Issues From the Left – Answers That Work

July 14, 2004 | Tomas B Phillips

[snowsislander]

On the diplomatic front, I tend to agree. As long as our strategy is to improve relations with India, and keep Pakistan as an ally, it certainly is good. Of course, the big worry is that Musharraf will be assassinated and the Islamo-terrorists take over.

I am not yet convinced of the soundness of our economic approach to South Asia. We are in a radically bad trade situation with India. I believe their enormous profits are the reason that the Indians are engaging with us rather than any sudden finding of common values. Our trade deficit with India is spiralling out of control; it was $8 billion last year, and if it continues at the pace it has gone through the first five months of the year, it will reach $10 billion this year, a 25% increase. While that doesn't equal even one month of China's recent mammoth trade surpluses with us -- at the rate that it is ballooning, we will be more than $130 billion in the red with the red monster -- we just don't need another $10 billion (and growing) deficit on top of that.

Yes, by playing economic patsy for India and having IndiaPac purchase our congress wholesale, we can make them feel pretty daggone good about themselves, but I cannot rate it as an intelligent on our part.

If we just sent them a check for $5 billion each year, it would cost us far less -- and we would have more of a taxbase of taxpayers working at jobs that instead have been outsourced to India. And I personally would just as soon as have all of our accounting work done by U.S. CPAs rather than all of our personal tax information headed off to the subcontinent; all of our bank and securities work done by folks in the U.S.; and all of our medical records just as soon kept here. But economically, it does make a lot more sense for any one company to minimize its expenses and maximize its profits; it's just that when we ship those dollars overseas, they don't come back just as quickly; they instead turn into a huge debt which we have to service into perpetuity. And if we start to inflate the currency, interest rates will follow, making that servicing even more onerous.

[Remember_Salamis]

1. US-Indian relations were progressing smoothly until the left-wing Congress pulled off one of the biggest upsets in global electoral history. There was a chance that the BJP would eventually send troops to Iraq as well.

2. A trade deficit with India is not necessarily a bad thing either. With China it's more of an issue because their currency is pegged to the dollar, meaning that currency fluctuation will NEVER lessen the trade balance with China. With India, on the other hand, as they grow, the trade deficit will go down. When a nation receives foreign investment (not necessarily FDI) or foreigners buy their currency, the overall value of their currency will go up. As more and more investors pour investment dollars into India, this will happen. In China, the world's largest recipient of FDI, this doesn't happen. In fact, it's making it's banks highly unstable with a currency that may be undervalued by 40%!

When China's economy crashes (the PRC is trying to prepare for a "soft landing" as we speak), a lot of that money will shift over to India where it should be going in the first place. India is a free society (although highly protectionist) with high literacy and education rates and where most politicians and business leaders speak "fluent" english.

[gitmo]

Great article, flightleader. I'm bookmarking for reference.

[MoJoWork_n]

I dunno, I'd guess the most likely thing was that most all of the people mentioned in the blue quotes just decided they'd had enough of being in government, shoveling uphill all the time against the bureaucratic tide. What beats working in government? Working in The Private Sector. Natural choice.

Actually, if you get a response to this, I'd be interested in getting some hard data and numbers on just how well the reconstruction has been going. How many power plants have been restored to full service? How many barrels a day are flowing? What's the improvement in the balance of trade? How many other basic utilities, like the water supply, have been updated? Before anybody starts throwing around spurious accusations about war profiteering, or who may have benefited from what few pennies on the dollar of which contract, let's establish what the baseline is. For all the money spent on reconstruction so far, what have been the payoffs? The tangible benefits to the Iraqi people, neighboring economies, and the world community?

[gitmo]

Somebody help me here. There was an article about a UN Security Council finding that during the time the US delayed the Iraq invasion, thousands of tons of weapons were taken out of Iraq every week. I've tried to find the reference, but am failing.

[flightleader]

Thanks Rooivalk. The Kerry camp et.al. are seeking to woo the American people with the artful use of misinformation and deception. Surprisingly this is what he and his minions accuse the president of having done. I believe that Psychologists call this, "projection."

Let's get the truth to as many people as we can.

[flightleader]

Much appreciated TM.

[flightleader]

Give'm hell Rockitz. The only 4-letter word that makes Leftists run like Dracula from the cross is f..f..f...FACT

[flightleader]

Thanks gitmo. You FR guys are the best.

[The Mayor]

bump

[freekitty]

Great.

[votelife]

bttt