Taxpayers suffer

The latest edition of CPM organ People8217;s Democracy carries an article on the US government8217;s decision to bail out...

The latest edition of CPM organ People8217;s Democracy carries an article on the US government8217;s decision to bail out loss-making mortgage companies Fannie Mae and Freddie Mac, contrary to its ideology of capitalism and market economy. The piece titled 8216;Profits for the private corporates and losses to the taxpayers8217; argues that by taking control of the two firms, the Bush administration has effectively passed on the losses suffered by the private companies to American tax payers. 8220;Actually the take over of Fannie and Freddie by the US government means that losses incurred by the private corporates running into trillions of dollars are being added to the national debt of America, which has now reached USD 10.6 trillion Rs 4,66,40,000 crore. 8220;The war expenses in Iraq and Afghanistan are already added to the national debt directly, without being shown in the budget. Together, the American national debt would increase by trillions of dollars in the next few years and place unbearable burden on the present and future generations of American taxpayers,8221; it says. The article concludes that American capitalism8217;s market economy has turned into profits for corporates and losses to American taxpayers.

Loss of sovereignty

Another article titled 8216;the price of triumph: NSG waiver and after8217; looks into the strategic aspects of the Indo-US nuclear deal in the context of the Logistics Service Agreement being negotiated between both the countries.8221;India gets US support for lifting nuclear sanctions, while India accepts that the US fleet and US Air Force can now freely access India8217;s ports and other facilities. The US forces can bomb Iran and Iraq and then come to India for refuelling, rest and recreation,8221; it claims.

Given the way the US policy on Iran is shaping up, India8217;s support is important for the US and that is what India is now agreeing to without taking into consideration what is in its national interest, it adds. 8220;The other consequence of the Logistics Service Agreement is that it imposes inter-operability between the US forces and the forces of countries that sign the agreement. It means that the two sets of forces would use the same equipment in order to have inter-operability,8221; it claims. Further, it says, all over the world, enabling inter-operability always meant buying huge quantities of arms from the US. 8220;It is a way of tying other countries not only in a strategic web, but also to ensure the sale of large amounts of military hardware: it is billions of dollars in arms salesiquest;The sale of 126 US fighter aircraft currently on the anvil would be greatly helped in this agreement,8221; it notes.

Flooded with problems

The lead editorial on the Bihar floods claims that the National Disaster Management Authority has not been able to rise to the occasion because of bureaucratic wrangling, lack of direction and a vision. It says the cynical blame game currently on between the Bihar government and centre should stop immediately and all concerned must act in unison to tackle this catastrophe and provide relief to the people.