Category: Articles

आम आदमी पार्टी ने सीखा बीजेपी से चुनाव जीतने का गुर

पैसे से   अधिक  कैंडिडेट  की जात   करेगी काम

ताज़ा ख़बरों के अनुसारहरियाणा के विधानसभा चुनाव में अलग अंदाज में उतरेगी आम आदमी पार्टी“I वैसे तो आम आदमी पार्टी अपने अलग अंदाज़ और अलग अजेंडे के लिए ही जानी जाती  थी लेक़िन हरयाणा लोक सभा २०१९ के चुनाव में आम आदमी पार्टी ने अपना अंदाज़ और चेहरा इस तरह  और इतना बदल लिया क़ि इसे आम आदमी के लिए पहचानना ही मुश्किल हो गया है I आम आदमी पार्टी अब दूसरी पार्टियों जैसी ही लगाती हैI

केजरीवाल जी  आगे दौड़ ,पीछे चौड़ वाली निति अपना रहे हैंउनके इरादे और महत्वकांक्षाएँ  इतने ऊंचे चले गए हैं क़ि वे अब आम आदमी की जरूरतों और समझ से ओझल हो गए  हैं I केजरीवाल जी के कुछ कारनामों ने

आम आदमी पार्टी को अपनी पहचान से ही अलग कर दिया है। 

आदमी पार्टी हरियाणा  में विधानसभा चुनाव २०१९  में  उतरने से पहले ही  अपना रंगरूप  काफी बदल चुकी है। जातपात  और पैसे की राजनीति में अब आम आदमी लिप्त है और अपने साधारण  कार्येकर्ताओं की अनदेखी करने लगी हैउदहारण के तौर  पर हम कह सकते हैं  क़ि केजरीवाल जी ने राज्य सभा के टिकट पैसे  और  एक  ख़ास जात वालों को ही दिए  और अपने कार्येकर्ताओं को नज़र अंदाज़ किया  था I एसा  करके उन्हों ने अपनी आम आदमी पार्टी का रंग रूप बदल  दिया है और हर नए इलेक्शन में आमआदमी पार्टी दूसरी पार्टिओं जैसी ही बनती जा रही है I और इस पार्टी का आम आदमी से जो गहरा रिश्ता था वह भी  टूटतl जा रहा  है I

रंग बदलने के बाद अब  हरयाणा के विधानसभा चुनाव २०१९ में  आम आदमी पार्टी अपना ढंग भी बदल दे  गी ऐसा मुमकिन ही नहीं बल्कि अपरिहार्य है।

 हरियाणा में आम आदमी पार्टी ने  विधानसभा चुनाव की तैयारी शुरू कर दी है। इस चुनाव के लिए नई रणनीति भी बनाई है। आम आदमी पार्टी के सुप्रीमो व दिल्ली के मुख्यमंत्री अरविंद केजरीवाल जी हरियाणा के रहने वाले  हैं और हरयाणा पर अपना वर्चस्व बढ़ाना अपना हक़ समझते हैं । दिल्ली को पूर्ण राज्य का दर्जा प्राप्त नहीं है, इस कारन से भी वे हरयाणा में आना चाहते है।

चुनाव आचार संहिता लागू होने से पहले उन्हों ने संगठन को मजबूत करने के  लिए एक दर्जन नए प्रकोष्ठ बनाने के  लिए हरियाणा इकाई को हिदायत दी है। कांग्रेस को बेहाल देख कर आम आदमी पार्टी को लगता है कि वह  हरियाणा में भाजपा का इकलौता और मजबूत विकल्प बन सकती है और इसी लिए आम आदमी पार्टी को भाजपा के तौर तरीके अपणाना  भी आवश्यक हो गया है ताके वोटरों को लगे के आम आदमी पार्टी और भारतीय जनता पार्टी में अब कोई फरक नहीं है। और उसको अपना एजेंडा लागू करने के लिए मोदी-शाह के मुंह की तरफ हर वक्त ताकना नहीं पड़े गा। फिर हरयाणां में दिल्ली की तर्ज़ पर आम आदमी को लुभाने वाला एजेंडा भी वह लागू कर पायेगी।

केजरीवाल ने बनाया नवीन जयहिंद को पंडित जय हिन्द

आमआदमी पार्टी ने तै किया है की हरियाणा में विधानसभा चुनाव वर्तमान प्रदेश अध्यक्ष नवीन जयहिंद जी के नेतृत्व में ही लडे गी। संगठन के कार्यों में तेजी लाने के लिए प्रदेश प्रभारी गोपाल राय के साथ राज्यसभा सदस्य डा. सुशील गुप्ता को हरियाणा का सह प्रभारी बनाया गया हैI डा. सुशील गुप्ताजी ही टिकटों के लिए उपयुक्त उम्मीदवारों के नाम तै करें गे । पंडित नवीन जयहिंद और सुशील गुप्ता आखिरी सूची त्यार

करेंगे। टिकटों का अंतिम फैसला तो अरविंद केजरीवाल ही करेंगे।

 आदमी पार्टी ने हरियाणा में तीन कार्यकारी अध्यक्ष भी बनाये हैं । तीनों कार्यकारी प्रधानों को  तीन-तीन लोकसभा सीटों के टिकट बाँटने हैं और प्रदेश अध्यक्ष पंडित नवीन जयहिंद को अपनी अपनी उम्मीदवारों की लिस्ट सौंपनी है। पहले कार्यकारी प्रधान करनाल, कुरुक्षेत्र और अंबाला, दूसरे कार्यकारी प्रधान हिसार, सोनीपत, रोहतक,व सिरसा और तीसरे कार्यकारी अध्यक्ष फरीदाबाद, गुरुग्राम व भिवानी-महेंद्रगढ़ लोकसभा सीटों के लिए प्रत्याशी तलाशें गे। ग़ौर तालब है की नवीन जयहिंद फरीदाबाद में इलेक्शन के बाद अपने नाम के आगे पंडित लिखने लगे हैं। नवीन जी ब्राह्मण हैं  यह वोटरों को बताना भी चुनाव में विजयी होने के लिए आमआदमी पार्टी की रणनीति का बड़ा हथिआर माना जा रहा है । सभी उमीदवार अपने नाम के साथ अपनी ज़ात भी उजागर करें गे। ख़ास कर नॉन-जाट कैंडिडेट्स।

दिल्ली में किए कामों के आधार पर हरियाणा में आगमन

आम आदमी पार्टी हरियाणा में दिल्ली में किए गए विकास कार्यों को वोटरों के सामने रखे गी। पंडित नवीन जयहिंद के अनुसार दिल्ली में हुए बेहतरीन कामों की सूची तैयार है। जो दिल्ली में चलता है, क्या हरयाणा में भी भागे गा?हमें ऐसा नहीं लगता I कारन यह है कि हरयाणा ग्रामीण है और दिल्ली शहरी; बल्कि  मेट्रोपोलिटन है।

दिल्ली में बड़े बड़े हस्पताल हैं और आम आदमी पार्टी ने उनको सुधारा है! बिजली पानी भी सस्ता हुआ हैी स्कूलों पर भी ध्यान दिया गया है! हरयाणा के गाओं में तो हस्पताल ही नहीं हैं और बिजली कभी कभी आती है। किया बिजली के लिए बड़ी बड़ी कम्पनिया हरयाणा में आने को उन शर्तों पर त्यार होंगी जिन शर्तों पर दिल्ली में ख़ुशी से काम कर रही हैं?

हरयाणा में बहनों को मेट्रो में मुफ्त सफर का तौफा चुनावों से पहले कैसे दे पाएंगे केजरीवाल जी?

आम आदमी पार्टी पर ना तो ग्रामीण होने की छाप है और न ही ग्रामीण विकास का कोई मॉडल है ! आम आदमी पार्टी का कुल अभिविन्यास [टोटल ओरिएंटेशन] शहरी है; गावों से कोसों दूर I हरयाणा में इस बार गाओं के वोटर का रुख निर्णायक हो गा लगता है आम आदमी पार्टी ने अपनी रन निति बनाते समय हरयाणां के तथ्यों को  ध्यान में नहीं रखा 
 
दिल्ली में निम्न मध्यम वर्ग कार्यकर्ता आम आदमी पार्टी की सब से  बरी मजबूती है । हरियानाके  गाँवों में निम्न मध्यम वर्ग के कार्यकर्ता को स्पष्ट रूप से पहचानना मुश्किल है।और हरियाणा में, आम आदमी पार्टी उस तरह के मध्यम और निम्न मध्यम वर्ग के बल और समर्थन को इकट्ठा नहीं कर पाई है, जैसा वह  दिल्ली में रने में सफल रही थी।
मैं नांगल कलां गांव मैं वोटर हूँ जो दिल्ली बॉर्डर से तीन चार  कम है। यहां मुझे कोई आम आदमी पार्टी की गति-विधि दिखाई नहीं दी है। मेरे राई हलके मैं प्रमोद कौशिक  कौशिक सक्रिय हैं । राइ विधान  सभा के मंत्री हैं।
ब्राह्मण समाज मैं भी वह काफी बढ़ चढ़ कर हस्सा लेते हैं । इसी प्रकार से शैलेंदर त्यागी सोनीपत और गनर मैं काफी सरिये हैं। लेकिन इन दोनों को आम आदमी पार्टी के टिकट की उम्मीद नहीं है और स्वयं भी पैसे की की के कारन से चुनाव मैं कूदना नही चाहते l 
केवल उम्मीदवार की जाति ही नहीं बल्कि उम्मीदवार की गुणवत्ता भी 2019 के हरियाणा विधानसभा चुनावों में मायने रखेगी। चुनाव लड़ने वाले सभी राजनीतिक दलों के लिए यह एक आम समस्या है। भाजपा में  अन्य दलों से बड़े पैमाने पर दल बदल के कारण बहुत अधिक भीड़
हो गई है और बीजेपी के लिए  जीतने वाले उम्मीदवारों को टिकट बांटना अन्य दलों की तुलना में एक बड़ी विकत समस्या बन गया  है । उसके पास मौजूदा विधायकों में बहुत सारी ‘मृत लकड़ी’ [डेड वुड। हैं 
मध्य प्रदेश में भाजपा से कांग्रेस के लिए उल्टे दल बदल शुरू हो गया हैं। टिकट से वंचित भाजपा विधायक अन्य पार्टियों के लिए संभावित दल बदलू है और भाजपा के राष्ट्रीय अध्यक्ष अमित शाह द्वारा तय किए गए ७५ विधायकों को नई विधान सभा में लाने के लक्ष्य को हासिल करना हरियाना भाजपा के लिए टेढ़ी खीर बनता जा रहा है। आम आदमी पार्टी को भी इस समस्या से जूझना पड़े गा ।

