Heartwarming response from my friends on Bapu's article on Financial Terrorism

The heartwarming response from my friends to my post on the English translation of Bapu article on Financial Terrorism has prompted me to take the discussion forward on this subject. I am reproducing at the end of this post, few of the responses received.

As you all know, this article was written by Bapu way back in the year 2003. The world has seen many changes since then; there have been many upheavals around the world. Not even the developed countries have been spared this time around. The sub-prime crisis, which is a product of virtual money, as explained by Bapu, loomed over USA for a couple of years (2006 and 2007) before it finally struck in the year 2008, leaving a trail of financial destruction behind it, from which USA is yet to recover. In my opinion, It was indeed a product of the virtual money. What we have seen of the global economy in the past few years and what we are seeing today is but a confirmation of what Bapu had foreseen and projected back in 2003. 

As I write this, the PIGS (acronym for Portugal, Italy & Ireland, Greece and Spain) nations, part of the European Union, are facing a financial crises of never before and dangerous proportions. In the year 2008, Iceland was on the brink of financial bankruptcy after three of its major banks failed to meet their debt obligations, following a run on deposits accepted by it in the Netherlands and UK. Its banking collapse is considered as the largest in economic history, given the size of its economy. 

Take the case of Spain. Its increasingly desperate struggle to put its finances right has seen its borrowing costs soar to such levels that it would not be possible for it to manage the situation indefinitely, reflecting a growing belief that it will need a sovereign bailout, which the euro zone can barely afford at this point in time. 

Spain’s and Italy’s fate, it appears, is linked to the fate of Greece. It is being increasingly felt that if Greece, which is on the verge of financial bankruptcy, were to default or exit the euro zone, the after effects of such a development could push Spain and even Italy over the edge. It is said that if Greece is to be put back on its feet, the European Central Bank and other lenders from within the European Union will have to write off monies owed to it by the government of Greece to the extent of Euro 200 billion! It is no surprise then that, today, Greece’s credit rating is far worse than that of many of the African nations. 

The ripple effect of the European crisis is not likely to spare India either. The Prime Minister, Dr. Manmohan Singh has admitted that India will be adversely affected by any crisis that may precipitate. In a study carried out by Maplecroft, which is risk analysis firm, although it has ranked India as 85th in terms of financial exposure, out of a total of 169 countries outside the euro zone that have business dealings with euro zone countries, it has still been categorized as high risk exposure. One of the main reasons is that nearly 18% of India’s exports for the year ended March 31, 2011 were to the Euro zone countries. 

What emerges out of all these developments is the dubious role played by debt (virtual money as explained by Bapu) and how countries have fallen or have been made to fall in the debt trap.

Srijanee Dmello said...
Hari Om Dada. The idea of making money out of nothing always scares me. A lot of things in the world today seem to generate money, without any true value to it. That is one of the reasons I am very wary of the share market, it all feels so virtual. This article is such an eye-opener. I have always felt that US is a global bully and nothing less. Shree Ram so much for translating it, and putting it up on your blog. The situation seems so grim, what can we as the common person do to avert this Dada? We always will look at the cheaper option to purchase, when we have the option, should we avoid that and buy local products instead?
25 July 2012 07:28  


Sameer Iyer said..
Hari Om Shri Ram Dada for sharing such an important article. Bapu is making everyone aware of the problems that every person will face in the coming future and how one should be prepared for it. Thank you Dada for the English translation. SHRI RAM!!
25 July 2012 07:42


Aniket Gupte said..

Hari om dada and Shreeram for sharing such an important article. Once again the undoubted mastery and command of My Lord, My Bapu has been proved. The article gives an indepth analysis of the Financial Terrorism based on the facts which each and everyone has conveniently chose to forget. The US which has been the root cause, now cries foul for any Financial Terrorism done by others. It imposes sanctions and norms thereby weakining the economy of the country as done in case of Iraq.
This article's accuracy can be seen even today if the Euro Crisis is looked upon. The ever detiorating Euro Crisis is leading the world into a Great Depression once again.
We need to be careful in our own lives while indulging in spending and also hope that India's economic forms hold the country strong enough to face the depression wave.

25 July 2012 09:15 

subharaman said...

