Monday, May 12, 2014

Obama: The Most Destructive Business Policies In American History...shall we look to India for a better way?

When former Prime Minister of England, Gordon Brown, announced that the New World Order (NWO) is emerging after one of those infamous G20 (or was it G8) Summit meetings nothing positive of economic importance followed the tyrannical remark. In fact, the economy of most capitalistic societies began a downhill slide and continues to do so today (with some exceptions).  You may remember that Barack Obama attended that particular summit meeting (I believe it was his first such meeting) and his policies that followed affected the American economy was some of the most destructive in American history.  Of course we also know that Obama-nomics is just a step increase of the Clinton-nomics, and Carter-nomics of the previous NWO policy makers.  The more the politic elite get closer to reaching their NWO goals by destroying the sovereignty of the individual nations, the more we see other nations opting out by suggesting capitalistic policies to boost their economies.  One such nation is India.  Internationally, India is the emerging Asian economic giant.  Why is that?
If you look at some of their suggestions for improving their economy they come right out of the American conservative/capitalistic playbook.  Get rid of over-regulating rules that hamper business development and get government out of the way.  
Just a reminder of how destructive Obama's policies have been (I call it the worst in American history) lets quote the Washington Post:
The American economy is less entrepreneurial now than at any point in the last three decades. That's the conclusion of a new study out from the Brookings Institution, which looks at the rates of new business creation and destruction since 1978.
Not only that, but during the most recent three years of the study -- 2009, 2010 and 2011 -- businesses were collapsing faster than they were being formed, a first. Overall, new businesses creation (measured as the share of all businesses less than one year old) declined by about half from 1978 to 2011.
Please note those years...the first three years of Obama's policies.  It is the first time in Amercan history that more businesses were collapsing faster than they were being formed.  Wow!  That is a major, major destructive accomplishment... And Obama is proud?  Give me a break!  Amercans ought now to be listening to India rather than Washington.  In the editorial below, Mr. Agarwal lays out some of the basics; something the Obama and the NWO crowd have omitted in their quest to destroy a once prosperous nation. ~ Norman E. Hooben

Source for the following: Economic Times
How new government can generate additional revenue of $1 trillion for the economy
by Anil Agarwal 

Chanakya said about 2,300 years ago, "In the absence of fruitful economic activity, both current prosperity and future growth are in danger of destruction".  India is the world's third largest economy.
But uncertainty prevails towards large national projects. We have a rising import bill of about $500 billion and are losing opportunities to explore, produce and utilise our natural resources.
Here is what the new government should do.
India's falling GDP is primarily a function of manufacturing slowdown. Though India has abundant reserves of bauxite, coal, iron ore, copper and gold, it is spending billions of dollars on imports.
Hundreds and thousands of large, medium and small scale industries can be set up across the nation to process our raw material and further manufacturing, which can create 10-15 crore* jobs and infrastructure. Energy security is a key priority. We need another 20 large companies to enter the energy sector to unlock its potential. The supply of coal through a single company is hampering power generation.

Auctions The Only Way

We must auction natural resources in the most sustainable and transparent manner, on a revenue sharing basis or highest royalty. Also, encourage Indian entrepreneurs who will bring world-class technology, build modern plants and big investments in our country.
Only this will ensure the highest standards of environment, health and safety. Unleash the hidden potential of public sector units (PSUs) by divesting 51% stake in each of them. In most democratic countries, the government does not run businesses. In India public sector companies can grow 10 times bigger if we divest at least 51% of their stake and sell them to the public at large.
Divestment should be such that no institution or individual can hold more than 10% of equity. Employees must be guaranteed their jobs and stock options to participate in the upside of the company's performance. We can find many successful examples like Larsen & Toubro, HDFC Bank, ICICI Bank and ITC, which are not owner driven but CEO driven companies. ONGC can become another Exxon, and SAIL can become another Vale.

Dig Deeper

The government should form a new ministry of natural resource development. To strengthen the country's economy, we must form a single large ministry to deal with development of all natural resources, and bring oil and gas, mines, coal and steel under a single umbrella and under a strong visionary leader. This new ministry of natural resources would look into the optimum development of our precious mineral resourc.
The government should end discrimination between the public and private sectors. In recent incidents, ONGC has been allowed to explore shale gas while the private sector companies are awaiting approvals.
Despite the iron ore mining ban in Goa and Karnataka (now lifted), NMDC has been continuing mining of iron ore. Similarly, Power Grid Corporation of India is reaping the benefits of being a public sector firm in the transmission business while private players are struggling.
Nalco is exporting alumina at much lower rate than being offered by domestic companies. Discrimination only hurts business sentiments and sends a wrong signal to the community of global investors.

Simplify The Rules

The government should reinforce its focus on women and child development. Two thirds of our population are children and women and their priorities like education, nutrition and health have to be addressed.
Rural women have immense potential to adopt and develop the liberal arts and make that a regular source of livelihood. Our women must become socially and economically empowered. For the dignity of our rural women, it is also important to construct household toilets in each rural house.
India has the largest number of children in the world, with 160 million children of less than six years of age. Around 50% of them are malnourished. The 14 lakh governmentrun Anganwadis need a transformation.
Infrastructure, education, water and sanitation, sufficient nutrition, and regular health checkups are necessary. We need a visionary minister to achieve all this. Bring in public-private partnerships ( PPP) in this area.
The country needs a simpler regulatory framework, based on transparent policies and processes with emphasis on self-declaration and strong deterrents and penalties for non compliance.
India is well positioned to become a powerhouse, and over a period of time the above measures can generate additional revenue of $1 trillion for the economy. People have high hopes from the new government, and so has every section of industry.

The author is Executive Chairman, Vedanta Group.
*A crore is a measurement which is equal to ten million. The term crore is most commonly used in India.

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