amongst teenagers runs at 25.4%, African Americans 16.7%, Hispanics 11.3% and whites at 8%. Many economists agree that current unemployment rate of 9.1% will come down to around 8.9% by end of year and to a low 8% in 2012, but that still leaves many million unemployed.
U.S. is Canada's largest trading partner and any serious impact on U.S.economy or buying power of its citizens will eventually filter through to the Canadian economy. While Canada's economy is still going through a slow recovery, it has been spared from a substantial impact, primarily because Canada's financial system proved to be the best in the world at a time a major financial crisis. But, if the U.S. economy continues a down drift, Canadian economy could stagnate.
It is important to insulate Canadian economy from such an eventuality. Alternative markets have to be found for its products in order to diversify exports and reduce dependence on U.S. Fortunately, Canada is a resource rich country and developing economies are in need of resources. Rising exports to China have helped offset some of the impact of declining U.S. orders.
The Canadian softwood lumber industry, which has been in a running battle with the U.S. Government and some of their intransigent politicians for years, has taken a leap forward by going to China, building houses and showing Chinese construction companies how they can build houses faster and cheaper by using lumber instead of concrete. This has resulted in creating demand for Canadian lumber in China, so much so that Canada is now exporting almost as much (if not more)lumber to China than the U.S. Other Canadian industries need to learn from this experience and explore markets around the world. The oil industry also needs to diversify its exports. An oil pipeline from Alberta to an off shore oil terminal on the Pacific Coast would make it considerably easier to export oil to China and other countries.
One good thing that has happened in this financial crisis is that Harper Government has grown up. From a reluctant, lukewarm attitude towards China in earlier years, now a more confident majority Harper Government has made progress. After a highly visible and successful visit by John Baird, Canadian Foreign Minister, Prime Minister will soon be off to China to increase trade opportunities. His recent visit to Brazil and other South American countries will also have positive impact on Canadian companies wanting to venture into those markets.
One market that Canada has not made major inroads into is India. This enormous market is very different than any other. India is not yet ready for large quantities of softwood lumber, not probably for another 10 years. Its infrastructure is abysmal and Canada could help plan and build roads on a fast track basis all over India. India is also in need of building small houses to replace slums and shanties. Canadian companies specializing in pre-fab construction could possibly set up factories in India to produce these in large quantities, so the Government and private sector, start replacing shanties on an emergency footing. There are probably countless other opportunities, for which the Indian market needs to be studied thoroughly and patiently, rewards will follow.
Canadian economy need not go down with the U.S. economy as long as it finds alternative markets and Canadian Corporations open their horizons to exploring new markets. The structure of Canadian Corporate Board also needs to be diversified to leverage enormous international talent available within Canada. The U.S. economy will ultimately recover and that could only give the Canadian economy a further boost.
Showing posts with label Tea Party movement. Show all posts
Showing posts with label Tea Party movement. Show all posts
Sunday, September 4, 2011
Monday, August 8, 2011
Tea Party's Shenanigans hit America's 401k hard
It was quite obvious to many in America and around the world (as elaborated by this blog earlier) that Tea Party's intransigence in Debt Dialogue would eventually hit the markets hard and that is exactly what has happened. Even the senior members of Republican Party, who knew better or should known better, also demonstrated a complete disdain for a reasonableness accommodation.
The unfortunate message from Washington DC is that America is ungovernable. This is a very un-comforting thought. It has caused a downgrade of US credit rating and a decline in stock markets.
Retirees and those near retirement, have built their nest eggs with hard earned savings over their lifespans. They had barely recovered from the 2008 crash that they once again face a major decline in values of their investments. This time, the market decline was entirely avoidable. Had Washington entered into a responsible debt deal a few months ago, the message to markets would have been positive. But Tea Party's one point agenda - defeat Barack Obama in 2012 no matter what the cost, became a stumbling block to arriving at a timely settlement.
The 600+ point drop in Dow Jones on August 8 is most unfortunate. As in the past, the markets will ride out this storm too, but for many retirees, their 401K is a worth a great deal less today, than it was a few months ago.
Hopefully, the American electorate will remember all this in 2012 elections and send all those Congressmen and Senators packing, who put their warped ideology ahead of their nation's interests.
The unfortunate message from Washington DC is that America is ungovernable. This is a very un-comforting thought. It has caused a downgrade of US credit rating and a decline in stock markets.