­– जितेन्द्र  कुमार  शर्मा

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‘One nation, one election’. What is your opinion about it? By Jitendra Kumar Sharma

‘One nation, one election’ is not a new idea, though Prime Minister Narendra Modi is presenting it in a peculiarly nationalistic context. In the first two general elections in 1952 and 1957, polls were successfully held all over India at a time for both parliament and state assemblies. For practical democratic reasons, the practice had to be discontinued. Some state governments fell before completing their 5-year term and went under President’s rule and the polls had to be rescheduled subsequently.

PM Modi’s ‘one nation, one election’ proposal is being viewed with skepticism by most opposition parties, and certain sections of the Indian Intelligentsia, even though, as was expected, President Ram Nath Kovind endorsed it during his address to both Houses of Parliament. The CPM has gone too far and dubbed the plan ‘anti-democratic and anti-federal’ and ‘an attempt to replace the parliamentary system with the presidential one’. The Congress Party sees it as a ploy to divert people’s attention from key issues such as unemployment and farmer suicides. The timing and the tone of the Prime Minister’s proposal have served the purpose he had in mind while serving this proverbial old wine in a new bottle and as intended, it has produced partisan and divisive notes.

True, Elections in the world’s largest democracy are becoming increasingly humongous and time-consuming and their cost is rising astronomically. India, it is argued perhaps cogently, remains in the election mode more often than not and the country’s development gets impeded because of the repeated imposition of the model code of conduct and government machinery is ushered into the conduct of the election at the cost of major policy decisions and their implementation. Considerable savings in money and manpower are possible if the Lok Sabha and Vidhan Sabha elections are carried out together.

Such was the practice in the 1950s and 1960s when Congress enjoyed almost One-party rule all over India. Then the dissolution of some Legislative Assemblies in 1968-69 and the Lok Sabha in late 1970 led to separate elections to Assemblies and Parliament.

Defence Minister Rajnath Singh claims that ‘one nation, one election’ is the country’s agenda, not the government’s. He perhaps means that India as a nation will be more united if only one election every five-years is held but he appears to be confusing or equating Uniformity with Unity. In common perception, the BJP “is making a pitch for simultaneous polls with an ulterior motive and …the saffron party wants to cash in on its stupendous victory in the 2019 General Election to wrest control of a majority of the states and union territories”, says an editorial in The Tribune dated June 21, 2019.

The fact is the regional parties upstaged the BJP in Odisha and Andhra Pradesh. In both these states, Lok Sabha and Assembly polls were conducted simultaneously in 2019. Elections are due in many states for Assemblies and opposition parties presume that they have a chance to overwhelm the BJP with regional dominance and influence the voter with their regional agenda.

The constitution will need to be amended but the amendment procedure is simple and amendments have been passed more than a hundred times and more for changing the constitution. In any case, the constitution does not clearly state whether we can or we cannot have the policy of ‘one nation, one election’. Article 83(2) says that the Lok Sabha shall be for 5 years unless dissolved earlier. Similarly, Article 172 says that tenure of State Assemblies shall be 5 years unless dissolved earlier. However, the state assemblies can be dissolved for specific reasons in accordance with Article 356 of the constitution and dissolving the assembly for simultaneous elections would be a violation of the constitution.

Also, since India is a federal country with a strong central government, ‘one nation, one election’ appears contrary to the spirit of federalism if not a violation of the federal structure.

As to saving of money, Modi’s avowals are doubtful. His own rallies are exorbitantly expensive and remain unaccounted. He must reform his own BJP party before he argues for saving the government money on elections. Money spent or overspent on keeping the elective democracy alive is fully justified and India has borne and can in future bear the financial burden of holding elections.
It is hoped that PM Modi will not make it a big issue and instead let the people and political parties mull over the revival of ‘One Nation, One Election’ practice slowly and gradually arrive at a consensus. It is not an urgent matter and needs general acceptance.
Should India not hold referendums on such issues?

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What happened to Sushma Swaraj’s Stratagem to supplant Modi? By Jitendra Kumar Sharma*

Sushma, before renouncing elective politics, mustered courage and cunningly annoyed Amit Shah and Narendra Modi. She contrived to amend the rule that required a woman to produce a ‘No Objection Certificate’ from her husband for getting a passport to travel abroad. Prime Minister Narendra Modi had been denying NOC to Jashodabehn, his deserted wife. Jashodabehn was hapless and could do nothing against the Ministry of External bureaucrats who had rejected her passport application for this reason alone. Sushma amended the rule and Jashodabehn is now free to apply and get her passport without her husband, Prime Minister Narendra Modi’s NOC. This ‘act of courage’ shall keep her distinctly in focus if and when the time to replace Modi does arrive. She will be in the race for the top post without her even trying!

Community and Currency: Inflation And Its Cure By Jitendra Kumar Sharma

 Community and  Currency

By  Jitendra Kumar Sharma

“The issuing power should be taken from the banks and restored to the people, to whom it properly belongs.”

                                                                                – Thomas Jefferson

“Until the control of the issue of currency and credit is restored to government and recognized as its most conspicuous and sacred responsibility, all talk of the sovereignty of Parliament and of Democracy is idle and futile.”

                        – W.L.MacKenzie King, Prime Minister of Canada (1934)

It is so mundane, yet so mysterious. You walk into a store, take out a printed piece of paper from your pocket and exchange it for whatever you need- a  loaf of bread, a glass of milk or cup of coffee. You can also get repaired your torn shoe by a wayside shoemaker or have a bus ride, likewise. Currency notes in your possession invest you with so much power and make you greedy to have more of them, without knowing the source of their power. Paper money, that in itself has no value, dictates its own terms to you. It makes you evaluate all things, even persons in terms of currency and creates a ‘buy and sell’ world.

What is your market worth? Five thousand or five million Rupees or Dollars. Your Rupee worth has nothing to do with your human worth or qualities or social value- how good or bad a son or husband or wife or daughter or friend or how good or bad a member of the community or society you are!  In fact, the more currency notes you have with you, the more power you enjoy. You can even buy more power, or make more money with the paper money under your control or possession. And, lack of this paper money can make you and your family unhappy though you may have all the skills, competence and goodness as an individual. It can bring your life to a full stop. Your health, education and your capacity to obtain amenities of life, all depend on the amount of money you have in your possession.

The otherwise worthless piece of paper, with a zero value in itself, has an overpowering influence on your life and actions. Suppose you have an ordinary piece of paper the size of a hundred rupee or dollar note, with your own name and picture printed on it, more impressive looking than the ordinarily printed currency notes and you want to buy a pack of biscuits or bottle of coke with it! The seller will not exchange it for your wants. He might even laugh at your audacity!

Thus, the power to issue money is the supreme power. That is why Meyer Amschel Rothschild, the founding father of one of the world’s most powerful financial dynasties, is famed to have said: “Let me issue and control a nation’s money and I care not who writes the laws.”

 Rothschild family’s rise was due to their dealing with the European rulers who borrowed money from them and showered honors on them. The nexus between Bankers and Politicians remains dark and deep even in democratic states. Their peculiar relationship has invested currency with a mystery. How prices rise and fall, why some people have more money, others have so little is generally regarded as a specialist’s job to know or rather guess about.  The fact is, even the economists do not fully grasp the manipulative forces of the market. They only come up with devious theories. Sometimes they say there is no inflation but the prices keep rising and the common man and housewife find it difficult to run their households unable to cope with the rising prices. Monthly pays and daily wages rarely allow earners the freedom to buy the things they need. Access to health, education and other amenities continue to evade the poor masses and lower middle classes in spite of the honest work and hard labor they put in at their offices and work sites.

Money always appears to be scarce. Currency notes in circulation at any given point seem to be always fewer for most of us. There is always less money and more people chasing it. Why? If it is a matter of printing notes, why then enough notes cannot be printed to let all members of the society have enough of them to exchange goods and services they need? In a democratic state clothing, housing, nutritious food should be available to all citizens. But some people have too many notes, others too few to exchange goods and services? This causes inequality and social tensions.

You may have heard your parents or grandparents say how different things were when they were young. It only cost one rupee to see a movie but now it costs fifty rupees to sit in a cinema hall. Petrol was only one rupee per liter in 1970 but now it is Rs.67 per liter. A brand new Ambassador car cost Rs. 13000 in 1961 but now it costs Rs. Five lakhs or more. In the intervening years, prices have risen, sometimes drastically. That is inflation.

“Inflation is when a certain form of currency starts to have less value over time. It is caused mainly by two things: people’s perception of value, and the economic principle of supply and demand”, says an analyst.

