Posts Tagged ‘India’

Meanwhile, In India…

Friday, February 4th, 2011

Inflation’s rolling along above 8%, nearly matching the GDP growth rate!

And the Indians, like the Chinese, aren’t pursuing a sensible approach: allow your currency to appreciate!!!

Instead, it will be more interest rate rises, which is also a useful tool but may have the effect of stopping India’s impressive GDP growth rate.

You can’t protect export industries forever, and you can’t sustain a mercantilist command economy forever.

Gorilla says: “Imagine what America would do for such problems!!!”

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And These Are Our Allies

Tuesday, August 31st, 2010

Why is that the security services of supposed democracies believe they must have access to everyone’s data as a condition of doing business in their country?

Hello Blackberry, hello Google, hello Skype: Welcome to India!

The problem for all these companies is that they’ve more or less reached saturation point in Western economies, so they’ve got to go elsewhere in order to keep growing.

It’s at that point we find out which is more important to them: the bottom line or their customers’ rights and freedoms.

Gorilla says: “No encryption necessary: they’ll take the money and sell out their clients every time!”

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Talking Is Good, Progress Is Slow

Friday, July 16th, 2010

India and Pakistan met yesterday, and not much was accomplished.

This dialogue’s been going on for 60 odd years, interspersed by 3 wars, and so far it hasn’t led to lasting peace in the region.

The Pakistanis want Kashmir back, the Indians won’t give it up.

The Indians want Pakistan to control its secret services’ involvement in terror bombings in India, Pakistan isn’t too interested.

Both sides are engaged in a proxy war in Afghanistan.

Both sides are also indirectly in conflict over water resources.

But they’re talking and that in itself is not a bad thing.

The old jealousies and the hurt feelings after partition may one day lead to a recognition that all the nationalism in the world does not bring prosperity, while prosperity brings with it a responsibility to do more than posture.

The same thing is true of Israel and the Palestinians, although neither side is at the moment serious about peace.

Gorilla says: “And we could be talking with Iran, but somehow we just can’t get past the past!”

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Blasting Away In Kabul

Friday, February 26th, 2010

Another suicide bombing in the Afghan capital, aimed at foreigners.

What’s interesting about this one is that the targets were Indian, which might indicate, yet again, that the Pakistan-India conflict is now being brought to Afghanistan by the Pakistani government.

Of course, happy bilateral talk also coincided with the bombing, so it seems clear both sides in that conflict are preparing for the day after the US departs.

Gorilla says: “Pakistan’s playing the middle against both sides!”

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Quote Of The Day

Friday, February 5th, 2010

“The real concern is that the whole recovery is nothing more than poorly-directed government stimulus which has simply had the effect of boosting asset prices”.

This comes from a European market analyst commenting on the plunge in world stock markets.

The feeling is that the economic recovery’s going nowhere and another round of recession may be on the cards. It’s not helped by the very large debts facing Euroland, as Ireland, Spain, Greece, and Portugal look to be in various stages of unsustainability.

Here in America, the stimulus program has been woefully inadequate and half of it has gone to tax cuts, the least effective form of stimulus.

With a $2 trillion output gap and 10% unemployment, our leaders seem to be more concerned with permanent campaigning. Lots of talk and little action don’t appease voters who are fed up with the lack of coherent economic policy.

The housing sector continues to be blighted, as the Treasury Department seems tone deaf to the idea that prices must fall further, and lenders must take haircuts, until supply and demand get back into something like balance.

Meanwhile, the dollar carry trade continues bubbling along, driving up the prices of commodities worldwide. Absent the US, Japan, and Euroland, the Chinese and the Indians can’t bring the whole world out of the slump because their economies aren’t big enough.

Gorilla says: “The bubble’s gone off the boil, but the anger still simmers!”

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The Other War In Kabul

Thursday, October 8th, 2009

While we’re trying to figure out what comes next, Pakistan and India seem to be continuing along without us.

We don’t know who’s responsible for the latest bombing of the Indian Embassy in Kabul, but it demonstrates just how little control the Afghan government has, how little the fight against al-Qaeda has achieved, and how little the larger regional security issues have been addressed.

