Seen two druncards high on arrack? they would walk with one hand on the others shoulder and the other hand waving about for balance. They will always stagger but will never fall, but when one falls he pulls the other who is depending on him down as well.
Type the word globaliZation on google and 19,400,000 hits come up, try the word globaliSation 6,290,000 hits come up. There is a very distinct irony in this. Globali-s/z-ation has failed to globalis/ze the very word which manifests its ideals.
Economics is not my area of expertise, but it is something that has always interested and enticed me albeit my relative ignorance on the subject.
An Indian economist M.R.Venkatesh speaks about the global economy and stresses on very pertinent issues, globalisation, the family system, the imminent crash of the dollar and global economic/military domination.
He speaks about how vital the institution of family is for the growth of a nations economy, it may perhaps be the very facet that decides if a nations economy is a savings economy or a consumption economy. I spoke about how the disintegration of the family inevitably results in added and more often unnecessary consumption here .
So much so that he assures the sustenance of the Indian Economy as long as the Institution of Family is deeply rooted in the Indian social fabric, he has a very simple and correct argument, lets not go into economic jargon and avoid serious terms dealing with national fiscal policies. He speaks about how the lady in the house manages the economy at home by protecting the family from over consumption and hence avoiding wastage, therefore the family is secure from the banes of unnecessary expenses and the home economy goes at a steady pace, and the safety of all family economies would result in the direct security of the national economy, simpy by avoiding waste.
The family is so vital to the global economy that it is not spoken about in Economic text books. As he says himself this is not another video bashing America’s fiscal policies, but he claims to want to save america from its own undoings and the banes of globalization.
There is a very simple comprehensive explanation on the current sub-prime and mortgage crisis, and how today’s economy is run by pure speculation as opposed to substance at hand.
He speaks of how the mighty Russia once was and claims that in 1991 people in russia had to wait for 48 hrs to get a loaf of bread, such was its decline, and he predicts the imminent crash of the American might if this economic trend continues.
The title of this post – the two drunkards- refers to The american and chinese economies being inter-dependent. Whilst china is happy to produce domestic goods and sell to america and thereby boost their dollar reserves, the americans are happy to not produce day to day items such as domestic appliances and keep buying them from china, the two economies will stagger and fluctuate when one has its turbulence, but they support each other. But when one economy fails it pulls down the other.
The beauty of the Indian economy is such that it is a savings economy relative to America and a consumption economy relative to China, that is its expenditure is with responsibility and only when necessary.
My seemingly negative rhetoric towards the capitalist ideologies doesnt mean that i am a proponent of socialist thought, i am just an outsider who is unwilling to embrace entirely either one of them, this is not to say btw that neither system has no good.
A very good video to watch, a definite eye opener.