There is no scientific principle behind the rising curve of inflation or decreased value of the currency notes in your hands. It is people’s perceptions of a currency’s value that has a major bearing on its value. It causes inflation by directly affecting the value of the money. There was a time when the currency was entirely on a gold standard. Even then inflation often happened as people started to worry that the government or bank wouldn’t be able to redeem their cash [or notes] for gold. If you had a dollar that was worth an ounce of gold, but people thought the government only had half of the gold required to redeem it, then dollars would start being traded at a value of half an ounce of gold. The same has happened in cases of other currencies like the Rupee or Sterling Pound.

Supply of currency has a very dramatic effect on inflation. Throughout monetary history, governments have simply printed money to solve financial problems. Such a measure pushes the value of money uncontrollably downward; especially, in present-day markets where money or currency is not backed by gold. If 10 billion rupees circulating in a country are increased to 20 billion at a given time, the worth of the circulating rupees will get reduced to half.

There is the classic case of Germany after World War I. Germany was forced to pay war reparations of about $33 billion. It proved impossible for the nation to produce that much. The only choice left to the German government was to print more and more money, none of which was backed by gold. This caused one of the worst inflations ever recorded. In 1923, one needed 42 billion German marks to buy one U.S. cent [one-hundredth of a dollar]! It took 726 billion marks to buy something that had cost just one mark in 1919.

Who creates money? And to what purpose?  These issues become important currently when India is rising but 135 million people are descending into the deep gorge of poverty. Poverty is as explosive as a terrorist bomb. No segment of a democratic society can enjoy the fruits of prosperity happily and peacefully if other segments remain deprived.

In modern society, banks and banking institutions create money even though the power of printing money remains with the established governments. In India, it is the central government that has the power to print money, though, in practice, it has delegated this power to the Reserve Bank of India that prints currency notes and regulates the working of other Banks. With the entry of private banks, the purpose of creating money by the banking system has changed. It is no longer primarily social.  Banks create money to make as much profit as they can. This is done by giving loans on the highest interests and accepting deposits at the lowest interests.

The private banks are not responsible to the people for their policies and actions. In India, private capital is increasingly controlling the banking system. This is causing dissensions within the Indian economy among different forces and consequently within the Indian society. Wayward movement of inflation is a manifestation of the lack of social responsibility on the part of the banking system to a great extent and the government’s inability to control the fiscal operation of printed money.

While Tatas, Birlas, Ambanis have no dearth of borrowed capital to buy big companies and conglomerates anywhere in the world, the government finds itself bereft of funds to implement such schemes as Employment Guarantee Scheme or for improving  Health services or  Educational institutions.

Does it matter how much money is supplied? Surely, it does. It is the money supply that determines the rates of interest paid for the use of money, employment, prices, and economic growth. To some economists, money supply is the most important determining factor of these variables. Interest plays a large part in the cost of living. All business firms work on borrowed money; some borrow less, others borrow more. This gets linked to every stage of production, increasing costs all the way. These costs are eventually passed on to the consumer.

If the consumer does not pay for them, production cannot be sustained financially. Interest rates, thus, also, determine the momentum of business activity. Interest rates also influence the extent of investment in plant and equipment. When governments restrict credit, a business cannot borrow easily. Small firms feel the squeeze more than large firms who can manipulate borrowings. Workers get laid off. Unemployment increases. Higher interests mean less growth.

However, it is not the effect of higher interest rates that is confusing. It is the government’s explanations for it. Sometimes they blame “too many rupees chasing too few goods and services”; other times, the deficit of payment is the excuse. Higher interests are also commended at times because they keep the capital within the country. But one thing is sure, the government always projects itself as a persistent fighter against inflation, real or imaginary.

It is interesting to note that governments keep interests very low during the war against another country but while fighting the war against poverty within the country, this measure is not resorted to.

What, then, is money? Money is anything acceptable to people for exchanging goods and services. Even “I owe you’ [ IOU] chits, hundi or hawala, coupons too serve as money. What money is made of is not important. What is important is its representational aspects. Chequebooks, currency notes, bank deposits, credit cards, gold biscuits, metal coins are all money. Seashells, postcards, lead or brass pieces have been used as money at various points in time. Even leather pieces in the Mughal period during the one-day Saqqa Raj were used as coins! But paper currency is now used as a legal tender for the exchange of goods and services.

A legal tender is any form of money that is declared by a government good for taxes, public and private debts.

In India, the most prevalent form of money is currency or paper money that circulates all over the country in the form of notes of various denominations. Currency is no longer issued 100% against the gold standard. Government and Reserve Bank of India determine and control the maximum amount of money that can be created by banks through lending. In the USA “checkbook money” and credit card money is created by commercial banks’ and accounts for almost all circulating money.

Nature of Currency

In so far as inflation is an aspect of the fiscal operation of an economy it is necessary for us to understand the basic nature of currency and then see how it operates within the Indian economy. There certainly appears to be some operational flaw that needs to be corrected for removing inflation and sustaining growth.

The word “currency” implies that which is current. Money, in the form of currency, is like electricity or electric current that ideally ought to be available everywhere and to everyone for exchanging goods and services. The value of a “currency” depends upon its velocity to be current, that is, how fast it moves from one place to another or one person to another. As soon as its movement slows down or if it gets into pockets from which it cannot come out freely and speedily into the common circuit, the currency will start losing its value. Like electricity, currency is an invention of man. If he fails to provide and maintain a proper circuit for it, it becomes useless and even dangerously harmful.  The ultimate circuit for currency ought to be such that it delivers currency notes to all and everywhere all at once. But that is perhaps too ideal. The next best design is to make currency available in such supply and in such places as to enable the needy to buy their needs within their immediate environment.

The flow of Indian currency since our Independence in 1947 has been toward the urbanized sector. This means Indian currency is flowing, rather floating, in less than 25 percent of the entire area of the Indian population. This can never be the intention or goal of a democratic government, irrespective of whether it is ideologically left, right or center or even bereft of all ideology. The corrupt politician-bureaucrat-business nexus has short-circuited the Indian currency.  In a country like India where more than a billion people await full benefits of development, inflation cannot erode the economy if the currency keeps its regular flow and its supply is increased to keep pace with the pace of development.

“Money does not manage itself”, is a  Bankers’ saying.  Yes, a representative government must  so manage currency that at no time there is either too little or too much of it in circulation; because, the purpose of issued money is to make it easier for the nation to produce goods and services and easier to divide the income from national production equitably, easier to save and invest now and in the future. When a nation produces too little or too much beyond its capacity, deflation and inflation will bring unhappiness and misery to it.

Banks create money by a system of deposits and loans. When you deposit your savings, the banks get empowered to lend it to others. Banks, in fact, lend more than the deposit they receive. Thus they create debt and create money at the same time. It is a risky game because if all the depositors demand their money back, the Bank shall not have enough cash or currency to meet the demand of its depositors. The Bank will fail and depositors will lose their savings and deposits. But, on such occasions, the Reserve Bank of India intervenes and gives credit to the troubled Bank from its reserves. The Reserve Bank creates its reserves of money or currency in the same way as commercial banks create chequebook money- by seeking deposits from commercial banks and lending them whenever they need loans.

Reserve Bank of India determines how much chequebook/credit money a bank can create. It decides the ratio between deposits and loans for other banks. Where does the Reserve Bank of India get its own reserves? From nowhere. It creates its own money or reserves. In fact, it is the sole and absolute money-making machine. It is empowered to issue money/currency or cheques. It has no problem like you and me or even like the banks have. If it needs money, it can print it according to its need. Who has given the Reserve Bank of India the power to create its own money or print the currency?  Theoretically, the people of India. Actually, the elected Indian government with the approval of the Parliament. Reserve Bank of India regulates the working of all other banks under powers delegated to it by the government of India.

Is there a formula to determine the maximum amount of money available to business and consumers? Yes, the formula is the equation  A  amount of bank reserves] x B[number of rupee deposits member banks may create per each rupee of reserves]= C[ Total bank deposits]. Can this formula be changed?  Yes, the Reserve Bank of India has the discretion to do so. Increasing or decreasing Reserves is a deliberate action on the part of the Reserve Bank of India.

How do currency and coin enter the money supply? Normally, the proportion of currency/coins in circulation to the total money supply is about 20%; bank deposits account for the remaining 80%

At this point, a question arises. If credit is important for growth and development of the country and the people and it is the government who is responsible for the growth and development as well as for printing money, then why does it create debt by charging interest? Why cannot the government just issue and circulate paper money or currency for the purpose of the nation’s production of goods and services?  Interestingly, Thomas Edison– the inventor of the electric bulb who knew much about the nature of electric current also knew much about currency– raised similar questions.

In December 1921, the American industrialist Henry Ford and the inventor Thomas Edison went to the Muscle Shoals nitrate and water power projects near Florence, Alabama. There, they voiced their alternative money views for financing this project. The pro—people industrialist and inventor objected to the Government’s raising the money by issuing bonds which would be bought by the banking and non-banking operators and then have to be paid back with money raised from taxes,  with interest added.

They proposed that the Government should create/print the currency it required and spend it on this public project as a social expenditure.

The relevant excerpt from the report published  in The New York Times on December 4, 1921 and December 6, 1921 says:

                                                                                              “ If our Nation can issue a dollar bond it can issue a dollar bill. The element that makes the bond good makes the bill good also?***** It is absurd to say that our country can issue $30million in bonds and not $30 million in currency. Both are promises to pay: but one promise fattens the usurer and the other helps the people”.

In other words, a government of the people, by the people, for the people should abolish INTEREST. It should give Credit at Zero percent interest. It is within the government’s power but for reasons that have never been spelled out clearly the governments resort to shifty methods of distributing currency by creating a system of debts and deposits. The end result is the inequitable distribution of wealth and money.

