Global Financial Crisis Looms Again!

By Sunil Dang, Editor-in-Chief

The US Ambassador to the Unite Nations Nikki Haley’s resignation came as shocker to the global community and so it seems to Donald Trump. All of a sudden, various news agencies and channels started to speculate about the probable reason for her resignation. Some of them came up with Haley’s intentions to run for President in 2020. Whether these speculation are correct or not only Nikki Haley knows but the way news of Haley being debt ridden and joining corporate to leave her government job due to her precarious financial status have been hitting the headlines, it’s for sure that Trump is facing insecurity after her resignation. If she runs for President, Haley can claim the Trumps diplomatic achievements but Trump can’t put onus of his failures on Haley. Needless to say, Haley running for the White House would be an interesting battle. Hence, it is pertinent that Trump chooses her successor with a sound process.

After creating ripples in western countries, #MeToo campaign has started to hit the headlines in India too. Ironically, the allegations have mainly come from the media and entertainment industry. What will be its outcome only time will tell but the way journalist cum politician, MJ Akbar, has gotten caught in controversy, it shall be interesting to see, how the BJP top brass reacts. Meanwhile, Union Minister Maneka Gandhi has constituted a four member committee to look into the matter with a vow to bring truth on to the fore in such cases. But, in my opinion, probing such allegations won’t be enough. The existing law is not being implemented effectively and hence, we need to ensure our law is functional and operational. In conclusion, the government must oil its system to render the existing law functional. Only, then we would be able to stop such #MeToo incidents taking place across India.

Global monetary policy has been “ultra-easy” for many years. Continuing on the current monetary path is ineffective and increasingly dangerous because it brings the threat of inflation. And given economists’ lack of understanding of either the level of “potential” or the inflationary process itself, it could easily get out of hand. However, inflation is not the only danger. First, debt ratios have been allowed to rise for decades, even after the crisis began. Moreover, whereas before the crisis this was primarily a problem of the advanced economies, it has since gone global. Second, tolerance of risk-taking threatens future financial stability, as does the narrowing of the profit margins for many traditional financial institutions. Third, the misallocation of real resources by banks and other financial institutions is encouraged by this monetary environment. With markets unable to allocate resources properly, due to the actions of central banks, the likelihood that rising debt commitments will not be honored has risen sharply. Adding the recent tank of various bourses, job losses, slump in FMCG market with the above indicators, it’s enough to understand that we are heading for another financial crisis.

Swami GyanSwaroopSanand alias Prof GD Agarwal breathed his last at AIIMS Rishikesh. He was on a hunger strike for 114 days urging the government to earnestly clean river Ganga. Now, the Indian government will have to answer as to what happened to the Rs 35,000 crore being spent on cleaning of the river Ganga in last four and half years. As expected, the opposition has plucked it as an issue and seem to be in mood to raise it in coming five state elections. Whether voters get effected by it only the December 11th result would tell but as per the ground zero reports, there is acute anti-incumbency against the incumbent government in Rajasthan. While in Madhya Pradesh, heavy infighting is clearly visible in opposition camp which the incumbent Shivraj government is looking to cash-in but in Chhattisgarh, it would be interesting to see how much of ghettoizingthe Ajit Jogi-Mayawati camp is capable of doing. Right now, itsclear that Digvijay Singh would be as an important factor in MP as Ajit Jogi-Mayawati in Chhattisgarh. But, in Telangana and Mizoram, the incumbent governments are expected to come back with little loss of seats in coming assembly polls.

Soon after this issue hits stall, whole nation would be celebrating Dushehra. Hope while burning the effigy of Ravana, both ruling and opposition parties of India burns their trust deficit which has germinated in last few years.

Jai Ho!