The crisis of capitalist system is rapidly increasing. The US economy is the backbone of the capitalist system. The United States is feeling it difficult to maintain this system. The economic rating of the United States has declined for the first time in the history. I will not try to make difficult my point of view through statistics and terminology. It is a simple thing that now the United States as state has nothing. The national growth and state loans have become equal. The annual national growth of the United States was $14.8 trillion and loan was $14.6 trillion. It means that the United States as leader of the capitalist system of the world has become debtor. The state has nothing to provide to its masses.
Obama’s Efforts
US President Barack Obama has struck a deal with Republican Party and decided to increase volume of state loans but the growth could not protect to the extra state loans. Although China has gathered lots of dollars yet the internal differences in the Chinese economy and like capitalist countries, Chinese development benefits are limited only to the upper class.
During the past three years, there were a large numbers of strikes in the history of China. A major part of Chinese foreign exchange income has been due to trade with the United States. However, now, the United States may not be able to purchase a large number of items which put direct impact on Chinese exports.
State of Allied Countries
The condition of the allied countries of the United States, which have capitalist system, is not good. The western media has always tried to hide the demerits and weakness of the capitalist system but now it has become impossible to conceal news in this regard as the disease has worsened. The economic condition of Greece has also become worst. There is shortage of resources with allied countries to steer Greece out of this economic crisis. This situation would also affect United States to a greater extent since it is not a welfare state.
The so-called reliefs to the common people which was being provided has become just nominal after the 80s decade. The welfare states of the Europe are facing problems to provide facilities to their people. For the first time, the demonstrations were held against economic problems in the United Kingdom. The capacity of the people to pay loan of the banks is declining day by day. The source was found to boost the industries through banks loans and plastic money, which now has put greater burden on the people and now they are unable to pay it. So, the demand is increasing in Britain that the banks should share the burden of the loans as they get so much income and the people have little capacity to pay it. Italy is sinking in the economic problems and it will be the next European country to become target of the economic crisis after Greece.
Impact on India
India which was being considered a fast growing developed country has failed to introduce practicable capital distribution system although the middle class achieved opportunities of growth in capital productions which helped in the running of trade and industries there. However, the majority of Indian population is quickly going down the line of poverty and more than 800 million people are living in a very miserable condition. The ruling circles of India are involved in corruption. At the moment, not only the governments are under pressure but all the political parties are also facing crisis.
The opposition pressure is mounting on the government of Congress in India. No one could object to the honesty and character of Indian Prime Minister Manmohan Singh but now he too is facing demands of resignations on account of allegations of corruption. The opposition is not leveling any allegation against his personality and they are saying that he is responsible for the corruption committed by his cabinet ministers and thus he should resign. The Bharatiya Janata Party (BJP) has forced one of its chief ministers to step down to increase pressure on the Congress government as he was involved in a big corruption scandal. The BJP is also not different from others with regard to corruption. The BJP ministers were involved in corruption, which was unearthed after the Kargil war. But then the pressure of the masses was not so strong against the corruption.
However, now, keeping in view the pressure of the people, the BJP has sacrificed one of its chief ministers to justify launching of campaign against corruption and making preparations to put Congress under pressure. The chief ministers of Tamil Nadu and Uttar Pradesh belong to regional parties and their governments were badly involved in the corruption whereas the situation of other states is also not different.
Declining Pakistan’s Economic Resources
The Pakistani economy is depending on capitalist system and the United States, its allies and their controlled financial institutions are providing most of our economic resources. However, the United States and its allies which themselves are facing crises could not provide any more help to Pakistan. Britain itself is failing to satisfy its people and its top priority would be its own people and it is not in a position to provide loans and aid to Pakistan. The United States already is avoiding to provide two-third of the assistance allocated for Pakistan. Similarly, it would be wastage of time to expect more aid from the United States. The International Monetary Fund, World Bank and Asian Development Bank can provide loans on strict conditions and their strictness would increase for the return of the loans. The war on terror has been imposed on us. No other power of the world is ready to share with us the burden of the expenditures of the war against the terrorism. The resources would not allow if any government will want to help Pakistan in this regard. The foreign reserves which are being maintained through loans have become doubtful now after the declining rate of the dollar and this fund of reserves could not go along with us for a long time.