In America, Abraham Lincoln said: “The Government should create, issue, and circulate all the currency and credits needed to satisfy the spending power of the Government and the buying power of consumers. By adoption of these principles, the taxpayers will be saved immense sums of interest. The money will cease to be master and become the servant of humanity”

President Lincoln went to Bankers seeking a loan to finance the Civil War ( 1861-1865) who demanded 24% to 36% interest. He returned with a troubled conscience. As a man of principle, he could not sink his nation into a debt that his people would find it hard to pay back. Courageously, he sought authorization from Congress to print full legal tender Treasury notes about which he wrote: “… (we) gave the people of this Republic the greatest blessing they have ever had – their own paper money to pay their own debts…”

Lincoln’s ‘people’s money’ had green ink on the back, so the people called it “Greenbacks”.

The Bankers were determined to wipe out  Lincoln and Lincoln’s interest-free, debt-free Greenbacks out of existence. As soon as the greatest ever American President was assassinated, the  Greenbacks were retired from circulation.

In 1913, the Bankers got the Federal Reserve Act passed by Congress that President Woodrow Wilson regretted signing: “I have unwittingly ruined my country. A great industrial nation is controlled by its system of credit. Our system of credit is concentrated. The growth of the nation, therefore, and all our activities are in the hands of a few men”.

The foregoing will make it clear that the so-called democracies of the west are merely plutocracies. And, if the Presidents of the most powerful democracy of the world have found themselves helpless before the invisible, strangling hand of the international bankers, weak-kneed Indian governments can only be expected to kowtow to the Bankers.

But a new awakening is pervading the democracies everywhere. Communities are becoming alive to the deep and dark conspiracies of plutocrats who control national currencies under an international system of currency manipulations. As a consequence, war, poverty, armaments, general human unfulfillment, social disharmony prevail over man’s destiny everywhere. The full growth of democratic societies remains stunted.

Small communities in the USA, Canada, Europe, and even Asia and Africa are experimenting with what has come to be called “Community Currency”.  They no longer depend upon their governments who are sold to big business and depriving poor and less privileged people of their land and property like the CPM-coalition in Nandigram had done. People are now able to understand the close relationship between currency and participatory democracy.

The word community comes from the Latin ‘communis’, meaning “common, public, shared by all” or many. “Com-” – a Latin prefix meaning with or together, “-Munis-”   suggests “the changes or exchanges that link”. Municipal and monetary both get linked here and Latin “-tatus” implies small, intimate or local. A web definition of “local currency” is a currency not backed by a national government, and intended to trade only in a small area, also known as “community currency” or “complementary currency”. If introduced in India at the panchayat level, “community currency” will cure both inflation and corruption. Prime Ministers will have no excuse to console the villages that only 15 paise of the rupee reach the poor. It is no longer a new-fangled scheme. It is a tested and tried result oriented panacea that stares smilingly at Prime Ministers, Finance Ministers, their economists and bankers who have been befooling the people for a long time purposefully.

The local currency systems are successfully working in Ithaca, the seat of Cornell University, USA. They have called their local money as “Ithaca hours” which is equal to 10 US dollars being the average wage per hour in Ithaca. Salt Spring Island introduced its currency in 2000 and it has advantages over Ithaca Hour since it is backed 100%, by the Canadian dollar , equal to the national currency in value and is well-integrated with the latter. This will be a good model for Indian panchayats to design their currency for local projects and the government’s employment schemes. The Banks can also join these schemes as they are doing in Ithaca and Salt Island. Berkshire, the Schumacher Society of Berkshire’s dollar introduced in September 2006 is also performing well. LETS is yet another system of local currency that has created models in various parts of North American and Europe.

A local currency can’t leave the community it serves, so it ensures connections between people exchanging skills, goods, and services. With a local currency, the community is less affected by fluctuations in the external money supply. It also frees itself from corruption since local currency cannot be accumulated as a commodity and has to remain in circulation. It has no value outside the community, nor beyond the time of its expiry date. It eradicates greed for money; it instills the true meaning of wealth among members of the community.

Creating community currencies encourages participatory democratic processes. It empowers people. It nurtures hope, creativity, respect, and compassion. Local currencies help communities live according to their values rather than as merely green-eyed consumers. In a happier world, money would become obsolete, and the gift economy, true meaning of community money shall prevail. It is an ideal instrument for Panchayats and local government to finance their projects

===The End=== of Inflation And Its Cure: Community Currency=JKS

CURRENT AFFAIRS QUESTIONS ANSWERS For Civil Services Competitors by Jitendra Kumar Sharma

CURRENT AFFAIRS QUESTIONS ANSWERS For Civil Services Competitors by Jitendra Kumar Sharm

 

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The Prime Minister and His Robot Wife

By Jitendra Kumar Sharma

 Q.1. “Google doodle celebrates humanity’s first message to aliens.” Consider and dwell on this recent news headline and jot down your comments and explain what you understand by “ humanities first message”.
Ans.1. Google from time to time uploads doodles to celebrate important events or personalities. On Nov 16, 1974, that is 44 years ago a group of scientists came together at the Arecibo Observatory in Puerto Rico and sent the most powerful broadcast that was ever beamed into space. This was called the Arecibo Message. On Nov 16, 2018 humankind’s first attempt to communicate with intelligent life beyond our own planet Google commemorated with an animated doodle became a sort of talk of the town.
The scientists at Arecibo Observatory had radioed a three-minute message into space which was aimed at a cluster of stars in the constellation Hercules 25,000 light years away from Earth. explained Google in a statement.”This historic transmission was intended to demonstrate the capabilities of Arecibo’s recently upgraded radio telescope, whose 1000-foot-diameter dish made it the largest and most powerful in the world at the time”.
“It was strictly a symbolic event, to show that we could do it,” according to Professor Donald Campbell of Cornell University in the de[artment of astronomy. Campbell was a research associate at the Arecibo Observatory at the time and took part in the event on Nov 16, 1974.
“The subject of today’s doodle lends itself to so many possibilities. Earlier concepts experimented with depicting the recipients of the Arecibo Message and their reactions,” according to Gerben Steenks, the doodler at Google who created the uploaded doodle.
The original message was devised by a team of researchers from Cornell University led by Frank Drake.”What could we do that would be spectacular? We could send a message!” Drake said.
The message was composed with the assistance of Carl Sagan and arranged to form a pictograph representing some fundamental facts of mathematics, human DNA, planet Earth’s place in the solar system, and a picture of a human-like figure and an image of the telescope itself.
The Arecibo Message is estimated to travel around 25,000 years to reach the intended target, a group of 300,000 stars known as M13. “Humankind will have to wait a long time for an answer” quipped Google.
During the last 44 years since it was first transmitted, the message has traveled only 259 trillion miles, a tiny fraction of the distance to its final destination, according to the statement Google issued along with its much-touted doodle.
Q. 2.Was Crop insurance introduced for farmer’s benefit or big business’ big profits? Discuss with reference to recent media report/s and editorials on this issue.
A. 2. Crop insurance started by a government initiative predictably is under a cloud. Insurance firms, both in the public and private domains, have reportedly made unfair gains by selling crop insurance to farmers in about two dozen states. The Tribune, Chandigarh reported abnormal gains by a dozen insurance firms through the Pradhan Mantri Fasal Bima Yojna (PMFBY). According to the newspaper, Insurers received a gross premium of Rs 22,362 crore under the scheme in 2016-17 and saved huge sums even after they settled 3.01 crore claims worth Rs 15,902 crore. This margin hopped to “Rs 9,335 crore in the successive period, apparently due to a sharp decline in the number of claims to 1.26 crore.” Insurance is a high-risk business and it is normal for firms to have huge margins in an event-free year. But, that is not the reason for the insurers’ ill-gotten gains. The unprecedented margins have resulted from non-payment of legitimate claims. And the foul play calls for an investigation. The government must act right away.
Private insurers rushed to grab the PMFBY because of the government’s invitation and they responded eagerly to grab this no holds barred profit-making opportunity. Making money is a legitimate practice but profiteering from a social scheme is a heinous crime. A thorough audit must be ordered immediately by the authorities.
The scheme is well intended as it promises to protect Indian farmers the vagaries of nature. It is the state governments’ responsibility devise administrative measures to ensure quick disbursal of insured sums to aggrieved farmers. Private insurers are in business to make money and if the doors are kept open for the loot, they shall not hesitate. Risk assessment is the states’ task and responsibility. To cite the example of Punjab officials did not care to cover risks of major failure of paddy and wheat crops in the scheme on the pretext of saving public money on unnecessary premium. The scheme involves huge public money and, therefore, the Comptroller and Auditor General (CAG) of India needs to conduct a performance audit to rationalize the premium amount. The premium burden on the farmer needs to be reduced and there have to be prohibitive restrictions on profiteering from a public scheme and bureaucratic corruption as a necessary adjunct to excessively enormous pelf made by openly indulging in unethical business practices.