Retirees and those near retirement, have built their nest eggs with hard earned savings over their lifespans. They had barely recovered from the 2008 crash that they once again face a major decline in values of their investments. This time, the market decline was entirely avoidable. Had Washington entered into a responsible debt deal a few months ago, the message to markets would have been positive. But Tea Party's one point agenda - defeat Barack Obama in 2012 no matter what the cost, became a stumbling block to arriving at a timely settlement.
The 600+ point drop in Dow Jones on August 8 is most unfortunate. As in the past, the markets will ride out this storm too, but for many retirees, their 401K is a worth a great deal less today, than it was a few months ago.
Hopefully, the American electorate will remember all this in 2012 elections and send all those Congressmen and Senators packing, who put their warped ideology ahead of their nation's interests.
Saturday, July 30, 2011
U.S. public deserves what is coming their way.
Maria Cardona's article 'Tyranny of 87' on CNN blog sums it well that 87 tea party congress members are holding the country, its financial system and the world's economy hostage.
It may be unkind to say it, but U.S. public deserves what is coming their way. After all, they elected this zealot group of 87 tea party activists who have no clue of the harm they are about to inflict on the nation. They say that to avoid default, just pay the interest on debt and stop all social security and medicare checks. This will leave millions of Americans in despair, but that does not bother them as long as there are no tax increase on the rich and loopholes remain open for big corporations to avoid taxes.
What the U.S. needs at this time is to carefully nurture its economy back to health, even if it requires more stimulus or Quantitative Easing 3. But the actions of Republicans, especially the group of 87 could cause a recession all over again with more job losses adding to the already high 9% unemployment.
Handing veto power to a group of unknown idealists of the opposing party, only two years after electing a new President was a huge mistake.
It may be unkind to say it, but U.S. public deserves what is coming their way. After all, they elected this zealot group of 87 tea party activists who have no clue of the harm they are about to inflict on the nation. They say that to avoid default, just pay the interest on debt and stop all social security and medicare checks. This will leave millions of Americans in despair, but that does not bother them as long as there are no tax increase on the rich and loopholes remain open for big corporations to avoid taxes.
What the U.S. needs at this time is to carefully nurture its economy back to health, even if it requires more stimulus or Quantitative Easing 3. But the actions of Republicans, especially the group of 87 could cause a recession all over again with more job losses adding to the already high 9% unemployment.
Handing veto power to a group of unknown idealists of the opposing party, only two years after electing a new President was a huge mistake.
Tuesday, July 26, 2011
US: Tea Party is to blame for the impending default
The intransigence of Republican Party, especially their Tea Party component to raise debt ceiling is sending Canadian Dollar, Gold and Swiss Franc soaring. The markets consider these safe havens in case of a US default. If a default occurs August 2, 2011 onwards, the Tea Party will be to blame for creating havoc with US and World financial systems.
The debt ceiling was raised 17 times under Reagan, 4 times under Bush Sr. 4 times under Clinton and 7 times under Bush Jr. The Republican Party has only now developed consciousness or is it that their game play has gone too far?
The Tea Party's ideology is warped. In a country where every dollar spent, only 62 cents are raised in revenue and the rest is borrowed, Tea Partiers refuse to increase revenue sources. Granted that US spending is out of control and needs to be reigned in, but most of the extra spending in last ten years has been on expensive wars.
The Republican lawmakers who rave and rant against Government spending are themselves guilty of appropriating funds by way of entitlements for their pet projects, whether these are productive or not - like the bridge to nowhere in Alaska. They tag entitlements to any bill that passes Congress.
Although this fight between Tea Party and President Obama seems mostly ideological, but there may be some undercurrents of racism here. In 2010 elections, some Tea Party zealots suggested that African Americans should not vote as they don't understand democracy. It seems that Tea Party has a one point agenda - remove Barack Obama from office, no matter what the cost to country's economy.
To prevent default, if moderate Republicans do come to a last minute agreement with President Obama, Tea Party may try to stall the bill in Congress. If they cannot, they will probably field their own Presidential candidate in 2012. This could rip the Republican Party as their votes will split against Obama.
The debt ceiling was raised 17 times under Reagan, 4 times under Bush Sr. 4 times under Clinton and 7 times under Bush Jr. The Republican Party has only now developed consciousness or is it that their game play has gone too far?
The Tea Party's ideology is warped. In a country where every dollar spent, only 62 cents are raised in revenue and the rest is borrowed, Tea Partiers refuse to increase revenue sources. Granted that US spending is out of control and needs to be reigned in, but most of the extra spending in last ten years has been on expensive wars.
The Republican lawmakers who rave and rant against Government spending are themselves guilty of appropriating funds by way of entitlements for their pet projects, whether these are productive or not - like the bridge to nowhere in Alaska. They tag entitlements to any bill that passes Congress.