Moreover, there is very little chance to increase income through exports. The Pakistani staying aboard could not save more in this present circumstances as their expenditures would increase to reduce the amount which they are sending to their kith and kin in Pakistan. Recently, a delegation of Pakistani traders had warned the government to avoid holding of foreign exchange in the shape of dollars and transfer the foreign exchange in other currencies, if it is possible, as the crisis of dollars would not be affordable for Pakistan.
Obama’s Efforts
US President Barack Obama has struck a deal with Republican Party and decided to increase volume of state loans but the growth could not protect to the extra state loans. Although China has gathered lots of dollars yet the internal differences in the Chinese economy and like capitalist countries, Chinese development benefits are limited only to the upper class.
During the past three years, there were a large numbers of strikes in the history of China. A major part of Chinese foreign exchange income has been due to trade with the United States. However, now, the United States may not be able to purchase a large number of items which put direct impact on Chinese exports.
State of Allied Countries
The condition of the allied countries of the United States, which have capitalist system, is not good. The western media has always tried to hide the demerits and weakness of the capitalist system but now it has become impossible to conceal news in this regard as the disease has worsened. The economic condition of Greece has also become worst. There is shortage of resources with allied countries to steer Greece out of this economic crisis. This situation would also affect United States to a greater extent since it is not a welfare state.
The so-called reliefs to the common people which was being provided has become just nominal after the 80s decade. The welfare states of the Europe are facing problems to provide facilities to their people. For the first time, the demonstrations were held against economic problems in the United Kingdom. The capacity of the people to pay loan of the banks is declining day by day. The source was found to boost the industries through banks loans and plastic money, which now has put greater burden on the people and now they are unable to pay it. So, the demand is increasing in Britain that the banks should share the burden of the loans as they get so much income and the people have little capacity to pay it. Italy is sinking in the economic problems and it will be the next European country to become target of the economic crisis after Greece.
Impact on India
India which was being considered a fast growing developed country has failed to introduce practicable capital distribution system although the middle class achieved opportunities of growth in capital productions which helped in the running of trade and industries there. However, the majority of Indian population is quickly going down the line of poverty and more than 800 million people are living in a very miserable condition. The ruling circles of India are involved in corruption. At the moment, not only the governments are under pressure but all the political parties are also facing crisis.
The opposition pressure is mounting on the government of Congress in India. No one could object to the honesty and character of Indian Prime Minister Manmohan Singh but now he too is facing demands of resignations on account of allegations of corruption. The opposition is not leveling any allegation against his personality and they are saying that he is responsible for the corruption committed by his cabinet ministers and thus he should resign. The Bharatiya Janata Party (BJP) has forced one of its chief ministers to step down to increase pressure on the Congress government as he was involved in a big corruption scandal. The BJP is also not different from others with regard to corruption. The BJP ministers were involved in corruption, which was unearthed after the Kargil war. But then the pressure of the masses was not so strong against the corruption.
However, now, keeping in view the pressure of the people, the BJP has sacrificed one of its chief ministers to justify launching of campaign against corruption and making preparations to put Congress under pressure. The chief ministers of Tamil Nadu and Uttar Pradesh belong to regional parties and their governments were badly involved in the corruption whereas the situation of other states is also not different.
Declining Pakistan’s Economic Resources
The Pakistani economy is depending on capitalist system and the United States, its allies and their controlled financial institutions are providing most of our economic resources. However, the United States and its allies which themselves are facing crises could not provide any more help to Pakistan. Britain itself is failing to satisfy its people and its top priority would be its own people and it is not in a position to provide loans and aid to Pakistan. The United States already is avoiding to provide two-third of the assistance allocated for Pakistan. Similarly, it would be wastage of time to expect more aid from the United States. The International Monetary Fund, World Bank and Asian Development Bank can provide loans on strict conditions and their strictness would increase for the return of the loans. The war on terror has been imposed on us. No other power of the world is ready to share with us the burden of the expenditures of the war against the terrorism. The resources would not allow if any government will want to help Pakistan in this regard. The foreign reserves which are being maintained through loans have become doubtful now after the declining rate of the dollar and this fund of reserves could not go along with us for a long time.
Moreover, there is very little chance to increase income through exports. The Pakistani staying aboard could not save more in this present circumstances as their expenditures would increase to reduce the amount which they are sending to their kith and kin in Pakistan. Recently, a delegation of Pakistani traders had warned the government to avoid holding of foreign exchange in the shape of dollars and transfer the foreign exchange in other currencies, if it is possible, as the crisis of dollars would not be affordable for Pakistan.
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