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The mirror
Illusion
So how did we get here, how this mirror illusion projected by
corporate driven servants of governments will lead to our harsh impregnable
downfall reality? After researching a lot on Indian financial system, I am
quite frankly befuddled by how our economic system is so deeply corrupted, and
the ones in powers are busy making vacuum legislation amendments, with almost
close to 0% of these amendments are actualized, implemented or controlled.
Developing countries like India, Brazil, South Africa, etc. need a concrete
constitution, local effective public governed bodies to control and regulate
them; mainstream media to promote the actual causes of the reasons behind this
massive class divides of rich and poor. We don't only need amendments, but we
need implementation of those amendments, especially in our monetary system.
So where has our foolproof, progressive economical system taken
us, let's look deep!
Currently our country is under international debt or in other
words "external debt" of. 92,693,078,53863 US Dollars according to
World Bank debt statistics 2013; well it's not much considering our
country is the number 30th in rank for countries under international debt and
we just come below Iceland and Turkey, in other words it's called
"Un-payable debt" and mind you it's with time limit.
So where did all this absurd amount of debt come from, it came
from the World Bank of course, which is dominated by US and yes I am forgetting
IMF, which is dominated by Europe, Eureka! The most honest and respectable
organizations of this world fighting against poverty, building up the
sovereignty and Blah! Blah! The interesting fact is that World Bank decides on
voting basis which country should get more loans or more development projects
and major decisions will require 85% votes for an approval and United States
holds 16.4% of total votes, which is the highest grid followed by Japan which
holds 7.9%. Wait let me check my math skills..... Oh yeah! US can block any
changes because without US, Bank can never reach majority. One country
dominated bank has no reasons to be not fair and forthright! It's all in your
head, World Bank was made to eradicate poverty period and that's the bottom
line because someone wearing a blue turban said so!
So how can a government pay of these huge debts, the lame theory
is that government predicts that it will come out of our pockets as "All
types of Taxpayers" according to statistics based on the nations
"Gross Domestic product". GDP of the country in simple words is a
market value of final production of goods and services within country in a
given period, in short it indicates the country's "standard of
living".
So the chief economists of world bank sitting in their cosy chairs
think that better the country's GDP and its growth percentage is more likely
that country will eventually be debt free, This means that country can be given
more loans for development purpose or economical restructuring.
Let's just see some statistics, according to World Bank.
India has the fastest growing GDP after China and is now
emerged as a global player.
|
Population
|
1,241,491,960
|
2011
|
|
GDP
|
$1,872,840,247,709
|
2011
|
|
GDP growth
|
6.3%
|
2011
|
|
Inflation
|
8.8%
|
2011
|
So moving on, there are
obviously certain tools to calculate GDP Right, it's not a magical figure which
appears in a super lotto ball handpicked by a Sardar who eats so much of
Italian shit! (Fast Food LOL) that he has forgotten how to speak in English and
sometimes he doesn't speak at all just stares and after some time still
staring. . . There are many approaches to derive GDP like product approach,
income approach, but the most common is expenditure approach. So GDP is
calculated in many countries by the following mentioned formula
GDP = private
consumption + gross investment + government
spending +
(exports − imports)
Which is then further calculated on standard of per unit or per
person (per Capita) in US Dollars, because, US Dollar is a reserve currency (In
India its calculated a little differently, but concept is the same to derive at
per capita standard of living) So do you feel that GDP can actually be
calculated with one hundred percent accuracy? I don't think so as "Simon
Kuznets" the economist said 'Economic welfare' cannot be adequately
measured unless the personal distribution of income is known and no income measurement
undertakes to estimate the reverse side of income that is, the intensity and
unpleasantness of effort going into the earning of income. That means we really
can't derive to an accurate per capita figure for personal distribution of
income.
An Austrian School economist
further criticizes that GDP is an empty abstraction devoid of any link to the
real world, and, therefore, has little or no value in economic analysis. Frank
says the GDP framework cannot tell us whether final goods and services that
were produced during a particular period of time are a reflection of real
wealth expansion or a reflection of capital consumption. For instance, if a
government embarks on the building of a pyramid, which adds absolutely nothing
to the well-being of individuals, the GDP framework will regard this as
economic growth. In reality, however, the building of the pyramid will divert
real funding from actual wealth-generating activities, thereby stifling the
production of wealth. In simple words it cannot calculate that the money is
actually used for increasing the standard of living for the people of country.
We can thus conclude that the GDP framework is an empty abstraction devoid of
any link to the real world.
So wait a minute!
So all the governments are taking loans after loans and increasing external
debts of their respective countries from these dubious world banks on basis of
statistics which does not quantify the ability of that country to pay that loan
off and hence piling on huge actual unrealistic debts especially
on working class people of that country.
Wow! Now that's just, damn stupid!
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