Q. 3. Where are India’s bright young minds going? Discuss and comment on this phenomenon called brain drain.
A.3. India’s bright young minds are fleeing to foreign shores, most of them to the USA. Rich western countries are taking away our brightest students and also our money, rued an editorial in an English Daily.
The number of Indian students enrolled in the US has been rising despite the anti-immigration stance of the US government. According to the latest statistics available, Indians were the largest group among all foreign students enrolled in the USA. Interestingly, the number of students from other countries has been declining but from India, students’ number has been rising, the total number of international students in the US has fallen this year. The estimated 2.5 lakh students were counted in last year’s report.
The US, Canada, Australia, the UK, non-English speaking European countries are increasingly attracting Indian students. Brain drain is now a misnomer and the concept of brain drain itself is outdated but why do parents spend Rs 2 crore for getting their children graduated abroad? Perhaps, mainly for two reasons: [i]Lack of international quality educational institutions for bright Indian students [ii] Denial of admission to such students as do not attain an optimum required percentage of marks for admission to courses of study in Indian educational institutions and universities. Another most nagging factor for preference for exorbitantly costly foreign education is parents’ anxiety about their children’s future in India. Will they be able to get jobs with Indian diplomas and degrees?
Reduced possibility of work after education in richer countries appears to offer no discouragement or impediment to the West-bound young students or their parents. The westward ho! trend shows no signs of wearing off. In fact, as the government claims greater prosperity in India, higher is the urge to leave the country on one pretext or the other among all strata of Indian society and those who have the money and means make it good to leave in the hope landing in greener pastures.
Policy makers and educators in India seems to be talking more and doing less for better infrastructure for higher education and students are being forced to seek expensive and increasingly unrewarding foreign education who are more interested in educating them than in pocketing their money.
China has solved this problem by allowing foreign universities to open campuses in its various province. Singapore too has taken initiatives in bringing foreign education home. International exposure for our students is academically healthy but such high costs are not justified and defeat the very purpose of education. Even before the young minds are ready to enter the world, they become commercially rather than culturally oriented. In their formative years, they get ridden with the enormous emotional and financial burden.
The rising trends of Indian student enrolments in foreign countries lands is a sad reflection on our dispensation and its failure to fulfill a basic need for all students, that is, quality education with adequate employment opportunities. PM Narendra Modi is agog with India’s demographic dividend but is paying no heed that the dividend is going to enrich other countries and not India.
A.4.‘Toxic’ declared Oxford Word of the Year. Write a brief note on this news headline.
A.4. How a word can become so important as to compel attention by the media? No wonder. Because, words tell us a lot about us, about our society and culture at large. Oxford Dictionary has declared the adjective ‘toxic’ as the Word of the Year for what it says “reflects the ethos, mood, or preoccupations in 2018”.The Oxford Word of the Year is a word or expression that is judged to have lasting potential as a term of cultural significance, according to a statement issued to the Press by the Oxford English Dictionary team.
The word toxic was selected from a shortlist other competing words that included ‘gaslighting,’ ‘incel’ and ‘techlash’. The data shows that, after ‘chemical’, ‘masculinity’ is the most-used word in conjunction with toxic this year.
“With the #MeToo movement putting a spotlight on toxic masculinity, and watershed political events like the Brett Kavanaugh Senate judiciary committee hearing sparking international debate, the term toxic masculinity has well and truly taken root in the public consciousness and got people talking in 2018,” the statement said.
By toxic which is an adjective, is meant ‘poisonous’. Toxic first appeared in English in the mid-seventeenth century from the medieval Latin toxicus, meaning ‘poisoned’ or ‘imbued with poison’.In 2018, toxic became a descriptor for the year’s most talked about topics. Oxford university’s extensive and exhaustive research found that scope of application was amazingly wide truly outstanding; and, that made toxic the stand-out choice for the Word of the Year title.
The data shows that along with a 45 percent rise in the number of times it has been looked up on oxforddictionaries.com, over the last year the word toxic has been used in an array of contexts, both in its literal and more metaphorical senses”.
Words like ‘environment’, ‘relationship’ and ‘culture’ were wontedly used alongside toxic.
Certain events of the year also played a role in the selection of Toxic as the word of the year. The toxic chemical, for example, figured prominently in the nerve agent poisoning of a former Russian intelligence officer and his daughter in Britain and that had sent shockwaves around the globe. This event lends a particular significance to ‘toxic’.
Ongoing international attention to the case, including rising concern over who has access to the world’s toxic chemical stockpiles, ensured that ‘chemical’ topped the list of words most frequently seen alongside toxic in 2018.

Likewise, toxic substance, toxic gas, and toxic waste were in the news, reports, and messages and became a focal point as the US combated the spread of toxic waste in the wake of hurricanes. This burning of toxic waste, resulting in the release of toxic gases, has been identified as one of a number of causes of toxic air. In India, burning crop stubs on farmlands of Punjab and Haryana were blame for enhancing air pollution levels in the Capital Delhi and National Capital Region.
Air pollution has rapidly become a prime public health issue throughout the world and reached a high in October 2018 when the World Health Organization published its report into the quality of air breathed by children worldwide. The report described this pollution as toxic air, signifying its poisonous nature, and international media coverage served to highlight to associate toxicity to poor air quality.
The term toxic environment has been in use for decades in reference to harmful workplace conditions and the toll this takes on the workforce’s mental health.
From overly demanding workloads to outrageous sexual harassment, many companies have been exposed as crucibles for such toxic culture this year occasioning mass walkouts at Google, the fashion mogul Philip Green disgracing and the Speaker of the House of Commons accused of misusing his official powers to cover up allegations of bullying in Westminster.
In India, “Toxic Masculinity” of powerful politicians, journalists and professionals hit the media headlines in the year 2018.
Q.5. Has the I.A.S. lived up to the expectations with which it was instituted 70 years back?.
A.5.The Indian Administrative Service, popularly known by its abbreviated sobriquet, IAS, has completed its 70 years of existence in 2018. It is a successor to the so-called Iron-clad, Heaven-born Indian Civil Service of the British colonial era. The IAS was very differently conceived than the ICS and was expected to perform an altogether different role than the ICS. It was said about the ICS that there was neither Indian nor civil nor an iota of service about it. The IAS was supposed to have everything Indian and was devised to be the Servant of the Indian People. The IAS was to be imbued with the idea and culture of India. Today, it is an elite class, zealously guarding its patchy mold of its British predecessor and worn-out mask of the colonial ICS. It is the most privileged, self-perpetuating class or clan of a self-serving, power-grabbing in-grown ruling group that dominates all other branches of government. It dominates the politicians and people alike.
The I.A.S. was to be the instrument of governance that would assist the political executive to create, build and develop Indian democracy as a peoples’ republic‘. The IAS was expected to help build and strengthen democratic institution such as gram sabhas, panchayats, Zila parishads that serve as the base for Vidhan Sabhas and the Lok Sabha. All these political institutions were to democratize administration, development process, and governance of India as a country and finally, from these foundations, was to emerge a vibrant, participatory democracy eventually to mature into a peoples’ republic. The IAS conceived as a permanent system of people’s servants that would lend unity and continuity to democratic India’s Administration and Development and serve the nation with a sense of Indian-ness in their style of functioning. The forefathers of the Indian constitution had high expectations from the IAS and wanted it to play a leading role in building India as a republic of self-governing, self-sufficient, agro-industrial, urbo-rural local communities, politico-economic institutions that would control and regulate the deployment of natural resources for the Indian nation for Indian people’s welfare and betterment.
India, because of its culture and diversity, is very different from most countries of the world. The IAS, contrary to the nation’s expectations has taken an altogether divergent course. As a permanent and continuous instrument of government, it has, instead of discovering and rediscovering its culture and diversity, set up a superficial and fake model of western imitation for the succeeding generations of Independent India. The aura of IAS dominates the educated people of India and for the rural masses, it has become callous officialdom which is perpetuating inefficiency and corruption. India was not imagined by freedom fighters and leaders as a jungle of concrete urbanization. India was to be agro-based economy motivated not by individual, self-oriented westernized society but comity of communities rooted and rising from its village culture of bhaichara or fraternity and its other timeless verities. The pattern of its economic growth too was foreseen as need-based, environment-friendly, nature- conserving and providing livelihood to its poor people on a priority basis rather than a statistics-driven inflationary economy creating an inequitable consumer society serving the greed of industrialists, traders, and hoarders as is the case today. India’s development in our forefathers’ scheme had to be democratic and decentralized focused on the constant and continuous amelioration of the poorest of the poor of our society.
The IAS too was launched to realize the ‘Idea of India’, a governance framework that will act as a bulwark against any encroachments on the ‘Idea of India’. These conditions and protocol for the IAS were clearly laid out in the Constitution of India. The IAS was, therefore, granted constitutional protections, which is not the case in other democratic countries. The prestige and protection of the IAS were certainly not meant to create a special, privileged, class who would develop nexus with Big Business and Politicians to fleece the nation and its people of their basic rights as a ruthless ruling elite. The guarantees that the Indian constitution provided to the IAS was meant to create a cadre of public servants who would ensure fair, fearless, just administration for managing the country’s affairs efficiently and devotedly.
The IAS as a class, in cohorts with the subsequent political masters, abandoned the ‘Idea of India’, and forgot the purpose for which the IAS was created. The Constitution provided all the protection and privilege to the IAS but failed to give the same power and protection to the panchayat raj institutions that was to be the foundation of Indian Democracy. Instead, there emerged a disorderly and disarrayed pattern of ‘mixed-economy’ run by a command-and-control system.
As a result, India’s Administration remains stubbornly entrenched in the same colonial-hierarchical framework. The democratic-participatory process is being obstructed rather than being promoted by the IAS. Consequently, misshapen urban-rural monstrous cities, villages and towns have appeared that are at the mercy of lawless lumpen hoards, hoodlums, criminals, and looters. Politically, economically and administratively India is a scary place to live for a law-abiding citizen.
The past President KR Narayanan, himself a member of the SC and also a privileged member of the IAS/IFS as late as 2005 said: “Decades into the free life of our nation, we find that justice — social, economic and political — remains an unrealized dream for millions of our fellow citizens. The benefits of our economic growth are yet to reach them. Tragically, the growth in our economy has not been uniform. Many a social upheaval can be traced to the neglect of the lowest of society, whose discontent moves towards the path of violence”.

