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Haliaeetus leucocephalus: American Bald Eagle-The national symbol of USA
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When it is hard times even the mighty has to come to earth. That sounded exactly literal for the USA (whose national symbol is an eagle), who has just weathered a bad recession (second only to the great depression of the 1930s), and was facing a very embarassing of defaulting
In simple means it might have meant not able to honour debt commitments, simply like many of our poor Indians unable to pay the EMIs. What was very conspicous this time was the petty politicization of an issue of utmost national importance not much differenct from our country's.
Now that it will leave many wondering whether the US has come down to the level of Indian politics. We have to see whether this will affect the credit ratings of the lone superpower of the world, and if it will what effect will be there on the struggling world economy. What is most important to us is at two levels, short term and long term.
In short term we may be affected, as along with the struggling Eurozone, the US is our major export destination. This might badly affect our softwares, merchandise etc. Also if there are ripples in global economoy our workforce in the middle east (who are mainly employed by the Americans) might come back.
And even worst is the case for our Indian science. The debt deal stuck today also envisages deep government spend cuts, and no prize for guessing which will come on top - obviously the research spending. The already competitive US research grants might become much more competitive and our PDF destinations may have to be recourse somewhere else. As per the whispers coming out of the Indian PDFs already signs of that are visible after recession. And this might tightent the situation of our Ph. Ds and PDFs already in huge numbers and unemployed.
In long term the economic policies followed world over might be altered, as they are all modeled based on the US model. Now that trust on such system is evaporating countries like India who blindly follows the West has to rethink on the mindless globalization and after effects.
A sigh of releif though, one of our archrival the PR China might be even more affected!
I read a good article by a Chartered Accountant which came in Rediff (yes once in a while Rediff publishes sane news too)...pls take time to read if you are interested at the link as follows, it is comparatively simple language with less jargon
PS: many guys feel this has become an economics blog, but at the core of every subject is an economics, which even the mother nature has performed at Big Bang by distributing the wealth of energy and matter unevenly...as a humble and inconspicous product i am just emulating her.
Courtesy: Rediff.com Photo courtesy :wikipedia
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