Is it the End of the American Century?

China is sitting on a mountain of money, whilst the US is sitting on a mountain of debt exceeding $14 trillion and 100% of its GDP. The Chinese are the largest foreign holder of the US federal debt with $1.2 trillion in treasuries, and in addition approximately two-thirds of $3.2 trillion in foreign exchange reserves is estimated to be in dollars. It’s rational to expect the poor to get into debt, but not the rich, and certainly not the largest economy in the world. After the historic down grading of the US government's credit rating by Standard & Poor, China as the leading creditor raised concern, demanded that the US should "cure its addiction to debts" and "learn to live within its means".

This is a strange paradox; China as a socialist nation has become wealthy using the Capitalist free market model, whereas the leading capitalist nation has gone into severe debt, as if they were managed by some inefficient communist regime. It is even more ironic that the capitalist US is in debt to socialist China.

The Riots: is it Poverty or Greed?

There is chaos in the stock market, and on the streets of London. Is there a connection between the rioters and the investors? The common thread is economics, as some argue that a lack of economic opportunities is causing, or at least contributing, to these riots; the youths dissatisfied are expressing their anger. Well so far, most of those wearing hoods and with faces covered have prepared for a different agenda, and that is looting. To date, no one has come forward elaborating the case for their violent dissent, and under those circumstances, one can only infer their motive from their actions. Indeed, lack of economic opportunities seems to be the primary cause, because the rioters are breaking into the shops creating economic ‘opportunities’ for themselves!

If anyone seriously wants to examine the issue of economic opportunities, then they should look at places like Somalia, Ethiopia and other parts of the world where children are begging or working like slaves, to support families. They do not have the ‘luxury’ to riot for a Plasma TV or Nike trainers and they would be more than content with what we throw away on a daily basis here in the West. If those kids rioted for basic necessities, that would be a genuine ‘riot’!

Ramadan – Wealth and Poverty

Don’t worry; this is not a religious sermon. I am neither an Imam, nor a priest of any kind. Although fasting in the month of Ramadan is a spiritual act for Muslims, it may offer valuable lessons that are beneficial to all humanity, and provide some insight into human nature.  

To abstain from consuming food and drink, and sexual intercourse, is to break from the usual routine. By observing this annual fasting it gives the hard working organs in the body a bit of a rest, allowing them to recuperate, like the annual service done on a car. For a more in-depth analysis of the physical benefits of fasting one can consult a medic, and there is plenty of literature out there. I am more interested in the collective social benefits that can be derived from the notion of fasting.  

Debt Reduction and Economic Growth through Distribution of Wealth

Facing competition, businesses in the private sector must be efficient and profitable to survive in the market place. A similar principle is applicable to the business of government in the public sector; although, it does not operate to make profit and faces zero competition, it has to generate enough revenue to meet its expenditure. Otherwise, the need to borrow money to manage the deficit arises, leading to the problem of debt. On both sides of the Atlantic, nations are suffering from debt; this is particularly acute for some of the nations in the Euro zone.

The government answer to the national debt problem has been to impose higher levels of taxation, and introduce new taxes where possible, coupled with a reduction in government expenditure. However, the problem is, taxes reduce disposable income, thus a decrease in consumer spending, and reducing government spending has the same effect; the end result is a contraction of the economy as the demand for goods and services falls. Since, the bulk of the tax revenue comes from the private sector, a contraction in the economy will result in tax revenue falling, offsetting the initial rise in tax revenue acquired through higher tax.

Stop the EDL Terrorists: An open letter to the British MPs

Dear Sir/Madam

In light of recent events in Norway, and the subsequent revelations of Anders Breivik’s link with the far-right movement (EDL), we are naturally worried about a potential terrorist act in the United Kingdom.

We would urge the government to take pre-emptive measures under the Prevention of Terrorism Act (PTA) and curtail the activities of movements like the EDL. This is an excellent opportunity to show that such legislation (PTA) was not construed to be applied selectively against Muslims in the UK. This will help to build bridges and marginalise the radicals on both sides.

White-Christian Terrorism

“I am waiting for all Christians now to stand up and apologise for this terrorist atrocity and to set up a Prevent scheme to hunt down any Christians who show signs of radicalisation. We need universities, lecturers, doctors and police on board to stop and search all white people, especially those wearing crucifixes”

- Yvonne Ridley

First it was the greedy bankers causing the financial crisis, then the slimy politicians exposed with the expenses scandal, and now it’s the turn of the media and the police; the revelation of corruption in the British media (hack-gate), and its incestuous relationship with the politicians and the police have shocked many. It seems like a terrible month, the economic debt crisis is spreading like a virus on both sides of the Atlantic, coupled with the Christian terrorist, Anders Behring Breivik, running wild in Norway killing indiscriminately. Are these small signs of a greater divine punishment to come?

In a secular age, religious prophecy has no relevance. Even credible political analysis is dismissed as conspiracy theory or left-wing propaganda, unless it emanates from the mainstream journalists and commentators, then it forms part of the mental psyche of a nation. When it comes to such experts it does not have to be credible and no evidence is required, paradoxically in this age of science and reason, people seem to have blind faith in them. For example, the initial media speculation that the terrorism in Norway was the work of Muslims went unchallenged; there was no subsequent apology given for slurring the Muslims, very similar to the events of the Oklahoma bombings. The Media has a nasty lizard like tongue, the recent exposure have shown the tip of this. If I were to speculate like the media, I could say the Divine is at work, exposing the real crooks, and passing a message: look in the mirror before you demonise others or succinctly expressed in the Biblical statement “let those without sin cast the first stone”.

The Debt Crisis: Causes and Cure

In the 1980s we had the epidemic of AIDS; today its debt. There were lots of speculations or conspiracy theories regarding the origins of the AIDS virus being man-made, but for sure, there are no doubts regarding the current debt being synthetic. It is not just the UK, Ireland, Portugal, Spain, Italy and Greece - the disease of debt has gripped most of the Western world including the US, which is also the largest economy in the world.  

With the exception of the US, one may ask, how can a nation fall into debt, when it is not involved in any major wars or experienced natural calamity? It can be put down to one thing, living beyond ones means; the government budget is no different to a household budget, when expenditure exceeds revenue, debt arises, it is as logical as one plus one equals two. The immediate remedy seems to be – borrow and reduce government expenditure which results in the poorer section of society suffering most.