The IAS, according to The Constituent Assembly of India, had to be “the best material available in the country transgressing political boundaries.” Today, the common perception, according to a 2010 survey, is the IAS is an outfit that is an administrative wreck “sub-serving lowest political interests” and outrageously drenched in corruption.
The IAS almost totally destroyed itself during the Emergency 1975-77. Instead of protecting the constitution and rising up against a lawless regime, the IAS prostrated itself before it and defiled the Constitution; it assaulted and raped the Indian democracy. It drafted and implemented draconian rules and ordinances and enjoyed the benefits of autocracy and extra-constitutionalism instead of rescuing Indian democracy and defending the rights of its people. When shall the country recover from the cowardice IAS injected in the body-politic of India is a question that starkly stares in the face of India’s dilapidated democratic institutions.
Liberalization, globalization, and privatization have further widened the scope for the predatory bureaucratic-capitalist-politician nexus to sharpen and satiate its instincts for land-grabbing, money-guzzling, environment – plundering in the name of ‘development’. Basic duties of maintaining harmony, law, and order; delivering timely justice; efficient and corruption-free services; protecting the environment and natural resources, leading the way to decentralization of the development process for equitable and inclusive distribution of wealth of the nation nowhere figure in the self-serving pursuits of power and privilege of the IAS. Far from fulfilling the mandate of the Constitution, the IAS as a service has failed the nation and people of India.

Q. 6. Wrong combinations: Will Government drug ban help patients? Comment briefly on this issue.
A.8. The health of the nation has primacy over the interests of manufacturers and the drugs merchants that have been reaping profits with impunity and without regulation. In fact, the market was flooded with all kinds of drugs, irrespective of their side effects. Only an iota of cases of patients suffering from drug reactions get reported. Drug regulation and a bar on their misuse use were thus overdue. These facts are enough to justify the ban on fixed-dose combination (FDC) drugs, that is, drugs that have two or more active pharmaceutical ingredients in a single dose. Even Saridon, commonly thought as a harmless reliever of pain, has been banned, though the Apex court has removed it from the banned drugs list at the instance of petitioning pharmaceuticals.
According to The Drug Technical Advisory Board’s committee, these FDCs are formulated without much care and get consumed in toxic dosages. The Indian Drug Manufacturers’ Association’s statement of support to the ban is only a pretense because they are flooding the courts with their petitions opposing the ban. Not patients but manufacturers were making gains from FDCs because these FDCs permitted product differentiation that was not subject to price control. Even if all FDCs are not entirely harmful and even the government’s own report is ambiguous about this issue. It points out that some such drugs are prescribed for ‘the treatment of infectious diseases like HIV, malaria, and tuberculosis were giving multiple antimicrobial agents is the norm’. They are available in other countries but on a small scale and combinations face tougher regulations in western countries. In India, the number of FDCs is four times that of the USA.
The government has been flexible and left room for further action for certain other kinds of FDCs. Patients will only gain by governments’ tighter drug regulation and manufacturers will get restrained in their profit-making spree by freely selling harmful drugs. Low-income patients will be safer in the absence of unregulated drugs. They deserve a healthcare system which makes available the best pharmaceutical products at the most reasonable rates. Better monitoring of the drugs will help patients in improving the health of the nation.

=============The End ==================

What Is This Japan’s Contrarian Yet Successful Model? By Jitendra Kumar Sharma

What Is This Japan’s Contrarian Yet Successful Model?

By Jitendra Kumar Sharma

Japan’s population is decreasing and its economy slowing yet its human welfare GDP per capita is superior to advanced and advancing economies of the world. Available figures show, from 1991 onwards, average growth is about  0.9%  compared to 4.5% of earlier two decades ago. Inflation in Japan is just about ZERO! Government debt has risen from 50% of GDP to 236% of GDP.

Prime Minister Shinzo Abe is popular as ever and in a recent internal party election he has won a renewed vote of confidence. His efforts at increasing inflation to 2% remain fruitless. Japan’s fertility rate is 1.4 and and immigration is nil. Will it not reduce Japan’s workforce and make the care of its aging population a challenge? For the time being, such challenges are being met by enlarging the fiscal deficit, currently at 4% of GDP.

Japan is not assailed by any doubts about its slow economy and declining birth rate. In fact, it seems to remain unaffected by western theories of economic growth because, surprisingly, Japanese are currently living at the world’s highest living standards. On the contrary, US per capita growth over an entire generation has been faster but it is marred by monumental income inequality. American Labor’s real wages throughout this period of 25 years has been stagnant.

Socially, Japan is a happier society today. Crime rates are fiercely increasing in he erstwhile docile societies like India but in Japan the crime rate is almost lowest in the world. Tourism-wise, Japan is indeed upbeat; foreign visitors were six millions in 2000-05 and now in 2015-18  nearly 20 million.

Japan’s model is a despair of the Economists who are pessimistic about its demographic unsustainability because Japan’s population is decreasing apace at 1.4 rate. Japan is countering the problem of aging of its workers by reviewing the working age as 65. Abe is raising working potential of workers to 70 and above and ratio of workers to retirees at 2.1 today is expected to be  1.8 in 2050, which is not so alarming. Abe government is taking good care of the health of the Japanese nation as well as Japanese economy.

Japan’s technological excellence is another assurance for its continuing prosperity. Robots and machines are assisting older people to remain economically active beyond the present retirement age and produce goods and services involving fewer human hands. Japan is a McLuhanic paradise where automation and robots are not destroying jobs, but changing them into roles.Automation is  also creating  more leisure for the Japanese  citizens.

Prime Minister Modi ought to read the best-selling book The 100-Year Life to overcome his phobia of the aged and aging seniors. Modi may also benefit from exploring possibilities of automation. Instead of making false promises and wasting his time  on the improbability of creating millions of jobs for a rapidly increasing population,he ought to opt for rapid automation.

The real challenge today is not creation of wealth but  its redistribution.

Japan government cocks a snook at doomsayers who are ringing alarm bells about its  236% of GDP debt and, the International Monetary Fund, the sanctuary such pessimistic economic philosophers has made an official re-calculation to announce that it is really152% .

236% or 152%., Prime Minister Prime Minister Shinzo Abe could not care less.

In fact, Bank of Japan has government bonds worth 90% of GDP. It gives to the government all the money it gets as dividends as interest. This way, debt level  remains within the range of 60% percent of GDP. This is a most effective remedy and bulwark against all high or low fiscal deficits.

Japan appears to be lucky and beyond the pale of western economists who spread panic and confusion in advancing countries like India as Indians have become nincompoop followers of all that comes from America and Europe; they are agog at World Bank and IMF praise, and are happily leaping into the western economic maze like a spider who gets caught in its own web.

=The End ==

Shall We See A World Recession? In 2019-2020! By Jitendra Kumar Sharma

Shall We See A World Recession? In 2019-2020!

By Jitendra Kumar Sharma

Critics pin down Lehman Brothers for starting the last Recession in 2008? Skeptics prophesy that 2020 shall witness a humongous recession, much larger than the 2008 recession. They are also very sure whom to blame for it: Donald Trump, President of the United States of America, shall bring about this Recession in his election year, 2020!

The question currently being asked in Europe and the USA is what shall prompt the next Recession in 2020? And the answer is that President Donald Trump’s unsustainable policies shall bring down the western financial system.

Nouriel Roubini, a professor at NYU’s Stern School of Business and  Brunello Rosa, a research associate at the Systemic Risk Centre at the London School of Economics, in a co-authored syndicated article, claim that because of the “unsustainable fiscal policies in the US …, the stage will be set for another downturn.”  Interestingly, they have made this gloomy prediction after duly noting the global economy’s sustained and “synchronized growth” which, they seem to be pretty sure, will “loose steam” and the governments everywhere will not know  which way to turn because they will have “no policy tools” to cope with this Recession in 2020 .

China and the USA being at trade war, observers predict that 2020 will see a global recession and the USA’s enormous “fiscal deficit” and China’s “loose credit policies” will cause it. The US economy is currently doing well but, can it go on rising? Critics believe, it cannot. It will start declining and could nosedive up to 1% from its present level. Inflation is already going upward and so will short-and long-term interest rates.

Oil prices in countries like India are unbearably high and inflationary pressures are inevitable as the oil sanctions on Iran get globally attritional despite US concessions to India on importing oil from Iran. The US trade feud with allies like Canada, Europe, Mexico as well as adversaries China and Russia will sharpen and ultimately adversely affect both world trade and economy.

Restrictions on immigration in the USA and other western countries and reduction of technology transfers list will disrupt the global supply chains and unavoidably lead to stagflation.

US protectionism and expansion of world economy cannot go hand in hand. Adversely affected countries shall be forced to react and find ways to make good and even avenge their losses. China will not be alone; other governments will join the fight against US protectionism and tightening of monetary conditions in the USA.

In Europe too growth will slow down because of monetary tightening and trade detrition. Some European countries like Italy are pursuing populist policies which could upset the debt and credit system in  eurozone. Already governments and banks in Europe are obdurate toward resolving differences about risk-sharing issues; a global downturn could impel Italy and other countries to walk out of the Eurozone.

Global equity markets are bubbling. US Price-to-Earnings ratio is choppy, private-equity valuation excessive and government bonds do not yield enough. Credit is increasingly costlier. Leverage in both advanced and advancing economies is high. Real Estate remains expensive in big countries like India and in many other big and small countries. Price correction and lack of liquidity are awaiting a global financial disaster, say the skeptical observers of the stock market behavior and expect “flash crashes” to happen with erratic frequency.

 As risk factors increase, dollar-denominated liabilities will not be able to get lending support from the Fed and the traditional support central banks extended during the post-crisis may not be available.