PP Bapu has given a lucid and erudite understanding of the financial and economic situation existing then. Now it is no different. The ripple effects of 2007-09 depression still lasts. Many people lost jobs including myself. I was working for the no.1 multinational american pharmaceutical company at that time. It was due to Bapu's grace that I have come back in my previous company which is okay with me right now. The devastation of the financial crisis of various economies still continues. In European Uncion itself several countries coined with pun called "PIGS" comprising of Portugal, Italy, Greece and Spain which are in deep trouble. Other minor economies are also in good measure of trouble. Germany which is the largest economy is also under heavy debts. Today's newspaper informs that the trade deficit of a higly developed country like Japan has reached record heights. 2 days back it was reported that Microsoft had recorded its first loss in a quarter in the last 26 years!. Banks pumped in trillions during 2008 and thereafter to revive economies, revive production, revive demand and employment. All these revival package appears to have melted in commodities like Gold which has touched all time high, Oil which went up to $150 plus and other metals, minerals etc. Lot of money went into the stock markets,Real estate, futures and options etc. Hardly any money came to service and manufacturing sector to generate employment and demand. The trillions of dollars which America printed all these years to buy cheap goods from China and continuting to do so without any asset backing is hitting the world very hard. China' trade surplus is again invested in the treasury bonds of America [over 3 trillion dollars]. In India the situation is grim. There is a grumble of failing monsoon which may lead to drought. People are still losing jobs. Money which went into real estate and land are blocked. People are unable to unlock these assets. There is a grim wait and watch battle going on. Job market is grim. Lay offs are common these days. Mid term poll wind is blowing. Stock markets are oscillating directionless. No one knows what to do. Everyone is waiting and watching. Watching who is going to light the match stick first. Hari Om

25 July 2012 14:23

Sunny Sand said...

Shree Ram Bapu! Shree Ram Dada! Indeed in His own lucid style Bapu has put across a complicated concept in a facile manner. The Global Imperialism by US is clearly on the wall. PP Bapu's Ram Rajya programs like Rural development and related works are one big step towards countering this.
Each phase has its own life and the steps initiated by Bapu will surely go a long way to bring down the span of this capitalistic influence of US.
Only thing for us is how we get aligned in this.....
Regards,
Sandeepsinh Mahajan

25 July 2012 17:24 

sunilsinh bahl said...

Hari Om, Dada. This is with reference to your blog post of July 25, 2012 regarding our beloved Bapu’s article on ‘Financial Terrorism’. I would like to comment as under:


Firstly, the article is lucidly written and analyses the situation in detail and in a unique manner. It was an eye-opener then (2003) and even now. Many thanks for the translation. My Bapu knows all and He wants His children to be aware.


Secondly, let us look at some definitions. ‘Capitalism’ means an economic and political system in which a country’s trade and industry are controlled by private owners for profit. To ‘capitalise’ means to take advantage of and/or to convert into or provide financial capital. ‘Terrorism’ means intimidation in an attempt to achieve political aims. Thus, in a sense, extreme capitalism can be construed as a form of financial terrorism.


Thirdly, let us see what is happening to the US economy. Philosophically speaking, it is a universal truth that what goes around, comes around. The military interventions in Iraq and Afghanistan and the subprime mortgage crisis have taken their toll. The following extract is from a recently published US daily (Economy in Crisis, May 30, 2012)


“The United States is facing economic disaster on a scale few nations have ever experienced. Most people are unaware of the easily observable signs of this crisis, where it came from and how to stop it. While we persist in our superpower mentality, we have quietly become a second-class country in many respects.


We no longer produce what we need to sustain ourselves, we import much more than we export, and we are selling off our assets and taking on massive debts to sustain a standard of living we can no longer afford. Not only was this not the way we became a superpower but it is a sure way to lose this status.


The game plan of our international competitors is to render us completely dependent on foreign production, innovation and financing. In losing domestic self-sufficiency, national security and leverage – our foreign affairs will suffer greatly.


We are failing even to acknowledge predatory foreign trade practices undermining U.S. industry. Instead we encourage U.S. manufacturers to design, engineer, and produce in third world markets like Mexico and China.




While our regulatory and tax systems have unnecessarily raised domestic business costs, the fundamental cause of the present crisis is three decades of extremely detrimental U.S. trade and globalization policies.”

Simply put,lessons have to be learnt, by individuals and nations.

Hari Om
Sunilsinh Bahl

25 July 2012 23:09

RAJEEV KADAM said...

Hari om Dada,

It is seen that the article was written by Param Pujya Bapu in August 2003, almost a decade before. It covers not only the prime the aspects of 'Financial Terrorism' but all contemporary important issues connected to finance, financial imperialism, globalization, development of nation, labour movement, essentials of democracy and most importantly, human values. Undoubtedly, Bapu had written this article out of his urge to educate common man & to make him alert about the alarming situation which would affect all. This is very evident from the concluding lines of the article:

 "It is the urgent need of today’s times to create a common man who is aware of his social and national rights and to teach him to develop his senses towards his social and national duties" 

 

"However, unless we, the common people, do not very properly understand this problem, this danger will keep hovering around and keep making preparations for the destruction of the entire earth." 

Dada, unless you had shared it on your website, it would have been difficult for us read and revisit what Bapu had said. Shreeram for sharing this vital article, an eyeopener.

 

The most important thing for me is that this alarming situation and the situation creators are not unknown to the persons who are well-known & experts in this field. But only Bapu had shown the courage to write it so openly for the benefit of common man.

Shreeram

RAJEEVSINH KADAM.