Although this fight between Tea Party and President Obama seems mostly ideological, but there may be some undercurrents of racism here. In 2010 elections, some Tea Party zealots suggested that African Americans should not vote as they don't understand democracy. It seems that Tea Party has a one point agenda - remove Barack Obama from office, no matter what the cost to country's economy.
To prevent default, if moderate Republicans do come to a last minute agreement with President Obama, Tea Party may try to stall the bill in Congress. If they cannot, they will probably field their own Presidential candidate in 2012. This could rip the Republican Party as their votes will split against Obama.
Wednesday, October 20, 2010
The Tea Party Movement - Is It A Genuine Conservative Movement Against Big Spending or Just An Assembley of Power Hungry Racists?
The Tea Party Movement's protests against big Government and big spending make absolute sense. After all the U.S. is deep in debt and each year, Budget deficits have increased since Bill Clinton left office. It is no brainer that U.S. must bring down its budget deficits and start paying down its debt to curtail it to a more acceptable level of 30 to 40% of GDP compared to the current level of 80 to 90% of GDP.
The amount of money spent on saving the big banks, the auto industry, AIG and such like, have increased national debt enormously. So, protesting about big spending is quite appropriate. But where was the Tea Party Movement when George W. Bush was busy launching an illegal invasion of Iraq costing the U.S. taxpayer nearly a trillion dollars and giving tax cuts to the wealthy at the time of war adding another one and a half trillion dollars to deficit? Where was the Tea Party Movement when Bush merrily turned Bill Clinton's budget surpluses to deficits year after year. If the Tea Party Movement really stands for fiscal conservatism, then why did they not have rowdy gatherings like they do now or organize big rallies on the Mall in Washington D.C. to protest against Bush Administration's disastrous economic policies. The huge budget deficits that now face the nation and the financial crisis that ensued in 2008 are a direct result of those policies.
The Tea Partiers did not raise their voice during Bush era because this movement is not for fiscal conservatism - that is just a facade. They are (at least most of them) a group of nut job racists who malign and blame Barrack Obama for everything as they find it hard to accept an African American occupying the White House. So, when they talk about taking America back, who are they taking America back from?
The Tea Party Movement has won some primary races within the Republican party and no doubt will win some elections too. Momentarily, it may appear a setback for the Democrats, but in reality, it is the Republicans who will lose. Having these crazies in their midst is going to be a major headache for the Republican leadership in the House and Senate.
Some examples of the Tea Party craziness:
Carl Paladino running for New York Governor admits to fathering an illegitimate child, but blames his Democrat opponent for immorality.
Sharon Angle in a race against Harry Reid in Arizona sees ghosts of thousands of terrorists crossing the border from Canada.
Rand Paul wants restaurant owners to decide who comes into their restaurants - in other words racial segregation all over again.
Christine O'Donnell is having to put out ads saying, she is not a witch!
Joe Miller, the Senate candidate from Alaska has a journalist handcuffed for asking questions by his thugs aka private security.
And finally, Sarah Palin wants Muslims to "RUFUDIATE" the mosque in New York.
It will be fun watching some of these jokers occupy the House and Senate seats.
The amount of money spent on saving the big banks, the auto industry, AIG and such like, have increased national debt enormously. So, protesting about big spending is quite appropriate. But where was the Tea Party Movement when George W. Bush was busy launching an illegal invasion of Iraq costing the U.S. taxpayer nearly a trillion dollars and giving tax cuts to the wealthy at the time of war adding another one and a half trillion dollars to deficit? Where was the Tea Party Movement when Bush merrily turned Bill Clinton's budget surpluses to deficits year after year. If the Tea Party Movement really stands for fiscal conservatism, then why did they not have rowdy gatherings like they do now or organize big rallies on the Mall in Washington D.C. to protest against Bush Administration's disastrous economic policies. The huge budget deficits that now face the nation and the financial crisis that ensued in 2008 are a direct result of those policies.
The Tea Partiers did not raise their voice during Bush era because this movement is not for fiscal conservatism - that is just a facade. They are (at least most of them) a group of nut job racists who malign and blame Barrack Obama for everything as they find it hard to accept an African American occupying the White House. So, when they talk about taking America back, who are they taking America back from?
The Tea Party Movement has won some primary races within the Republican party and no doubt will win some elections too. Momentarily, it may appear a setback for the Democrats, but in reality, it is the Republicans who will lose. Having these crazies in their midst is going to be a major headache for the Republican leadership in the House and Senate.