2019  will be election year for Modi in India and 2020 will be the Election Year for Trump. Trump’s stiff reaction toward the Fed, critics predict, will get stiffer reaching a breaking point when  in that year growth is feared to fall to less than 1% .Amid rising joblessness Trump is feared to create war hysteria if the Democrats re-occupy and get majority in the House of Representatives in 2020. Chances of US military confrontation with Iran are very high in this scenario. And that would render global oil crisis more catastrophic than all previous oil crises. Modi’s scrap with the Reserve Bank of India has already forced the Reserve Bank Governor, Urjit Patel, to resign.

A more fearsome possibility is that the humongous public debt shall foreclose resort to fiscal stimulus bailouts as debt-ridden governments will not be able to impose austerity measures in the face of rising populist movements.

According to International Monetary Fund’s assessment, an economic slowdown in China will hurt everyone but it will hurt more regionally than intercontinentally. IMF is somewhat smug about the impact of a possible Chinese recession on the USA.

Kenneth Rogoff, a former chief economist at IMF, currently Professor of Economics and Public Policy at Harvard University, however, doubts the US immunity from the Chinese recession because “Trump’s trade war also threatens to undermine the US economy’s dynamism. Its somewhat arbitrary and politically driven nature makes it at least as harmful to US growth as the regulations Trump has so proudly eliminated”.

Recent confabulations between China and the USA at Buenos Aires indicate that the US and China could reach an agreement before Trump’s drastic tariffs take effect.

Rogoff, predicts that, “a recession in China, amplified by a financial crisis” shall be “the third leg of the debt supercycle” that originating in the US in 2008 spread to Europe in 2010. He appreciates the Chinese authorities’  “remarkable job in postponing the inevitable slowdown”. And, when this Chinese “downturn arrives, the world is likely to discover that China’s economy matters even more than most people thought”, says Professor Rogoff.

Thus the governments in all parts of the world will be at their wits’ end unable to invent policy to deal with this very Special Trump-triggered Recession 2020! 

Shall we then watch for the US and Chinese recessions in 2019-2020 with our fingers crossed?

==========The End=================

Has the I.A.S. lived up to the expectations with which it was instituted 70 years back? By Jitendra Kumar Sharma

Has the I.A.S.  lived up to the expectations with which it was instituted 70 years back? By Jitendra Kumar Sharma

The Indian Administrative Service, popularly known by its abbreviated sobriquet, IAS, has completed its 70 years of existence in 2018. It is a successor to the so-called Iron-clad, Heaven-born Indian Civil Service of the British colonial era. The IAS was very differently conceived than the ICS and was expected to perform an altogether different role than the ICS. It was said about the ICS that there was neither Indian, nor civil nor an iota of service about it. The IAS was supposed to have everything Indian and was devised to be the Servant of the Indian People.

The IAS was to be imbued with the idea and culture of India. Today, it is an elite class, zealously guarding its patchy mould of its British predecessor and worn-out mask of the colonial ICS. It is the most privileged, self-perpetuating class or clan of self-serving, power-grabbing in-grown ruling group that dominates all other branches of government. It dominates the politicians and the people alike.       

The I.A.S. was to be the instrument of governance that would assist the political executive to create, build and develop Indian democracy as a peoples’ republic‘. The IAS was expected to help build and strengthen democratic institution such as gram sabhas, panchayats, zila parishads  that serve as the base for Vidhan Sabhas and the Lok Sabha. All these political institutions were to democratize   administration, development process, and governance of India as a country and finally, from these foundations, was to emerge  a vibrant, participatory democracy eventually to mature into a peoples’  republic. The IAS conceived as a permanent system of people’s servants that would lend unity and continuity to democratic India’s Administration and Development and serve the nation with a sense of Indian-ness in their style of functioning. The forefathers of the Indian constitution had high expectations from the IAS  and wanted it to play a leading role in building India as  a republic of self-governing, self-sufficient, agro-industrial, urbo-rural local communities, politico-economic institutions that would control and regulate the deployment of natural resources for the Indian nation for Indian people’s welfare and betterment.

India, because of its culture and diversity, is  very different from most countries of the world. The IAS,  contrary to nation’s expectations has taken an altogether  divergent course. As a permanent and continuous instrument of government it has, instead of  discovering and rediscovering  its culture and diversity, set up a superficial and fake model of western imitation for the succeeding generations of Independent India.  The aura of IAS dominates the educated people of India and for the rural masses,it has become a callous officialdom which is perpetuating inefficiency and corruption. India was not imagined by freedom fighters and leaders as a jungle of concrete urbanization. India was to be agro-based economy motivated not by individual, self-oriented westernized society but a comity of communities rooted and rising from its village culture of bhaichara or fraternity and its other timeless verities. Pattern of its economic growth too was foreseen as  need-based, environment friendly, nature- conserving and providing livelihood to its poor people on a priority basis rather than a statistics-driven inflationary economy creating an inequitable consumer society serving the greed of industrialists, traders and hoarders as is the case today. India’s development in our forefathers’ scheme had to be democratic and decentralized focused on the constant and continuous amelioration of the poorest of the poor of our society.

The IAS too was launched to realize the ‘Idea of India’, a governance framework that will act as a bulwark against any encroachments on the ‘Idea of India’. These conditions and protocol for the IAS were clearly laid out in the Constitution of India. The IAS was, therefore, granted constitutional protections, which is not the case in other democratic countries. The prestige and protection of the IAS was certainly not meant to create a special, privileged, class who would develop nexus with Big Business and Politicians to fleece the nation and its people of their basic rights as a ruthless ruling elite. The guarantees that the Indian constitution provided to the IAS were  meant to create a cadre of public servants who would ensure fair, fearless, just  administration  for managing the country’s affairs efficiently and devotedly. 

The IAS as a class,in cohorts with the subsequent political masters, abandoned the ‘Idea of India’, and forgot the purpose for which the IAS was created. The Constitution provided all the protection and privilege to the IAS but failed to give the same power and protection to the  panchayat raj institutions that was to be the foundation of Indian Democracy. Instead, there emerged a disorderly and disarrayed pattern of ‘mixed-economy’ run by a command-and-control system.

 As a result, India’s Administration remains stubbornly entrenched in the same colonial-hierarchical framework. Democratic-participatory process is obstructed rather than being promoted by the IAS. Consequently, misshapen urban-rural monstrous cities,villages and towns have appeared that are at the mercy of lawless lumpen hoards, hoodlums, criminals and looters. Politically, economically and administratively India is a scary place to live for a law-abiding citizen. 

The past President KR Narayanan, himself a member of the SC and also a privileged member of the IAS/IFS as late as  2005 said: “Decades into the free life of our nation, we find that justice — social, economic and political — remains an unrealized dream for millions of our fellow citizens. The benefits of our economic growth are yet to reach them.  Tragically, the growth in our economy has not been uniform. Many a social upheaval can be traced to the neglect of the lowest of society, whose discontent moves towards the path of violence”. 

The IAS, according to the The Constituent Assembly of India, had to be  “the best material available in the country transgressing political boundaries.” Today, the common perception, according to a 2010 survey, is the IAS is an outfit that is an administrative wreck “sub-serving lowest political interests” and outrageously drenched in corruption.

The IAS almost totally destroyed itself during the Emergency 1975-77.Instead of protecting the constitution and rising up against a lawless regime, the IAS prostrated itself before it  and defiled the Constitution; it assaulted and raped the Indian democracy. It drafted and implemented draconian rules and ordinances and enjoyed the benefits of autocracy and extra-constitutionalism instead of rescuing Indian democracy and defending the rights of its people. When shall the country recover from the cowardice IAS injected in the body-politic of India is a question that starkly stares in the face of India’s dilapidated democratic institutions.

Liberalization, globalization and privatization have further widened  the scope for the predatory bureaucratic-capitalist-politician nexus to sharpen and satiate its instincts for land-grabbing, money-guzzling , environment – plundering in the name of ‘development’. Basic duties of maintaining harmony, law and order; delivering timely justice; efficient and corruption-free services; protecting environment and natural resources, leading the way to decentralization of the development process for equitable and inclusive distribution of wealth of the nation nowhere figure in the self-serving pursuits of  power and privilege of the IAS. Far from fulfilling mandate of the Constitution, the IAS as a service has failed the nation and people of India. 

====================The End===================

“Start of a new Cold War?” Really! By Jitendra Kumar Sharma


“Start of a new Cold War? India stands to gain”, writes Mr. Shyam Saran, Former Foreign Secretary of India in the Tribune dated Oct 13, 2018. Here is a rejoinder by  JITENDRA KUMAR SHARMA, Director Marshall McLuhan Centre:

 

 

“Start of a new Cold War?”  Really!

By Jitendra Kumar Sharma

This is a half-baked understanding of the phenomenon called ‘cold war’ as also of the post-cold war diplomacy. The ex-foreign secretary, Mr. Shyam Saran’s  is a rearview of history while diplomacy today calls for a future oriented view of the fast changing international scene amid mind boggling technological and economic developments.

True, American policy toward China has “run a full circle” since Nixon’s historic visit to Beijing and de facto US-China alliance against the Soviet Union too is outdated.  USA and China are no longer dictating to the rest of the world together but separately because their alliance took an economic rather than political turn and China emerged as the biggest manufacturer of the world supported by US-Europe market. Consequently, China assumed a haughty posture and USA’s world influence started declining.

In 1989 the Tiananmen pro-democracy protests occurred only to be decisively suppressed by the Chinese government. China entered WTO in 1990 and the West was ineluctably caught into an economic tangle with China.

