Sivaguru and US National Debt. There is a saying in Tamilnadu
~What is the connection between Amavaysa and Gulam Abdul Kader~
There are similarities in this case and hence I have chosen to write on
~Sivaguru and US National Debt~
I grew up in a village by the name Agaramangudi which had no electricity
when I was young. This place is about 15 kilometres from Thanjavur in Tamilnadu.
Our Village Headman was Mr Sivaguru.He was tall,fair and handsome. After
spending
the fortune left behind by his parents, he started living extravaganly with
other!s money.
He was the only man having a car in the village. He would be invited for all
functions and
marriages in the village and its neighbourhood,as the people considered it a
privilege
if Sivaguru attended the funcations at their homes.Using this clout,Sivaguru
would interefere
in other people!s affairs and land disputes. For some time, his judgements were
accepted
by the people.In due course, to prove his clout beyong the village and
district,he began to
spend indiscriminately with borrowed funds.These activities did not lead him
anywhere.
Mr Sigaguru piled a huge debt and he was not able to repay his creditors. His
credit dwindled
and he was not able to to maintain his life style. He disappeared one day from
the village
leaving his wife and sons answerable to the creditors. The meagre labnds left
behind were just
enough to feed the family.The wife and children died in poverty and to-day no
one remembers the family.
The moral of the story--- do not live beyond means. Do not borrow just to show
that you are
number one. Do not spend money by interfering in other people!s affairs. Avoid
wastreful expenditure.
Spend time and money for the family
What applies to individuals applies to countries as well.
US National Debt stands ar 14.7 trillion dollars.Normally Governmewnt Debt
is accumulation of Budget Deficits.Nearly two thirds of this debt is owed to the
people,
business and foreign governments who have bought treasury bills,notes and bonds.
Currently US National Debt is 95 percent of its GDP--up from 50 percent in 1988.
Interest burden on the debtis the fifth largest federal budget item,after
defense and
security spending.
What has caused this huge debt?. It is believed that the root causes are:
1)Wall Street bail-outs.
2)Wars in Iraq and Afghanistan and militarism
.
3)Huge tax giveaways for Corporates and the wealthy.
4)Healthcare costs jacked up by insurance and drug companies
US Federal Debt has increased from 9.2 trillion in 2007 to 14.7 trillion in
2011--an increase of nearly 55 percent.
We must remember that if US becomes bankrupt,other big countries will follow
suit.
This is a really dangerous situation which is even difficult to think.
One US Senator has said ~~# As long as the out of control of multi-trillion
Corporate welfare handouts in the form tax giveaways and costly rescue/bail-out
packages are not curtailed,the national debt and deficits are bound to continue
their upward trends~
If this is true, then it is very alarming.
I feel sorry for President Barack Obama. He is being asked to swim with both
hand tied. I only hope he does not go the Sivaguru way.
V.K.Balasubramanian
London
6th August 2011
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