The Only Remedy for Financial Meltdown

Even a year after the financial meltdown jolted the world economies,
there are no signs of a recovery yet. On the contrary, evidence is
accumulating that is going to get worse:

http://slatest.slate.com/id/2226757

Keep paying to the Banks which caused all trouble is simply
incomprehensible. Common sense says an advanced and matured economy
like USA is overburdened with two unmanageable loads; namely
increasing security expenditure and mounting burden of loans. The
security expenditure includes wars in Afghanistan and Iraq and
keeping profiles of millions of suspects and monitoring their
movements. The trouble is, it is not getting any better. More
expenditure is required and more interest has to be paid. The
national debt has crossed 13 Trillion and payment of interest is
becoming impossible, what to speak of its retirement. The only
beneficiary of the crisis seems to be the Federal Reserve, which
everyone knows, is neither Federal nor Reserve:


http://slatest.slate.com/id/2226771

So what could be done to save the economy and return to good old days
of near full employment and a buoyant economy? This reminds me of
my experience as Chief Accountant with a Saudi British joint
venture. Handling the banker, was a tedious task. I remember the
American general manager, had said on the occasion of Christening of
the company:

" I admire David Godfrey who kept lying to the Banker,
until those
lies turned into truth".

Thus keeping the bankers happy was our major concern. When any
undertaking or enterprize fails, it is the enterpreneurs and
employees who usually suffer and it is the banker who get the lion's
share. The bank used to debit the company account with the interest
monthly, irrespective of profit or loss. Whether we could pay our
creditors or employees was not a concern of the banker.

There were regular board meetings in which company management was
grilled to explain losses and action plan was demanded. In order to
save their
skin the GM and the FM sometime suggested consolidation of
divisions or branches and at others breakdown of the comapny in
independent divisions to give more powers to regional managers to
take quick decisions and take immediate corrective action without
having to ask the central management first.

Taking cue from my experience, I think hope cannot return to the
country scene unless debt burden is shedded. The lenders are large
Jewish Banks and Japan and China. They are wealthy and powerful
people and can withstand the loss. If the central government is
dissolved and each state becomes independent and soverign, every
state will absolve itself from the huge debt burden and the rival
forces will take respite from war or threats of war and peace will
return to world scene. Free of debt burden and eliminating the huge
security expenditure , the former constituent states will progress
rapidly . The states that excercize more than proportionte power in
deciding launching of attacks on third world nations, will have to
bear the burden alone. So they will think twice before going to war.
In case a power like Russia or China decides to take advantage of
absence of USA, defense pacts can immediately signed between former
United States and effective defense could be provided.

The move appears desperate and suicidal, but I am afraid, no solution
less than disintegration of United States of America would be
able to overcome the twin menace of security and the debt burden.

Muhammad
Javed Iqbal






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