From 1990 to 2007, there was a global financial crisis but China continued to dominate major consuming markets. By 2007 China had become the world’s second largest economy.

Forgotten Tiananmen incident was followed by trends of political and social liberalization in China. Private enterprise expanded, state owned enterprises (SOEs) shrank. Free choice of employment, marriage and travel was allowed. The Communist Party’s directive control in administration, armed forces and economic management got restricted; grassroots organizations were granted autonomy; Chinese media started tasting freedom of expression by mildly criticizing the Party’s functionaries.

China was now seen as a macro-Singapore model of high growth brought about by private sector, foreign investment, authoritarian regime. Theory of High Level GDP leading to Liberal Democracy akin to Western Model was seen as working in China. Western powers showed respect for China’s increasing economic power on the pretext of welcoming the concomitant democracy. Western tolerance for Chinese assertiveness also increased.

Now suddenly America is scared of China and under Trump’s presidency wants to reverse its alliance with China for world political dominance. The USA and West, in fact, are ruing their own assumptions about Chinese peculiar brand of state capitalism under one-party rule and are baffled by Chinese geopolitical dynamics.

China’s cocking a snook at the USA and USA’s belated reversal of its China policy, however, cannot be called a cold war. Cold War was a hegemonic race between the Soviet Union and USA-led Western Alliance for influence over other countries, a vast number of which were erstwhile colonies of western powers, including India, who wanted to be freed from poverty, ignorance and disease. The largesse distributed in terms of aid to the poor and depressed countries was an important weapon to corrupt and win over developing nations.

The current rivalry between China and the USA to become or remain as the world’s superpower is altogether a different game. Indian diplomats naively construe it as a version or variation of the cold war. China is a shrewd player in world politics; it does not regard India of much consequence and will not distribute any favors to keep India on its side. The West, especially the USA, respects China much more than India because China holds the balance of power not only in Asia but globally. In Asia it is a sole superpower.

The West, in fact, instead of doling out dollars to India, expects her to make big commitments to stem the Chinese onslaught on American influence in Pak-Afgan and the Indian Ocean. India has never played the power game internationally. Its diplomacy is woolly and its diplomats are pliable. Indian bureaucracy has vested interests in keeping the American presence dominant over Asia. As long as Indian diplomas and bureaucrats continue drafting as well as implementing Indian foreign policy, India can never become a Superpower.

The Communist China does not consider itself a macro- Sngapore. Its inspiration comes less from Leninism-Marxism, more from its own past empires. Chinese leadership is reducing to irrelevance Mao, Deng Xiaoping, other heroes at will. Party control is back in full force. Personal freedoms, media and academic freedom are being curtailed. Technologies like AI and quantum computing are developing apace. China is showing to the world that it can do better and bigger than the West. Xi Jinping  has become China’s sole leader for life.

U.S. Vice-President Pence’s policy statement accusing China of ‘employing a whole of government approach using political, economic and military tools, as well as propaganda to advance its influence and benefit its interests in the US’ may be loud and strident but hardly impressive.

China has the USA in its economic grip and U.S.A. is unsure of winning its so-called Trade War against China. China’s diplomacy is clever and sly, at times conciliatory, but always self-respecting.

 The escalating Sino-US contention, according to Mr. Saran, “offers opportunities to India as a swing state.” This misreading of the US-China confrontation is a Himalayan blunder. India just is not strong and equipped enough to fish in troubled waters of China-USA imbroglio. Neither China nor USA has much to offer India. Therefore, “India’s cause will be served if Sino-US differences stay just short of boiling point” a la Mr. Shyam Saran, is goosey thinking  and will bog India down into international geopolitical morass.

India has to be self-reliant. India must help avoid conflicts among big nations rather than crave to pick up the crumbs thrown at it by belligerent powers. India must strive to change the world order currently presided over by Five Powers who lord it over smaller and weaker countries rather than seek to be a beneficiary of such conflicts and lower itself in its own and world’s eyes.

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Empower the Housewife for Inflation Free Economy By Jitendra Kumar Sharma

Coercive force and printing of currency are extraordinary powers all governments enjoy. Democratic governments are expected to use coercive force to enforce the rule of law.

The power to print currency is likewise an instrument for democratizing a society but governments keep this power shrouded in mystery and resort to a ‘bust and boom’  monetary system, holding the citizen in a state  of perpetual economic uncertainty….

Upturns and downturns of economy, once of no concern to the “aam admi” or common man, now agitate the expanding middle classes because the West no longer fears India’s “Population bomb” but covets it as an exploding market.

It is time we demystify money.

Ideally, currency like the electric current ought to be available to all citizens alike at all times. If, to live is a fundamental right, then, owning optimum cash or possessing adequate purchasing power too has to be a citizen’s basic right.

The governments readily print currency for war against other states or their real or imaginary enemies. They, however, do not regard poverty, disease and economic want as enemies in the same sense.

Rationally, the money must originate in the household sector or with the housewife who must be the first spender of new money. This will not be a debt but fully owned cash. Banks may distribute this money on behalf of the government.

————–

Empower the Housewife for Inflation Free Economy

By Jitendra Kumar Sharma

 

Coercive force and printing of currency are extraordinary powers all governments enjoy. Democratic governments are expected to use coercive force to enforce the rule of law.

The power to print currency is likewise an instrument for democratizing a society but governments keep this power shrouded in mystery and resort to a ‘bust and boom’  monetary system, holding the citizen in a state  of perpetual economic uncertainty.

Globalization has, however, increased interdependence among nation-states and diminished a state’s sovereignty over its national currency.

Upturns and downturns of economy, once of no concern to the “aam admi” or common man, now agitate the expanding middle classes because the West no longer fears India’s “Population bomb” but covets it as an exploding market.

The Indian Government too is waking up to new challenges. Prime Minister Narendra Modi has been exhorting the Indian Science Congress members to be innovative. He also invited innovative suggestions for advancing Indian technology for achieving a higher growth rate of economy.

He has a posse of bureaucrats and economists who advise him on money matters. Neither the Prime Minister of India nor his advisors, however, have ever suggested or invited suggestions from the common man for re-inventing the Indian Currency that fuels all engines of economic growth.  A re-think on Indian currency is especially called for because Western countries, from the mighty America to middling Greece, have been seeking bailouts for their failing monetary systems. Currently, several US and West European anti-Trump economists are predicting  unprecedented world recession and currency crisis in Trump’s election year 2020.

According to Nouriel Roubini, Brunello Rosa,because of the “unsustainable fiscal policies in the US …, the stage will be set for another downturn – and, unlike in 2008, governments will lack the policy tools to manage it.”

In fact, Western economists and financial experts are debunking their own banking and monetary systems.

A few years back, the Chief Economics Editor of the Financial Times, Martin Wolf, a member of the Independent Commission of Banking, observed that “the essence of the contemporary monetary system is the creation of money, out of nothing, by private banks’ often foolish lending”.  According to the former Governor of the Bank of England, Mervyn King, “of all the ways of organizing banking, the worst is the one we have today.”

The ongoing tussle between the Finance Minister Arun Jaitley and Reserve Bank Governor Urjit Patel  for supremacy  over the Monetary System is symptomatic of the malaise the Bank of England Governor Mervyn King and Financial Times Editor Martin Wolf had earlier spoken about.

Currently, Indian Rupee is sliding against the dollar steeply and oil prices are rising unbearably. This is the right time to rethink and re-invent the Indian currency and monetary system.

The government and economists explain value and devaluation of currency in obscure terms; inflation and deflation are considered as specialist’s domains.

It is time we demystify money.

Ideally, currency like the electric current ought to be available to all citizens alike at all times. If, to live is a fundamental right, then, owning optimum cash or possessing adequate purchasing power too has to be a citizen’s basic right.

A democratic state, just as it distributes only rationalized versions of justice, liberty, and equality through its institutions, so also distributes currency through Banks which, like the Public Distribution System, are corrupt and inefficient.

The institutions that create a nation’s money are its Banks. Unfortunately, the governments do not regard currency as a means of distributing national wealth; they print it merely to create new wealth. The result is short circuiting of currency; it reaches pockets from where it cannot return to serve the needs of the people and the state.

The governments readily print currency for war against other states or their real or imaginary enemies. They, however, do not regard poverty, disease and economic want as enemies in the same sense.

If India wants to become economically strong and attain a consistent rate of growth, the Indian government must start perceiving currency as an instrument of distributing national wealth to all its citizens instead of creating wealth for a few through big bank loans. Neither debt-financed stimulus, nor the gold standard, nor allowing total liquidation of all distressed businesses or households can break the ‘bust and boom’ cycle.

This is where the empowerment of housewives becomes an almost absolute condition for renovating the Indian economy.

For the purpose of creating new money, basically there are two sectors, namely, the Household and Business.

The Market and the Monetary System through the medium of Currency make the Household and Business sectors interact. Their interaction starts and sustains the chain of “supply and demand”. As long as householders pay to business for goods and services purchased from it no problem of inflation/deflation arises.

The problems arise when the banks create loans to earn interest and become parasites on the householder, thus, reducing the householder’s purchasing power. Writing off bad debts causes further burdens; it further decreases the householder’s purchasing power. 

Rationally, the money must originate in the household sector or with the housewife who must be the first spender of new money. This will not be a debt but fully owned cash. Banks may distribute this money on behalf of the government. 

In traditional Indian homes, the family earner used to handover all earnings to mother or housewife. Now the government,as the nation’s collective earner, can deposit in each and every housewife/household’s account a requisite amount of money for paying to the business sector.

The Banks shall not create money, they may only distribute it.

The reader may find the above highly workable idea naïve but complex problems have simple solutions.

Anyway, a debate on equitable money and economic freedom as basic democratic rights is overdue.