Gorilla says: “Maybe it’s time to start worrying about the guys who actually have nuclear weapons!”

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TGIF and Predictions

Friday, July 24th, 2009

Gorilla thinks these things will be remembered about this week:

*The health care legislative package gets put off another month. Gorilla thinks the chance of meaningful health care reform, with a public option, a shift away from a fee-based system, and effectiveness studies, is now less than 50-50.

*The US economy continues to sputter. We are still a long way from the beginnings of real job growth, that is when new unemployment claims fall below 350-400,000/week. Gorilla believes the unemployment rate will hit 10% in the next 3 months and remain above 10% for the next 2 years.

*The Chinese are beginning to look like the world beaters of the 21st century. Their scientific research isn’t restricted by ethical considerations or wingnuts. Their decision to allocate $2 trillion to building up Chinese business presence in emerging markets will have a profound impact on how the world financial system is reordered. Gorilla thinks we’re heading towards a new bipolarity.

*Wheel spinning continues with respect to North Korea and Iran. Neither is a serious threat to the US, but we can’t seem to figure out how to deal with them. Once either country sorts out its internal politics, Gorilla would not be surprised to see Hillary Clinton in Pyongyang or Tehran in the next 12 months.

*Denial continues with respect to Afghanistan and Pakistan. We don’t seem to have an exit strategy, and we clearly don’t have enough troops to win on the ground (whatever winning may mean) in Afghanistan. We can’t seem to get out of our own way to encourage Pakistan to fight radical Islamic terrorism. Gorilla believes we will be negotiating with the Taliban, declaring victory and getting out of Afghanistan within the next 12-18 months. Gorilla thinks we’ll try for some kind of grand regional bargain with India and Pakistan, so as to free up Pakistani troops to fight in Waziristan and Baluchistan.

*Racism and political corruption remain as American as apple pie and as unremitting as torture. We’d like to believe we’ve moved on, but facts and events, large and small, keep getting in the way. Gorilla firmly calls the plus ca change side of the coin.

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Why Are We Afraid Of Iran?

Monday, July 6th, 2009

Gorilla is still not clear what precisely we have to fear from Iran.

It seems inevitable that Iran will develop a civilian nuclear capability and that this capability could lead to the production of nuclear weapons.

While we intend to negotiate with Iran to convince them or bribe them or otherwise cajole them not to do this, in reality we have very little leverage, short of military force or a sudden and radical shift in the Iranian interest calculus, to make this happen.

An American attack on Iran, directly or by proxy, could be disastrous.  A regional war might well ensue, leading to the possibility that nuclear weapons would be used if Israel, which certainly has them, decided its existence was at stake.

On the other hand, so long as we aren’t directly involved, a regional war could be a good thing.

Non-proliferation is a noble goal, but our hypocrisy on the question makes it essentially a non-starter. We don’t allow international inspections of our nuclear forces, neither does Israel, neither does India, neither does Pakistan, neither does Russia, neither does China.

It seems unlikely that Iran will ever agree to such inspections unless we do or unless they believe there’s more to be had by allowing inspections to go forward.

Our approach seems to be “if you’re a sensible, stable government, no matter how repressive, we think it’ll be ok for you to have nuclear weapons”.

On the other hand, “if you’re a government led by a reclusive nut job or a group of medieval mullahs, you can’t be in our club”.

What then might work? Ironically, nuclear proliferation is the only sensible national security policy.

It’s far better for Iran and the United States to have nuclear weapons than it is for us to allow the Israelis to attack Iran or spend another fruitless year on negotiating with Iran (or negotiating with the Russians about Iran).

If Iran does develop nuclear weapons, it’s likely that everyone else in the region will be hankering for them, and we can’t do much about that other than decide, as we did with India, to make a buck on it.

The mullahs may be nutty, but it’s unlikely they’ll risk national annihilation by using nuclear weapons.

If Iran does decide to fire away, America will finally have an oil price that makes alternative energy economically viable.

We can at last treat the Middle East in the same way we’ve always treated Africa.

Of course, if everyone who has the cash or the science can proliferate, we might have more to worry about than what some fifth-rate nation like Iran might do.

And then we might grow up.

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