Global Fi­nan­cial Cri­sis Looms Again!

The Day After - - FROM THE EDITOR'S DESK - 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!

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