Financial crises are happening more frequently, and the next panic is almost certainly brewing – mostly thanks to skewed government and central bank policies -according to research by Deutsche Bank. It comes as a warning to India, where the RBI has just approved a massive ‘recapitalisation’ programme to bailout banks struggling with ballooning corporate debt.
Finance & Debt
William Robinson highlights some revealing statistics to expose what is really behind the rapid digitalization of global capitalism, the rise of authoritarian leaders and the creeping spread of the global police state. These, he says, are nothing but an insecure transnational capitalist elite’s attempt to insure themselves against rising inequality and a looming economic crisis.
George Monbiot‘s powerful new book looks at how democracy and economic life can be radically organised from the bottom up. He argues against the “society-crushing system of neoliberalism”, and for a political agenda “that isn’t destined to destroy the living planet”, power given back to people so that wealth isn’t continually distributed to the rich.
Gail Tverberg writes: The Politically Correct (PC) worldview has been called the “religion of success”. In this post, I explain why many popular (or politically correct) understandings are just plain wrong. I cover many controversial topics, including environmentalism, peer-reviewed literature, climate change models, and yes, religion. I expect that the analysis will surprise almost everyone.
We should expect financial collapse quite soon – perhaps as soon as the next few months. Our problem is energy related, but not in the way most experts have claimed. It’s much more related to the election of President Trump and to the Brexit vote. Most people don’t understand how interconnected the world economy is.
India’s former energy secretary E.A.S. Sharma writes in The Wire: Everyone knows that the NPA problem is due to the lack of due diligence on the part of banks. If banks were to refuse new loans to some of these indebted companies, nearly 40% of the coal blocks assigned to them would not get developed.
From AlterNet: Last year it was eight men, then down to six, and now almost five. The world’s richest five men now own over $400 billion in wealth. On average, each man owns nearly as much as 750 million people. The super-rich are absconding with our wealth, and the plague of inequality continues to grow.
From Journeyman Pictures: The financial storm of 2008 began brewing in when the US congress pushed the idea of home ownership for all. When it all went wrong, they opted for gargantuan bailouts for the big banks. This documentary offers fresh insight into the greatest economic crisis of our age: the one still awaiting us.
Keith Schneider reports: The thickening chain of death and sorrow in the Cauvery Delta, formed from the powerful links of water, agricultural, and industrial policy, is bludgeoning Tamil Nadu. The human toll, counted in the escalating numbers of shattered hearts, is a disturbing measure of how extravagant, water-consuming development practices no longer fit environmental conditions.
A 100 actions of protest will be held across the country between May 1 – 7, 2017 to mark the 50th anniversary of the establishment of the ADB, highlighting the gross human rights violations, loss of livelihood, and environmental destructions caused by the ‘development model’ being pushed by ADB and its ilk, using public money.
The total outstanding loans of public sector banks stands at Rs 6.8 lakh crores. Of this, 70% belongs to the corporate sector, whereas only 1% of the defaulters are farmers. Why’s the banking system designed to favour the rich who already have many perks, while the poor pay a higher price to sustain their livelihoods?
In a major push to widen the scope of commodity derivatives market in India, the Securities and Exchange Board of India (SEBI) has recently allowed options trading on commodity exchanges. Kavaljit Singh argues that what’s good for financial investors and commodity speculators is not necessarily good for the already vulnerable Indian farmer and small entrepreneurs.
Nikita Sattiraju writes: Farmer suicides in India have largely been attributed to debt, drought, crop failure or poor returns. However, farmers have been taking the drastic step regardless of a good rainfall year or bad, a good price year or a disappointing one. Why? Questions arise on the exact nature and reasons behind the deepening problem.
Kirankumar Vissa writes; Everyone in the media has been talking about the slew of pro-farmer measures included in Budget 2017, how it is a Budget for the ‘have nots’ and one that will give a big fillip to agriculture. It is time to call this Budget what it is–a big prank on India’s farming community.
Live Mint reports: Agriculture is likely to be the worst affected by the note ban, because 1) The policy coincided with harvest of kharif crops, and farmers are facing difficulty selling it. 2) Lack of cash must have posed difficulty in sowing of rabi crops. 3) Unlike other sectors, farm output is perishable in nature.
As 2017 dawns, in a great many ways, modern industrial civilization has flung itself forward into a darkness where no stars offer guidance and no echoes tell what lies ahead… We’re not discussing the end of the world; events like those that can be found repeated many times in the histories of other failing civilizations.
Steve Keen, Professor of Economics at Kingston University London, is a long time critic of conventional economic thought, and is also developing an alternative dynamic approach to economic modelling. In this interview with Steven Sackur on BBC HardTalk, he tackles the prospect for a debt-deflation on the back of the enormous private debts accumulated globally.
To try to solve the energy problem, we use approaches that involve increasing complexity, including new technology and globalization. As we add more and more complexity, these approaches tend to work less and less well. In fact, become problems themselves, tending to redistribute wealth toward the top, increasing “overhead” for the economy as a whole.
Devinder Sharma writes: After a month of demonetisation, the picture in the rural areas remains too bleak. I know of villages where the farmers had to return empty handed even after seven days of queuing up. As a TISS study points out, nearly 81 per cent of the villages do not have access to banking.
Shankar Gopalakrishnan writes: Demonetisation’s biggest impact will be on the distribution of resources within the economy, whatever happens to the economy as a whole. Demonetisation’s a giant vacuum, sucking up the resources of the weak and delivering them to the powerful, while acting like it’s doing the opposite. More importantly, this transfer will be permanent.