Some examples of the Tea Party craziness:
Carl Paladino running for New York Governor admits to fathering an illegitimate child, but blames his Democrat opponent for immorality.
Sharon Angle in a race against Harry Reid in Arizona sees ghosts of thousands of terrorists crossing the border from Canada.
Rand Paul wants restaurant owners to decide who comes into their restaurants - in other words racial segregation all over again.
Christine O'Donnell is having to put out ads saying, she is not a witch!
Joe Miller, the Senate candidate from Alaska has a journalist handcuffed for asking questions by his thugs aka private security.
And finally, Sarah Palin wants Muslims to "RUFUDIATE" the mosque in New York.
It will be fun watching some of these jokers occupy the House and Senate seats.
Tuesday, April 6, 2010
REPUBLICAN PARTY, HEALTH CARE, MASSIVE SPENDING AND THE PUBLIC HEALTH CARE SYSTEM
The Republicans made a calculation at the outset of Health Care Bill that if it can defeat the Bill, it can break and defeat Barack Obama. So, instead of actively participating in debate and helping improve the Bill, they adopted scare mongering and negative tactics. However, their calculation backfired and like Hillary Clinton did during the primary campaign, they too under estimated Barack Obama.
Their alliance with the Tea Party movement, which at best can be described a right wing fringe, may have damaged the Republican Party, especially their appeal to independent voters who now form a majority in the US. The blame for this does not rest solely on Michael Steele's shoulders, but on the entire Republican Party and especially the Senators and Congress members. The Republican Party may have shot itself in the foot.
How can a major political party take a position; "Health care in America is the best in the world, so leave it alone" when 50 million people i.e. 15% of country's population has no health care coverage. Apart from scaring many independent voters, Republicans surely have lost the 32 million people, who will now be entitled to health care coverage under the new bill.
US spends 17% of its GDP on health care and still leaves out 50 million of its people. In comparison, Canada spends only 11% of its GDP on health care, with every man woman and child covered. So, where is the money going - to insurance companies I guess? With ten times the population, US should be able to achieve economies of scale and spend no more that 8 or 9% on health care. If it could cut down the spending to 10% of GDP, the savings will be a staggering $994 billion a year reducing the budget deficit from $1.4 trillion to $406 billion.
So, is this the status quo the Republican Party wanted to maintain? And what about the Tea Party crowd, who love to talk about cutting down big Government, don't they get it? Where was the Tea Party movement when George W. Bush was launching illegal war on Iraq, giving tax breaks to the high earners and turning surpluses into deficits? Why did they not come out on the streets then and not protest even louder about Government spending?
Even with the new Bill, it is quite obvious that US health care system is far too expensive and needs substantial improvement. President Obama should quietly set up a team to study Canadian, British and Scandinavian public health care systems and have them devise the best public health care system possible.
It is imperative that a Public Health Care system be introduced in the US as soon as possible.
Their alliance with the Tea Party movement, which at best can be described a right wing fringe, may have damaged the Republican Party, especially their appeal to independent voters who now form a majority in the US. The blame for this does not rest solely on Michael Steele's shoulders, but on the entire Republican Party and especially the Senators and Congress members. The Republican Party may have shot itself in the foot.
How can a major political party take a position; "Health care in America is the best in the world, so leave it alone" when 50 million people i.e. 15% of country's population has no health care coverage. Apart from scaring many independent voters, Republicans surely have lost the 32 million people, who will now be entitled to health care coverage under the new bill.
US spends 17% of its GDP on health care and still leaves out 50 million of its people. In comparison, Canada spends only 11% of its GDP on health care, with every man woman and child covered. So, where is the money going - to insurance companies I guess? With ten times the population, US should be able to achieve economies of scale and spend no more that 8 or 9% on health care. If it could cut down the spending to 10% of GDP, the savings will be a staggering $994 billion a year reducing the budget deficit from $1.4 trillion to $406 billion.
So, is this the status quo the Republican Party wanted to maintain? And what about the Tea Party crowd, who love to talk about cutting down big Government, don't they get it? Where was the Tea Party movement when George W. Bush was launching illegal war on Iraq, giving tax breaks to the high earners and turning surpluses into deficits? Why did they not come out on the streets then and not protest even louder about Government spending?
Even with the new Bill, it is quite obvious that US health care system is far too expensive and needs substantial improvement. President Obama should quietly set up a team to study Canadian, British and Scandinavian public health care systems and have them devise the best public health care system possible.
It is imperative that a Public Health Care system be introduced in the US as soon as possible.
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